Buying your first home is one of the biggest financial decisions you'll make. This comprehensive guide will walk you through every step of the process, helping you understand what to expect and how to prepare.
Step-by-Step Home Buying Process
Check Your Credit Score
Ensure your credit score is 680+ for the best rates. Get a free credit report and fix any errors.
Save for Down Payment
Minimum 5% down payment required. 20% down avoids mortgage default insurance.
Get Pre-Approved
Know your budget before house hunting. Pre-approval strengthens your offer.
Factor in Additional Costs
Budget for legal fees, land transfer tax, home inspection, and moving costs.
Down Payment Requirements in Canada
Minimum Down Payment by Purchase Price
| Purchase Price | Minimum Down Payment | Example |
|---|---|---|
| Up to $500,000 | 5% | $25,000 on $500,000 |
| $500,001 - $999,999 | 5% + 10% on amount over $500k | $45,000 on $750,000 |
| $1,000,000+ | 20% | $200,000 on $1,000,000 |
Additional Costs to Budget For
One-Time Costs
- • Home inspection: $400-$800
- • Legal fees: $1,500-$3,000
- • Land transfer tax: 0.5%-4% of purchase price
- • Title insurance: $250-$400
- • Moving costs: $1,000-$3,000
Ongoing Costs
- • Property taxes: 0.5%-2.5% annually
- • Home insurance: $1,000-$3,000/year
- • Utilities: $200-$400/month
- • Maintenance: 1%-3% of home value/year
- • Condo fees (if applicable): $200-$800/month
Tips for First-Time Buyers
Start early: Begin improving your credit score and saving for a down payment at least 12 months before you plan to buy.
Shop around for mortgages: Different lenders offer different rates. Compare options to save thousands over the life of your mortgage.
Don't max out your budget: Leave room for unexpected expenses and life changes.
Consider location carefully: Factor in commute times, schools, and neighborhood amenities.
Ready to Start Your Home Buying Journey?
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