Buying a house in Ontario can seem daunting, but it’s not when you understand the procedure involved. However, there’s no doubt that it’s a costly venture that requires proper financial planning. That’s why you need to budget for every cost you’ll incur.
Thankfully, Ontario is home to the most livable cities in Canada. It also houses the most thriving communities, such as Killarney Beach, where you can live comfortably with your family. These places are safe and have all the amenities that fit your lifestyle.
8 Steps to Buy a House in Ontario
It’s no doubt that the home buying process Ontario can be quite overwhelming for first-time homebuyers. However, the good news is that this guide will help you learn how to buy a house in Ontario. Keep reading to learn more.
Here is the process of buying a house in Ontario.
Prepare an Accurate Budget
As mentioned, the home buying process is an expensive quest that requires a lot of money. It involves many costs, including down payment and the closing costs. Most home sellers will need a 20 percent down payment.
As a prospective homebuyer, you must ensure that the down payment is within your budget. If it’s more than what you can afford, you’ll end up taking out a private mortgage insurance (PMI). Consequently, that may make the process more expensive.
Explore the Mortgage Options
It’s no doubt that many financial institutions offer mortgages to potential homeowners, but not all of them have similar terms and conditions. So, if you plan to buy a house, you need to shop around to find a company that offers the best mortgage deal.
While most lenders will demand a 20 percent down payment, some are willing to accept low down payments of as low as five percent. However, you’ll still have to take out the PMI. Get preapproved for the best mortgage deal by a reputable lender.
Find a Highly Reputable Real Estate Agent
Ontario has many professional real estate agents who understand the housing market more than you do. So, seeking help from one of them will be a wise decision. You can shop around to hire a real estate agent with multiple positive reviews.
An excellent real estate agent will help you find all the potential homes that fall within your budget. They use powerful tools and resources that can simplify the search. Also, they can take you through the entire process of buying a house in Ontario.
Begin Searching for a Home
To narrow down your house hunting, you should first figure out the type of house you need, including the floor plan. Think about your current and future needs before buying a home. Besides, the kind of house you want should match your lifestyle.
As you begin the search, get a checklist that can help you track all the potential houses you’ve visited. With the list, you can also compare the features of the homes. Visit several homes before making the final decision.
Make an Offer
After finding the right design of a house that fulfills your needs and lifestyle, you should go ahead and make an offer. It’s the amount of money you’ll be willing to pay for the house. Upon placing an offer, it will be easier to start the negotiations.
If you are working with a real estate agent, they can take it to the potential home sellers for negotiations. The seller can either approve the offer or reject it, depending on market performance. In most cases, the home sellers will give a counter offer if not satisfied.
Find a Professional Home Inspector
After agreeing with the home seller, you can hire a house inspector to check if it is in good condition. While it’s a procedure that you can do alone, a house inspector can do it better. They are skilled at finding hard-to-see flaws in a home.
One good thing about home inspection is that you can identify the key areas that need repairs and replacements. If the investigation reveals major issues that will cost you much money to repair, you can negotiate with the home seller to lower the price.
Finalize and Close the Deal
Once you’ve inspected the house and finalized the house price with the home seller, it’s time to seal the deal. At this point, you should get all the essential documents deemed useful for the procedure. That includes a mortgage approval plan.
The best way to finalize the deal is by following a legal process. Meet with the seller at your lawyer’s office to sign all the paperwork. Also, it’s at that point that you can pay your down payment and all other closing costs to get the keys.
Prepare to Move into Your New Home
Congratulations! You are now the legal owner of the house you just bought in Ontario. So, you can prepare to move to the home at your convenience. If the house is in a different location, you should first change your home address.
Other preparations involve changing your utility providers and other services such as the internet, cable, and phone. During the move-in day, you can hire a transit company to help you move your belongings. You can also transport them by yourself, if possible.
Now that you know how to buy a house in Ontario, you’ll have no problem moving to this fantastic province. If you are ready to buy a home, follow the eight steps above to simplify the process. Also, work with an expert real estate agent to get the best deals.