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Everything You Need To Know! Buying Your First Home!

Ever wonder what the HECK that "term" means but don't want to be the one to ask? We have all been there and there is no difference when it comes to purchasing your first home.

*Check Out our newest listing! 11 Superior Ave 704 - Listed at $399,000.

Buying your first home will be the biggest decision and purchase you may ever have to make - so making sure you are informed ahead of time only makes the most sense!

So I created a guide to walk you through the process; from obtaining a mortgage to looking for a great home insurance policy to renovations and closing costs. You will be a home ownership expert by the time you finish reading. If you’ve already got some of these steps covered, feel free to skip ahead to wherever you are in the process.

So, settle in and get ready to buy your first home. I'll be with you every step of the way.

First things first - Get Pre-Approved. You are like "what is a pre-approval? why do I need it?"

A pre-approval is when a potential mortgage lender looks at your finances to find out the maximum amount they will lend you and what interest rate they will charge you. With a pre-approval, you can: know the maximum amount of a mortgage you could qualify for.

This pre-approval is important so you know right from the jump, the amount you can afford to spend.


A mortgage is a loan given to you by a lender (a bank or broker, for example), secured by property (which acts as collateral).

A mortgage term is the period in which certain factors of your mortgage, such as your interest rate and payment frequency, are in effect. The average is typically 3 - 5 years.

Amortization is the total length of time you’re given to pay off your mortgage. The most common amortization in Canada tends to be 25 years.

How am I qualified for a mortgage?

Lenders in Canada follow the Canadian Mortgage and Housing Corporation’s (CMHC) gross debt service ratio (GDS) when giving homebuyers mortgages — the GDS states that your monthly housing costs shouldn’t be any more than 39% of your gross monthly income, though 35% is the standard threshold. Experts recommend that you devote about 25% of your monthly costs to housing, and that you should never exceed 50%.

Get it? No. Call me and we will get you set up with a pre-approval and rate for your mortgage.

Now you are on the hunt for your perfect home!

Make a checklist - yes, what do you need for the perfect recipe.

What neighbourhoods, what kind of home(condo, townhouse, detached), parking needs, how many rooms and bathrooms - The list really goes on.

Do you want an agent?

While it is totally okay to pursue the home of your dreams without an agent - it is in your best interest to have an experienced professional who’s knowledgeable about the current real estate market conditions in your corner to guide you through these tricky decisions. Plus we are FREE.

The best realtor will help you find the ideal home, negotiate on your behalf to help you get the best deal, coordinate a home inspection and deliver your closing documentation.

OFFER TIME - Let's talk conditions

Inspection - The Subject to Inspection clause gives a buyer a very powerful protection in that it allows the Buyer to walk away from a deal if they are not happy with the physical condition of the property once the home inspection has been done.

Status Certificate - A status certificate discloses information to a potential buyer about the condominium corporation's management structure, common expenses, the current budget, any legal issues or proceedings, unit leases, insurance, upcoming repairs or maintenance and the corporation's reserve fund.

Financing - The financing condition protects a Buyer. While the legal wording of the clause may vary, it essentially tells a Seller that your offer to buy their property is conditional on you obtaining financing. A financing condition can protect you from losing your deposit and being sued, by giving you an 'out' if you need it.

CONGRATULATIONS - Your offer has been accepted!

Saving for a downpayment is a crucial step in the home buying process but it’s not the only cost you need to include in your budget. You need to factor in the expenses associated with completing a home purchase, including home inspection fees, land transfer tax, legal fees, among others.

What is a downpayment?

A down payment refers to the amount of money you’ll pay up front to get a mortgage. This lump sum is deducted from the overall purchase price of your home. Your mortgage will cover the rest of your home’s price, which is also referred to as your mortgage principal.

Minimum downpayment requirements...

$500,000 or less 5% of the purchase price

$500,000 to $999,999 5% of the first $500,000 of the purchase price

10% for the portion of the price above $500,000

$1 million or more 20% of the purchase price

Deposit VS Downpayment

The deposit is the money you pay up front to secure, or commit to, an agreement of purchase and sale for a property. The down payment is the money that you pay to the seller to be eligible for financing.

Other Closing Costs

Home inspection fees will vary depending on factors including the age, size, and location of the home. Choose your home inspector carefully by researching their qualifications and credentials. Choosing a reputable inspector could save you from running into unplanned and often costly issues in your new home.

Land transfer taxes are calculated as a percentage of the purchase price payable by the buyer upon closing. Land transfer taxes vary by province, although some cities like Toronto levy a land transfer tax as well.

Ontario first-time home buyers of an eligible home may be eligible to receive a rebate for all or part of the cost. Eligibility is restricted to Canadian citizens and permanent residents of Canada.

Legal fees include our lawyer's legal fees and disbursements include any expenses your lawyer had to pay for work on your behalf. Fees vary by province and municipality and may be subject to GST or HST.


RRSP Home Buyer's Plan - You may borrow up to $35,000 Tax- Free from your RRSP to fund your down payment.

Land Transfer Tax Rebate - Home Buyer's in Toronto are eligible to receive a rebate on the city's land transfer tax, in addition to the provincial rebate.

First-Time Home Buyer's Tax Credit - This credit offers a $5,000 non-refundable income tax credit amount on a qualifying home acquired during the year. For an eligible individual, the credit will provide up to $750 in federal tax relief.

GST/HST New Housing Rebate - This rebate offers money back to Canadians who buy a newly built home, substantially renovate an existing home, or rebuild a home that was destroyed due to fire.

Note: You are able to layer these benefits!

I hope this information has got you on your way to making your first purchase! If you have any more questions, feel free to reach out via submission or direct message any time!

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