If you’ve thought about buying a condo for some time, this is your sign to seriously consider it. From fantastic beautiful units to amazing on-site amenities and everything in between, there’s a lot to love about condo living – especially in South Etobicoke!
Although they’re typically more affordable than detached homes, budgeting for a condo still requires some hands-on planning. Because they have different costs than a house, building out your financial plan for buying a condo will bring some extra details to consider.
One of South Etobicoke’s fastest-growing neighbourhoods, Mimico, is home to an abundance of fantastic condos that match almost any lifestyle. Click here to read my blog about why Mimico is the perfect spot for condo buyers.
Where to Start
Whether you have a rough idea of what you can afford or no clue at all, the simplest way to get a sense of your budget is by getting pre-approved for a mortgage. During this process, a lender looks at your entire financial situation and determines how much you could reasonably afford to put toward your mortgage each month. They’ll check your income, savings, existing debt, and credit history and decide how much money they’re willing to lend you. Once you know the maximum amount that you qualify for, you’ll have helpful boundaries in place for your condo search.
Choosing the Right Lender
When it comes to the costs of buying a condo, your mortgage is hands down the biggest piece of the pie. Yes, your mortgage will cover the actual price of the unit itself, but it also carries interest, which can add up fast. When the time comes to apply for a buyer’s loan, you’ll want to research your options carefully. Different lenders will offer different rates so the bank or financial institution that you choose to get a mortgage from will actually directly impact your costs.
About to buy your first home? Congrats! Check out these blog posts for helpful tips.
- Can I Buy a Home in Etobicoke Without a Real Estate Agent?
- Buying For The First Time – Should You Compromise?
- A Beginner’s Guide to Conditional On Sale
After your mortgage, one of your largest monthly expenses will be condo fees. Rather than your bank or lender, condo fees are paid to your condo corporation. They mainly go towards the everyday costs of maintaining the building like property utilities, common areas, amenities, and minor repairs. So how much do they cost?
It depends. In most cases, your condo fees will be based on the building and the square footage of the unit itself. Luckily, most resale condos in South Etobicoke will include information about monthly condo fees directly in the listing so you’ll have an idea if it fits your budget before you even book a showing.
Curious about what condos are currently available in South Etobicoke? Check out my featured listings here.
Utilities are another cost that can vary depending on the condo itself. Your condo fees will cover some of your monthly utilities but not all. Generally speaking, you can expect to budget for costs like internet and cable. Once you’ve found a condo that catches your eye, your real estate agent can help you get a full picture of what costs are built into the utilities, and which you’ll need to pay separately.
Although you only pay them once a year, property taxes can make a fairly large dent in your overall finances. In South Etobicoke, property taxes are calculated based on the estimated market value of the property and its location. Once again your real estate agent can help you get a rough idea of how much you’ll need to budget depending on your circumstances.
Not super familiar with South Etobicoke? Check out these neighbourhood guides for a crash course on some of the top communities in our neck of the woods!
- New Toronto – Bringing Youthful Energy to South Etobicoke
- Long Branch – Etobicoke’s Lakeside Gem
- A Guide to Alderwood Real Estate
One of the smaller costs that come with buying a condo is the status certificate. If you haven’t heard of status certificates before, that’s okay. In a nutshell, these are extensive documents that outline a ton of important information about the condo. They cover the condo corporation itself, property management, the legal and financial standing of the building, information about reserve funds, building rules and bylaws, and relevant details about the specific unit being purchased.
Similar to a home inspection, status certificates help buyers get a better idea of what they’re getting into before signing on the dotted line. Most condo corporations charge a flat fee for producing a status certificate – usually no more than $100.
Searching for a real estate agent who can help you find the perfect South Etobicoke condo? I can help! Call or text me at 647-239-7587 to get started. I look forward to hearing from you.
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