More millennials are buying their own homes than ever before. As a matter of fact this age group (22 - 37 years old) have now surpassed the Baby Boomers and Gen Xers in making this major life decision. Here are some helpful tips for Millennial homebuyers in Toronto:
1. Reduce Your Debt: One of the challenges facing millennials in Toronto is paying down their debt. Student loans, credit card balances, car loans, and other debt accumulates to the point that buying a home is impossible. Buying a home is one of the most expensive financial commitments you will make, so being debt free is a good idea before seeking financing. Make sure you pay your bills on time so your credit rating is high and consider a budget to help you maintain expenses.
2. Save For A Down Payment: Most millennials get a mortgage to pay for their home so a down payment is necessary for the bank to grant the loan. Most lenders require between and 10 and 20 percent down. Due to other financial obligations, saving for a down payment is challenging. Some millennials use gifts from family members to supplement their savings. Experts suggest saving as much as possible before starting a home search because it could take a few years before you are financially ready.
3. Look For An Affordable Home: Resist looking at homes in Toronto neighborhoods that are out of your price range. There is much more to consider than just the price of the home. Taxes, insurance and other fees will affect the cost of living and it will vary from area to area. Do your homework before falling in love with a house that you can't afford yet. An experienced realtor will help you find the perfect home within your budget.
4. Learn The Buying Process: Hire a real estate agent who you are comfortable with and can trust. Make sure they have at least four years experience in the industry and are willing to share their knowledge. They will listen to you and learn about you so they can find the perfect home with you. Make a list of questions and get to know the buying process. A good real estate agent becomes your partner and mentor in this process.
5. Go The Extra Mile: When you finally save enough for a down payment, understand the buying process, and find your dream home, chances are someone else is bidding on it, too. To stand out, get preapproved by a bank before you make an offer. This demonstrates how serious you are about buying the home and put you on the top of their list.