Your Guide to Buying Your First Home
Buying your first home is one of life’s most exciting milestones — but it can also feel overwhelming if you’re not sure where to start. The good news is, with the right plan and support, the process is more straightforward than you might think. Here’s a clear overview of what to expect and how to make the most of the programs and tools available to first-time buyers in Canada.
Step 1: Understand the Home Buying & Mortgage Process
The first step is to get a clear picture of your financial readiness and the home buying process itself. Here’s a simplified roadmap of what that looks like:
Get pre-approved – A mortgage pre-approval shows you how much you can afford and locks in an interest rate for up to 120 days. It’s also an essential step before you start house hunting.
Work with a mortgage broker – Your broker will review your income, credit, and overall financial situation, then help you compare mortgage products from multiple lenders to find the best fit.
Start house hunting – With your pre-approval in hand, you and your real estate agent can search confidently within your budget.
Make an offer and secure financing – Once you’ve found the right home and your offer is accepted, your mortgage broker will finalize the financing with the lender.
Prepare for closing – As you approach closing day, your lawyer will review the purchase agreement and handle the legal paperwork. Be sure to plan for closing costs, which typically range from 1.5% to 4% of the purchase price and can include legal fees, land transfer tax, and other final expenses.
Move in and celebrate – Once the deal closes, the keys are yours!
Step 2: Know Your Down Payment Requirements
Your down payment is a key part of your mortgage approval and determines whether your mortgage is insured or uninsured. In Canada, the minimum down payment depends on the purchase price:
Up to $500,000: 5% of the purchase price
$500,001 to $1,499,999: 5% on the first $500,000 and 10% on the remaining amount
$1,500,000 or more: 20% minimum (required for uninsured mortgages)
For example, if you’re buying a $700,000 home:
5% of $500,000 = $25,000
10% of $200,000 = $20,000
Total minimum down payment = $45,000
Step 3: Take Advantage of First-Time Buyer Programs
If you’re purchasing your first home, there are government-backed programs designed to make the process more affordable and help you build your down payment faster.
1. First Home Savings Account (FHSA)
The FHSA is one of the most powerful tools available to first-time buyers. It allows you to contribute up to $8,000 per year (to a lifetime maximum of $40,000) toward your first home. Contributions are tax-deductible, and withdrawals used for a qualifying home purchase are tax-free — giving you a significant financial boost.
2. RRSP Home Buyers’ Plan (HBP)
If you’ve been contributing to an RRSP, the Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP to put toward your first home without paying tax. Couples can each withdraw $60,000, for a combined $120,000. The funds must be repaid to your RRSP over 15 years, starting the second year after withdrawal.
You can even combine the FHSA and RRSP HBP to maximize your down payment power.
Step 4: Work With the Right Team
Buying your first home is a big step, but you don’t have to do it alone. Mortgage brokers walk you through every stage, explain your options clearly, and make sure you’re taking advantage of every program available. Alongside a knowledgeable real estate agent and lawyer, you’ll have a team that helps you move forward with confidence.
A New Chapter Awaits
Your first home isn’t just a purchase — it’s a foundation for your future. With a clear plan, a strong understanding of the process, and the right support, you can turn the dream of homeownership into reality. Whether you’re just starting to think about buying or you’re ready to take the first step, now is a great time to explore your options and start building a strategy that works for you.
Jason Armstrong – Mortgage Broker
519-488-1350
