Whether you are purchasing a property in Toronto or buying your first home, there are several key factors that many buyers overlook (which could be costly in the long run!). From parking issues to property boundaries, these details can have a significant impact on the home-buying process. In this article, we’ll dive deep into these often-overlooked aspects, ensuring you’re fully informed before making one of the biggest investments of your life.

1. Parking: What You See May Not Be What You Get

When browsing listings on the Multiple Listing Service (MLS), you might come across a property that states “parking.” However, it’s important to understand what that actually means.

• Mutual Driveways: A mutual driveway is shared between two homes, and parking may be agreed upon with a neighbor. However, this is not always a permanent arrangement. If the neighbor moves or decides to end the agreement, you could lose your parking spot. This type of parking isn’t legally guaranteed, so make sure to verify the terms before proceeding.
• Front Pad Parking: If the listing mentions a curb cut or a space in the front yard for parking, it’s not always a sure thing. To ensure that parking is legal, check if the address has a registered and active parking permit for that location. Front yard parking permits are tied to the property owner, not the house itself. If the previous owner hasn’t been maintaining the permit, you might find yourself unable to park there despite having a physical spot to park your car.

2. Check for Property Line Issues

Many buyers fall in love with a home’s spacious backyard, only to discover that part of it actually encroaches onto public space. It’s crucial to verify the exact property lines using a survey before making an offer. If a fence or structure has been built outside of the property’s boundaries, it could cause major headaches down the road. For example, if the backyard is being used for a pool or other large structures, the city might not allow construction if it’s on public land. Make sure to confirm with a licensed land surveyor.

3. Zoning and Restrictions: Know Before You Build

Before buying a property, especially if you plan to make improvements like adding a pool or building a deck, it’s essential to check local zoning laws and property restrictions. For example:
Environmental Concerns: Properties located near ravines or other protected areas may have restrictions on what you can build due to environmental preservation rules.

• Heritage Protection: Some properties, particularly those near archaeological sites, are subject to strict building codes, and you might not be able to build in certain areas of the property.

4. Local Developments: What’s Happening Around You?

New developments in the area can impact the value and enjoyment of your property. For example:

• Transit Lines and Construction: If a property is located near new transit lines or infrastructure projects like the Ontario Line, it could be subject to future construction noise, vibration, or limited access. Be sure to research upcoming developments and check with the city or relevant agencies to understand how they may affect your property.
• Train Tracks and Noise: Proximity to train tracks is another factor that many buyers overlook. While some properties may be near GO train lines, others might be close to freight lines, which run 24/7 and can produce significant noise and vibrations. Make sure to evaluate how much noise you’ll be dealing with before making a decision.

5. Noise and Vibration from Public Transportation

Many buyers don’t realize the extent of noise or vibrations they might experience when living near a subway line or major transit route. To get a real feel for the property, spend a little extra time at the house and test out the sound levels. Especially if the subway line is nearby. Over time, this could impact your living experience and even the long-term value of the property.

6. Verify Permits and Legal Structures

Before purchasing your property, it’s crucial to ensure that all structures on the property are legal and permitted. If you notice a deck, fence, or other structure that looks unusual compared to the surrounding properties, check to ensure that the necessary permits were pulled. Without proper permits, you could face legal challenges or fines if you ever need to make changes or plan on doing future renovations.

7. The Importance of Surveys and Property History

Surveys are essential tools that provide an accurate picture of the property boundaries, location of structures, and potential encroachments. Always ask for a recent survey of the property and take the time to verify the accuracy of the information. It’s also wise to investigate the property’s history to uncover any past issues that could affect your investment.

The key takeaway? Stay informed before you buy!

Buying a home is an exciting journey, but it’s important to do your homework before committing. As we highlighted in this article, parking arrangements and property boundaries to zoning laws and local developments can be a few factors that can affect your property’s value and your overall experience. By staying vigilant and seeking professional guidance, you can avoid these common pitfalls and ensure that you’re making a sound investment in Toronto’s competitive real estate market.

If you’re thinking about buying a property in Toronto, make sure to ask the right questions and research thoroughly. Your dream home might be closer than you think, but understanding the details will make all the difference. 

Need help buying your first property? Contact us! We’re here to give you an authentic real estate experience.

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1. INCREASED PURCHASE PRICE CAP FOR INSURED MORTGAGES

From December 15, 2024, the maximum purchase price to qualify for an insured mortgage will increase from $1 million to $1.5 million. This enables buyers to secure insured mortgages with lower down payments for homes in this price range. Previously, this was restricted to uninsured mortgages requiring at least 20% down.

More Canadians with less than a 20% down payment can qualify for mortgages with this higher price cap. Additionally, this will offer greater flexibility for buyers in pricier markets or those looking to set aside funds for other uses.

Down Payment Example: $1,250,000 Purchase Price
Before December 15: Minimum down payment = $250,000 (20% + down payment required)
After December 15: Minimum down payment = $100,000 (under new rules)

The minimum down payment will be calculated as 5% on the first $500,000 and 10% on the remaining amount up to $1,499,999.99. Purchases at or above $1.5 million will still require a minimum down payment of 20%.

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