There are a lot of reasons why now is the right time to make the move as a buyer. However, there are a few things you’ll want to do before you head to the market to make the process smoother.
In this blog, we’ll cover the unique advantages available to buyers in today’s market and what steps they can take ahead of their purchase to maximize their chances of success.
Why Buy in Today’s Market?
Right now, home buyers in Toronto have the advantage of a less active market. With a lesser degree of competition, buyers are enjoying greater selection, lower prices, and an overall more relaxed atmosphere.
Want to buy a home in Toronto? Have a peek at these blog posts for more information and advice.
- Will I Ever Be Able to Afford a Home in Toronto?
- Why Creativity Matters When Placing an Offer on Toronto Real Estate
- How to Realistically Save For a Downpayment in Toronto
What About the High Interest Rates?
Right now one of the most common qualms that potential buyers have about making the leap to homeownership is interest rates. Ahead of the pandemic, Toronto home buyers were able to secure their mortgages at extraordinarily low rates, so in comparison, today’s rates may seem sky-high. However, that’s not actually the case. Looking back at the past four decades, today’s mortgage rates are about average. The ultra-low mortgages from just a few years ago are far more anomalous than what today’s buyers are paying.
While interest rates aren’t as uniquely buyer-favouring as they once were, market conditions are! Right now buyers have the opportunity to search for their ideal home without facing the ultra-competitive buying landscape that Toronto is known for. Therefore, rather than waiting for rates to return to pre-pandemic numbers, buyers can get a leg up by choosing a flexible rate mortgage today, and then locking into a lower fixed rate once the market dips in the future. By the interest rates decline again, these market conditions will be long gone.
Getting Purchase-Ready
For buyers, today’s market offers favourable conditions that won’t last forever. So what do you need to do before you’re ready to start house hunting? Here are four simple steps to ensure you’re market-ready.
1. Have Your Finances Organized
Having an idea of what you can afford is an essential part of getting ready to buy. Therefore, it’s crucial to assess your financial situation thoroughly and ensure you’re prepared for homeownership before you head to the market. Take stock of your (and your spouse’s) current income, expenses, and existing debts. Then, use an online mortgage calculator to estimate your monthly mortgage payments, property taxes, insurance, and other housing-related costs.
If you do have concerns about your financial eligibility regarding homeownership, talk to a real estate agent. Their up-to-date market knowledge can help you determine what you can afford.
2. Get Pre-Approved For a Mortgage
Securing a pre-approval for a mortgage is a critical step in the home-buying process. Pre-approval provides you with a clear understanding of your purchasing power and demonstrates to sellers that you’re a serious buyer.
3. Know What You’re Looking For
Before you head to the market, you’ll want to have a firm idea of what you’re actually looking for in a home. Determining your preferred neighbourhoods might be based on proximity to work, schools, access to public transportation, amenities, and the overall community vibe. Along with location, don’t forget to consider which essential features and amenities you need in a home, things like the number of bedrooms and bathrooms, kitchen layout, outdoor yard space, parking availability, and any other must-have features.
Buying a home in Toronto for the first time? Check out these other posts from our blog for helpful tips.
- 3 Toronto Neighbourhoods For First-Time Homebuyers
- A Condo Buying Guide For Millenials
- How to Take Advantage of First-Time Buyer Incentives
4. Find the Right Real Estate Agent
In any market, working with a real estate agent is essential for navigating the buying process. However, given the current state of Toronto real estate, choosing the right agent can make a world of difference. That’s where we come in.
With multiple decades of experience in Toronto’s active market, we have the insights and buying strategies needed to maximize your chances of finding (and landing) your dream home. Helping you stand out from the crowd and optimize your position as a buyer in today’s market, we’ll guide you through a seamless purchasing process from start to finish.
Ready to head to the market? As Toronto’s leading real estate experts, we can help you find a home that speaks to your heart. Send us an email or call 416-587-3300 to discover your path to success.
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