Toronto is one of the most popular cities of Canada which is developing in all major aspects, whether it is employment or infrastructure. It is amongst some of the most sought-after places that provide various facilities to its residents. The amiable lifestyle and the standard of living in Little York influence its citizens to buy a home in Toronto. This has led to an increase in the real estate prices of Toronto over the years. Without any further ado, let’s scour affordable condos and houses in Toronto without raising your budget. To help you in your quest to find an affordable home, we have compiled a guide to ease your search!
Points To Remember When Buying A First-Time Home
If you are new to the real estate market then never jump into it directly. Do thorough research yourself before investing in any property for the best results. We have jotted down a few points for you to give your research a good start:
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- We suggest you clear all the debts and save an emergency fund.
- You can also spare some time to check what you can afford.
- Save 10 – 20 percent of the total house price as a down payment
- Remember to save for the closing cost
- Get a pre-approved mortgage before you hunt for a house (this saves time and you get the idea of the budget as well)
- Besides hunting for a house, also search for good neighbourhoods
- Think long term as property is a big purchase investment
After taking the initial steps, you have to decide whether you want to buy a condo in Toronto or a large home. If a condo is on your list, go through the below-listed steps to close your deal at ease.
Things to Remember When You Buy a Condo in Toronto
Buying a condo in Toronto is actually a great investment decision because the city has all the essential factors that boost the real estate market, for instance, population and economy. If you want to buy a condo in Toronto, firstly you would require to start planning your budget. And for doing this, you can estimate your monthly and yearly expenses to figure out the amount you can save. Or you can rather plan in advance for the down-payment and the hidden charges just as, transfer fees, registration charges, legal fees, and so forth.
It is important to keep in mind that there are several variable charges while buying a property that changes over time. Thus, it is always good to overestimate the saving amount as it will somehow help you later either in your down payment or in your monthly expense. The price of a 3 plus bedroom condo apartment in Toronto in late 2021 went around CA$ 925,000. The minimum price per square foot of a 3 plus bedroom condo apartment in Toronto was CA$ 631. So considering both if we average the minimum amount, it will lie between CA$ 1,465 per square foot. And if we figure out the average rent for condos then you can take CA$ 3,400 per month.
Things to Remember When You Buy a House in Toronto
Buying a house in Toronto – the city and plan both sound exciting, right? But it is always good to move forward step by step rather than jumping in directly. Therefore, a house is a big purchase, it requires good market knowledge and thorough research before investing.
In order to figure out what you can afford we have listed two easy steps to know if you can make this purchase or not.
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- First, you need to look up the minimum price you have set in your mind for the purchase.
- Secondly, take advice from an experienced real estate agent to verify if you are cracking the deal the right way or it’s the wrong timing to purchase the property at this price.
After following the above steps, now be prepared with the down-payment and always try to put a big amount in your down-payment to avoid high interest on your mortgage. Although buying a house sounds exciting, it asks for years of preparation. We understand you cannot predict the down-payment as it depends upon the total price of the house but you can still estimate and save a good amount to help yourself manage later expenses. And if you want to get the idea of the down-payment price to buy a home in Toronto then have a look below:
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- Below 500,000 = 5%
- Between 500,000 – 999,999 = 10%
- Equal to or above $1 million = 20%
With the above-mentioned percentages, you can get the idea to save an approximate amount for the down payment of your house. Always keep in mind that the down payment process could take up to a couple of years so always be patient and focused on your goals. Here are some locations in Toronto where you can buy a house at a cheaper price like Thunder Bay, Sudbury, Barrie, Windsor, and Kingston. Be it affordable or expensive every home bing process requires the below-mentioned steps to initiate the procedure.
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- Pre-approved mortgage: Getting your mortgage approval in advance doesn’t mean you have it, you still have to wait for the final acceptance but at least a real estate agent understands your sincerity and you also get the idea of the budget.
- Hire a Real Estate Agent: If you wish to buy a home but you are new to the real estate market or to Toronto city, then it is good to approach a real estate agent. A real estate agent is important because they help you find a suitable property as per your budget and desired location. But make sure you examine their experience and knowledge of the market before you hire one to grab the best deal.
- Do Your Research: Although a real estate agent takes you to everything that is required to buy a house in Toronto, still there are things that only you can decide, for instance, neighborhoods, location, closing price, and so forth. So it is good to educate yourself in a property buying thing as it will help you purchase further properties.
Conclusion
As you know Toronto is a little expensive place to live as compared to the other places in Canada and the reason is its growth and infrastructure that attracts every home buyer and job seeker. With the help of an informed real estate agent and your own market research will lead you to buy a cheaper home in Toronto with a promising market value in the coming years. Following the above steps, you can make a great investment by buying a condo or house in Toronto because the population and the economy of the city are growing day by day. Thus, making a property investment at such a demanding place will ensure your growth.
Frequently Asked Questions (FAQs)
In Ontario, some of the most budget-friendly areas for purchasing single-detached homes include the nature-rich environs of North Bay and Thunder Bay, historically charming Kingston, culturally vibrant Peterborough and tranquil Muskoka, among others.
Cities like Weyburn in Saskatchewan, Brockville in Ontario and British Columbia's Prince George are some of the most affordable cities around Canada.
The Forest Hill South, Bridle-Path Sunnybrook-Yorkmills, Lawrence Park, Yonge and St. Clair, and Mount Pleasant East are some of the safest areas in Toronto.
The demand and popularity of Toronto make it expensive compared to the other cities of Canada. Toronto has high rent and monthly expenses, such as groceries, phone plans, and transit. Fortunately, jobs are also high paying in Toronto, which helps you easily manage all the expenses.
Toronto and Vancouver have similar expenses when considering the average salary, price of day-to-day living, and housing costs. Vancouver, therefore, does edge Toronto out when it feels things like utilities, rent, and groceries.
It depends on the market trends and locality. For more information, keep reading this space.
Areas like The Beaches offer a laid-back, family-friendly atmosphere, while midtown neighbourhoods like Yonge-Eglinton are known for their accessibility and vibrant city life. For those seeking upscale living, areas such as Rosedale and Forest Hill are prestigious options. Ultimately, the best area aligns with your individual needs and aspirations for home and community.
There are no restrictions on the ownership of real estate by non-residents. Still, some provinces have specific tax implications for foreign buyers, such as the Non-Resident Speculation Tax in Ontario. You can consult our real estate professionals, who are familiar with Canadian real estate laws, to easily navigate the buying process.
Buying a house in Toronto can be challenging due to its competitive and high-priced real estate market. Prospective buyers often face multiple offer situations, high demand, a fast-paced market, and the need for substantial financial readiness for down payments and other associated costs. Where can I get the cheapest home in Ontario?
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