First-Time Home Buyers in Guelph? Read this Comprehensive Guide First

Buying your first home in Guelph can be exciting, but with all the ins and outs of real estate, it can also be overwhelming. From determining a realistic budget to getting mortgage pre-approval, some essential home buyer tips can help make the experience a positive one. 

Keep reading to learn the unique challenges faced by many first-time homebuyers in Guelph and how to overcome them and make informed buying decisions.

• Why Choose Guelph
• Understanding the Real Estate Landscape in Guelph
• How to Buy Your First House: Steps to Ensure a Smooth Purchase
• Challenges for First-Time Home Buyers
• Andra Arnold & Associates — Your Guelph Real Estate Experts
  

Why Choose Guelph?

Factors like property types, location, and prices can all impact your home-buying journey. Here’s a breakdown of things you should know as a first-time home buyer in Guelph:

Current Market Situation

Current Guelph MLS stats show an average home price of $797,456, with 483 new listings within the last 28 days. This housing data shows the median time a house stays on the market is 22 days.

Property Types and Their Benefits

With so many property types when it comes to buying a house in Guelph, it can be overwhelming trying to make sense of it all. Below is a list of the most popular types in a nutshell:

• Detached homes: A standalone property, typically meant for single families, that’s not connected to other units or buildings. When purchasing a detached home, you buy the house and the land it’s on. These property types have the most freedom when it comes to building and renovation. However, you may still need government approval for major renovations, such as putting on an addition or building a garage.
• Townhouses, semi-detached, and row houses:  These types all generally fall under the same category with similar characteristics. By definition, a townhouse is a row home with an attached unit on either side and typically has a tall, narrow footprint. When it comes to freehold townhouses, you also own the land. 
• Condos and condo townhouses: Buying a condo means purchasing a unit inside a building owned by an organization. You won’t need to maintain the outside of your condo; however, you will pay monthly condo fees to cover these costs. Some condos also offer a variety of amenities such as an exercise room, library, guest suite, and more.

Neighbourhood Overview

Guelph has many unique neighbourhoods, each featuring reputable schools, convenient amenities, and several parks and trails. This Royal City has become a family-like community with a laid-back culture. From new developments to century homes, Guelph has neighbourhoods to suit every need, including:

• Downtown Guelph
• Dovercliffe Park/Old University
• Kortright Hills
• Kortwright East
• Kortwright West
• Onward Willow
• St.George’s Park
• Pineridge/Westminster Woods
• Riverside Park
• Clairfields/Hanlon Business Park
• Exhibition Park
• Guelph/Eramosa
• Puslinch
• St.Patrick’s Ward/Two Rivers
• Willow West/Sugarbush/West Acres
• General Hospital
• Victoria North
• York Watson Industrial
• Grange Road
• Village by the Arboretum

The following tips for first-time home buyers in Ontario can help ensure the most seamless experience possible:

• Begin your journey by knowing your wants, needs, and affordability. 
• Get your finances in order and apply for a mortgage pre-approval.
• Work with a trusted first-time homebuyer real estate agent who can answer all your questions, get you the best deal, and help you navigate the process. 

Narrowing Down The Details When Shopping For Your First Home

Making a list of what matters most to you and your family is a must-do exercise. It helps narrow down the potential listings and eliminates wasted time looking at houses that don’t fit your criteria.

Once you’ve created a list, highlight your “deal-breaker” points. Okay, now on to the unconventional. Don’t be too picky. As a first-time home buyer, you may benefit from expanding your search options.

Location. Location. Location. Is a 30-minute commute worth saving thousands on a home? It could be the difference between buying a townhouse in one city and a detached one in another.

Have you considered taking on a fixer-upper? Take a closer look at the homes that have been on the market for a while. iPhone photos or lack of photos, clutter, or even a bad paint job are all things that can negatively affect a listing when it just wasn’t shown or marketed to its full potential.

You should also take the time to consider the additional expenses you will need to consider. These will include things like utilities, property taxes, insurance, maintenance, and any essential repairs you may need to make.

The Canada Mortgage and Housing Corporation (CMHC) recommends that your monthly payments (mortgage, taxes, and maintenance) be less than 35% of your total household income.

Getting Your Finances in Order

Sometimes, you must do whatever it takes to get that house of your dreams, so back to the unconventional.

There’s no shame in living with your parents (or family)! It’s a great way to save money and plan ahead. Put as much money away as you can. Take a small percentage of each paycheque, put it into a separate account, and don’t touch it. This often comes with sacrificing those little luxuries, like that morning coffee and donut. But it’ll all be worth it!

Also, don’t be afraid to ask for help. Many parents (and relatives) dream of helping their children with homeownership. If you’re fortunate enough, sometimes that comes in monetary value, but it can come in many other forms of support, such as going on the title to help make the mortgage process easier.

Once you have enough money saved for your down payment as a first-time homebuyer, you must consider the additional closing costs that come with homeownership.

Closing Costs

Closing costs can be as high as 4% of your purchase price, including land transfer taxes, home inspection costs, and lawyer fees. You can’t roll these costs into your mortgage. They must be paid upfront. Don’t forget maintenance expenses and property taxes on top of your mortgage payments.

Credit Scores

Low credit scores mean higher mortgage interest rates. If yours is low, it’s in your best interest to maintain a good credit history and raise your credit score (in Canada, 574 out of a possible 900 is considered low). We don't recommend that Ontario first-time home buyers take on additional credit during the mortgage application process. If you have a partner going on the mortgage, their score is also a factor. While raising your score takes time, it’s worth it in the long run.

Mortgage Pre-Approval

Getting pre-approved for a mortgage isn’t mandatory, but it’s wise to do so. It not only gives you some certainty when bidding on homes but also gives the seller some assurance that they’re not wasting their time or losing out on other offers if yours falls through.

Not all banks and mortgage lenders offer the same interest rates and terms, so shop around for your mortgage.

Choosing Your Guelph Real Estate Agent 

Your real estate agent can be your greatest asset in your first home-buying experience — but before committing, be sure to ask the following questions: 

• How many years of real estate experience do you have?
• How familiar are you with Guelph neighbourhoods?
• How quickly do you respond to clients?
• Is real estate your full-time job?
• Are you licensed?
• Are you available days, evenings, and weekends?
• Can I contact your references?
  
  

The right real estate agent will be attentive to your needs by only showing you homes that match your wants and affordability. They will also offer solid real estate advice about the current market, neighbourhoods, and what to look for in a first-time home. A trusted realtor will also:

• Walk you through property visits and inspections: When arranging times for you and the seller or their agent to meet and walk through a potential home, a good realtor will join you. Their knowledge and expertise can tell you what you should pay special attention to so you can make informed decisions. 
• Help you navigate your purchase from offer to closing: Realtors are fantastic resources for first-time buyers. Experienced real estate agents will help homebuyers navigate every aspect of finding and purchasing a home, from searching through properties and working with industry connections, such as mortgage lenders, inspectors, and appraisers, to negotiating prices and successfully closing the deal.
• Assist with making an offer: Your realtor should provide you with a Comparative Market Analysis (CMA) of a home’s value to see what similar properties sold for. After a home inspection, your real estate agent may ask for a lower price or add repair contingencies depending on the fixes the house requires.
• Strengthen your negotiations and counteroffers: Expert negotiators will have the skills to accurately read situations and respond effectively. Part of their role is determining the best way to maximize the deal on your behalf.

Some first-time home buyers wish they could have a do-over because they:

• Didn’t properly investigate the neighbourhood
• Put all of their savings into the down payment
• Didn’t anticipate closing costs
• Neglected the home inspection
• Didn’t do a comparative market analysis
• Forgot that everything is negotiable

From financial considerations to emotional and psychological hurdles and the importance of market knowledge, many first-time home buyers faced challenges that they could have avoided by partnering with a local Guelph realtor.

Looking for houses for sale in Guelph, Ontario? You’ve come to the right place. 

Andra Arnold & Associates pride themselves on simplifying the homebuying journey, making every transaction a memorable one. Whether you’re buying a home for the first time or you have U-Haul on speed dial, we can answer all your questions, help you find the best deal, and match you with your next home. 

Ready to find your dream home in Guelph? Contact our expert real estate agents today for personalized guidance tailored to your needs!

Some first-time home buyers want a do-over because of these mistakes:

• They brought their kids along and got distracted
• Didn’t investigate the neighbourhood
• Put all of their savings into the down payment
• Didn’t anticipate closing costs
• Neglected the home inspection
• Forgot that everything is negotiable

Finding a trusted realtor is the most crucial step in finding your first home. From there, they can guide you and create a realistic plan and timeline.

If you have any questions about the first-time home-buyer experience, please reach out. Andra Arnold & Associates Guelph real estate team is here to help!

Let’s chat!

Written by Andra Arnold - Guelph Realtor