How to Buy Your First Home

Before you scroll a single listing, it's worth asking yourself an honest question: am I actually ready for this? Not just financially — but practically and emotionally too. Owning a home is genuinely rewarding, and it also comes with real responsibilities that renting doesn't.

The Financial Side

You should already be comfortable managing your monthly expenses and any existing debt. If you're still working through a lot of credit card balances or irregular income, taking six to twelve months to stabilize first will put you in a much stronger position when you do buy.

The Lifestyle Side

Homeownership means you're the one who calls the plumber, replaces the furnace, and handles the unexpected. That's not a reason not to buy — it's just worth being honest about whether you're in a season of life where that stability makes sense.

The number a lender approves you for and the number you should actually spend are not always the same thing. Understanding your true budget — before you start looking — keeps your search grounded and prevents you from falling in love with a home that will stretch you too thin.

How Lenders Calculate What You Can Borrow

• Gross Debt Service (GDS) ratio: Your monthly housing costs — mortgage, property tax, heat — shouldn't exceed 32% of your gross monthly income.
• Total Debt Service (TDS) ratio: All monthly debt payments combined (housing + loans, credit cards, car payments) shouldn't exceed 40% of your gross monthly income.

Minimum Down Payment in Canada

• 5% on the first $500,000 of the purchase price
• 10% on the portion between $500,000 and $999,999
• 20% required on homes priced at $1,000,000 or more

Don't Forget Closing Costs

Most first-time buyers underestimate closing costs. Budget an additional 1.5% to 4% of the purchase price on top of your down payment to cover land transfer tax, legal fees, home inspection, title insurance, and adjustments.

This is one of the most valuable steps in the entire guide — and one of the most overlooked. As a first-time buyer in Canada, you have access to several programs that can meaningfully reduce your upfront costs or put money back in your pocket. Here's what's available right now.

New: 30-Year Amortization for First-Time Buyers

As of 2024, first-time buyers purchasing a newly built home can access a 30-year amortization period on insured mortgages — up from the previous 25-year limit. This lowers your monthly payment, though it means paying more interest over the life of the mortgage. A useful tool if monthly cashflow is tight.

Before we start touring homes, it helps to have a clear picture of what you're looking for — and what you're willing to compromise on. The clearer you are upfront, the more focused and efficient your search will be.

Needs vs. Wants

I ask every buyer to build two lists. Needs are non-negotiables: number of bedrooms, proximity to transit or a school, private outdoor space, parking. Wants are things you'd love but can live without. We find a home that ticks all the needs and as many of the wants as the budget allows.

Property Types for First-Time Buyers

• Condo: The most accessible entry point in the GTA. Lower purchase price, building amenities, and minimal exterior maintenance. Factor in monthly condo fees and the status certificate review before you buy.
• Townhouse / Stacked Townhouse: A great middle ground — more space than a condo, often with a garage or small yard, at a lower price than a detached home.
• Semi-detached: One shared wall, but otherwise very much your own home. Typically more affordable than a fully detached property in the same neighbourhood.
• Detached: The most space and privacy. Usually the highest price point, but worth considering if your needs include a yard, more bedrooms, or long-term flexibility.

Buying a home is a complex legal and financial transaction. Having an experienced REALTOR® in your corner — someone who knows the market, negotiates on your behalf, and guides you through the paperwork — makes a significant difference in the outcome.

What Buyer Representation Actually Means

When you work with a buyer's agent, we represent you exclusively. That means your budget, your priorities, and any information you share with me stays confidential. The listing agent represents the seller — their job is to get the best deal for the person selling, not for you.

What Your REALTOR® Does for You

• Gives you access to MLS® data and listings — including details not visible on public portals
• Pre-screens properties so your time is spent on homes that actually fit
• Advises on market value so you don't overpay
• Negotiates on your behalf and manages the offer process
• Flags issues, conditions, and contract terms that protect your interests
• Connects you with trusted mortgage brokers, lawyers, and inspectors

Now the exciting part begins. Here's how to search smart rather than just searching a lot.

Get on MLS® Early

I'll set you up with a personalized MLS® search so new listings that match your criteria hit your inbox the moment they're listed — not hours later through a public portal. In a competitive market, that timing matters.

Attend Open Houses

Open houses are one of the best ways to develop your eye for value and layout — even before you're ready to make an offer. Pay attention to the neighbourhood at different times of day, proximity to transit and schools, and details that photos rarely show.

Stay Objective

Work From a Short List

You don't need to see fifty homes. If we've done the prep work well, you should be able to make a confident, informed decision within a focused set of viewings. Quality of attention beats quantity of showings every time.

Get your mortgage pre-approval sorted before you start seriously viewing homes. It tells you exactly what you can spend, locks in a rate for a period of time, and signals to sellers that you're a serious buyer when it counts.

Where to Start

Talk to your own bank first, then compare. A mortgage broker can be especially useful — they shop multiple lenders at once and are paid on commission, so they're motivated to find you the best terms.

Key Mortgage Terms, Simply Put

Closing Costs to Budget For

You've found it. Now we make it official. I'll prepare the offer and walk you through every line — here's what you'll see in it and how the process works.

What's in an Offer

• Purchase Price: What you're offering to pay.
• Deposit: A certified cheque held in trust — your way of showing the offer is serious. Typically around 5% of the purchase price.
• Conditions: Clauses that must be satisfied before the deal is firm. Common ones: financing approval, satisfactory home inspection, status certificate review (for condos).
• Inclusions / Exclusions: What stays with the home — appliances, window coverings, fixtures. Never leave this to assumption.
• Irrevocability: How long the seller has to respond. Usually 24–48 hours.
• Completion Date: The day you take possession — typically 30 to 90 days after signing.

Two Types of Offers

Your offer is accepted. This is the home stretch — your lawyer and I handle the heavy lifting, but here's what you need to stay on top of between acceptance and closing day.

Your Closing Checklist

• Satisfy any conditions in the agreement (financing, inspection) within the agreed deadlines
• Connect with your lawyer to begin the title search — start this early
• Arrange homeowner's insurance and get your binder letter — your lender won't advance the mortgage without it
• Review your final mortgage documents with your lawyer before you sign
• Arrange utility transfers — your lawyer handles hydro and water, but contact phone and internet providers yourself
• Give notice to your landlord if you're currently renting
• Book your movers early — month-end closings fill up fast
• Send change-of-address notifications to your bank, employer, and Service Ontario (driver's licence)
• Meet with your lawyer a day or two before closing to sign documents and deliver any certified cheques required