Over half the people who emigrate to Canada decide to settle in Ontario for their new home. The province is the most populous in the country and is often ranked as having a very high quality of life.
The towns are safe and clean, and there are many job opportunities. It’s no wonder so many want to call the “Place to Grow” home.
In today’s housing market, the prices are high and inventory is in demand. It’s still a good time to invest in a property, however, especially with interest rates at record lows.
Whether you’re looking at Halton real estate or a condo in Toronto, here are some things you need to know about buying property in Ontario.
Save, Save, Save
When looking to buy a home you should be putting money into savings as much as you can. Ten percent of every paycheck is a standard amount to put away.
Putting down a sizable down payment will help with smaller mortgage default insurance premiums, more equity in your home, a lower monthly mortgage payment, and less interest paid over time. You need to put down at least 5% of the home purchase price as a down payment.
Consider If You Can Turn A Profit
Instead of looking at a property to live in, you might want to consider a property to rent out.
If you come across a space that’s a good deal for its location, consider snatching it up and turning it into a rental property.
Perhaps you’ve chosen a condo for your home. You may outgrow it down the line, and should think about turning it into a stream of income at that time as you look to move into a bigger space.
Do Your Homework
If you are a first time home buyer you’ll want to carefully study the process of buying a home, as well as analyze your personal budget. Knowing what you can afford upfront will make the shopping and purchasing process easier.
No matter how many homes you may or may not have purchased, you should also be looking into the area in which you want to live to determine if it’s suitable for you.
Look at things like crime rates, ease of transportation and work commute, proximity to amenities that mean the most to you, and the general mood of the area.
You will also want to take a close look at the market conditions in the area you want to buy. What are houses typically selling for?
Look for Grants and Rebates
Sometimes buying a home doesn’t need to be as costly as it seems, as you may be eligible for rebates or grants. Common programs to look into are a home buyer’s plan, where you can withdraw up to $35,000 from your RRSP for a home down payment, tax-free; Toronto’s land transfer tax rebate, where you may receive a partial refund of Toronto’s land transfer tax up to $4,475; or a GST/HST New Housing Rebate, a partial rebate on the GST or HST you paid on the cost of your new home.
