Written by an Expert

What are important things to know when buying a property?

There are many important things to know when buying a property in Toronto including Market condition, market value, price, hidden fees and closing costs.

 

Market Conditions

With the real estate market fluctuating daily, having up-to-date knowledge on market conditions is crucial. The advice provided on mortgage rates, interest rates, and the real estate market can ensure that you buy during the right time. Having the most current information on rates from lenders is vital in saving a homebuyer thousands of dollars.

 

Market Value

 Buyers will always want to pay the lowest price for a property. With an experienced Realtor®, you will only be guided in the direction of homes that are worth the market value. With the exclusive database used by Realtors, The Multiple Listing Service (MLS), Realtors can conduct a comparative market analysis to determine the value of a home of interest.

 

Price

When purchasing a home, it is important to know what you can afford. By calculating the down payment, closing costs, mortgage payment, and maintenance fees, it should provide you with a clear understanding of what you can comfortably afford to buy. It is suggested that you see a mortgage consultant to get a pre-approved loan before shopping for a new home.

 

Additional Fees & Closing Costs

There are many additional fees when purchasing a home. From property tax, community fees, maintenance fees, estimated utilities and any special assessment on the property.  If you plan on selling in a few years after owning, the closing costs might outweigh the cost of what it would be to rent.

 

Examples:

  • Home Inspection
  • Home Appraisal
  • Status Certificate (If purchasing a condominium)
  • Property Insurance
  • Canada Mortgage and Housing Corporation (CMCH) Insurance
  • Mortgage Adjustment Period
  • Title insurance
  • Lawyer’s Fee – Including disbursements & adjustments
  • Land Transfer Tax
  • Moving Costs

About Author: Real Estate

Real Estate How To. By various authors, expert in Real Estate Industry of Canada.