Essential Guide for the First Time Home Buyer in Ontario
According to a recent Ipsos study, 80% of Canadians believe that being a first time home buyer in Ontario is only for the rich. With home ownership increasingly seen as out of reach for most, we’re reminding First Time Home Buyers in Ontario of the many options available to help them successfully enter today’s market.
The following are FIVE considerations every new First Time Home Buyer in Ontario should keep in mind:
1. Understand the Costs
When purchasing a home, it’s crucial to be aware of all associated costs, not just the price of the property. Apart from your down payment, you should budget for:
Utilities: Services like hydro, water, and even internet should be considered when assessing a home’s affordability. Be sure to ask about any ‘hook up’ or ‘transfer’ fees to be prepared for the full cost. Closing Costs: These include legal fees, land transfer taxes, and any other administrative fees. Property Taxes: Ongoing annual taxes that vary based on the property’s value and location. Note that your annual taxes will vary year-over-year as your property gets assessed annually.
Home Insurance: Protects your home and belongings against damage or theft. Maintenance Costs: Regular upkeep and unexpected repairs.
Utilities
Services like hydro, water, and even internet should be considered when assessing a home’s affordability. Be sure to ask about any ‘hook up’ or ‘transfer’ fees to be prepared for the full cost.
Closing Costs
These include legal fees, land transfer taxes, and any other administrative fees.
Property Taxes
Ongoing annual taxes that vary based on the property’s value and location. Note that your annual taxes will vary year-over-year as your property gets assessed annually.
Home Insurance
Protects your home and belongings against damage or theft. Maintenance Costs: Regular upkeep and unexpected repairs.
Maintenance Costs
Regular upkeep and unexpected repairs.
2. Down Payment Requirements
In Ontario, the minimum down payment depends on the price of the home:
For homes priced up to $500,000
A minimum down payment of 5% is required.
For homes priced between $500,001 and $999,999
You’ll need 5% for the first $500,000 and 10% for the remaining amount.
For homes priced $1 million or more
The down payment starts at 20%.
3. Explore First Time Home Buyer in Ontario Incentives
4. Get Pre-Approved for a Mortgage with WFCU
Before house hunting, getting pre-approved for a mortgage is essential. It helps you:
Determine Affordability
Understand how much you can borrow based on your financial situation
Strengthen Your Offer
Being pre-approved makes you a more attractive buyer to sellers.
5. Additional Tips for Success
Research Neighbourhoods
Browse different areas to find one that fits your lifestyle and budget.
Work with Real Estate Professionals
A knowledgeable real estate agent can guide you through the buying process and negotiate on your behalf.
Get a Home Inspection
Ensure the property is in good condition and identify potential issues before finalizing your purchase.
With this guide, you’re well on your way to making informed decisions and finding your ideal First Time Home Buyer in Ontario. For additional information, reach out to book an appointment with one of our WFCU Mortgage Specialists to find out what rebates you may be eligible for, and to discuss your mortgage pre-approval as a First Time Home Buyer in Ontario.
1 Source: Eight in Ten (80%) Believe that Owning a Home in Canada is Now Only for the Rich (https://www.ipsos.com/en-ca/eight-in-ten-believe-owning-home-in-canada-now-only-for-the-rich)
