FIRST TIME HOME BUYERS
FIRST TIME HOME BUYER? GET READY TO POP THE BUBBLY
Starting on the journey to purchase your first home is such an exciting time! If you find yourself with a long list of questions, don’t worry, our team of Toronto mortgage brokers are here to help. We will guide you every step of the process, from explaining down payment options and the expenses you should expect in homeownership, to the application process and the role that your real estate lawyer will play. Consider us your team of trusted Toronto real estate mortgage advisors.
As seasoned mortgage brokers, we are here to help you to understand your homeownership goals, then get you pre-approved, so that you can make an offer on your dream home with confidence. On top of delivering you mortgage advice and education, we can also connect you with other key players on your team of real estate professionals – such as a REALTOR®, Lawyer, Home Inspector and Moving Company for a smooth and enjoyable transition into your new home.
You may have some questions as a first time homebuyer, especially if you’re self-employed, rebuilding your credit or are new to Canada – and our team of top-rated mortgage advisors would be happy to connect with you to get them answered. To get you started, here are the first few steps to focus on as you embark on your homebuying journey.
Get a Mortgage Pre-Approval
Let our team of Toronto mortgage agents help you to establish your true homebuying affordability – this step must be done before you start shopping for a home so that you can have confidence in your buying budget, know what your down payment will be and understand the ongoing costs of homeownership.
Be sure to chat with your certified mortgage advisor to confirm the details of your mortgage approval such as the interest rate, mortgage terms, any additional fees associated with the application and what your options will be for porting your mortgage in the event you sell the property. For more information on the mortgage pre-approval process, visit our helpful What to Expect When Buying a Home Guide.
Save Your Down Payment
Curious what the minimum down payment on a home in 2023 is? Currently, the down payment on your home purchase depends on the purchase price of the property. The down payment rules in Canada are as follows;
- If the purchase price is less than $500,000, the minimum down payment is 5%.
- If the purchase price is between $500,000 and $999,999, the minimum down payment is 5% of the first $500,000, and 10% of any amount over $500,000.
- If the purchase price is $1,000,000 or more, the minimum down payment is 20%.
At the time that you make an offer on a property, you will give a monetary deposit (call it a sign of good faith!) This deposit makes up a portion of your down payment – and then your real estate lawyer or notary will request the remaining balance of your down payment funds and any closing costs to be delivered to them within the last 2 weeks leading up to your possession date; without this payment your purchase cannot close, and possession will not occur.
Additional Costs to Consider
You may be surprised to hear that gathering a down payment and managing a mortgage are not the only costs associated with homeownership. Our team of mortgage professionals have rounded up a list of some of the additional costs you should prepare for when buying a home in the Toronto area and beyond.
- Property Appraisal Fees
- Mortgage Loan Insurance Premiums
- Land Transfer Tax
- Home Inspection
- Legal Fees and Disbursements
- Title Insurance
- Utility Connection Charges
- Professional Moving Services
- Sales Tax (For New Properties)
- Home Insurance Costs
- Annual Property Taxes
Learn more about these fees in our Additional Costs to Consider Guide (link to Additional Costs to Consider page)
Take advantage of these First Time Home Buyer Grants and Incentives!
- CMHC’s First-Time Home Buyer Incentive
- Home Buyer’s Plan (HBP)
- Land Transfer Tax Refunds for First Time Buyers
Have all of your mortgage questions answered by our licensed mortgage brokers – and ensure you get the best mortgage broker rates on the market. We’re ready to connect.