Buying a home is one of the most expensive and fundamental decisions that an individual will make. As much as it is exciting and enjoyable sifting through modern and latest housing designs, there is much to consider before making the final decision. 

Buying a home is an important part of life's trajectory, and should therefore be fun and seamless. Purchasing a home offers the buyer a sense of belonging, and secures their future wherever housing is concerned. Home buying is a worthy investment that offers high yields and returns, bumping the resale value of the property exponentially. 

Purchasing a home offers the buyer the opportunity to invest and secure their future. More and more Canadians are buying homes in different parts of the city. Ontario is one of the fastest-growing cities in Canada, prompting investors and developers to venture heavily into this market. 

With the percentage of homeowners rising in Ontario, individuals are finding themselves venturing into real estate and shopping for the perfect home that matches their needs and expectations. Buying a home is a huge financial decision that should be backed up with careful considerations on how the market is before commitment. 

Proper and adequate research is required before seeking to purchase a home. Getting an education on this can help provide pertinent information that will assist the buyer in making the right choice and reduce the normal stress and anxiety that is associated with such a huge decision.

However, what entails purchasing a home in Ontario? Below are some considerations that will assist potential homeowners through the entire process, and help them to make informed decisions.

Important steps in buying a house

• Evaluating your savings

The first step before choosing to buy a house is to check your savings to see whether you have something to start with. You don’t have to have the full amount but at least some funds to start with and help you secure a mortgage successfully. Acquiring a mortgage requires being able to put down a down payment to be considered, and this can be done with the amount saved over some time. 

Depending on the property’s value, the down payment will vary to Ontario requires at least a 5% down payment for houses that are under $500,000 and a deposit of 20% for those above one million. Houses that are between $500,000 to one million require a 5% deposit with the $5000,000 payment and 10% of the remainder. These costs ensure that the buyer is committed to the purchase. The higher the down payment, the more money the buyer saves eventually, as the interest payments are lower and the bank will not require insurance or any other collateral for the mortgage. 

However, with the rapid growth in the average sale process for homes, accumulating substantial savings can be a tedious task. There are several incentives offered by the federal government that aim to assist potential homebuyers to achieve their dream. For instance, the shared home equity under the First Buyer’s Incentive plan is offering individuals $25,000, while the Home Buyers Plan allows individuals to borrow $35,000 for a down payment. 

• Analyzing income streams

Purchasing a home needs a stable source of income to be able to keep up with the interest payments and remissions in a timely fashion. Having a stable income is a core aspect when considering getting a mortgage as it allows for flexible payments. Various expenses are associated with purchasing a home. 

Maintenance fees, home insurance and monthly premiums can be quite costly. Therefore, having a stream of income will go a long way in providing assurity that one can come up with the required payments. Self-employed individuals are advised to set up an emergency fund that will cater and see to any eventualities. 

• Finding the right team

Purchasing a house doesn't need to be an individual affair. It is possible to get professionals to help you decide pertinent issues such as location, closing costs, and the overall transfer process. The right team should comprise of industry players who are conversant with the purchase laws and practices, and who will advise you accordingly on the right course of action to take. For instance, finding a realtor in Toronto can be done by sieving through the realtor portal to find the right fit. 

Identifying the right bank to take the mortgage from is also key in ensuring a seamless payment process. Finally, it is best to get the right lawyer for representation and making one aware of all the legal components in the purchase. 

• Get a mortgage approval

Acquiring a mortgage approval will require you to have an income and a good credit score. With this, your bank will be able to process a pre-approval which puts you in the front towards securing the necessary funding. 

• Making an offer

After securing the mortgage and finding the house you dream of and want to invest in, making an offer is a next step. A house that ticks all the boxes meet the individual's wants and needs, and is within the right price range is a goldmine. Therefore, making a suitable offer comprising of the price payable, the deposit amount based on Ontario's guidelines, and the closing date is fundamental to the purchase. 

A lawyer should be involved during this stage as this will help in reviewing the conditions to be met, and whether signing it or rejecting it will be in the best interest of the buyer. If the buyer is satisfied and accepts the offer, the deal can close after all the conditions are met in regards to the deposit. 

Tips for First-time homebuyers

When seeking to acquire a mortgage plan, it is best to build your credit score by avoiding late payments, maintaining a good history of credit, and utilize your credit to avoid getting owed by the taxman. 

Be sure to engage your realtor in showing you how to use an online tool that will help narrow down your search. For instance, Collab is a tool that enables first-time buyers to check out the available homes, include them in their wish list and get suggestions for possible homes within Ontario.