Toronto is hands down one of the top cities in the world to live in, and there’s just something about the West End that holds a special place in our hearts. What that “something” is, though, is hard to describe. That’s because there isn’t just one thing – it’s everything!
The food, the culture, the festivals; everything in the West End just feels so exciting and welcoming. This high quality of life is naturally attractive to many people seeking a house. If you are buying your first home, you need a step-by-step plan to make that dream a reality. In this post, you’ll find a comprehensive guide to Toronto’s West End – created just for first-time buyers.
Are you wondering what’s available in Toronto today? Find out by searching our featured listings right here.
Welcome to the Neighbourhoods!
As we said, Toronto is special, and the West End is particularly so, at least in our opinion. From the trendiness of Roncesvalles and the tranquillity of High Park to the grit and charm of The Junction and Wallace Emerson, each little enclave is brimming with character and beauty. Which is right for you?
The answer will depend on your budget and your preferred lifestyle. Toronto real estate is highly desirable, which also means it can be expensive. Homes in High Park, Roncesvalles, and Bloor West Village typically require a higher budget. You may find lower costs in areas like Wallace Emerson and Rockcliffe-Smyth.
No matter where you decide to settle in the West End, there are a few things you can always count on:
- You’ll have easy access to public transit.
- A thriving shopping and dining district will never be far away.
- There will be parks, trails, and green spaces galore.
All of this is just part and parcel of owning a home in Toronto’s West End. We know you will love it here!
Regardless of your experience or budget, our buying specialists are happy to help you find your first home in Toronto! Learn more about our services right here.
Choose Your Housing Structure
New buyers can find the Toronto market intimidating at first. Fortunately, there are relatively affordable pockets sprinkled throughout the West End. The type of the house can also make a difference.
For example, condos and townhouses tend to be more accessible for first-time buyers. Keep in mind that your first home may not have every luxury that you hoped for, but you’re just getting started.
Once you get your foot onto the property ladder and begin building equity, a larger semi-detached or detached house can become more feasible. Whatever your situation, a local real estate agent who specializes in the area can help you find the perfect fit!
You can start by identifying everything you want in your first home. There’s nothing wrong with dreaming big for now. As you proceed, you’ll have a better idea of what you absolutely need and what compromises you can make.
- Do you have a particular neighbourhood in mind?
- How many bedrooms and bathrooms do you want?
- Do you prefer an older house or a new build?
- Is pre-construction an option? If your purchase is a few years away, this could be the perfect way to buy a brand-new house or condo.
- What type of home do you want? Condos are highly convenient. Detached houses offer outdoor space for entertaining, but they are more work, and usually more expensive.
- Are you willing and able to perform repairs or should your new home be ready to move in?
Should you consider a loft for your purchase? Find out everything you need to know in What Is a Loft in Toronto?
What to Expect for Your Down Payment
Now that you have a picture in mind, it’s time to get practical and get your finances ready to buy your first home. This starts with setting aside your down payment and obtaining a pre-approval for your mortgage.
The down payment is the portion of the cost that you cover with your own money. The total amount depends on the purchase price. Here’s how the down payment works:
- For a house or condo priced at $500,000 or less, you will need a 5% down payment.
- If the price is between $500,000 to $1.5 million, you need 5% on the first $500,000, then 10% on any amount remaining. For example, a house valued at $900,000 requires $65,000 ($25,000 on $500,000 + $40,000 on the remaining $400,000).
- You will need 20% for a house priced at $1.5 million or more.
The down payment is just one part of your purchase. It’s also important to remember your closing costs, particularly those that you cannot include in your mortgage. These could account for another 3 – 5% of the total price of your home.
If you have enough to proceed, your next step is a visit to your lender or mortgage broker. By getting pre-approved for a mortgage now, you can set an accurate budget. Plus, you’ll be able to quickly make an offer when you find a home that’s right for you!
Looking for inspiration to begin the search for your first home? You’ll find plenty in our Interview With a First Time Home Buyer.
Resources for First-Time Home Buyers
The high prices of real estate, stringent stress tests, and closing costs can make it challenging for a first-time buyer to get into the market. This is particularly true in Toronto. Fortunately, there are provincial and federal programs to help you achieve this milestone.
The First-Home Savings Account lets you begin aggressively saving for your purchase as soon as you turn 18. You can contribute up to $8,000 per year to a maximum of $40,000 into an investment account to put towards your first home. Though your contributions are limited, any earnings are not. When you’re ready to buy, you can close the account and use the entire amount as your down payment.
If you already have money in a tax-sheltered account, you can make a withdrawal of up to $60,000 under the Home Buyer’s Plan. There is one catch, however. You must repay that amount within 15 years to avoid a tax penalty.
The Ontario government allows an instant rebate of up to $4,000 on your land transfer taxes. This is one of the most significant closing costs that you cannot include in your mortgage. As such, the rebate is a massive relief to first-time buyers.
The City of Toronto also requires a land transfer tax upon closing. Fortunately, they also offer a rebate of up to $4,475 for first-time home buyers.
The First-Time Home Buyers’ Tax Credit allows you to claim $10,000 on your tax return, resulting in a savings of $1,500.
If you’re looking for even more advice in any market, here’s Five Tips for Millennial Home Buyers.
Why a Realtor® Is Your Best Resource
The number one resource if you want to buy the best possible house for the lowest price and favourable terms is to work with an experienced and knowledgeable Realtor®. Knowing where to look and what to avoid is half of the battle in a real estate market that is constantly evolving.
Having a real estate agent who is committed to serving your needs will streamline your purchase and reduce your stress during every stage of your journey. With expert guidance and endless support, you might be turning the keys into your first Toronto home before you know it!
Do you want to make the most of your first home purchase? Our West Toronto Realtors® are here for you every step of the way. Contact us today at 416-788-1823 or email kim@kimkehoe.com to learn how we can help.
