Buying your first home in Canada?
Purchasing your dream home is an exciting milestone, but choosing the right Canada home loan can be daunting for first-time buyers. We've got great rates and information to make your choice easier.
Get tips to assess affordability, improve your credit, save for a down payment, and get pre-approved to find and buy a home.
Buying your first home?
You can do this, and we'll show you how
Before you decide to buy a home, make sure you've carefully considered the costs versus benefits of homeownership. If you've never owned a home, rest assured we have all the resources and expertise to guide you through the journey.
Are You Ready for Homeownership?
Before searching for homes, assess your overall financial situation to determine if you are ready for homeownership. Being financially prepared will make the home-buying process smoother.
How much you can afford?
Understanding how much you can realistically afford will help you avoid getting in over your head financially. Follow affordability rules to determine the your maximum home price and payment.
Build your credit score
Maintaining an excellent credit history will benefit you when applying for a mortgage. You can obtain your credit report from Equifax and TransUnion to check your score. Then, take steps to improve it.
Save for a down payment
What's the minimum down payment you need for a house?
The more you can put down, the better. Start saving for your down payment as far in advance as possible.
Figure out the upfront costs
When budgeting, remember to account for closing costs, such as legal fees, land transfer taxes, title insurance, home inspection, and moving expenses. Ideally, 1.5% to 4% of the home price should be saved as a contingency for these closing expenses.
Get Pre-Approved
Getting pre-approved for a mortgage early has significant advantages. Pre-approval provides a letter confirming the amount you are qualified to borrow. It also shows sellers that you are a serious buyer.
You can apply directly through your lenders, but it's better to work with an experienced mortgage broker who will compare multiple lenders to get you the best rate.
Find the right home for you
Once you are financially ready, it's time to find the ideal property. Outline your wish list, research neighbourhoods, and start viewing homes that meet your criteria.
Why Should You Work With a Real Estate Agent?
An experienced real estate agent specializing in first-time buyers and your neighbourhood can provide invaluable expertise. They'll schedule showings, point out unlisted options, negotiate offers, and handle all paperwork, making it easy for you. Vet agents to find one that meets your needs.
Making your offer and Closing on your purchase
Found your perfect home? Move fast and make your mark!
- Submit an offer with your agent outlining the purchase price, closing date, and terms.
- Be prepared to negotiate if the seller counters.
- Once an offer is accepted, confirm financing and inspect the home.
You’re nearing the finish line!
Use this checklist when closing to make the process smooth
- Finalize mortgage approval and make a down payment.
- Lawyer handles legal property transfer.
- Complete home inspection and any repairs.
- Get keys and officially become the owner!
First-Time Homebuyers? Explore our Helpful Resource
Ready to Make an Offer? Best Mortgage Online Can Help!
Buying a house is a big milestone, but our team of mortgage specialists can help make it stress-free and rewarding. We will:
Get personalized guidance tailored to your situation from trusted professionals at Best Mortgage Online.
FAQs
Why use a mortgage broker when buying a home?
Brokers have access to rates from over 50 lenders. They save you time shopping around and help get the lowest rate. Banks offer fewer options.
Do I have to be a first-time home buyer to qualify for the First-Time Home Buyer Incentive?
Yes, it is only for first-time buyers. But some provincial programs allow previous owners if you haven’t owned property in the last 5 years. Check eligibility.
Can I buy a home if I am self-employed?
Yes, but you’ll need 2 years of steady self-employment income and tax returns. Lenders may request additional paperwork to confirm your income stability.
How do I know what size home I can afford?
Get pre-approved first. The lender will confirm the maximum purchase price you can finance based on your income, debts, credit and down payment. This gives your price range.
What expenses come with homeownership?
Mortgage payments, property taxes, home insurance, utilities, maintenance costs and repairs. Condo fees also apply to condos. Review all costs before buying.
Is it better to rent or buy right now?
It depends on your timeline, budget, mobility, and lifestyle needs. Weigh the pros and cons of renting versus buying to decide what makes the most financial sense for you.