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The Home Buying Process Simplified

Let Spectrum Realty Help You Through The Home Buying Process

Buying real estate in Toronto can feel overwhelming, Spectrum Realty is here to walk you through the process with our personalized customer service and expertise.

Closing Costs

While closing costs vary, you can expect to pay anywhere between 1.5% and 4% of the selling price of your property. Closing costs go toward the legal fees, title insurance, taxes and insurance among other administrative expenses incurred during the home buying process.

For more detail on closing costs read here.

Elements of an Offer Explained

Several key components go into making an offer. Aspects of an offer include the price, deposit, terms conditions, inclusions and exclusions, and closing and possession date.

Price: This is the amount of money you are willing to pay for the property you are interested in purchasing.

Deposit: When the buyer puts a deposit down on a property, it is showing the sellers your good faith to purchase the property.

Terms: This includes the total price offered for the property and financing details.

Conditions: These are terms and qualifiers that must be satisfied before the final purchase of the property. Conditions may include, but are not limited to, home inspections, financing or be subject to additional deposits.

Inclusions and Exclusions: The seller and buyer agree what will, or will not, be left within the property on closing. Items such as fixtures, major appliances, and faucets are left behind. Your agent will help negotiate these items for you.

Closing and Possession Date: This is the day the property is legally transferred to you, and the transaction is final.

Land Transfer Tax

When purchasing a home, condo or land in Toronto or the GTA, you will be subject to land transfer taxes. These taxes are due upon closing and based on a sliding scale. The fee is based on a percentage of the home value and estimated by using the property’s purchase price. The buyer purchasing real estate must pay both provincial land transfer tax and municipal land transfer tax. Most first time buyers are also eligible for land transfer tax rebates.

To simplify figuring out your land transfer tax cost, you can use our land transfer tax calculator HERE to determine your applicable tax.

For an in-depth look at land transfer taxes, check here.

Making an Offer

When making an offer on a residential listing or commercial real estate listing, you can expect the following to occur. The elements involved in making an offer include terms and conditions, agreement of purchase and sale, irrevocable period, offer registration and offer presentation.

For further detail on making an offer go here.

Renting vs. Home Ownership

There are pros and cons when it comes to owning vs. renting a home. To help you work through the decision, here are some facts to consider.

One significant advantage to renting a home includes minimal maintenance costs to you. Another upside is a predictable monthly rent payment that can be less expensive than a mortgage payment. Lastly, if you chose a neighbourhood you expected to love, but don’t, you can quickly move to a new location, with a lot less hassle.

When it comes to owning a home, the most significant advantage is you are paying your mortgage. Think of it as paying yourself instead of someone else since your mortgage payment goes toward equity in your home. While renting can be cheaper, don’t dismiss the fact that it can be more cost-effective to buy. With a decent down payment in the right area, your mortgage could be less than rent. One of the most significant advantages is the ability to do what you want to your space; you can renovate, paint and upgrade to your heart's content.

Read more about the pros and cons of renting vs. home ownership here.

Title Insurance Explained

Title insurance is optional for real estate purchases but is something every buyer should seriously consider. While you will want to discuss title insurance in depth with your real estate agent or attorney, here is a brief overview of this type of insurance.

Title insurance is a one-time payment of around $250 and covers the following: forgery and fraud, typos and minor errors in the legal description of the property, liens, easements, zoning violations, work orders and protecting the property from someone else claiming an interest.

Read more about title insurance here.

Our Builders

At Spectrum Realty, we have some of the best home builders in the Greater Toronto Area. Our builders construct everything from single detached homes to luxury estates to condos and townhouses. Find out more about our builders here.

New Developments

Spectrum Realty is proud to be working on new developments constantly. For more information on our projects, check here (link to new developments page).

To schedule an appointment with us to view your dream home call 416-736-6500 or contact us here.


Spectrum Realty Services Inc., Brokerage

8400 Jane Street Unit 9, Vaughan, Ontario L4K4L8
Office: 416-736-6500
Fax: 416-736-9766

Trademarks owned or controlled by The Canadian Real Estate Association. Used under license.

The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.

Information is deemed reliable but is not guaranteed accurate by TREB.

Toronto Real Estate Board - IDX Last Updated: 11/20/2019 8:50:39 AM