The average home prices for detached and semi-detached homes continue to rise
TORONTO, ON, July 7, 2016 – As the mercury rises outside, so are the Toronto housing market prices. The Toronto housing market has reached a new high as the average price of a semi-detached home increased to $912,724 – up 19.7 per cent whereas detached homes jumped 19.6 per cent to $1,259,486 year-over-year.
The Toronto housing market is showing no signs of slowing down according to a recent release by the Toronto Real Estate Board. Toronto homebuyers far outweigh the homes available which is creating a highly competitive market.
“If you are out in the market looking to purchase a home, it could be a difficult place to be in right now. However when you are out shopping for your home, it is important not to get caught up in emotions and be mindful of your budget,” says Jeffrey Schwartz, executive director, Consolidated Credit Counseling Services of Canada.
“It is possible to find your dream home however you have to ask yourself, can you afford it? You have to factor in closing costs, home maintenance and all of your household bills,” says Schwartz.
To help potential homebuyers stay on top of their budget, Consolidated Credit offers the following tips:
Think with your head, not your heart
Take a step back and seriously think about the purchase you are about to make. Review your whole financial picture before you decide to buy a house. You can prepare for this by going to the bank to get pre-approved for a mortgage. Let your budget be your guide as to how much you can afford after factoring all of your expenses. Remember all expenses need to be included in this budget, and some will increase with home ownership.
Don’t throw away your dollars and cents
Save your money for your down payment. It is recommended to put no less than 20 per cent down for your home purchase. If you put anything below that, you will be considered a higher risk. As a consequence, you will have to obtain mortgage insurance –another expense on top of your billion other ones! So keep your home purchase expenses down by putting at least 20 per cent as a down payment.
Show me the money!
A home purchase is more than a mortgage and your down payment. There are extra costs you have to factor in such as land transfer tax, lawyer fees, home inspection costs, the cost of connecting your utilities, home furnishing costs and whatever else may pop up! Be prepared and guard against unexpected expenses by creating a home purchase budget!
Skip the big flashy house
Buying the big house everyone wants is not practical if you cannot afford it. It is common for many consumers to buy more home than they can afford. You can stay out of this trap by buying only what you can afford. Your bank account will thank you.
“When you stay within your budget, you are creating a peace of mind. You won’t have to worry about how you are going to manage all of your household finances on a monthly basis,” says Schwartz.
About Consolidated Credit Counseling Services of Canada, Inc.: Consolidated Credit Counseling Services of Canada is a national non-profit credit counselling organization that teaches consumers about personal finance.
For more information or to request an interview with Jeffrey Schwartz, please contact:
Natasha Carr, Community and Public Relations Manager, Consolidated Credit Counseling Services of Canada, Inc., T: 416-915-7283 ext.1041, C: 416-830-4720, F: 416-915-5200, E: [email protected]