Key takeaways
- Get pre-approved first, but remember it isn’t a final mortgage commitment.
- Read your buyer representation agreement before signing.
- Hire a lawyer early.
- Compare recent sales for the exact homes you’re considering.
In this chapter
Steps in the Home Buying JourneyFinding the Right Real Estate AgentHouse Hunting Tips
The buying path
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BudgetKnow your limit
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Pre-approvalRate hold and estimate
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AgentRepresentation agreement
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SearchView and compare
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OfferPrice and conditions
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CloseLawyer finishes the deal
Steps in the Home Buying Journey
Buying a home follows a fairly standard path, and it feels much easier when you know what’s next.
Set your budget. Work out what you can afford, and how much you have for the down payment and closing costs.
Get pre-approved. A lender reviews your income, debts, assets and credit, then tells you how much you may be able to borrow. It usually comes with a rate hold for a limited time. It isn’t a final mortgage commitment, because the lender must still approve the specific home.
Choose an agent and a lawyer. Do this early, before you’re in a hurry.
Search. View homes, take notes and compare the commute and local services, not just the rooms.
Make an offer. Your agent writes an offer based on recent sales. The seller can accept, reject or counter it.
Close. Complete any conditions, finalize your mortgage, and work with your lawyer through to the day you get your keys.
The main stages of buying
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PrepareSet your budget and get pre-approved.
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SearchChoose an agent and view homes.
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OfferNegotiate price and conditions.
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CloseWork with your lawyer and get the keys.
Pre-approval
What it isA lender’s early review of what you may be able to borrow.
Why it mattersIt sets your budget and often holds a rate.
What to doKeep your finances steady until the mortgage is final.
Rate hold
What it isA lender’s promise to keep a rate for a limited time.
Why it mattersIt protects you if rates rise while you shop.
What to doAsk about the expiry date and conditions.
Finding the Right Real Estate Agent
A good agent knows your target area, explains things clearly and tells you things you’d rather not hear. Start with referrals from people you trust, then read reviews and check each agent’s registration on the RECO website.
Interview two or three people. Notice whether they listen to you. Ask how they’d approach pricing and negotiating in your target area, how often they’ll be in touch, and how they’re paid.
Read the buyer representation agreement before you sign it. It sets out what the agent will do, how long the agreement lasts and how the agent is paid. Ask about anything you don’t understand, and ask for changes if the terms don’t suit you.
Then trust your judgment. You’ll be working closely with this person during one of the biggest purchases of your life.
Visual guide · GTA buying guide
Choosing an agent
House Hunting Tips
Before you book viewings, split your list into needs and wants. Needs are things like your budget, the number of bedrooms and your commute. Wants are things you’d enjoy, but could add or live without.
Walk the neighbourhood at different times of day. Visit the nearest park, grocery store and transit stop, and try the commute in rush hour.
At a viewing, look past paint and furniture. Pay attention to the layout, natural light, storage and signs of water damage. Ask how old the roof and furnace are.
Keep notes and photos, because homes blur together quickly. Compare recent sales with your agent, so you’ll be ready to move when the right home comes along.
Needs and wants
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