When it comes to buying a house in Etobicoke…
We know that you need more than analytical insight into the Etobicoke housing market to make a truly successful purchase. You need a real estate team that understands where you’re at in life, because they’ve been in your shoes.
We too have navigated through our first real estate purchase, weighed the pros and cons of moving up in our ever-changing market, and know the complexities of balancing work, family, and life with the home-buying process. Best of all, we’ve done it all with ease and efficiency.
Buying Pre-Construction in Etobicoke
As the number of new developments in Etobicoke grows, so does the need for a real estate agent who knows the ins and outs of buying pre-construction. With the right connections, insight, and personal experience of buying Etobicoke condos, The Acri Team does it best. Work with us and we will…
- Provide specialized expertise in Valhalla Inn Rd. Condos and Michael Power Place, as well as the South Etobicoke, Mimico, and Humber Bay Shores neighbourhoods.
- Walk you through the unique process of buying a pre-construction unit to see if it’s the right choice for you.
- Leverage our up-to-date knowledge of the newest developments to find you the best real estate match.
- Advise you on obtaining a pre-approval letter.
- And more…
8 Steps to Buying A House in Etobicoke
1. Finding the Right REALTOR®
There are many resources available to you as a buyer, but none are more valuable than the personal attention you receive when you work with the right buyers’ agent.
Can’t I just use the property’s listing agent to buy the home?
You could – but they won’t be working in your best interest. Their goal is to get their seller top dollar for their home, where, as your buyer agents, our goal is to protect your investment, provide honest advice, and ensure you get the best price. Plus, hiring us comes at no cost to you.
2. Getting Pre-Approved for a Mortgage
At this stage, we can recommend a mortgage advisor to guide you through the pre-approval process. Having pre-approval documentation has many benefits: It saves you time since you already know what you can afford, it saves you money in the long-term, and it shows sellers that you already have financing in place, which can be a major factor in their final decision.
3. Deciding Where and What to Buy
Our goal is to find you the best house, at the best price, with as many of your wants and needs as possible. To achieve this, we’ll determine your “must-haves” and “would-be-nice-to-haves” together.
This includes everything from the essentials (such as home type and the number of bedrooms) to the home’s unique features, location, and exterior. We’ll also discuss your long-term goals and how they will influence your purchase.
4. Searching For a Home
Now, we start the home search! We have access to a database of new listings, exclusive listings, assignment sales, and off-market listings. We also keep you up-to-date with market changes, mortgage rate changes, and price adjustments.
We recommend seeing 5 homes a day max (seeing 3 to 4 is ideal). After a day of showings, we’ll sit down and discuss the homes’ merits and plan our next steps.
5. Making a Strong Offer
You’ve found a home you love – now, let’s make it yours. Our team will conduct a Comparative Market Analysis (CMA), which compares similar properties to determine the market value of the home, ensuring you get the best price. We’ll prepare a strong offer that matches your needs and schedule, and walk you through every detail, term, and clause to ensure your understanding.
We’ll present the offer to the seller on your behalf, after which the seller will either accept, reject, or counter-sign the offer. If further negotiations are needed, we’ll continue until an agreement can be reached.
6. Conditions, Home Inspections, and Waivers
Before the sale is closed, all conditions must be satisfied by both the seller and you, the buyer. This can include:
- Performing a home inspection.
- Providing additional personal/financial information to your mortgage broker.
- Arranging for surveys, water tests, or condominium documents if applicable.
At this stage, we can connect you with vetted home inspectors and lawyers (if you aren’t already working with one). By enlisting the help of professionals, you’ll experience peace of mind knowing the home is in good condition (or the issues are addressed), and that the legal documents, title transfer, taxes, mortgage information, and payments are in accordance with your agreement of purchase.
7. Preparing to Move
Typically, buyers will have anywhere from 30 to 90 days until move-in day (AKA the closing date), but that may vary depending on what you’ve agreed to with the sellers.
In the meantime, be sure to coordinate moving services, organize a change of address, and transfer all necessary utilities. You’ll also need to coordinate the down payment and pay the closing costs, so make sure the funds are available at this time.
8. Move in and Celebrate
Congratulations, you’re a homeowner! Owning property is a major accomplishment in life, and now, it’s time to make your new house feel like home. If you need anything, don’t hesitate to give us a call or send us an email. We’re here for you for the long haul, whether you need a recommendation for contractors or other professional services, have a question about the local market, or want to eventually sell. Our advice will always be fast, free, and confidential.
FAQ About Buying a House in Etobicoke
Learning how much you can afford starts by meeting with a mortgage advisor and submitting a mortgage pre-approval application to them. They will review your financial information to determine how much of a mortgage you can carry. With this information, you can save time by only seeing the homes you can afford, and it also lets sellers know that you’re are serious, qualified, and ready for buying a house in Etobicoke now.
The government has a number of credits, rebates, and programs in place to help buyers – especially first-time buyers – when purchasing real estate, including:
First-Time Home Buyers’ Tax Credit: This credit is worth roughly $750. You may qualify for this credit if you’ve purchased a new or existing home in Canada, which you plan on residing in within one year of purchase, and it is registered in your or your spouse’s name. Neither you nor your spouse can have owned in a home in the last four years to qualify.
GST/HST New Housing Rebate: If you have bought a new home, renovated an existing home, or rebuilt a home that was lost to fire, you may qualify for this rebate. The home must be your primary residence.
Ontario Land Transfer Tax Rebate: If you are a first-time buyer, you can receive a refund for all or a portion of the land transfer tax you pay when you purchase a home. There is also a land transfer tax rebate specifically for Toronto land transfer tax that you may be eligible for.
RRSP Home Buyers’ Plan: Qualified first-time buyers can borrow up to $25,000 from their RRSP account to help pay for their home, tax-free. Any funds you borrow must be repaid within 15 years, with payments starting two years after your purchase.
Ask our team about additional programs or rebates and other qualifications to learn more.
The answer to this question is dependent on your specific situation and financial capabilities. Let’s lay out the two options:
The biggest benefit to buying a house before you sell is peace of mind. You won’t have a closing date pressuring you to settle for a home that’s not right, and when you do sell, you won’t have to rush to find a home – you may have even already moved. The biggest downfall is carrying two mortgages at once and the stress that it can bring if you’re not financially prepared.
When you sell your home before you’ve purchased a new one, you not only avoid the chance of carrying two mortgages at once, but you know exactly how much money you have to spend on your new home. This is a good option for those with a stricter budget. The downfall to selling first is that you’ll find yourself in a time crunch – once your home is sold and a closing date is set, you have a set amount of time to find the right home.
To determine the right course of action, it’s best to discuss these options with your financial advisor and real estate agent. There are strategies and conditions that can be applied to ensure you’re in a good position in either of these situations.
We believe that being an educated buyer is the best way to approach the home-buying process, and that includes a home inspection. Yes, home inspections are an added cost, but they can save you thousands of dollars in the long run. With a home inspection performed by a qualified professional, you’ll know exactly what you’re investing in, what issues (big or small) need to be addressed, and can receive maintenance tips for easy fix-ups in the future.
As a buyer, there are a number of additional costs you should budget for, including:
- The balance of your down payment after your deposit.
- Mortgage loan administration and/or appraisal fees.
- Credit report fees.
- Mortgage insurance premiums if applicable.
- Land transfer tax and title registration fees.
- Survey expenses.
- Disbursements: Range upwards of $500. Includes travel, copies, couriers, registration fees, etc. These may be built into your legal fees.
- Adjustments: Cost is dependent on the potential overpayment or deficiencies on utilities, rents, mortgage interest, or property tax.
- Moving costs, including gas, rental fees, and moving supplies.
There are a number of differences when it comes to buying a pre-construction condo vs a resale condo. Here are few factors that may influence your decision:
If you’re buying a resale condo, you can put down as little as 5% for your down payment, but when buying pre-construction, you’re required to put down a minimum of 20%. This payment is typically broken up into 5 payments: $3K – $5K with the offer, 5% within 30 days, 5% in 90 days, 5% in 180 days, and 5% on the occupancy date. This structure may differ depending on the builder.
The Cooling-Off Period
In Ontario, pre-construction buyers are given 10 calendar days after they have put down their deposit to think about their decision and make sure they have their finances in order. If you change your mind and no longer want to purchase the unit, you can back out of the contract without a deduction on your deposit.
Additional Closing Costs & Fees
Although some of these costs may be included in the sale, it’s best to budget for the additional costs that come with buying a pre-construction unit. These can include development and educational levies, utility hook-up fees (and other builder fees), assignment fees if you sell your unit before the closing date, occupancy fees, a 2-month contribution to the Condo Reserve Fund, and others.
Want to learn more about the process of buying pre-construction? We’re happy to help – just contact our team.