Do you love that fast-paced lifestyle that comes with living in Toronto? Have you always dreamed of living in the heart of a major city?
Then buying a condo in Toronto may be the perfect option for you!
Buying a condo is an excellent option for anyone that wants to own their personal slice of heaven in Toronto or on the outskirts of the GTA. Additionally, many condo complexes feature a wide array of amenities, like pools, spas and even gyms!
So, is it worth buying a condo in Toronto? In most cases, yes, it is! But, before moving into your dream unit, you need to do some research.
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Continue reading to learn how to buy a condo in Toronto like a pro!
Buying a condo in Toronto guide — Six tips everyone needs to know
If you want to buy a condo in Toronto, be sure to reference these tips throughout your search:
Tip #1 — Thoroughly review your finances
Before anything else, potential condo buyers need to get their finances in order. Taking the time to do this is’t just important; it’s necessary!
Taking the time to review your finances gives you a better idea of what you can afford, potential downpayment sizings and more. You can then use this information to narrow your search by location, condo size, price, etc.
If you don’t have your finances in order, it’ll be nearly impossible for you to make an informed (and feasible) decision that benefits you and your family in the long run.
Tip #2 — Get pre-approved for a mortgage
If you’re thinking about buying a condo in Toronto, you should consider getting pre-approved for a mortgage.
Getting pre-approved for a mortgage isn’t required, but it’s generally recommended. When you get pre-approved for a mortgage, you get access to useful information, such as:
- Interest rates
- How much money you can borrow
- How much money you are able to pay back each month
Additionally, getting pre-approved for a mortgage makes you look like a serious buyer that is actively looking to make an offer.
So, if you want to get an edge over other condo buyers in Toronto, we suggest getting pre-approved for a mortgage before making any offers.
Tip #3 — Research potential condo fees
Potential condo buyers should always do their research on condo fees before thinking about making an offer.
As a reminder, a condo fee is a monthly expense that condo owners need to pay. Condo fees typically go towards general expenses like security, upkeep, repairs and building insurance.
Please note that the building’s insurance policy is separate from your personal condo insurance policy. The building’s insurance policy covers things like communal areas and hallways, whereas a personal condo insurance policy covers your unit and personal items.
Personal condo insurance isn’t required by law in Toronto (or the rest of Ontario), but if you’re taking out a mortgage on your condo, your mortgage lender will most likely require you to purchase a policy that meets their standards.
This is something that buyers should keep in mind before making a final decision about a property.
Tip #4 — Consider buying a condo in Toronto during the winter months
Most sellers prefer to list their condos during the spring or fall months. This is due to a variety of reasons, including the weather. Research shows that potential buyers are more likely to go house or condo hunting if they don’t have to deal with heavy snowfall or extreme heat.
But, if you want to get the best deal on a condo in Toronto, you may want to dust off your snow boots and search during the winter months.
Much like homeowners, condo owners that list their properties in the winter are generally very eager to sell. Most of these condo owners need to sell their properties because they are relocating for work, school, family, etc. Because of this, they need to move the unit as quickly as possible.
Additionally, as mentioned earlier, buyers are less inclined to hunt for condos when there’s several inches of snow on the sidewalk. So, if you’re willing to make the trek in the cold, you’ll likely deal with less competition. This gives you additional leverage when you find the perfect condo in Toronto.
Tip #5 — Look into condo assignments in Toronto
Buying a condo in Toronto on assignment is a great option for buyers that want to get a deal on a unit that’s never been lived in.
For those that don’t know, a condo assignment is when someone buys a unit during the pre-building or construction phase (generally at a lower cost) and decides to sell it before the unit is completely built.
These condos are generally more affordable, making them a great option for new buyers (when they are available).
Tip #6 — Use an insurance brokerage to shop for condo insurance
Condo insurance is a highly beneficial investment, as it helps condo owners protect their unit and their personal items.
If you’re looking for condo insurance in Toronto, you can save time and energy by teaming up with an insurance brokerage that understands condo insurance policies.
Condo insurance is very different from a typical homeowners policy, and you need an insurance broker who understands this. Where a homeowners policy insures the building, a condo policy insures the interior of the unit, not the entire building, plus areas that a condo-owner may not consider.
A personal condo insurance policy also insures the unit-owner for losses that happen in common areas should the condo corp’s insurance be inadequate to cover a property or liability loss. Common areas can include foyers, pools, gyms, parking garages, etc. This will happen if the amount of the loss is less than the condo corp’s deductible, or the condo corporation does not have sufficient coverage to cover the cost of the loss. Condominium Corporations will assess or levy a special assessment against the condominium unit owners to cover the repairs.
Insurance brokerages can help policyholders find and compare high-quality quotes from various providers across the province, even in Toronto! Instead of calling several insurance companies, you can opt for the one-stop-shop approach and work with a brokerage. At Surex, many of our insurance providers offer condo policies with blanket limits to ensure that no matter what happens in your unit, or the building, your policy will cover it.
