Purchasing a Home in Ontario: 10 Tips for Homebuyers

Wednesday Sep 25th, 2024

Purchasing a home in Ontario is a big decision. My team of Oakville real estate agents and I are dedicated to guiding you through this process. We will make everything as seamless and stress-free as possible.

It doesn't matter if you're stepping into the market as a first-time home buyer or a seasoned investor. There is one thing that truly matters: getting the best value for your investment. It’s wise to do your homework and explore all options, but the journey doesn’t have to be scary.

Once you're comfortable with the real estate market, the real challenge begins: purchasing a home in Ontario. It involves more than just spotting a property—it's about finding the perfect match for your needs.

If you're looking for insights on how to successfully purchase a home here, you've come to the right place. This guide will be incredibly helpful in your search for a new home. Click the below steps to skip to that section!

10 STEPS TO PURCHASING A HOME IN ONTARIO:

CHOOSE THE RIGHT NEIGHBORHOOD

Deciding where to live is the first step in buying a home in Ontario. Whether you seek a peaceful, family-friendly suburb or the bustling nightlife of vibrant downtowns, Ontario has it all.

Think about what suits your lifestyle—do you prioritize safety, schools, amenities, or access to work? Make sure to visit potential neighborhoods at various times to truly understand the community dynamics.

For more insights into communities that my team and I, Oakville Realtors, specialize in, as well as nearby areas, check out our neighborhoods page. Here, you can explore areas that align with your lifestyle needs and start your home buying journey on the right foot.

GET PRE-APPROVED FOR A MORTGAGE

In a hot real estate market, pre-approved home buyers get preferential treatment when negotiating home purchases. Why? Because pre-approved buyers are financially qualified to purchase the home and are viewed as more serious than buyers who are not.

Nothing feels worse than finding the ideal home in the perfect area, only to realize you can't secure the financing needed to close the deal. Use our mortgage affordability calculator to see what you can afford!

Recent Updates to Mortgage Rules in Canada

The Canadian government has recently announced significant changes to the mortgage rules. This could have a major impact on home buyers in Ontario. As of December 15, the cap for insured mortgages has been raised from $1 million to $1.5 million.

This adjustment aims to make home ownership more accessible as property values continue to rise across many parts of the country.

That's not all. The update I feel we have all been waiting for is finally here.

First-time home buyers now have the option to secure a 30-year mortgage. It's no longer limited to just new builds; all types of homes are included, making it easier for many to enter the housing market.

This change is designed to make monthly payments more manageable, especially for those entering the housing market for the first time. These updates are expected to provide more flexibility and opportunities for buyers, potentially making it easier for more Canadians to purchase homes in today’s competitive market.

PARTNER WITH A RELIABLE REALTOR

This is one of the most important steps in the process. You will, for all intents and purposes, be in partnership with your REALTOR®. You will be confiding in them on a business level and often on a personal level.

They will be the people dealing with any problems that pop up along the way. They are the key to you finding the right home in the right area you for the price you want.

Hire someone you feel comfortable with and who has experience and knowledge in the area you are interested in. Once you select someone you feel good about working with, sign them up under buyer representation.

It's important to remember that the person you’re working with is representing you exclusively.

I take pride in ensuring all our clients receive the "Service You Deserve." Feel free to check out feedback from our clients on their experiences with us.

HOME BUYERS CONSULTATION

You and your Ontario REALTOR® will prepare each other for exactly what to expect along the way. The following points should be covered and fully understood during this meeting:

Your needs: number of bedrooms, baths, etc.
Areas you’re interested in
Your comfortable price range
Your timeline: Typically, it takes 30 to 60 days from purchase to closing.
Availability: Discuss how often you are available to look at properties and what you expect from your REALTOR® in terms of availability and communication (email, daily, or weekly phone updates).

Your REALTOR® should explain buyer brokerage vs. seller’s representation, and you should sign a buyer broker agreement.

VIEW HOMES IN ONTARIO

This is the fun part! It's crucial to limit the number of homes you view in a day. Overloading your schedule can make all the properties blur together, making it hard to remember specific details about each one.

Use a checklist: This helps you track the properties you've visited and remember their features.
Narrow down choices: After each visit, compare the homes. For instance, if house #3 was better than house #2, eliminate house #2 from your list immediately.
Communicate with your REALTOR®: It’s vital to let them know which houses you like and why, as well as which ones you don’t and why. This feedback helps them better understand your preferences.
Be open to revisits: Sometimes, it might take more than one visit to truly grasp what you’re looking for in a home.
Explore FSBO options: If you're interested in a for-sale-by-owner property, ask your REALTOR® to make contact on your behalf; they are there to represent and assist you.

Communication is key. Maintaining open lines with your REALTOR® can significantly enhance the house-hunting process.

SELECT A PROPERTY AND DO DUE DILIGENCE

Once you've narrowed your search down to one or two homes you really like, your REALTOR® will conduct the necessary research to aid your decision. However, the final choice will be yours.

Surprisingly, it often turns out to be a straightforward decision.

After selecting a home to focus on, your REALTOR® will perform a comparative market analysis on that property. This analysis determines the "fair market value" by comparing what other buyers have paid for similar properties in the same neighborhood or area.

MAKING AN OFFER & NEGOTIATING

When making an offer on a property in Ontario, it's crucial to decide in advance how much you're willing to pay and the terms of the house. You already know what fair market value is.

Now you have to decide what price you will offer; how much deposit you will offer, what personal property you wish to have conveyed (everything is negotiable), when you plan to close, and what inspections you plan to have conducted.

When negotiating with any seller, it’s best to remember not to take anything personally. Also, try to put yourself in the seller’s shoes. Figure out what’s not negotiable to you, and be willing to give a little on the things that are negotiable.

A good REALTOR® should be able to give you tons of advice about how to structure your offer. Once your offer has been presented, the seller will either accept your offer outright, reject your offer outright, or counter your offer.

The counter process can go back and forth many times. It’s important for all parties to keep their cool and focus on the goal.

CHOOSE THE RIGHT LEGAL REPRESENTATION

If you haven't already chosen a lawyer, our team can assist you in finding one who specializes in real estate transactions at a competitive price.

Securing the services of a seasoned property lawyer or notary is crucial. They can help prevent costly errors while ensuring your contracts are robust, lawful, and enforceable. Here’s what to consider when searching for legal assistance:

Expertise in Real Estate Law in Ontario - Look for a professional well-versed in local real estate laws.
Experience in Property Transactions - They should have a strong track record with transactions similar to yours.
Availability - Choose someone who can accommodate your schedule and is responsive.
Professional Ethics and Respect for Clients - Ensure they conduct themselves with integrity and respect towards their clients.

SECURE HOME INSURANCE

Before buying a home in Ontario, securing comprehensive home insurance is essential.

Make sure your policy covers rebuilding costs, includes specific protection against regional risks like floods or earthquakes, and offers liability coverage for personal injuries on your property. If you're purchasing a condo, it's crucial to have coverage for shared walls and common areas to avoid conflicts.

Checking for potential discounts based on the home's safety features or your personal criteria can also reduce costs. For tailored advice, consulting an insurance broker is recommended.

CLOSING DAY & MOVING

Closing day might feel like you’re “signing your life away,” but that's not quite the case. Your lawyer will explain every document thoroughly—never sign anything unless you completely understand it. Request blank copies of the documents beforehand for review if that makes you more comfortable. On closing day, you'll need to present your down payment and closing-cost funds via a certified check since personal checks are typically not accepted.

This is the last and probably the hardest step in the home-buying process. A little bit of planning and forethought will make for a much smoother move. You will want to make arrangements with a moving company as soon as you can.

Your REALTOR® will be able to provide you with some contacts. Be sure to change your address with the post office, your banks, and any creditors at least 30 days in advance. To avoid late payments, it’s a good idea to actually call and verify receipt of the address change whenever possible.

Call to order your utility hook-ups approximately 10 days prior to your move. Be aware that some utility companies will keep you on the phone for a long time.

CONCLUSION

Purchasing a home in Ontario involves many steps, and it's important to be well-prepared for each one. To avoid spending more money than needed, find a reliable real estate agent, research the neighborhoods, and scrutinize the property closely.

Don't skip the home inspection and ensure you're pre-approved for a mortgage to enhance your buying position. Also, do your due diligence on insurance policies and be ready for any unexpected closing costs.

My team and I have handled over 1000 transactions in Oakville and the surrounding areas, offering the best service to make the process as stress-free as possible. Let us guide you through each stage, or manage the entire process, so you can focus on the excitement of becoming a homeowner.

Call us at 289-334-0820 to start your journey toward purchasing your home in Ontario.

If you follow these guidelines, you’ll be well on your way to becoming the next Ontario homeowner.