Buying Your First Home

 1. Understanding Your Mortgage Eligibility

Before starting your home search, it’s essential to know how much you can afford. Your mortgage eligibility depends on factors such as income, savings, and expenses. While online calculators can give you an estimate, they don’t always consider all variables. Working with a mortgage broker can help you secure the best terms tailored to your financial situation.

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2. Comparing Lender Options

Many first-time buyers assume that working directly with a bank guarantees the best mortgage deal. However, banks only offer their own products, which may not always suit your needs. Mortgage brokers, on the other hand, work with multiple lenders, providing you with a side-by-side comparison of different mortgage options to help you find the best fit.

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3. Down Payment Requirements

Typically, you’ll need 5% for the first $500,000 of a home’s price and 10% for anything above that. Down payments can come from savings, inheritances, gifts, or even RRSPs (for first-time buyers). It’s also important to distinguish between a deposit and a down payment. While the deposit shows your intent to buy and is held by your lawyer, it’s included in the overall down payment.

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4. The Mortgage Approval Process

Securing a mortgage approval can be straightforward with the right support. By providing initial details, you can receive pre-approval within 48 hours. Our in-house software generates a personalized report, outlining the best lender options based on your budget, down payment, and any associated fees.

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Key Costs When Buying a Home

1. Property Transfer Tax: First-time homebuyers may qualify for up to an $8,000 tax credit upon closing.

2. Legal Fees: Budget at least $2,000 for solicitor fees.

3. Property Inspection: A professional home inspection, ranging from $300 to $600, can help uncover potential issues.

4. Appraisal Fees: If a full appraisal is required, expect costs between $300 and $500, though some lenders may cover this.​

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Additional Considerations

• Closing Costs: These include title insurance, legal fees, and appraisal charges.

• Property Taxes: Research the annual tax rates for the area where you plan to buy.

• Homeowner’s Insurance: Protecting your home and belongings is a necessary expense.

• Moving Costs: Factor in expenses for transporting your belongings.

• Home Type: Consider whether a condo, townhouse, or single-family home best suits your needs and long-term goals.

• Financial Readiness: Assess your credit score, income, and debt-to-income ratio, as these impact your mortgage terms and interest rate.

 

Make Your First Home Purchase Stress-Free

Buying a home for the first time can seem overwhelming, but with expert guidance, it can be an exciting and smooth experience. Working with the right professionals ensures you get the best advice, financing, and support throughout the process.