Video: Buying A Property - 3 Steps To Get Started

Because Real Estate CAN Be Simplified.

Making the decision to buy a property, whether you’re a first-time homebuyer or upsizing from your current home, is an exciting milestone. However, getting started can feel overwhelming if you’re unsure about the first steps. In this guide, we’ll break down the three key steps to help you confidently embark on your home-buying journey.

Whether it’s your first time ever or your first time in a while, this straightforward process will set you up for a successful purchase.

Step 1: Select Your Team of Experts

Buying a property requires a reliable team of professionals to guide you through the process. The three key experts you’ll need are:

Your Realtor: A trusted real estate agent will help you navigate the market, find properties that fit your criteria, and negotiate on your behalf. We know a few good ones for you to use. 😉
Your Mortgage Broker: This professional secures financing by helping you get the best mortgage rates and terms.
Your Lawyer: They will ensure the legal aspects of your transaction are handled smoothly, including reviewing contracts and closing documents.

You can choose these experts in any order, and they don’t necessarily need to know each other, although it’s a bonus if they already have a strong working relationship. Many clients start by connecting with a Realtor, who can provide referrals to reputable mortgage brokers and lawyers.

Want to dive deeper into the roles of these professionals? Check out my other posts where I explain how they can benefit you at every stage of the process.

Step 2: Obtain Your Mortgage Pre-Approval

Getting pre-approved for a mortgage is a crucial step that simplifies your home search and strengthens your position as a buyer. Here’s why:

1. Know Your Budget

A pre-approval gives you a clear understanding of how much you can afford. It combines the maximum mortgage you qualify for with your available down payment, allowing you to set a realistic purchase budget.

2. Plan for Monthly Payments

Your pre-approval doesn’t just tell you your loan limit; it also outlines your estimated monthly mortgage payments. This allows you to decide whether you’re comfortable spending at the top of your budget or prefer to set a lower purchase limit.

3. Strengthen Your Offer

In competitive markets like Toronto, having a pre-approval can give you a significant edge. Sellers favour buyers who are financially prepared, and a strong pre-approval may allow you to submit an offer without a financing condition—making your offer more appealing. Even if you include a financing condition, letting the seller know you have a solid pre-approval positions you as a serious buyer.

Get a closer look at why you need a mortgage pre-approval with our video about it right here.

Step 3: Liquidate Your Deposit

Your deposit is a critical part of your down payment, typically owed within 24 hours of your offer being accepted. In Toronto, this amount is usually a minimum of 5% of the purchase price.

To avoid delays, it’s best to liquidate this portion of your down payment before you begin your home search. This means transferring the funds to a chequing or savings account with one of the big five Canadian banks (like TD, RBC, or Scotiabank). Online-only banks like Tangerine or Simplii may require a few days to process withdrawals, which could delay your ability to submit your deposit.

By having your deposit ready and easily accessible, you’ll be fully prepared to act quickly when you find your dream home.

What’s the difference between a deposit and a down payment? Watch our video explanation right here to find out.

In Summary

To get started on your home-buying journey, follow these three steps:

Select Your Team of Experts: Choose a Realtor, Mortgage Broker, and Lawyer to guide you.
Obtain Your Mortgage Pre-Approval: Understand your budget, monthly payments, and strengthen your offer.
Liquidate Your Deposit: Prepare at least 5% of your budget in a readily accessible account.

Taking these steps will set the foundation for a smooth and successful purchase.

Happy house hunting!