Frequently Asked Questions

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Buying Real Estate

Toronto Real Estate Buying Myths Busted

We pride ourselves in always being open and transparent with all of our clients. Here are some of the most asked questions, along with their answers. If you have a question that you do not see here, please do not hesitate to use the form below to ask us.

Can I avoid paying land transfer tax?

Any person purchasing property will have to pay land transfer tax.

Does the land transfer tax apply to my condo?

Yes, the land transfer tax applies to both houses and condos.

What happens if my Home Inspector misses something?

Most home inspectors are insured up to the value of the services they provide. This means that if a home inspector misses an issue that ends up costing you $ 5,000 they are only liable up to $500.

Is 20% down needed in Toronto?

The minimum down payment required is 5%. A 20% down payment will qualify you as a low risk borrower which does not require mortgage insurance.

What other costs will I have when buying a house in Toronto?

If your downpayment is less than 20% you will also have to pay CMHC Mortgage Insurance. You will also have to pay a land transfer tax and legal closing costs. Lenders will also be looking at your ability to afford the mortgage. It is best if the mortgage is up to 25% of your income.

How can I buy a house if I have no money and bad credit?

Owning a house, just like driving, is a privilege, not a right. We recommend you spend the time saving for the down payment, fixing your credit, and ensure that the monthly payments do not exceed 25% of your income. Buying a home that you cannot afford can create a lot of issues down the road and ultimately lead to you losing your investment to foreclosure and/or bankruptcy.

How can first-time Buyers conquer their fears?

Talk to a realtor. A realtor will be able to help you establish a budget, get a sense of what you need to pay (both down and monthly), and even give you an idea of what type of home you could afford.

Do I need a real estate agent to buy a home?

No. You can theoretically get a home on your own. However a realtor will be able to help you find a home, navigate sales contracts, negotiate on your behalf, and save you a lot of surprises down the road.

If I buy a pre-construction condo or townhouse, do I have to pay land transfer tax?

Yes, you need to pay land transfer tax on any kind of property you purchase.

How do I know which neighborhoods are safe in Toronto

Realtors have the knowledgeable and are up to date with all the neighborhood crime rates and statistics which will be able to help you steer clear of bad areas. Alternately, you can consult various crime maps.

Can I borrow money to use as a down payment?

Since personal loans are unsecured debt, most lenders will not accept them as down payments for a mortgage. Down Payments that come from other loans usually have a higher interest rate and a shorter repayment term, unnecessarily increasing your monthly payment and your risk.

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