First Time HomeBuyers

Are You a First-Time Homebuyer?

To qualify as a “first-time homebuyer” in many Canadian programs, you typically must not have owned or lived in a home that you or your partner owned in the last four years.

This definition can vary by province and incentive, so it’s important we review your situation together.

Start With Pre-Approval

Before you begin house-hunting, a mortgage pre-approval gives you clarity on what you can afford, strengthens your offer, and avoids surprises at closing.

As your broker, I’ll help you gather the required documents, interpret your affordability, and negotiate pre-approval terms.

Understand Down Payments & Mortgage Insurance

Down Payment Minimums:

• For homes under CAD $500 000: as little as 5%.
• For the portion above $500 000 up to $1.5 M: 10%.
• If you put less than 20% down, you’ll typically need mortgage default insurance.

Government Incentives & Rebates

Several government initiatives can boost your buying power or reduce costs. Examples include:

• First-Time Home Buyers’ Tax Credit
• Land Transfer Tax rebates (depending on province)
• Home Buyer’s Plan (RRSP withdrawal)
• First Home Savings Account (FHSA)

What Mortgage Terms Should You Consider?

• Fixed vs Variable Rate: Fixed gives stability, variable may offer savings if rates drop.
• Amortization Periods: For first-time buyers, longer amortization (e.g., 30 years) may be available even with less than 20% down in some cases.
• Stress Test & Affordability: Lenders evaluate your ability to carry the loan at a higher rate to ensure you’re protected long-term.

Closing Costs & Other Expenses to Plan For

Aside from the purchase price, don’t forget:

• Deposit (varies widely)
• Land Transfer Tax (or rebate eligibility)
• Legal/closing fees, title insurance, appraisal
• Mortgage default insurance (if applicable)