Buying your first home is intimidating, humbling, and, for a lot of people, it puts them out of their element. After you have your down payment ready and your finances are in order to secure a mortgage, navigating the real estate market as a first-time homebuyer can be hard work. As exciting as it can be, this is the most significant purchasing decision most Canadians ever make and, to get it right, it takes some due diligence. Here’s how to understand your local real estate market as a first-time home buyer and how to approach properties with confidence.

Be Strict With What You Can Afford

Manufacture a realistic homebuying budget and do not overshoot what you can truly afford. Crunch your numbers. Know your income, savings, and debts. Even if you’re offered a larger mortgage than what you need, be careful about taking it. Consider property taxes, homeowners’ insurance, repair costs, and property maintenance.

Know Your Essentials And Compromises

As a first-time buyer, you may be desiring the most in property size, location, features, and amenities. Then your budget gets in the way. It’s important to be realistic and practical about what you can’t compromise on when it comes to your first home and what you’re willing to be flexible with.

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Mortgage Pre-Approval Is Recommended

As a first-time home buyer, mortgage pre-approval will let you know how much a lender is willing to let you borrow. Calculate what an affordable monthly payment is and ensure you get pre-approved for no amount larger than it.

Be Practical With The Type Of Mortgage You Choose

Evaluate the terms and conditions given, especially as it relates to fixed-rate and variable-rate mortgages. A fixed rate locks in an interest rate for the entirety of your mortgage term whereas a variable rate will change the interest rate as it rises and falls over time. Also, consider the length of the term. A longer mortgage can help you lower your monthly payments, however, a shorter term could mean a better interest rate.

Select What Type Of Home You Want

Depending on your real estate area, you may find a mix of single-family homes, semi-detached houses, townhouses, and condos. Evaluate each property type per its pros and cons, such as the amenities that accompany a condo or the privacy you receive with a detached home. Based on your budget, present lifestyle, and long-term goals, use these three factors to determine what property is best.

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Research Your Real Estate Market

Look at provincial and local real estate statistics. Read local real estate news. See what properties are selling for. Be comprehensive with property values and market trends. This gives you more knowledge on how to put forth offers to buy a home and sets a knowledge base on what a property is worth to you.

Always Get A Home Inspection Before You Buy

Lastly, never skip out on the home inspection. When you inspect a home, you can identify problems with the plumbing, electrical, HVAC system, structural damage, and other potential problems. What you discover may mean submitting a lower offer to a person selling a house or submitting an offer with requested contingencies. A home inspection is essential to understanding exactly what you’re getting in a house.

A real estate agent can be a lifesaver. As a new buyer, you get someone who understands real estate dynamics, who’s able to show you properties, and who has the time to research reputable, qualifying Toronto homes for you. Connect with Adrian + Andrea, the experts in South Etobicoke real estate to find a suitable property for your needs.

Buying a home for the first time? We can help! Reach out to us today! Call (416) 319-6893 or email info@adrianandrea.com.