Buying a Home in Ontario? Consider These Essential Tips

With its proximity to Niagara Falls and the many surrounding natural parks and wonders, the picturesque beauty of Ontario makes it a popular Canadian province to move to. For working professionals, both Toronto and Ottawa offer many career opportunities. Not to mention, they’re also hubs of entertainment and culture. So, if you’re looking to purchase a home in Ontario, read on as we cover a few essentials worth noting.

Area

Like anywhere else in the world, cities sport much higher housing and living costs than rural areas. So, consider this as you think about purchasing a home. In Toronto, the average home price in 2018 was $766.000 but only $382.000 in Ottawa. Carefully consider your budget as you decide where you want to live in Ontario, because as you can see, housing prices fluctuate wildly.

Buying a Home in Ontario

As you start hunting for your dream home, there are a few things to consider. To stay on top of things, write down a list of things to which you’re seeking answers. To help you out, here are a few things to get started:

• Think about the neighborhood: How many schools, parks and amenities do you need or want close by? Is having easy access to public transportation important to you?
• Consider how many bedrooms you need: If housing rates fall unfavorably in a few year’s time, will this house still suit your needs?
• Get pre-approved for a mortgage: Complete a credit check with a mortgage advisor, so you can hash out an agreement in principle whenever you see the house of your dreams. After all, being ready to buy something immediately puts you in a better position compared to other interested buyers.

Mortgage Rates

Getting the best mortgage rates in Ontario will ensure you can comfortably afford to live in the home you want and desire, so make it a point to determine what you can afford to spend before putting down an offer.

As you may already be aware, your mortgage rate will be profoundly affected by the down payment you put on the home or condo. Since 2018, a mandatory downpayment of at least 20 percent of the housing price is necessary. Of course, if you’re able to put down more, experts strongly suggest doing so to lower your monthly mortgage payment and the amount of interest you’ll pay over time.

You can also secure a better mortgage rate by locking yourself into a fixed-term mortgage. The better your credit history, the sweeter the deal the mortgage lender can offer you. So, in preparation, make sure your credit is in order and you aren’t neglecting any outstanding debt.

Closing Costs

When searching for houses, potential homebuyers often forget to calculate closing fees. Experts recommend adding at least 2 percent of the house price onto your budget to accommodate these closing costs. These fees are usually made up of:

• Legal dues and disbursements: A lawyer will charge you a fee for crafting the property deeds and overseeing the purchase. This may include registrations, surveys and searches.
• Land transfer taxes: These costs fluctuate from area to area, so do your research on taxes in Ontario.
• Interest adjustment dates: In the first month, you may pay more on your mortgage. This is where the transaction has carried over from the previous month.
• Property appraisals: In some cases, a mortgage lender might not lend you the money until an appraisal has been completed on the property.

Ready to Move?

Buying a new home or property is an exciting and significant step in anyone’s life, but it certainly comes with high costs, effort and change. We hope you keep all these tips in mind as you start house hunting, and hopefully, you’ll soon find your forever home in Ontario.