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Toronto First Time Buyer Tips
April 7, 2011 by chris · Leave a Comment
The minimum downpayment on a condo in Toronto is 5% of the purchase price.
If you have a good credit score but very little money for a downpayment, you MAY qualify for a 0% down mortgage. To find out if you qualify for one, you can go to bank or a mortgage rep and get a preapproval. The consultation for a pre-approval is completely free.
Yes! Getting a preapproval will make it clear just what your price range is. Your preapproval will be based on your credit score, your financial situation, and the amount of money you have to make a downpayment. Again, a preapproval consultation is free, and once a bank commits to lending you a certain amount of money, you have locked in that rate (usually for 90 to 120 days), meaning that your rate will stay the same even if interest rates go up.
When you are buying a condo, you pay the realtor ABSOLUTELY NOTHING. Our services are completely free.
When you’re buying a condo, there are NO disadvantages to employing a realtor to help you. Our services are free and we have a fiduciary duty to you as the buyer; in other words, we are legally obligated to NOT reveal anything that you tell us to the seller or to other realtors.
What is a deposit on a condo?
When an offer on a condo is accepted, the buyer usually pays a small deposit to the seller as a sign of good faith. This deposit is subtracted from your downpayment; in other words, if you’re buying a $200000 condo and paying a $10000 downpayment, you might make a $5000 deposit. Once you’ve paid this deposit, your remaining downpayment will be $5000.
When an offer on a condo is accepted, the buyer usually pays a small deposit to the seller as a sign of good faith. This deposit is subtracted from your downpayment; in other words, if you’re buying a $200000 condo and paying a $10000 downpayment, you might make a $5000 deposit. Once you’ve paid this deposit, your remaining downpayment will be $5000.
What are closing costs when buying a condo in Ontario?
Typically, your closing costs will be around 1.5% of your purchase price.
Typically, your closing costs will be around 1.5% of your purchase price.
The biggest closing cost that you’ll pay on your condo is the Land Transfer Tax, which is paid to the government. This tax will be between 0.5% and 2%. Note that first time buyers receive a $2000 discount on this tax! Residents of Toronto will have to pay an additional tax to the municipal government.
Your closing costs will also include the legal fees paid to your lawyer, the registration cost, and a few other smaller, miscellanious costs.
How can I learn more?
If you’re a first time buyer and you’d like to learn more, contact us today using the form below (or email nazaars@rogers.com) for a completely FREE home buyer’s consultation. Or, click here for a free, customized list of condo units that suit your needs and price range.
