Tips for First-Time Homebuyers in the Greater Toronto Area

The GTA is seeing more buyers enter the market however housing supply isn’t able to keep up. Prices are getting driven through the roof at what could easily be considered an unsustainable rate. The average price of residential properties across the GTA rose by over 20% from last year. 

Inventory is starting to increase as more property owners are choosing to sell properties. If you’re a first-time homebuyer who has been wanting to get into the market, opportunities are coming up. 

To help you find your new home, we have put together a list of tips that will help you get into the market. 

1. Make sure you have pre-approval before you submit an offer. 

In today’s hot market, most sellers aren’t going to accept a financed offer if it isn’t accompanied by a pre-approval letter. When you have pre-approval, you will know exactly what your budget is and be able to make offers with confidence. Ultimately, this will save you time and heartache. 

     2. FOMO shouldn’t control your buying decisions. 

Is the market hot right now? Absolutely. But if you don’t buy now that doesn’t mean that you’re going to be out of the market forever. Focus on finding the right home for you to avoid buyer’s remorse. 

     3. You don’t have to have a 20% down payment. 

Having a 20% deposit is great because it helps you avoid paying for default insurance, but it’s not a requirement to get a home loan. Default mortgage insurance usually adds between 2.5% and 4% to your mortgage. Home values rose five times that amount in just the past year. If you can’t come up with a 20% deposit, default mortgage insurance can be an excellent opportunity to get into the market and start building equity. 

    4. Consider up-and-coming neighborhoods. 

Toronto is a city that is always evolving. To get the most value from a home purchase, first-time homebuyers should look to neighborhoods that are on the rise. 

If you’re a first-time or returning homebuyer looking to buy a home in the GTA, I’d love to connect with you and guide you through the process.