First Home Purchase

[gavbo]

I'm looking to buy my first home and was wondering if anybody knew of any good websites to help with the whole process.

[MarcFromOttawa]

I'm looking to buy my first home and was wondering if anybody knew of any good websites to help with the whole process.

http://www.greaterfool.ca/2009/05/26/the-greatest-fools/
http://www.greaterfool.ca/
http://www.chpc.biz/

Are you sure you're not better off renting for now?

[circa76]

gavbo: If you are looking for help you'd best talk to a realtor.

Anyway, don't buy too much into the sensationalism here. The important thing is that if you are committed to buying a place, buy one in an area that you like and that you can easily afford.

Don't get into a situation where you're stretching yourself to make ends meet.

[slavka012]

http://www.greaterfool.ca/2009/05/26/the-greatest-fools/
http://www.greaterfool.ca/

Wow, 23 offers, 165K over asking price, I'm stunned. The rooms are so tiny, it's not enough for a doghouse.

[OceanDrop]

My fiance and I just bought our first home (deal was made firm last night!) We had been checking MLS and going to open houses since around Christmas. A house that was the perfect fit for us popped up a month ago, but it was a little out of our price range. After 30 days the price dropped, so we got a real estate agent and made an offer, and it sold for less of the second asking price. We had the home inspection this Wednesday which went really well, so now it's just up to the lawyer to do all the paperwork and we're pretty much done.

If you have any questions, feel free to ask!

[mypassword]

I'm looking to buy my first home and was wondering if anybody knew of any good websites to help with the whole process.

The best site to get an idea of the Toronto market is www.realtor.ca (http://www.realtor.ca) . This will provide you with all the MLS listings in the city and the map system allows you to pinpoint areas. The best way to start is to talk to your bank and they will give you an idea of what financing they will provide. Then find an agent you want to work with (I just happen to be one) and start looking at neighbourhoods you like.

By the way - it is a good time to look. The affordibility factor with interest rates so low is very attractive since it is now probably as cheap to buy as it is to rent. The $1500 spent in rent will cover mortgage, property taxes and insurance on a $300,000 house.

[exxczyk]

$1500 will cover all that for a $300,000 property? At what interest rate? How much down? For how long?

Anyway, best advice I can give is to really do your own research (which you're obviously already doing). Just remember, if you ask a Realtor when the best time to buy is, the answer will always be NOW ;)

[XShadowX]

$1500 will cover all that for a $300,000 property? At what interest rate? How much down? For how long?

Anyway, best advice I can give is to really do your own research (which you're obviously already doing). Just remember, if you ask a Realtor when the best time to buy is, the answer will always be NOW ;)

My brother has a $266k Mortgage with TD, I think 4.8%, Payments only $1220 month.

[exxczyk]

My brother has a $266k Mortgage with TD, I think 4.8%, Payments only $1220 month.

The only way I can get those numbers to work are if your brother has a 40 year mortgage, and even then that would only equal ~$1220/month not including property tax + insurance.

Course, this also depends on whether the OP is looking at a SFH or a Condo/TH, in which case you still gotta add on the maintenance fees.

[Navvy]

Hey gavbo,
1) Don't listen to anyone who points to Garth Turner as a prophet.
2) CMHC will have a load of valuable information on their site, start with the guide for first time home buyers that you can download for free and then take a look at some of their market report for your city if they have it.
3) You'll find some useful equations in the CMHC guide and online calculators for figuring out what you can afford, getting your finances in order is the most important stage in the whole process. Don't start looking until you've set yourself a firm price ceiling that you know will allow you to live comfortably. Once you start looking at the MLS listings, you'll quickly start saying "oh we can add another $10,000..." resist that urge.
4) Find a real estate agent you can trust, ask friends and family. Ask lots of questions and do a load of online research to figure out what you should be looking out for as you look at places. Depending on what you're timeline is like, get pre-approved for a mortgage, rates are absurd right now, but they won't stay there forever.
5) Pick a specific area and start looking at places. Buy a cart full of Kraft Diner, because that's all you'll be able to afford in a month or so!

Have fun, it's a really exciting, and stressful, experience.

[XShadowX]

The only way I can get those numbers to work are if your brother has a 40 year mortgage, and even then that would only equal ~$1220/month not including property tax + insurance.

Course, this also depends on whether the OP is looking at a SFH or a Condo/TH, in which case you still gotta add on the maintenance fees.

It's 35 years, It might be 4.2% too. I'll have to ask. It's with out property tax.

[barrist]

We're in the same boat right now but looking at pre-construction.

Anyone from the Ottawa area know a good real estate agent that can help us?

We wanna stay in the city, (so no Kanata, Barrhaven, etc). I know its probably tougher and more expensive to find new developments in the city but its one of the main criteria for us.
Thanks

[MarcFromOttawa]

Hey gavbo,
1) Don't listen to anyone who points to Garth Turner as a prophet.
2) CMHC will have a load of valuable information on their site, start with the guide for first time home buyers that you can download for free and then take a look at some of their market report for your city if they have it.
3) You'll find some useful equations in the CMHC guide and online calculators for figuring out what you can afford, getting your finances in order is the most important stage in the whole process. Don't start looking until you've set yourself a firm price ceiling that you know will allow you to live comfortably. Once you start looking at the MLS listings, you'll quickly start saying "oh we can add another $10,000..." resist that urge.
4) Find a real estate agent you can trust, ask friends and family. Ask lots of questions and do a load of online research to figure out what you should be looking out for as you look at places. Depending on what you're timeline is like, get pre-approved for a mortgage, rates are absurd right now, but they won't stay there forever.
5) Pick a specific area and start looking at places. Buy a cart full of Kraft Diner, because that's all you'll be able to afford in a month or so!

Have fun, it's a really exciting, and stressful, experience.

You're right, it's always a great time to buy real estate. Prices always go up!

No but seriously, here's a good calculator that will tell if you're better off renting or buying: http://www.nytimes.com/2007/04/10/business/2007_BUYRENT_GRAPHIC.html#

Navvy made a good point to mention to buy something affordable, if you choose to go that route. But according to the above chart, as soon as house prices start slipping you are way better off renting. It's up to you to decide if the current market is overvalued or not.

[Navvy]

You're right, it's always a great time to buy real estate. Prices always go up!


I didn't say that. There's a big difference between thinking Garth Turner is a sleaze bag and full of hot air and believing that real estate will never come down.

[MarcFromOttawa]

I didn't say that. There's a big difference between thinking Garth Turner is a sleaze bag and full of hot air and believing that real estate will never come down.

I like how you avoid my post and keep talking about Garth Turner. When you're ready to talk about the merits of renting in periods of deflationary debt destruction please reply.

[EugW]

I personally think it's a reasonable time for some to buy... for those who have truly analyzed their own finances, and are prepared to deal with increased mortgage rates at the end of the term in 5 years, along with continually increasing condo fees (if applicable).

This is based on my assumption of say a 10% drop in prices in the next couple of years, and is directed at those people who are wishing to stay in their units for the longer term (> 10 years) and prefer the concept of owning to renting. (I'm not recommending purchases in say luxury buildings for the purpose of renting out for example.)

To put it another way, with my assumptions, I think those who have a reasonable cushion in their finances even after putting 20% down with a 25-year (not 35-year) mortgage will probably be fine. Things get much dicier if you need to resort to a 35-year mortgage, or must put less than 20% down, or if you have very little cushion.

[Navvy]

I like how you avoid my post and keep talking about Garth Turner. When you're ready to talk about the merits of renting in periods of deflationary debt destruction please reply.

Nice, put words in my mouth and then act hurt when I call you on it. Fail.

I provided the OP with the advice he asked for, whether or not he buys is ultimately up to him, not the informed experts he finds on internet forums.

[gavbo]

thanks for the help everyone and please stop the fighting, let's all just get along

[MarcFromOttawa]

Nice, put words in my mouth and then act hurt when I call you on it. Fail.

I provided the OP with the advice he asked for, whether or not he buys is ultimately up to him, not the informed experts he finds on internet forums.

I suggest you re-read my posts.

[slowtyper]

The best site to get an idea of the Toronto market is www.realtor.ca (http://www.realtor.ca) . This will provide you with all the MLS listings in the city and the map system allows you to pinpoint areas. The best way to start is to talk to your bank and they will give you an idea of what financing they will provide. Then find an agent you want to work with (I just happen to be one) and start looking at neighbourhoods you like.

By the way - it is a good time to look. The affordibility factor with interest rates so low is very attractive since it is now probably as cheap to buy as it is to rent. The $1500 spent in rent will cover mortgage, property taxes and insurance on a $300,000 house.


I'm not to Toronto and I am looking at a first time purchase and am looking at properties on realtor.ca just to get a feel of what is available.

In Toronto, how close are the listed prices to how much the houses usually sell for? A few years ago I was told that list prices in Toronto were usually very low and the final price after bidding was usually substantially higher. Is this true/still the case?

Right now I am looking at condos/townhouses around Yonge/sheppard Yonge/north york center but would am still considering other areas.

[Psycho44]

My brother has a $266k Mortgage with TD, I think 4.8%, Payments only $1220 month.

hmm my mortgage is $200k with TD at 4.29%, monthly payment mortgage + property tax of $1180 total.

[EugW]

I'm not to Toronto and I am looking at a first time purchase and am looking at properties on realtor.ca just to get a feel of what is available.

In Toronto, how close are the listed prices to how much the houses usually sell for? A few years ago I was told that list prices in Toronto were usually very low and the final price after bidding was usually substantially higher. Is this true/still the case?
Not usually no. 98% of asking is a common final amount, but it really depends on how appropriate the asking price was.

If the price is set very low, then they may indeed get a bidding war, with selling price 102% of asking (although this is uncommon these days). Or, the price might be set too high, and they may only get 94% of asking.

P.S. Another site to use is www.mls.ca .

[armandino101]

http://www.cmhc-schl.gc.ca/en/co/buho/index.cfm
http://www.mtgprofessor.com