Requirements for Buyers in Ontario

Maintaining a credit score over 680 and having a stable income will make it much easier to secure a mortgage.

Saving for a down payment:
Under $500,000 you will need 5% of purchase price
$500,000-$1,500,000 you will need 5% of the first $500,000, then 10% of the remainder
$1,500,000 and up you will need 20% of the purchase price

Housing affordability depends on a number of factors, including:
-How large your down payment is
-Your Total Debt Service (TDS) Ratio, which is your annual housing related expenses + debt expenses, divided by your gross income.
-Your Gross Debt Service (GDS) Ratio, which is your annual housing related expenses, divided by
your gross income, and
-Current monthly expenses not exceeding after-tax income

Estimating the closing costs:
Generally, a good estimate of how much to budget for closing costs when buying a house in Ontario tends to be between 3-5% of the purchase price. The two largest components of closing costs include Land Transfer Tax, and Lawyer & Legal Fees.

Get a Mortgage Pre-approval & Look for the Best Rate:
Getting a mortgage pre-approval before looking for a home provides the stability of locking in an interest rate for up to 120 days, while providing an estimate on how much of a mortgage you qualify for. A pre-approval acts as a written contract between you and your lender. However, getting pre-approved does not mean you cannot continue to shop around for other rates.

Find a good Real Estate Agent:
Connecting with a real estate agent that fits your needs and has a strong understanding of the market you’re looking in is crucial. Especially for first-time buyers, having an experienced agent can provide much needed clarity in a brand new situation.