Tips for Reducing Your Out-Of-Pocket Costs When Buying Toronto Condos for Sale

 Home ownership is almost everyone’s dream. However, several expenses associated with it make it attainable to only a few. Thankfully, with the right strategies, you can successfully invest in one of the Toronto condos for sale. Though you might qualify for a mortgage with impressive terms, you need cash for a few expenses. Below are the ways of reducing your out-of-pocket costs when buying a condo to accelerate your home ownership.

Commit to a small down payment

The traditional down payment amount is 20% of your home’s purchase price. Commit to a lower down payment percentage if you want to reduce your out-of-pocket expenses. Sometimes, you can even be allowed to pay nothing as a down payment. Though this means paying more for private mortgage insurance monthly, it reduces your upfront expenses.

Negotiate closing costs

The closing costs for Toronto condos for sale can significantly increase your out-of-pocket expenses. However, you can negotiate with the seller to reduce these costs. A seller’s set dollar amount for closing costs will be subtracted from the proceeds he/she is entitled to from a sale. The seller might thus be willing to reduce the closing costs to make a sale.

Roll your renovation costs into the mortgage

You might want to renovate a few things in your condo to match your taste and needs. You can save the cash needed for renovations by rolling it into your mortgage. Unfortunately, this can only be done with specific mortgage types like the FHA 203 (k) loan.

Investing in one of the exceptional Toronto condos for sale is achievable for almost anyone with the above steps of reducing out-of-pocket costs. To ensure you do not suffer buyer’s remorse, buy a condo that suits your needs for the next 5-7 years. Moreover, base your choices on things that matter to you, and do not get distracted by things you can change, like cabinet hardware and carpets.