First-Time Homebuyer Guide
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Congratulations on Taking the First Step Towards Homeownership!
Whether you’re actively searching or just starting to explore your options, this guide will walk you through the entire home-buying process—from financial preparation to getting the keys to your new home.
6 Essential Steps to Homeownership
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1
Determine If You’re Ready to Buy
Before purchasing a home, ensure you are financially and personally ready for homeownership:
• Assess Your Finances: Review your income, savings, and credit score.
• Understand the Responsibilities: Homeownership comes with long-term commitments, including maintenance and financial planning.
• Check Your First-Time Buyer Status: You’re a first-time homebuyer if you’ve never owned a home anywhere in the world, either individually or with a spouse or common-law partner. -
2
Understand the Costs of Homeownership
Homeownership involves upfront and ongoing expenses:
Upfront Costs:
Down Payment:
• 5% for the first $500,000 of the home’s price.
• 10% for any amount above $500,000 and up to $1,499,999.99.
• 20% for properties priced at $1.5 million or more (mortgage insurance is not available).
Closing Costs: (typically 1% to 4% of the purchase price)
• Legal fees
• Land transfer tax
• Title insurance
Ongoing Costs:
• Mortgage payments
• Property taxes
• Home insurance
• Utilities (electricity, water, gas, internet, etc.)
• Maintenance and repairs
Tip: Create a budget to understand how homeownership will impact your finances. -
3
Get Pre-Approved for a Mortgage
A mortgage pre-approval confirms how much you can afford and strengthens your buying power. Benefits include:
• Knowing Your Budget: Helps you and your real estate agent find homes within your price range.
• Locking in an Interest Rate: Protects you from rate increases for up to 120 days.
• Strengthening Your Offer: Shows sellers you’re a serious buyer.
Maintain Your Credit During the Process
• Pay bills on time.
• Avoid new credit applications and large purchases.
• Keep credit card balances below 70% of your limit. -
4
Work with a Real Estate Agent & Find Your Home
A professional real estate agent helps you:
• Find properties that match your needs and budget.
• Negotiate a fair purchase price.
• Navigate paperwork and contracts.
When searching for a home, consider:
• Location, commute times, and neighbourhood amenities.
• Home size, layout, and long-term suitability.
• Home inspection results to identify potential issues. -
5
Make an Offer & Secure Financing
Once you find the right home, your real estate agent will help you submit an offer, which may include conditions such as:
• Financing Approval: Ensuring your lender approves the mortgage.
• Home Inspection: Identifying any major repairs or structural concerns.
Finalizing Your Mortgage
After your offer is accepted:
• Your lender will issue a conditional mortgage approval based on the property appraisal and lender requirements.
• I’ll work with you to satisfy the conditions, secure your approval, and finalize your loan.
Take Advantage of Government Programs
As a first-time homebuyer, you may qualify for:
• First-Time Home Buyer (FTHB) Tax Credit: A $1,500 tax credit to help with closing costs. Learn more.
• GST/HST New Housing Rebate: A rebate on part of the sales tax for new or substantially renovated homes. Learn more.
• Land Transfer Tax Rebates: Available in some provinces to reduce upfront costs. Learn more. -
6
Closing & Moving In
Your real estate lawyer will handle the final steps, including:
• Reviewing and signing closing documents.
• Transferring funds to the seller.
• Registering the home in your name.
Once complete, you’ll receive your keys and officially become a homeowner!
Post-Purchase Essentials
• Change the locks for security.
• Set up utilities (electricity, water, internet, etc.).
• Update your address with your bank, employer, and government agencies.
• Review your home insurance to ensure adequate coverage.
Ready to Start Your Home Buying Journey? If you’re ready to take the next step, contact me today to get pre-approved and begin your search. Let’s make your dream of homeownership a reality!
