As Canada’s most populated province and home to both the nation’s capital and the country’s largest metropolitan area, it’s no wonder the real estate market in Ontario is constantly on the rise.
Unfortunately, housing prices and demand for housing in Ontario also continue to rise. And there’s not enough supply to meet that demand. So if you’re buying real estate in Ontario, there are a few basics you need to know. Keep reading to find out what they are.
Online Real Estate Lawyers Save You Time and Money
By law, a lawyer must sign off on real estate transactions in Ontario. This protects both buyers and sellers as there are a lot of legal details that can have severe consequences in a transaction as important as buying and selling real estate.
Some of the responsibilities a real estate lawyer takes care of include:
- Reviewing the Agreement of Purchase and Sale.
- Completing a Title search.
- Preparing the closing documents.
So finding the right lawyer is essential for your Ontario real estate purchase to go smoothly. But the home buying process already requires a lot of legwork.
Consider using an online law firm to reduce the amount of time, money and effort you spend running around when shopping for a new home.
With legal real estate services from Axess Law, you get a real estate lawyer with experience handling all types of property transactions in Ontario and is available when it’s convenient for you. They offer flat-fee, transparent pricing at a more affordable rate than brick-and-mortar law firms – saving you money on your closing costs.
The Government of Canada requires homebuyers to have minimum down payment amounts based on a home’s purchase price. For homes that are:
- $500,000 or less – The minimum down payment amount is 5% of the purchase price.
- $500,000 to $999,000 – The minimum down payment is 5% for the first $500,000 of the purchase price plus 10% of the remainder.
- $1,000,000 or more – A minimum down payment of 20% of the purchase price is required.
However, it’s crucial to have more money in the bank than what you need for the down payment. There are several closing costs aside from a real estate lawyer, including insurance, moving expenses, utilities, taxes and so much more. Experts recommend that you save an additional 3% of the purchase price to cover those expenses.
Ontario’s Real Estate Market has its Ups and Downs
If you’re looking for the best deal you can find, you might consider shopping for a home during Ontario’s “off-season” for real estate. This is typically in the middle of the summer when families go on vacations or during the holidays and cold winter months. Sellers who have their homes listed for sale during these periods are usually motivated to sell, so you have more negotiating power. However, there is also less selection to choose from with fewer listings available.
If you decide to purchase when there are more homes on the market, be prepared for potential bidding wars on properties you like. While there are more listings in the spring and fall, there are also a lot more buyers. You may have to waive some conditions or up your offer for your bid to be successful.