What it takes to buy your first place
Buying your first home is a big deal. For most people, it's the finish line after years of saving and planning. If you're doing this for the first time in Canada, the whole thing can feel like a lot. But with the right prep and a clear map, you can get there.
Here's what you need to do, step by step, to go from thinking about it to holding the keys.
Figure out what you can afford
Start by looking at your monthly income and expenses. Then add in what homeownership actually costs: your mortgage payment, property taxes, maintenance, all of it.
A good rule: your total housing costs shouldn't eat up more than 39% of your gross income. That keeps you comfortable and gives you room to breathe.
Get your credit score in shape
Your credit score matters when you apply for a mortgage. The higher it is, the better your chances of approval.
Pay your bills on time, knock down any debt you can, and check your credit report for mistakes. You'll want a score of at least 640 before you start shopping for a mortgage.
Save up for your down payment
In Canada, the minimum down payment is 5% of the purchase price. But if you can save 20%, you won't have to pay mortgage insurance.
Put down less than 20% and you might qualify for first-time buyer programs that can help.
Shop around for a mortgage
Once you've saved your down payment and your credit's in good shape, it's time to look at mortgages. That means comparing rates and terms from different lenders to find what works for you.
This is where a mortgage broker comes in. A broker can figure out your max purchase price, see if you qualify for any special first-time buyer programs, and find you the right mortgage — all at no cost to you. Learn more about how a mortgage broker can help you with financing your first-home purchase.
Find a real estate agent
A real estate agent helps you navigate the buying process and find the right property. They'll assist with negotiations, give you advice, and walk you through closing.
Start looking for your home
Once your mortgage is lined up, you can start the search. Work with your agent to find properties that fit your needs and budget, then go see them in person.
Take your time. You'll know when you've found the one.
Make an offer
Found it? Time to make an offer. You'll submit a written offer to the seller along with any paperwork they need.
Your agent will guide you through this part — it's what they do.
Close the deal
If your offer's accepted, the next step is closing. That means signing the documents, paying your fees (down payment, property taxes, and so on), and taking ownership of your new place.
Then it's yours.
What to do next
Buying your first home takes preparation, planning, and a little patience. Follow these steps and you'll get there — from figuring out your budget to holding the keys.
If you're ready to start, talk to a mortgage broker. They'll help you understand what you qualify for and find a mortgage that fits your situation, at no cost to you.
