Finding A Condo Made Just For You
Like any other big investment, buying a condo in the Greater Toronto Area involves extensive planning. The more education and planning goes into it, the less surprises and the smoother the buying process can be for you.
- Understanding the Market
In the last couple years, the Greater Toronto Area real estate market has seen major fluctuations. We saw condo prices reach their highest peak, after which they started declining gradually. As of 2023, the average condo price in Toronto is around CAD 715,000. Condos in central Toronto cost higher prices due to their close proximity to business districts and entertainment venues.
In contrast, areas like Brampton and Mississauga offer more affordable options. It monitors market trends closely as it affects both the availability and value of properties. The Toronto Regional Real Estate Board provides monthly market reports which gives you insights into price trends, sales volumes, and inventory levels.
- Choosing the Right Location
Location is a key factor in condo living as they are designed to add to your convenience and comfort. In the GTA, each area offers a unique living experience. Downtown Toronto offers a vibrant urban lifestyle, close to work, nightlife, and cultural attractions. On the other hand, for families or those looking for quieter surroundings with good schools, suburbs like Mississauga or Scarborough are attractive.
Consider your daily commute, access to public transportation, and proximity to essential services like grocery stores, schools, and hospitals. Also, think about the neighbourhood’s future development plans, as these can affect both your lifestyle and the long-term value of your investment.
- Budgeting Wisely
Most first home buyers ignore the maintenance and closing costs when making their purchase plans. Maintenance fees are a significant monthly expense, typically ranging from CAD 0.50 to CAD 1.00 per square foot. These fees cover building upkeep, amenities, and sometimes utilities. Another yearly expense to factor in are property taxes, which vary by municipality, and insurance costs.
It’s also wise to set aside funds for unexpected repairs or increases in monthly fees. A realistic budget should include these ongoing costs to ensure you can comfortably afford your new home in the long term.
- Securing Financing
Obtaining pre-approval for a mortgage is the most important part of the buying process. It not only defines your budget but also demonstrates to sellers that you are a serious buyer.
Shop around for the best mortgage rates and terms. Banks, credit unions, and mortgage brokers offer different options. Consider fixed versus variable rates and the length of the mortgage term. A lower interest rate can save you thousands of dollars over the life of the mortgage. Read the terms and conditions closely and don’t jump at the first low rate mortgage you find.
Understand the mortgage qualification criteria, including your credit score, income stability, and debt-to-income ratio, as these will impact your borrowing capacity. If interest rates were to rise, would you be able to cover the monthly increases? If your answer is no, then you need to save more money as a backup plan.