Whether you’re a first time Buyer, or a seasoned Buyer, everyone should go through the pre-approval process so that you can move forward without risk.
When you make an offer, you will need 5% of the purchase price liquid and available to be certified and delivered as a deposit the next business day after acceptance of the agreement of purchase and sale.
In most scenarios, 20% down payment on closing is expected. There are exceptions to this but if you put less than 20% down, you will need additional approval from CMHC and will be required to pay a third party insurance premium.
Aside from the purchase price, there are other associated costs with closing a real estate transaction, such as:
- Land Transfer Tax (Varies on location)
- Legal Fees (Disbursements and Title Insurance)
- Moving Costs
- Home Inspection Report (If applicable)
- Property Insurance
*If you are a first time home buyer in Toronto, you will get a break on the Land Transfer Tax.
*Make sure to check the Toronto District School Board locator to ensure that you purchase a home in the school district of your choice!