Toronto’s real estate market has been going steadily upward since 1997 and, although 2016 had exceptional appreciation above 17%, the average has been about 7% over the last several years. 2017 was even higher!
Then along came the Covid-19 outbreak which threw our economy and job stability into disarray.
Bullish outlook or the pandemic effects aside, there are still plenty of other challenges for many would-be buyers, from shaky credit to sputtering incomes and more. To be sure, the right time to pursue a home purchase is when you’re financially and emotionally ready.
Here’s a look at a few signs you may not quite be there.
Bruised Or Beaten Credit
Consumers with scores below 620 can have a tougher time securing mortgage financing. You might need to work on improving that first.
Since Toronto and the GTA have seen steady price increases, the minimum down payment needed has grown also. Besides a 5-7% down payment requirement, you’ll have to pay additional cash to cover closing costs. Count on closing costs to average another 2% of the purchase price.
There are excellent, unconventional ways to add quickly to your down payment described later in this Home Buyer’s Financing Guide.
Mortgage lenders want to feel like you’re a safe bet. A rocky employment situation can raise red flags.
Ideally, you’ve been working the same job for at least the last two years. But that’s certainly not a reality for many Canadian workers.
Employment scenarios are always a case-by-case evaluation.
Generally, though, you might have a tougher time securing a mortgage if:
- You’ve been on the job less than a year
- You’ve been self-employed for less than two years
- You’re a commission-based employee without a two-year track record
- You’ve recently changed career fields or had a lengthy job gap.
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Here are 5 proven ways to move safely and smartly towards your real estate buying goal...
- Download a free copy of my Ultimate Home Buyer’s Guide book
- Get a custom listings search set up for you and receive targeted listings daily
We can set up your HOMEWatch search for any area you choose (not just downtown Toronto), and you'll get immediate access to homes within minutes of them being listed. Just leave some search criteria here
- Set up a step-by-step plan with the best ways to get to your home buying goal
Our first-time and move-up buyers have told us that being able to meet with us on a casual basis as early in the process as possible, even if their purchase date was 6-12 months away, really worked the best for them.
To arrange your no-obligation Starbucks Strategy Session, click here.
- Join us for a Market Experience Tour - pick your favourite neighbourhoods and price range
The Market Experience Tour is a great way for you to figure out which neighbourhoods and condo buildings are right for you, and you’ll also get a good sense of what’s available in your price range.
Pick the date and time you like to go on your Tour.
- Don’t start your home buying experience on the wrong foot - Meet for a Buyer Consultation first!!
Don’t make the same mistake. Let’s set a time to meet and go over how the complete home buying process works, find out what your likes and dislikes are and what pitfalls you’ll want to avoid, before you seriously start looking for a house or condominium.
This is the best 90 minutes of time you’ll ever spend - set up your private Buyer Consultation.