When you’re in the market for a new home and mortgage, there are endless things to consider. First, you want to find the right house…something with enough room to grow, something that suits your taste and budget. But more importantly, you need to consider the neighborhood. If you buy in the wrong neighborhood, even the most perfect home will soon become a source of resentment.
Real estate agents are always pushing location. They know that purchasing location is more important than purchasing square footage, style, and status. And what is desirable to some may not be as desirable to others. So, you have a lot of work cut out for you here.
When purchasing Toronto real estate and getting a second mortgage, there are several major neighborhoods that you will need to consider: Etobicoke, York, North York, East York, and Scarborough. In “Old Toronto,” there are also several locations to consider. As mentioned before, what is desirable to some may not be to others, so we are not going to discuss the merits and shortfalls of each location in this article. Rather, we are going to talk about what you need to consider so that you can find the neighborhood that is perfect for you.
Perhaps the first thing that you will want to consider is your commute. How far away do you want to be from work? If you work downtown, this may limit your search to “Old Toronto.” But if you are willing to drive, you might be able to look in the outer boroughs. Do you rely on public transportation? If so, this may limit your search as well.
Shopping and amenities are also important considerations. Drive through each neighborhood and see what each has to offer. If you have favorite destinations in a particular neighborhood, you may want to consider buying in that neighborhood rather than buying elsewhere and driving across town all the time to get to your favorite spots.
Safety and good schools are paramount, especially if you have a family or are planning on raising one. Your real estate agent cannot help you with this one as she or he has to remain impartial and not favor one location over another. However, you can research school scores online. Law enforcement websites include information about safety as well, with breakdowns of crimes committed according to the neighborhood.
Some neighborhoods cost more to live in than others. Always consider costs such as property taxes and special local ordinances before purchasing Toronto real estate. For instance: If you purchase in a historical section, it could cost you a lot more to remodel your property than it would if you purchased in a modern neighborhood that doesn’t have any building ordinances.
Short Term or Long Term, Which is Better
Typically with loans, the shorter the term or guarantee of the rate, the lower the rate will be – most second mortgage Toronto loans are one year in length. This is not always the case, the rule is not carved in stone. However, history as shown that more often than not, this rule of thumb applies. And while variable rates have the potential to save on interest and uptick can sometimes drive mortgagees to distraction and into debt. When considering a variable rate loan it is of paramount importance to look at risk tolerance and cash flow before signing on the dotted line. When in doubt, talk to an expert for more information.