Buying your first home is an exciting time. It’s also probably one of the biggest financial investments you’ll ever make. Looking to get into that first home sooner rather than later? We don’t blame you!  

Here are 7 steps to get you into your first home faster. 

Step 1: Determine your budget & get pre-approved

You’ll want to start by determining what your budget is. Some financial questions you may want to consider when planning your budget:

• What is your monthly income?
• What are your monthly expenses?
• Do you have access to liquidity, if needed? 
• How much of a down payment do you already have saved/ will need to save? 
• Will this include any potential immediate or future renovations?
• What will closing costs look like?

Getting pre-approved for a mortgage may also help you determine what your budget is going to look like. It’s wise to get a mortgage pre-approval at the start of your homebuying experience to help create a smoother transaction and minimize stress (which we are all about!). 

Having a mortgage pre-approval will:

• Save you time: a pre-approval is a great filter. It will show you which homes are within your price range and cut the rest out. 
• Lock in mortgage rate: a pre-approval will lock in a mortgage rate for 60, 90, or 120 days (dependent on lender).
• Buyer advantage: puts you in a better position to make an offer as soon as you find the right place for you.

When you request a pre-approval, they will determine how much your mortgage loan will be. Determining this information early on will allow you to quickly move onto the next stage of the buying process.

Step 2: Look into first time buyer rebates 

There is a lot to consider when buying your first home and one thing that should definitely be on your radar is first-time homebuyers assistance and rebates that are available to you! Doing a little homework at the start of the homebuying process will help you save money along the way. 

As part of Canada’s national housing strategy, the CMHC (Canadian Mortgage and Housing Corporation) offers a First-Time Home Buying Incentive to help Canadian’s purchase their first home. This incentive is available to first-time homebuyers with an annual income of $120,000 of less. 

The federal government also offers a First-Time Home Buyer’s Tax Credit (HBTC) for eligible homebuyers. This tax credit will let you claim up to $5,000 for the purchase of a qualifying home. 

Step 3: Make a must have list 

It can be a tad (or a lot) overwhelming when you start looking and seeing all the different options on the market. This is why it’s crucial to have your ‘must’ list! Not only is this going to help expediate the process, but it’s also going to act as a great reminder of exactly what you want. When making your list be sure to note which things are an absolute must (as in you won’t purchase without it) and which things may have a bit more wiggle room. 

Tip: When you go to viewings take lots of pictures and make notes to refer back to in the decision-making process. 

Step 4: Keep an open mind 

While it’s important to have your list and know what it is you want, it is also crucial in this process to keep an open mind. When looking for your first home it is important to remember that this does not need to be your forever home. Your first home does not need to meet every anticipated future need. A home isn’t always meant to be a one and done situation. Remember, you are allowed to move again. 

Remember: If you put an offer in and don’t get the home, your home is still out there waiting for you. Don’t get discouraged! 

Step 5: Ask questions & get informed 

Get curious! Ask the right questions and get informed as a first-time homebuyer! Don’t be shy to go to your realtor with a list of questions or let them know if there is something you don’t understand. As a first-time homebuyer it’s totally normal not to be completely confident in every single thing going on, because well, it’s your first time! 

Two common things to also consider:

• Looking into a mortgage broker: a mortgage broker is someone that will help find the best mortgage options to fit your specific needs. This route typically offers more options than what a bank can provide.
• Co-signer: will you require a co-signer for your mortgage? A co-signer is someone who will be on the mortgage, and if for any reason the primary borrower is unable to pay the mortgage, it turns to them. A co-signer is typically involved when the primary signer does not have a stable income, is purchasing on a single income, or has insufficient credit history. 

Step 6: Have your deposit ready 

It’s go time! Nothing worse than finding ‘the one’ only to not have your deposit ready. Having your deposit good-to-go is going to ensure that when you do find the one, you’re all set to make that offer and can access your deposit. Having your deposit liquid (aka available when needed) is going to be crucial if you don’t want to lose out to another buyer. 

Step 7: Get an inspection 

Last, but certainly not least, get a home inspection. Getting a home inspection is going to save you from potential future problems in the buying process and down the road. Getting an inspection lined up pronto is one way to expedite the process and get you into that home quicker! And of course, will let you know exactly what it is you’re walking in to.  

First time home buyer’s roadmap

The road to homeownership doesn’t need to be a bumpy one. In fact, it can be quite a smooth and seamless one. This is why we’ve created the first-time home buyer’s road map to help you out. We’ve got you covered with everything you’ll need, from before you even view properties all the way up to closing day. Happy home hunting, and don’t forget to enjoy the ride!