Are you looking to buy a house in Mississauga, Ontario? If so, then this blog post is for you. There are many things that need to be considered before purchasing a property. In this blog post, we will show you in 8 steps on how to do this and answer some other frequently asked questions that come up when considering how to buy a house in Mississauga. See the latest homes for sale in Mississauga.
Buying a house is one of the most important decisions you'll make in your lifetime. It's not an easy process, but it doesn't have to be complicated if you follow these 8 steps!
Step 1 - Decide that you are ready to buy a house
Buying a house can be one of the most exciting and rewarding decisions you make in your lifetime. However, it is also one of the biggest financial investments that many people will ever make.
The first step in how to buy a single-family house is deciding that you are ready. You need to think about the location, property type, size, and layout that will best suit your needs.
The real estate buying process can seem daunting, but buying a home doesn't have to be scary or stressful. The first step is deciding that you are ready.
Step 2 - Figure out how much you can afford
The second step is to figure out how much of a property you can afford. Getting a mortgage pre-approval is very important. Sometimes buyers can be unrealistic about how much of a loan they will be able to obtain, so it's vital to know what you can be approved for, but it doesn't mean you have to borrow the maximum amount.
Getting a pre-approval will tell you how much you qualify for, and also the price range of properties to search. Purchasing a new house is an exciting, yet overwhelming endeavor. Follow these 4 steps:
1. Qualify for a mortgage
Speak with a mortgage broker or your bank. I'd recommend a mortgage broker as they will have access to more options and lenders to suit your needs and sometimes better rates than the bank. You'll need to provide information and proof of items such as your income, other assets, debts, loans, and credit score.
2. Choose the payment schedule
Monthly, bi-weekly, or weekly payments.
3. Determine your interest rate and type of mortgage
Fixed or variable rates, open or close-ended.
4. Estimate the down payment you'll need.
Anything less than 20% will require CMHC insurance. You may need more depending on your income, debts etc.
Step 3 - Consider what you want to buy
OK, so you've decided to buy, got your pre-approval, now you need to decide on the details of what you want to buy.
What condition should the property you buy be in?
Mississauga real estate has a wide variety of styles. Do you want a house that is brand new, older but renovated, something that needs updating and some renovations, or an old bungalow that you want to tear down and build a new custom home?
What type of property would you buy?
Options include detached, semi-detached, townhouse, bungalow, side-split, back-split, 2 storey, 2 and a half storey, 3 storey etc.
In addition to these, you should also make a list of must-have items and nice-to-have items. Examples of these include ideal price range, the location or neighbourhoods, number of bedrooms and bathrooms, size, style, and condition as already mentioned, parking options such as garage or driveway, and how much space you need.
Other items could be a finished basement, backyard size, movie theatre, wine cellar, view, swimming pool, and which way the property faces.
You should also consider things such as the commute time to work, nearby schools, and other amenities such as grocery stores, shops, restaurants, and cafe's.
It's a good exercise to write these all down and figure out which ones are a deal-breaker and you will not consider especially if you are buying with a partner.
By defining these criteria it will help you focus only on properties that meet your needs and not waste time browsing real estate listings that don't match what you want.
Step 4 - Find your Real Estate Agent
Good news - you've already found one ;)
Look for a real estate agent with great reviews and many years of experience and someone that you get along with. There are many real estate professionals - it's pretty easy to get your real estate license to be honest but many are very average and even poor. I hear so many stories of people having bad experiences with their agent who didn't know what they were doing or really working in the buyer's best interest.
When buying a house in Mississauga you don't pay any real estate fees and the realtor's fee is covered by the seller so the service is free for you!
Step 5 - Start your search
Now the fun starts when you actually start to view Mississauga homes for sale. Looking online will begin to give you an idea but there's nothing like seeing a property in person to get a better feel of the house and the area.
I also suggest to clients to walk and drive around areas or neighbourhoods they are considering buying so they can get a better feel.
Your realtor should be actively looking for places that meet your criteria as long as you are realistic with what you want and what your budget is. They should also set you up to receive new real estate listings as soon as they hit the market.
Keep your must-have and nice-to-have items in mind as you are viewing places - sometimes buyers change their mind once they have a better knowledge of the market and their list changes.
Step 6 - Make an offer
Once you find the house you want to buy, it's time to make an offer. The main elements of an offer (Agreement of Purchase and Sale) are:
Deposit amount (typically about 5% of price)
Conditions - Finance, Home Inspection, Survey
Terms - Inclusions such as appliances, window coverings, and other chattels and fixtures. Other terms may include a further deposit, buyer visits, and discharge of mortgage.
The seller will consider your offer and may accept or reject it. If they are interested in negotiating with you, then they might counter-offer by asking for more money (sellers usually do) or make changes to the closing date, terms or conditions.
When you are negotiating a real estate offer, make sure you have an agent that is a good negotiator and will fight to do their best to get you the best deal possible.
Try not to get too emotional when negotiating. When it comes to negotiating real estate, many Mississauga home purchasers get too emotional but the best negotiators are those who can detach themselves from their emotions.
Keep in mind current market values and try not to overpay. Some properties don't always sell for what they are worth, and sell below market value and some above their market value. Remember when it comes to real estate there is NO recommended retail price! Every home is only worth what someone is willing to pay.
Once you have your offer accepted you will need to have the deposit ready within 24 to 48 hours so make sure the funds are readily available and not tied up in an investment that will take longer to get.
Step 7 - Closing and Other Costs
Your Realtor should have informed you during your first real estate consultation about closing costs when buying a house in Mississauga, Ontario.
The largest closing cost will be Land Transfer Tax. This is calculated based on the purchase price. One huge advantage in buying Mississauga real estate instead of Toronto real estate is that you only pay the Provincial land transfer tax and you don't have to pay the Toronto City Tax. You can watch a video explaining it in detail here or check out this calculator.
Other costs include:
Moving - hiring a mover
Lawyer fees - $1500-2500
Inspection - $500-1500
Renovations and updates
Step 8 - Close the Deal
You'll meet up with your lawyer just before the closing date to sign papers and have everything ready. Finally, the day has come when you get the keys to your new home and you are now the proud owners of your new house.
Now is the time to start any updates, painting or renovations before you actually move in or if there's not much to do get moving! It may also be a good idea to hire an interior designer to help you use your existing furniture or buy new furniture to help you set up your new house the way you want it.
Frequently Asked Questions
Other questions I get asked about buying a residential property in Mississauga are:
1) How much is a downpayment on a house in Mississauga?
Typically you should put down at least 20% of the purchase price. Anything less will require CMHC Insurance as you are more of a risk for the lender. View the CMHC rates.
2) How much does it cost to buy a house in Mississauga?
That's a loaded question and depends on many factors such as your price range, preferred neighbourhoods, and the type, style, and condition. View the latest homes for sale in Mississauga here.
3) Is it a good time to buy a house in Mississauga?
It really depends on your needs and when you want to buy a house. We can't control the mortgage rates, the economy, the supply and demand of Mississauga homes for sale or the prices.
The market always sets the price, it's always changing and can be very unpredictable so it's not possible to know if the timing will ever be perfect.
4) How much of a deposit do I need to buy a house in Mississauga?
Typically on the offer, you would want to give a 5% deposit of the purchase price. However, in a seller's market sometimes buyers will offer more than the typical 5%. The rest of the downpayment you pay is paid nearer the closing date. It's best to put at least 20% down of your own money to avoid CMHC Insurance costs.
5) Is buying a home in Mississauga, Ontario a good investment?
Buying a home in Mississauga is a great investment for families looking to settle down and start their lives. It's also an excellent choice for first-time purchasers or those who don't want to deal with renting anymore. Mississauga is one of Canada's fastest-growing cities, so it will only get more expensive over time. But, remember, you make your money when you buy so choose wisely and have an experience realtor help guide you along the way and to avoid any big mistakes when buying.
If you have any questions about buying a home in Mississauga get in touch :)