A First-Time Home Buyer’s Guide to Mortgages in Canada
Buying your first home in Canada is a huge step — and navigating the mortgage process can feel overwhelming. Whether you’re buying a condo in Toronto or a starter home in the suburbs, here’s what every first-time buyer should know before signing the dotted line.
1. Understand the Costs Beyond the Down Payment
There’s more to budget for than just your deposit. Expect:
- Land transfer taxes
- Legal fees
- Home inspection costs
- Appraisal and title insurance
These can add up to thousands, so factor them in early.
2. Know What You Can Afford
Use a mortgage affordability calculator to determine your price range. Lenders will look at your debt-to-income ratio, credit score, and employment history — not just your savings.
3. Get Pre-Approved
A mortgage pre-approval locks in a rate and shows sellers you’re serious. It’s also the first step in narrowing down your options and building confidence in your budget.
4. Explore All Mortgage Options
From fixed to variable, open vs. closed, and insured vs. conventional — mortgages aren’t one-size-fits-all. A mortgage broker can help you shop around and compare offers from different lenders.
5. Don’t Forget Government Incentives
Programs like the First-Time Home Buyer Incentive, Home Buyers’ Plan (HBP), and First-Time Home Buyers’ Tax Credit can provide financial relief when you need it most.
Buying your first home in Canada? Let the team at Mortgages.ca help you compare lenders, qualify for incentives, and make the process simple. Reach out today.