This is the budget stage. Knowing how much money you’re able to invest into your next home is crucial to setting your expectations and narrowing your search.
Steps to determining your budget
- Talk to your bank or financial advisor about getting a pre-approved mortgage. This document is drawn up after an analysis of your finances; it shows you how much the bank or financial institution is willing to lend you. Using the mortgage calculators provided by most banks will help you in your financial planning.
- Once you have gone through the financial planning process and been pre-approved for a mortgage, you’ll know the house price range to search within.
- Consider all the costs of buying a house in Ontario, including the closing costs (inspection, transfer fees, legal fees, etc.), moving costs (movers, truck rental, reconnection fees, etc.), and possible renovation expenses.
- Once you know your budget, you can start to search through home listings with confidence.