🏡 First-Time Home Buyers: What You Need to Know Before You Start House Hunting

Written By Steven Cupelli

Buying your first home is one of life’s biggest milestones — and one of the biggest financial decisions you’ll ever make. Between saving for a down payment, understanding mortgage terms, and navigating lender requirements, it can all feel overwhelming. The good news? You don’t have to do it alone.

As a mortgage agent, I help first-time buyers across Canada find the right mortgage to fit their lifestyle and long-term goals. Here’s what every first-time home buyer should know before they start the process.

💰 1. Understanding Your Down Payment

In Canada, the minimum down payment depends on your purchase price:

  • 5% for homes under $500,000

  • 10% for the portion between $500,000–$999,999

  • 20% for homes $1 million and up

If you’re putting less than 20% down, your mortgage must be insured through CMHC, Sagen, or Canada Guaranty. These insurers allow smaller down payments, which helps first-time buyers get into the market sooner.

Gifted funds from immediate family are also acceptable — as long as they’re non-repayable and properly documented.

🧾 2. Mortgage Pre-Approval: Your First Step

Getting pre-approved shows sellers you’re serious and gives you a clear idea of what you can afford. During pre-approval, your credit, income, and debt are reviewed so you can shop for homes confidently.

Lenders like Scotiabank, RMG, and First National offer pre-approvals with rate holds up to 120 days, giving you time to find the right property without worrying about rate increases.

🏦 3. Choose the Right Mortgage — Not Just the Lowest Rate

While low interest rates grab attention, the best mortgage is the one that gives you flexibility and protection. Some lenders, like MCAP and RFA, offer special programs for first-time buyers with extended amortizations up to 30 years, cash-back options, and bridge financing to help with moving costs.

It’s also important to look at:

  • Prepayment privileges (how much extra you can pay each year)

  • Portability (whether you can move your mortgage if you relocate)

  • Penalties for breaking your mortgage early

A mortgage agent compares all of this across lenders to help you make an informed choice.

🧩 4. Programs & Perks for First-Time Buyers

There are several government programs that can make your first home more affordable:

  • Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free to use as a down payment.

  • First Home Savings Account (FHSA): Save up to $8,000 per year (tax-deductible) toward your first home.

  • First-Time Home Buyer Incentive: A shared-equity program that helps reduce your monthly payments.

  • Land Transfer Tax Rebates: Available in many provinces, including Ontario.

🧠 5. Work with a Mortgage Professional

Banks can only offer their own products — mortgage agents can shop multiple lenders (including banks, credit unions, and alternative lenders) to find the best solution for you. Whether you’re salaried, self-employed, or just getting started, there’s likely a lender that fits your profile.

Working with a broker means you’ll have a single point of contact guiding you from pre-approval to closing — handling the paperwork, explaining every step, and ensuring nothing slips through the cracks.

🌟 Final Thought

Buying your first home doesn’t have to be stressful. With the right plan, expert guidance, and access to Canada’s top lenders, you can focus on the excitement of finding your perfect place — not the fine print.

Ready to start your homeownership journey?
Reach out today for a personalized first-time home buyer consultation — available anywhere in Canada.

Steven Cupelli
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