Buying your first home can feel exciting, overwhelming, and everything in between. As a first-time homebuyer, whether you’re tired of renting or starting a family, owning your own space is a big milestone. But where do you start? How much do you need to save? And how do you actually buy a house?
This step-by-step guide breaks it all down into simple, manageable steps, perfect for first-time home buyers who want to feel confident, not confused.
Step 1: Get Clear on Your Budget
Before browsing listings or attending open houses, it’s important to understand what you can afford.
Start with these steps:
- Calculate your monthly income and expenses to understand what you can reasonably afford. Download your FREE Personal Balance Sheet.
- Save for a down payment—usually 5% to 20% of the home’s price in Canada.
- Set aside closing costs, which include legal fees, inspections, and taxes (typically 3–5% of the purchase price).
- Use an online mortgage calculator to get an idea of what your monthly payments might look like.
Pro Tip: Lenders often use the 32/40 rule, your housing costs shouldn’t exceed 32% of your gross income, and total debt payments shouldn’t exceed 40%.
Step 2: Get Pre-Approved for a Mortgage
Think of mortgage pre-approval as your home-buying permission slip. It shows sellers you’re serious and gives you a realistic price range.
To get pre-approved, you’ll need:
- Proof of income (pay stubs, T4s, etc.)
- A solid credit history (score of 680+ is ideal)
- List of assets and debts
- Employment verification
Your mortgage broker or bank will help you explore your options, fixed vs. variable rates, amortization terms, and more. As a first-time home buyer, you may also qualify for special programs like the First-Time Home Buyer Incentive or RRSP Home Buyers’ Plan.
Step 3: Find the Right Real Estate Agent
Having a great real estate agent is like having a GPS on a road trip, you could go it alone, but you’re far less likely to get lost with expert guidance.
A great agent will:
- Help you identify suitable neighbourhoods
- Book and attend showings with you
- Provide market insights and property comparisons
- Handle the paperwork and negotiation process
Look for an agent who understands first-time home buyers, communicates clearly, and has experience in your preferred area.
Step 4: Start House Hunting
Now comes the fun part, shopping for your future home!
Things to consider when viewing homes:
- Location: Proximity to work, transit, schools, amenities
- Layout & Size: Bedrooms, bathrooms, storage
- Condition: Does it need renovations? Is it move-in ready?
- Long-Term Potential: Is it a good investment if your life changes?
Bring a checklist to each showing and take notes. Don’t rush, finding the right home can take time.
Step 5: Make an Offer and Close the Deal
Once you’ve found the one, your agent will help you make a competitive offer. This includes:
- Offer price
- Deposit amount
- Conditions (e.g., home inspection, financing approval)
- Closing date
If your offer is accepted, you’ll go through the closing process, which involves:
- Final mortgage approval
- Legal review of documents
- Home inspection (highly recommended!)
- Final walk-through before possession
Once everything checks out, you’ll sign the paperwork, transfer funds, and get the keys.
Congratulations, you’re now a homeowner!
Key Takeaways
- Budget first—know what you can afford before you fall in love with a listing.
- Get pre-approved to speed up the buying process and strengthen your offers.
- Work with a trusted agent to navigate showings, offers, and closing smoothly.
Frequently Asked Questions (FAQ)
What is the minimum down payment for first-time home buyers in Canada?
In most cases, it’s 5% for homes under $500,000. If the home is between $500,000 and $999,999, you’ll need 5% for the first $500,000 and 10% for the remainder.
Are there any programs to help first-time home buyers?
Yes! Programs like the First-Time Home Buyer Incentive, RRSP Home Buyers’ Plan, and GST/HST rebates can help reduce upfront costs.
How long does it take to buy a home from start to finish?
The entire process, from pre-approval to move-in, can take anywhere from 2 to 6 months, depending on your market and how quickly you find a home.
Can I buy a home with student debt?
Yes, as long as your debt-to-income ratio is within lender guidelines. A mortgage advisor can help assess your situation.
Ready to Start Your Home Buying Journey?
Buying your first home doesn’t have to be intimidating. With the right team, clear guidance, and a little patience, you’ll be unlocking the door to your new home in no time.
Looking for personalized advice or local market insights? Reach out to our team today, we’re here to help first-time home buyers every step of the way.
Explore our Buyer Guide to understand what to expect at each step of your homebuying journey.
Contact Details
Sayed Najibi
Personal Real Estate Corporation
Phone: 604-649-6520
Website: www.sngroup.ca