FAQs for First-Time Home Buyers and Sellers in Toronto, Ontario

1. What steps should I take before buying my first home?
Before purchasing, get pre-approved for a mortgage to understand your budget, research neighbourhoods, and attend open houses. It’s important to work with a local realtor who can guide you through Toronto’s real estate market and help negotiate the best terms.

2. How much do I need for a down payment?
In Canada, the minimum down payment is 5% for homes under $500,000. For homes between $500,000 and $999,999, it’s 5% on the first $500,000 and 10% on the remainder. Homes $1.5 million and above require a 20% down payment.

3. What are the additional costs involved in buying a home?
Besides the down payment, expect to pay land transfer tax (Toronto has an additional municipal tax), legal fees, home inspection fees, title insurance, and possibly mortgage insurance if your down payment is under 20%.

4. How long does it typically take to sell a home in Toronto?
The average time varies but often ranges from 20 to 45 days once listed, depending on market conditions and price. Pricing your home competitively and working with a knowledgeable realtor can significantly impact the timeline.

5. What is a home inspection, and should I get one?
A home inspection is a professional evaluation of the property’s condition, including structural components and systems. It’s highly recommended to identify any issues before finalizing your purchase or listing your home.

6. Can I sell my current home before buying a new one?
Yes, but it depends on your financial situation and market conditions. Selling first can reduce financial risk, but timing can be challenging. Your realtor can help coordinate the sale and purchase to minimize disruption.