Published: October 28, 2024 | 8 min read
Buying your first home is one of the most exciting—and overwhelming—experiences you'll have. This comprehensive guide breaks down the entire process into manageable steps, so you know exactly what to expect.
This is the most important first step, yet many first-time buyers skip it. Getting pre-approved tells you:
What you'll need: Employment letter, recent pay stubs, tax returns (2 years), credit check authorization, and down payment proof.
Timeline: 1-2 business days
In Canada, your down payment requirement depends on the purchase price:
Important: If you put down less than 20%, you'll need mortgage default insurance (CMHC, Sagen, or Canada Guaranty), which protects the lender if you default.
1. First-Time Home Buyer Incentive: Government contributes 5-10% of purchase price (shared equity)
2. Home Buyers' Plan (RRSP): Withdraw up to $35,000 from your RRSP tax-free
3. Land Transfer Tax Rebate: Ontario offers up to $4,000 rebate
4. GST/HST New Housing Rebate: For new construction purchases
A good agent is invaluable for first-time buyers. They'll:
Best part: As a buyer, you typically don't pay your agent—the seller does!
Now the fun begins! Armed with your pre-approval, you can confidently shop for homes within your budget.
Must-haves vs. nice-to-haves: Make a list of non-negotiables (location, bedrooms, school district) versus features you'd like but can live without (finished basement, pool).
Timeline: This varies widely—some buyers find their home in weeks, others take months.
Found the perfect home? Your agent will help you submit a competitive offer that includes:
Pro tip: In competitive markets, be prepared to move quickly and potentially compete with other buyers.
Once your offer is accepted, you typically have 5-10 days to satisfy conditions:
NEVER skip this step! A professional inspector will identify:
If major issues are found, you can negotiate repairs, a price reduction, or walk away.
Your lender will order an appraisal to confirm the home's value supports your mortgage. They'll also verify your employment and review any changes to your financial situation.
Your lawyer reviews the condo corporation's financial health, rules, and any pending litigation or special assessments.
Once conditions are satisfied, you'll:
Your lawyer handles all legal aspects of the purchase:
Cost: $1,500-$2,500 including disbursements
24-48 hours before closing, do a final walk-through to ensure:
On closing day:
Congratulations—you're a homeowner!
Beyond your down payment, expect to pay 1.5-4% of the purchase price in closing costs:
Let's get you pre-approved and on the path to homeownership. I'll guide you through every step and answer all your questions.
Get Your Free Pre-ApprovalAbout the Author: Ragini is a FSRA-licensed mortgage broker with Blue Key Mortgage, powered by BRX Mortgage. She specializes in helping first-time buyers navigate the home buying process with confidence.
