Buying a house in Ontario is an exciting milestone, but we realize it can feel overwhelming. Sometimes, it helps to have an outline of the steps to buying a house in Ontario so you have a plan of reference to begin preparing.

Over the last number of years we have heard many times that buying a home is just going to be out of reach for many young people. The Weeks Group has worked with many first-time home buyers not just to buy but to get ready and understand what it takes. We are happy to say we have been successful in every case and, just this month, helped two couples under 25 to achieve their dream. Sometimes, it may take a year or two to prepare, but we will get you there.

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Requirements for Buying a House in Canada

Before you start house hunting, you will need to make sure you understand the requirements to be fully prepared.

Down Payment: In Canada, the minimum down payment is 5% for homes under a million dollars. It is 20% for homes over a million dollars. If your down payment is less than 20%, then you will have what is called an insured versus conventional mortgage.

This means that you have to pay a surcharge to CMHC (Canada Mortgage and Housing Corporation) to insure your mortgage for the bank that lends you money, so if you default, then the bank will be paid by CMHC. Banks like this type of insured mortgage as it takes their risk away, and most times, you will get a slightly lower interest rate for this type of mortgage.

Mortgage pre-approval: Getting pre-approved helps you to understand your budget but also shows sellers you are a serious buyer. That helps us in negotiations.

Credit score: A strong credit score of 700+ improves your mortgage rates and the number of mortgagors that may offer a mortgage to you.

Closing costs: Budget for 1.54% of your purchase price for land transfer tax, legal fees and inspections. An important note for first-time home buyers in Ontario is that you may qualify for a rebate on the land transfer tax.

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Before buying a house, some background research is always helpful. The posts below will give you some much-needed insight:

• Barrie Luxury Real Estate Compared to Toronto
• How Does Real Estate Negotiation Work In Today’s Market?
• What Do the Seasons Mean for the Barrie Real Estate Market?

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Steps to Buying a House in Ontario

Get financially prepared: Save for your down payment, check your credit score, then ask us how to take steps to get pre-approved.

Hire a Realtor®: A multi-skilled, experienced Realtor® knows market trends, can be a highly skilled technical and artful negotiator, guides you through all of the legalities and technicalities, can have inside information, and can be very connected in the marketplace.

House hunting: focus on neighbourhoods, commute times, and, very importantly, your future resale value.

Make an offer: Your Realtor® will draft an offer to purchase to protect and advance your interests. An offer requires strategy. Many things are included in an offer depending on the circumstances, such as possible competitive bids, escalation clauses or a condition to sell your house first, etc. There are many examples, but they require great knowledge and skill to protect your interests and advance your cause.

Home inspection and financing: Conditions like Home inspection and financing protect you.

Closing day: Sign the final paperwork, pay closing costs and get your keys!

How to Put an Offer on a House

Making an offer on a house requires strategy, and the art of negotiation is so important here.

Preparation is absolutely paramount. Before entering negotiations, gather as much information as possible about the property, the seller, the buyer, the opposing agent and comparable sales in the area.

This data can put more bullets in your gun, helping you make informed decisions and present compelling arguments. Make sure you understand the threats and opportunities that may be forecast to come in the market as well. These can also be ammunition. Fear or FOMO are huge motivators.

Your initial offer sets the tone for the negotiation. It should be competitive yet leave room for negotiation. Striking this balance requires a deep understanding of the property’s value and the seller’s motivations.

• Is the seller in a hurry to close?
• Are there multiple offers on the table?

The more answers you have, the better outcome you can expect. Tailoring your offer to the specific situation can make all the difference. In rare circumstances, you can resort to a “bully’ one-time offer, but this is not preferable when you consider the true nature of negotiation.

Once an agreement is reached, ensure everything is documented clearly, accurately and legally. A well-drafted contract protects both parties and provides a smooth closing process. Engage professionals like real estate attorneys, home inspectors, contractors and experienced agents to review the documents and handle any final details.

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Looking for even more practical home buying tips? The posts below can help:

• Must-Have Conditions for an Offer on a House Purchase–Part 1
• What to Look for in a Waterfront Home in Barrie
• What Does Barrie Real Estate Offer Home Buyers?

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Will a House Offer Letter Help?

In competitive markets or when you have conditions in your offer that may not be palatable to the seller, a house offer letter to appeal to the emotional side of the seller or explain the potential advantages of you as a buyer with your offer can make a real difference.

Ontario’s market can be difficult to navigate and it moves fast at times. With an expert in your corner, you stand a better chance at buying a house you love and terms you are happy with.

Are you ready to begin the home buying process? Let our Barrie real estate agents guide you. Reach out to us today at 705.305.4174 or email hello@weeksgroup.ca to learn more.