Sorry to burst your bubble… buying a home is not as easy as looking at a few places, putting in an offer and hoping the sellers say yes. There is A LOT of legwork and you WILL have questions (or at least you should!).

The main takeaway from these tips is to find an agent who cares about your investment, not just their profit.

You want to work with someone you feel comfortable with. Not just to ask your questions, but to ask them a second, third or fourth time if you still don’t understand. Someone who will answer the questions you didn’t know you needed to ask. And most importantly, someone who will help you enjoy the gruelling job of finding your dream space!

The more you save, the more affordable your monthly mortgage payments will be!

While that new dress or rims for your car might seem enticing, is it worth being house poor after buying? Set aside tax refunds or work bonuses. Set up an automatic savings plan or use a spreadsheet to keep track of spending.

Don’t just settle on the mortgage agent you know from high school. Talk to a broker who will explain ALL your options as well as the benefits of each avenue. Ask your real estate agent (that’s me!) for contacts. Interview as many as you can to ensure you have a solid knowledge base.

There are many ways to keep up to date on your credit score for free. I use Borrowell for monthly updates but there are others such as Credit Karma. Regardless of what company you choose to go with to keep tabs on your credit, make sure this is something you do!

Getting that free t-shirt at the Blue Jays game this summer may seem tempting, but remember the MasterCard you have to sign up for to get the t-shirt will affect your credit score!

You may think you know how much you can afford; you might even be close. But until a professional looks closely at your finances, frankly put, you just don’t know 100%.

There are many factors affecting eligibility and it is important to know what your ceiling limit is before looking.

You will be spending a lot of time and working closely with your agent so it is vital you are comfortable with them.

Owning property is new territory for you. There will be questions along the way regardless of how much research you do on your own. Being comfortable with your agent to ask all of your questions and finding someone who is patient and thorough is important to ensure you are well informed throughout the buying process.

Working with someone you like also makes it a more fun and positive experience!

Look at properties that are under your pre-approval amount – not over!!

It’s exciting to see what property is available and go house hunting, especially for the first time. But remember, your pre-approval is a ceiling amount and does not leave you room for other expenses.

The market can be competitive! Looking at properties listed at the top end of your budget doesn’t leave room for bidding if there are other offers on your dream space.

If you’re a first time home buyer in Toronto and can afford a freehold family home, you’re not in the majority. The reality is Toronto real estate is expensive. Entry level property is commonly a condo or townhouse.

While you may be able to afford a small old bungalow in a particular neighbourhood, a new townhouse may be better suited for your needs and wallet.

Whether you are following signs on your Saturday afternoon drive or viewing a list of properties with your agent, make the most of your experience and pay attention to the details.

Ask key questions like when the furnace was last replaced. Look out for possible water stains or strange smells. If I’m your agent I won’t let you buy a property we haven’t thoroughly inspected together. Don’t settle for less!

You can shop around and compare prices for certain closing costs such as home insurance. But you’ll still need to budget a significant amount for these expenses. Do your research and spend time creating an all encompassing budget.

Moving isn’t as easy as converting a spare bedroom into a nursery.

A one bedroom downtown condo may suit your family needs for the next year or two, but is it a long term home?
Are you planning to grow your family?
Do you have parents from out of town that will be staying with you regularly?

Maybe a two bedroom further from downtown with access to the GO for ease of work travel makes more sense. Think of tomorrow when you’re looking for a property – not just your immediate wants.

You got a condo but can’t afford a bed.

Don’t end up sleeping on an air mattress for a year because you maxed out your expenses, didn’t budget closing costs and didn’t have a move-in budget! This budget can include a fund for small repairs such as painting or upgraded fixtures! Don’t forget the necessities like furniture though… 

There are a lot of minor items that can be up for negotiation in the home buying process. Before you get ahead of yourself with this one, talk to your agent about the market.

Buyer’s Market

Sellers may be more willing to negotiate with you to get their property sold. 

Seller’s Market

If it is a sellers’ market and you are competing with multiple offers, do your research on the condition of the property and budget accordingly to fix or update the items you might otherwise be able to negotiate.

While home inspections check off many large ticket items, home inspectors are not professionals in every field. They may know the age of your furnace, but they don’t test for air flow and overall functionality of the unit.

Good Luck!

You made it to the end! THANK YOU!!
If you’re not exceptionally bored by my run-on sentences and bad humour, keep reading! 
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