First Time Home Buyers

Have you decided to take that cold plunge into homeownership? You’ve heard all the hype from your friends and family and feeling anxious to hop in. You take a deep breath and dip your toes in, but the chill is just too overwhelming!

Buying your first home is a major turning point in life! Imagine owning your own home, creating a space for your family and building lifelong memories. But the reality of buying your first home can also feel overwhelming. There are numerous questions to answer before jumping in. How much is it going to cost to own a home? How much do I qualify for as a first-time buyer? How much of a down payment do I need? Should I buy a condo, a townhouse, or a detached house?

Let’s break it down!

Like any other major purchase you always weigh the pros and cons and this will likely be one of the biggest financial decisions you’ll ever make.

Pros of Buying a Home

• Freedom to Make It Your Own: Want to expand your kitchen, or put in a home gym? Owning your own home gives you creative freedom.

• Building Equity: Each mortgage payment gets you closer to owning your home outright. Plus, the equity you build can be used for future investments or opportunities. Such as purchasing a cottage on a lake, or helping to pay tuition for your children

• Income Potential: Your home can also become a source of income. Whether it’s renting out a basement apartment or sharing space with a roommate, you can offset some of your costs.

• Fixer-Upper Opportunities: If you’re handy and love DIY projects, consider a “purchase plus improvement” mortgage to remodel a fixer-upper into your dream home.

Cons of Buying a Home

• Down Payment Challenges: Saving for a down payment can be difficult, especially with Canada’s housing prices, let’s be real times have changed!

• Unexpected Costs: Maintenance and repairs are part of homeownership. However, expenses such as a broken furnace can be unpredictable and rather costly.

• Market Risks: Real estate values can fluctuate. If you need to sell during a downturn, unfortunately, you might not get back what you put in.

That being said, take a deep breath and lets see how we can make homeownership a reality for you!

Saving for Your Down Payment

In Canada, down payments start at 5%, but many lenders prefer 10-20%. This all depends on the value of the house you are purchasing. The bigger your down payment, the lower your monthly mortgage payments. Tools like a mortgage calculator can help you plan.

Getting Pre-Approved - your secret weapon in a fast market!

Knowing how much you can afford is essential. As a general rule housing costs shouldn’t exceed 32% of your gross monthly income. A mortgage pre-approval gives you a clear idea of your price range, so you can start house-hunting with confidence.

Government Incentives for First-Time Buyers

The Canadian government offers several programs to help first-time buyers:

• Home Buyers' Plan: Withdraw from your RRSP to use toward your down payment.

• First-Time Home Buyers’ Tax Credit: A $5,000 non-refundable tax credit for eligible purchases.

• First-Time Home Buyers’ Incentive: Reduce your mortgage payments with a shared equity program through the government.

Choosing the Right Home

Once you’ve saved up for your down payment, secured a pre-approval, and explored incentives, the fun part starts—house hunting! Start by browsing listings on Realtor.ca or connect with a real estate agent to tour homes. Condo, Townhouse, or Detached Home? This decision is all personal preference and budget. Some condos might have lower upfront costs but they also come with monthly maintenance fees. Townhouses and detached homes offer more space but often are a bit higher in cost.

Take Your Time

The housing market is fast-paced but take your time. Write what you want for your home; do you want open concept, a fireplace, a large backyard. This will help you narrow your search when looking at houses. Stick to your budget and be patient the right home will come along. Once you’ve found it, you can start planning your move.

As a first-time buyer, you don’t have to navigate this process alone. I am here to guide you every step of the way—whether you’re comparing mortgage types or simply need answers to your questions.

So take that plunge and let’s make your homeownership dream a reality!