Use a Professional Realtor
It is an exciting time! You are considering investing/purchasing your First Home, there are many things to consider in the process of purchasing your First Real estate property. A Professional Realtor’s primary responsibility is to Represent You and ensure You receive Professional Guidance through the process and always Act in Your Best Interest. Arora Capital Realty would be privileged to represent you in this major step of your life; our professional resources & experience will ensure your best interests are always protected and provide you with a high degree of personalised service.
1.Location-Location-Location
Location is important when you are considering future property growth, closeness to work or amenities (Grocery Stores, Restaurants, Shopping, Schools, Community and Sports recreation, Greenspace etc.) and neighbourhood safety.
2. Size & Type of Property
The property you are considering should meet your current and planned future needs over the next 5 years+
Are you:
a. A single person and require a 1 Bedroom Condo with convenience and low maintenance?
b. A young Couple planning to grow your family? A 3 Bedroom Townhome that has room to meet your growing family maybe what you want/need?
c. A new Immigrant to Canada or Relocating from another province and require proximity to work?
d. A Family that has been renting and now ready to Own Your own home Everyone has their own requirements, wish & wants lists, consider what is on your list of “Must Haves”
3. Commuting Options
Consider the access to public transportation, major highways/byways and distance from work / school / play
4. Schools
Are you a young family and looking for a neighbourhood with good schools or specialty education requirements for your children?
5. Property Inspection
Once you have decided on a location / property type and perhaps even found “the One”, in your best interest you should consider a property inspection as a criterion of your offer to purchase. The inspection will reveal if all is well or identify anything that is required to improve in the property – this will ensure you are informed and comfortable with the quality of your home.
Price and Affordability
6. Financing & Credit Score
• Check your Credit Score – maintain your good credit standing
• Get “Pre-Approved” for your mortgage
There are several options available for financing/mortgage for your first purchase: a. Banks – are a conventional form of financing and offer mortgages up to 30 years amortisation b. Mortgage Broker – a certified mortgage broker will find you the best options with lowest cost of interest or best mortgage product – in your best interest c. Credit Unions and Other Financing companies/Private Lenders offering Mortgages
7. Down Payment
5% is the minimum down payment in Ontario and across Canada for the first $500,000 of a home purchase price. Any amount over $500,00 in purchase price will likely require 10% down payment for any amount over $500,000 Illustration purposes only: a. Home worth $500,000 Down payment = $25,000 ($500,000 x 5%) b. Home worth $750,000 Down payment = $50,000 ($500,000 x 5% + $250,000 x 10%)
8. Interest Rates & Property Tax
Type of Interest Rate:
a. Variable – As the name implies, the interest rate can move up or down according to the prime interest rate
b. Fixed – Interest rate does not change each month and offers predictable payments
Property Tax Is paid every year and is used by the city to support services / schools / infrastructure etc. The Property tax rate is anywhere from 0.599% to approx. 1.07%+ of the assessed value of your property (Note: Assessed value is different than Market value)
9. Closing Costs
When your property is set to close, there are additional costs you should consider and save for – i.e., Lawyers fees, inspection fees, property tax transfer and Moving Costs to list a few. • 1% of purchase price (at minimum) is a good starting point to aim for when saving.
10. Affordability
There are many options to make your purchase more affordable and achievable, such as considering a property with a Legal finished basement – this would allow you to rent a portion of your home and earn rental income to help pay your monthly expenses and pay off your mortgage faster!
These are several primary topics to consider; there are opportunities for every single person or family. When you decide to make a move to purchase your first home, Arora Capital realty is here for You every step of the way.
If you would like to know more about Real Estate options for YOUR FIRST HOME, be sure to connect with us:
Sam Arora
REALTOR®
Ontario | Greater Toronto
Office: 2960 Drew Road – Suite 143, Mississauga, ON L4T 0A5
Reception: (905) 603-1111
Mobile: (437) 998 0699
Sam.Arora@aroracapitalrealty.ca
