Homebuying timelines: What to expect
If it’s your first time buying a home, you might be wondering what homebuying timelines to expect. How long will it take you to find a home? When can you expect to move in or close on a house you’ve put an offer on? Having a clear sense of timelines can help you plan for the path ahead. Here’s an overview of some typical homebuying timelines and the factors that can impact the process; from searching to moving in.
How long will it take me to save for a downpayment?
Before you’re even looking for homes, you’ll want to save or secure an appropriate downpayment. Your lender will deduct the downpayment amount from the payment you owe for your home, and it will impact your monthly home costs.
The average Canadian will be able to save for a downpayment and begin the process within five years, but for others it may take longer. The timeline you’ll need to save for a downpayment is entirely dependent on a number of personal factors, including the housing market you’re in, the money you already have saved, your personal finances, and the value of the home you want to buy. For example, those saving for a downpayment in Vancouver could need three times the amount of saving time that someone in Calgary requires. So take your local housing market into account when you’re making a savings plan, and consider other locations or markets to shorten your timeline.
Calculate your own downpayment timeline
To establish how long it will take to save for a downpayment, calculate how much your downpayment will be based on the price of the home you’re considering. In Canada, downpayments depend on the home price, with a 5% minimum downpayment required for a $500,000 property and a 20% downpayment on a property of $1 million or more.
Once you’ve established how much of a downpayment you’ll need, you can calculate how long it will take you to save that amount based on your net income, any debts, and monthly costs. Borrowing from RRSPs or government programs for first-time buyers can save you money and shorten the time it takes to save up for the downpayment you’ll need. Once a plan is in place, you can start putting away money with a clear goal that is in line with what you’ll need.
How long will the pre-approval process take?
Pre-approval is an important step of home financing that establishes how much money a lender will offer to loan you for your home purchase. The pre-approval process is determined by your current financial situation: including your current income, debts, credit score, and more. If you have all your paperwork ready to go, the pre-approval itself can be sorted out in several hours. An RBC mortgage specialist can help you streamline the process and map out an expected timeline and steps to financing your home. Remember that securing a pre-approval letter will let a future seller know you’re serious about making an offer, and streamline the process of securing your home.
How long does it take to find and buy a house?
It may take you several months to find a home that checks all your boxes. Especially if you have a full schedule, you’ll be viewing homes after work or on weekends, and it’s important to allow time to weigh your options. The current housing market conditions, your financial options, the season, and the resources you have all impact the time it takes to find a house that suits you. Online searches are a great way to search and compare properties without leaving the house. Houseful offers real-time updates of new properties on the market, and you can search in depth to narrow down the options available to you.
Once you’ve found a house, you’ll make an offer with the help of your real estate professional. In most Canadian markets, the span of the homebuying process takes several months. Some offers will be accepted or rejected immediately. All offers come with a required time frame in which a response is required; anywhere from 24 hours to several days. A bidding war with other buyers or offers with conditions can lengthen the process, but usually the timeline from making an initial offer and receiving a response spans several days. From there, negotiations can take several weeks, especially if someone else is bidding for the same home.
How can I shorten the offer and closing process?
Once you find a home you love, you can shorten the time to close by being prepared. This also improves your chances of securing the home you want:
- Consider writing a personal letter appealing to the homeowner and explaining why the house or property would be a meaningful place for you to live; this can be especially advantageous if you’re in a bidding war.
- Make a wise and reasonable offer based on the local housing market and assessed property value with the help of your real estate professional.
- Have all your paperwork organized.
- Consider your Agreement of Purchase conditions thoughtfully; having conditions that depend on receiving financing, selling a previous home or inspection results may slow down the process.
- Plan an inspection of the property to assess the environmental, electrical, or structural elements before closing. Home inspection and appraisal can take several weeks to put in place but the inspection itself is usually done in a day.
Once the conditions of the offer are met, the paperwork will be processed and a closing date and move-in date will be set. The homebuying process can take anywhere from several months to a year, but remember that each step is essential in protecting your investment, assessing and confirming the value of the property, and ensuring that this is a secure purchase to make.
How long will it take to sell my home?
If you’re feeling a sense of urgency to sell your home, a well-staged home can help shorten the timeline from listing to closing. Many factors affect how long it takes to sell your home, including:
- The current housing market and selling season. In some housing markets an in-demand home is on and off the market within a week, while in others a home may take longer to sell.
- The property value and desirability, including factors like school districts, renovations, neighbourhood, walkability, and more.
- Bidding wars and negotiations: sometimes offers come with conditions or require additional inspections or agreements that can draw out the homebuying process.
- How well you’ve maintained the property and how appealing it is to buyers. This includes staging, photography, online descriptions, and maintenance.
How can I buy a home faster?
While some aspects of the homebuying timeline can be lengthy or subject to administrative processes, scheduled meetings, or long lines, others are simple. Start with the aspects of the homebuying timeline that are easy to do from home. By starting ahead of time and getting your ducks in a row, you’ll be ready to dive in when it’s game time. These initial steps will set you up for a smooth and time efficient homebuying process.
Build a plan to secure the finances you’ll need
Set aside time for yourself or with the person you’re buying your home with, and comb through all of your current income streams, outgoing costs, regular expenses, debts, loans, assets, and potential surprise costs. Develop a clear picture of where you want to go and then build a savings plan, household budget, and goal-based timeline to meet your financial timelines. Set budgets based on your goals, and be specific so you know when you’re moving in the right direction.
Determine your credit score
Your credit score is a three digit number that lenders use to determine how risky it is to loan you money, how much interest you’ll pay, and how likely you are to make payments on time. Find out your credit score so you can get a sense of how high your interest rate will be. If you’re planning ahead to buy a home, improving your credit score before applying for pre-approval can increase your options and minimize the interest you’ll need to pay.
Hire a real estate professional early
It can be advantageous to connect with a real estate professional early on in the homebuying process. They can help you organize documents, make financial plans, and get a clearer picture of potential housing markets and what might suit your goals and limitations.
Let Houseful help you navigate the homebuying process
We can help find a home that’s a great fit for you. Feel confident in your options with a tailored search experience based on the features and details you care about most. Our comprehensive experience lets you search for a home that matches your vision.
Find more information on how to buy a home, how to sell your home, and mortgage and finance tips, see our Home Journey How-To’s or sign up at houseful.ca.
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