Five ways to step onto the Toronto property ladder
Want to get onto the property ladder in Toronto? Here are five ideas to help you.
Are you a first-time buyer? Are you looking for a home in Toronto? Are you struggling to come up with a plan of action? If so, Here are some tips on how to get onto the property ladder in Canada.
Property in Toronto
There is no denying it; real estate in Toronto is expensive, with the average cost of a detached home being $1.2 million. Obviously, some neighborhoods are cheaper than others and less costly still as you move into the outskirts of the city.
If you work in Toronto and enjoy the city life, then you will have to commit to saving as much money as you can in order to get a foot on a rung of the ladder.
1) Save on accommodation
Perhaps you are living in another area of Canada or a different country altogether. Whatever the situation, a good idea would be to find a short term rental in Toronto so you can save some money on living costs.
This will also enable you to get a feel for the city and work out which areas appeal to you most and which neighborhoods would be most convenient for commuting and accessing amenities.
To save even more money for a deposit, you may want to consider living with friends or parents.
2) Be realistic
Carefully consider what type of property you want. Write a list of must-haves and desires. It is crucial that you find a property you can afford, not just initially, but in the future too. You must think about future scenarios such as a change of joband ensure that no matter what happens, you are still able to afford mortgage repayments. If you are a first-time buyer, buy a property that suits your immediate needs and doesn’t stretch your purse strings to the extreme. If you want something more for your money and aren’t too set on being in the city center, look at cheaper neighborhoods
3) Use government incentives
Take advantage of the help offered by the government. For buyers who qualify, the government puts up five percent of the price of a resale home or either five or 10 percent of the cost of a newly constructed home.
The incentive is a second mortgage on the title of the property, but no regular principal payments are required. The loan is interest-free, and it can be repaid at any time without incurring penalties.
4) Be frugal
It’s time to dig deep into your pockets and save as much money as you can. Cut down on luxuries such as new clothes, dining out and entertainment. Think of ways to raise funds for your new home, such as garage sales, selling unwanted items online, creating an Etsy shop with homemade goods, or auction off old clothes on eBay.
5) Ask for help
If your parents or other family members are in a position to help you financially, take advantage of their kindness. They may gift you money or give you an interest-free loan to get you started.
If you are close with a specific family member or friend and they are in a similar position to you, you could pool your finances and buy a property together.