How Much Does It Cost to Buy a House in South Etobicoke?

Stretching up from the shore of Lake Ontario, South Etobicoke is made up of some of Toronto’s most charming and down-to-earth commutes. And, as an area that’s just now starting to gain traction with buyers from elsewhere in the city, South Etobicoke is known for its lower costs of real estate. Which begs the question – how much does it cost to buy a house here?

While yes, South Etobicoke still has plenty of fairly-priced real estate – including lots of great starter homes, every house comes with its own price tag. So exact costs will depend on the buyer.

However, by understanding the different types of expenses involved in buying a home, you’ll have a much better idea of what the final costs of your purchase will be.

In this blog, I’ll break down the fundamental costs that come with buying a home in South Etobicoke. I’ll also touch on how you can find a home in South Etobicoke that suits your budget with as little hassle as possible.

Getting ready to buy a home? You may want to read these blogs too – they’re full of helpful tips!

What Do You Need For a Deposit & Downpayment?

While the largest price tag involved in your South Etobicoke home purchase will be the property itself, it’s not really an upfront cost. From a transaction standpoint, the biggest costs you need to prepare for are your deposit and downpayment. So how much will they be?

The Downpayment

For a long time, 20% was the standard amount for a downpayment. However, things have changed over the past decade. Today, the minimum downpayment (percentage) you can make on a home will depend on its selling price.

Here’s how it breaks down. Homes below $500,000 require a minimum down payment of just 5%. Homes that are above $500,000 but less than $1,000,000 will require a minimum down payment of 5% of the first $500,000 of the purchase price and 10% of the remaining amount. Finally, the down payment on homes that cost more than $1,000,000 is 20%.

The Deposit

When it comes to making a deposit, there’s no standardized minimum. Instead, it’s about what you can afford and how appealing you want your offer to be. In South Etobicoke, most buyers aim for a deposit between 3% and 5%.

Keep in mind that these two costs are connected. In other words, your deposit will make up a portion of your downpayment. As an example, if you place a 5% deposit, and your downpayment is 20%, your total between these two costs will be 20%, not 25%.

Don’t Forget About the Other Costs of Buying

While your deposit and downpayment will be two of the biggest costs when buying a home in South Etobicoke, there are other expenses to look out for. And, if you forget to plan for them, you could overstretch your budget.

Land Transfer Taxes

Once the purchase goes through, home buyers are on the hook for land transfer taxes (LTT) – both at a municipal and provincial level. Similar to property taxes, LTTs are calculated based on factors related to the home itself. As you shop the market, your real estate agent can help you estimate total costs based on their calculations.

On a positive note, there are some cost-reducing incentives and workarounds for LTTs. For instance, first-time home buyers can apply for a rebate which can soften the burden of this cost fairly substantially.

Legal Fees

Buying a home in South Etobicoke (or anywhere for that matter) will require the help of a lawyer. And, as you may expect, their services will come at a cost. That said, legal fees don’t usually break the bank. In a South Etobicoke home purchase, setting aside roughly $500-$2,000 is often enough to cover your bases.

Mortgage Insurance

If your downpayment is less than 20%, you will be required to pay for CMHC mortgage insurance. This cost is taken on by your lender and then passed onto you. You can pay for it upfront or have it spaced out across your existing mortgage payments. As a heads up, mortgage insurance is not HST exempt so you’ll need to account for the extra tax on top.

Want to get to know South Etobicoke’s best neighbourhoods? Check out these community guides from my site.

How to Get the Best Value on Your Home Purchase

When it comes to real estate, South Etobicoke marches to the beat of its own drum. If you’re thinking about buying a home here, you’ll want a local expert by your side – like me!

As a proudly local South Etobicoke agent, I know our unique market inside and out. I have the connections, insights, and inside scoop to help you find (and buy) a great home.

Thinking about buying a home in Etobicoke? I can help! Call or text me at 647-239-7587 or send me an email at melissa@southetobicoke.com to get started.