First-Time Home Buyer Guide: Start Your Journey With Confidence

READY TO BUY YOUR FIRST HOME? YOU'RE IN THE RIGHT PLACE.

Buying your first home is an exciting and major milestone therefore, it is something you should be proud of. At the same time, the process can feel overwhelming, especially when it’s your first time. Between setting a budget to choosing the right neighbourhood, there’s a lot to think about. As a first-time home buyer, you’ll have questions, and that’s why we’re here to give you the right answers to make you feel educated and comfortable with your decisions.

Our team of specialty trained REALTORS® and support staff are committed to guiding you every step of the way with the right preparation and support, expert advice, personalized plans, and a no-pressure approach, all tailored to you and what you need.

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MORTGAGE BASICS FOR FIRST-TIME HOME BUYERS

First and foremost, meet with a mortgage broker to gain a clear understanding of your financial situation and how it impacts your ability to purchase your first home. If you don’t have one already, we’re happy to refer you to a trusted partner who can guide you through your options.

GATHER YOUR PRE-APPROVAL DOCUMENTS

Income Qualification: T4s, Paystubs, RRSP, and Your Employment Letter
Credit Verification: Credit Report, Outstanding Debt, Past Collections etc.
Government Issued Photo ID: Driver’s License, Passport, Ontario Photo Card, Status Card etc.
Gift Letter: Obtain this document if a family member plans to contribute to your home purchase

4 THINGS TO AVOID ONCE YOU ARE PRE-APPROVED

Avoid making any big purchases
Avoid quitting or changing jobs
Avoid applying for new credit
Avoid co-signing on a loan

THE FINE PRINT OF BUYING YOUR FIRST HOME

Government Incentives for First-Time Buyers in Ontario.

HOME BUYER’S PLAN: enables you to withdraw funds from your Registered Retirement Savings Plan (RRSP) to buy or build a home. This program allows you to withdraw up to $35,000 without being taxed. This Plan allows you to pay back the withdrawn funds within a 15 year period.

Source: Canada HBP

HOME BUYER’S TAX CREDIT: enables you to claim up to $5000 for the purchase of a home on your personal tax return for the year of purchase. This helps to cover any closing costs.

Source: Canada HBTC

CANADA’S FIRST TIME HOME BUYING INCENTIVE:

Is a shared-equity mortgage aimed at LOWERING first-time home buyers monthly mortgage payments WITHOUT increasing the amount you need for a down payment.

The government contributes 5-10% of the purchase price
The Loan is INTEREST-FREE
The Loan must be paid in full within 25 years of when the home was purchased and/or when the home is sold.

HOW TO KNOW WHEN YOU’RE READY TO BUY

Points to stay within your comfort zone as a First-Time Home Buyer:

To begin with, aim to keep your monthly mortgage payments below 40% of your household take-home income
Additionally, Save up at least 5% of the purchase price for your down payment
Ideally, you want to try to keep your credit score above 680
Finally, plan to stay in your new home longer than 3 years to cover your upfront costs.