Buying your first home is a big step, and it helps to know what is coming. Here is how the process usually unfolds in London, along with a few tips I share with every first-time buyer.
1. Start with a mortgage pre-approval
Before you fall for a house, find out what you can comfortably afford. A lender or mortgage broker will review your income, debts and credit and give you a pre-approval with a maximum amount and a rate hold. Treat that number as a ceiling, not a target: leave room in your budget for utilities, maintenance and life.
2. Decide what matters most
Make two lists: must-haves and nice-to-haves. Think about commute, schools, parking, outdoor space and how long you plan to stay. London neighbourhoods differ a lot, so it is worth touring a few areas before narrowing your search.
3. Tour homes with a critical eye
Look past paint and furniture. Pay attention to the roof, windows, furnace and age of major systems, signs of water in the basement, and how the home sits on the lot. Older homes in established neighbourhoods have character, but they can also need more upkeep.
4. Make a strong, sensible offer
Your offer covers more than price. It includes the deposit, closing date and any conditions, such as financing or a home inspection. We will look at recent comparable sales together so your offer is grounded in real numbers.
5. Budget for closing costs
On top of your down payment, plan for Ontario land transfer tax, legal fees, title insurance, a home inspection and moving costs. First-time buyers may qualify for a refund of some or all of the provincial land transfer tax, and your lawyer can confirm what applies to you.
6. Closing day
Your lawyer handles the legal transfer and the funds. Once everything is registered, you get the keys. Congratulations!
Have questions about your first purchase? Get in touch and we can talk through your plans, with no pressure.