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5 Tips for Buying Your First Condo in Toronto

If you have been wondering how to invest your hard-earned cash and cannot decide – you have come to the right place!

There is a lot of investment noise regarding cryptocurrencies, NFT, and more, and sometimes it can be challenging to know what a worthy investment is. Real estate will always be one of the most popular, traditional investment opportunities, and for good reason.

Investing in a condo is a good idea – investing in a condo in Toronto is even better!

If you would like to know more about this, read on for five tips for buying your first condominium in Toronto:

1. Mortgage Pre-Approval

Your chosen lender will require some important paperwork from you to pre-approve your mortgage application.

This will include a credit check (which they typically run for you), an employment letter or proof of self-employment, and the previous year’s Notice of Assessment – confirming your income taxes were paid.

If you did not file taxes last year, you will not be able to get a mortgage.

2. Know The Neighbourhoods

Walk around almost any neighbourhood in Toronto and you will find condos – including many of them downtown and near fantastic restaurants.

Whether it is Liberty Village, Queen’s Quay, or Yonge and Eglinton, explore the neighbourhoods of Toronto and decide if you want a condo in a low-rise, mid-rise, or high-rise building. Not all condos are created equally, some offer varying degrees of outdoor space, amenities, and services.

Get to know the areas, that will help you choose whether you want to invest in the middle of the action or a quieter, more peaceful residential area.

3. Understand The Maintenance Fees

Be ready for the maintenance fees of owning a condo in Toronto.

Condo maintenance fees vary from building to building and almost always include water, garbage, and building insurance. They may or may not include gas and air conditioning.

Lastly, it is best to get a condo property manager in Downtown Toronto to help oversee the running and management of your unit.

They take a load off your shoulders by securing the perfect tenant and attending to monthly management requirements.

4. Downpayment

For purchases under $1.5 million, you need a 5% down payment and a 20% down payment for condos priced over that.

If this downpayment is not easily accessible, decide how to liquidate it so it is available when making an offer. If your downpayment is in a high-risk investment, cash it out now so it is not subject to market fluctuations closer to the time.

If your downpayment is from outside Canada, it must be in your account for at least 90 days before closing.

5. Know What You Want

Determine your condo needs and wants upfront.

How much space do you want your condo to have? Condos are typically priced by the square foot, so the larger condos are more expensive – so are ones in trendier areas.

Fancier finishes cost more, and you will likely pay extra for private parking. The more you spend, the more you can get back in monthly rental, so do not be put off – just be informed.