Due to inflating home prices across Toronto, many first time homebuyers are being forced to trade in their dreams of owning a single family home for a less expensive option such as a condominium.
Despite the high real estate prices, Toronto is still a hot spot for people looking to purchase a place to live. Over the years, the GTA has become a magnet for active, young people and even more specifically, millennials. Here’s how to buy a condo in Toronto on a budget. Know what you can afford Before you even begin the search for a condo, you need to know how much your budget will allot. The first thing you need to know is how much you have available for a down payment, and you may also have to factor in added costs like mortgage insurance. As someone who has experience helping Torontonians find their first home, my best advice is don’t break the bank to get into a pricey condominium. There are plenty of affordable options available if you take the time and look. Get pre-approved Once you know your budget, the next step is getting a mortgage pre-approval. This will tell you how much you’ll qualify for when seeking a mortgage. It’s important to note, a pre-approval can often be a bit more than what you’ll actually be approved for in the end. Enlist the help of a mortgage officer who can guide you along the way and tell you about any important documents that you’ll need to present. Know what you want When you’re buying a condo on a budget, you will want to understand that you may need to adjust some of your wish-list items. Instead of fancy amenities, focus on your must-haves like space, parking, and location. Search for savings where you can As a first-time homebuyer I often tell my clients - there are always opportunities to look for savings. Choosing an interior unit over one that faces the garden or those with an obstructed view can offer significant savings. Similarly, if you are willing to live in a suburb outside of Toronto with close proximity to public transit, you can save money upfront. Buying your first condo is exciting, a little overwhelming and fun at the same time. In a competitive real estate market like Toronto, it’s all about getting your foot in the real estate door and jumping on an opportunity as soon as it becomes available. You can always upgrade when your budget allows it. Happy hunting! Comments are closed.
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Cecil Darren Frank - Toronto Real Estate AgentArchives
October 2019
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