A first purchase, without the surprises.
Start with a mortgage pre-approval before you view anything. It gives you a real budget, shows sellers you are serious, and keeps you from falling for a home that is out of reach.
Updated July 10, 2026
A first purchase is exciting and a little intimidating, especially with the vocabulary that comes with it. My job is to take the stress out of it by showing you the steps in the right order.
Here is the list I hand my first-time buyers. It follows the real path, from getting your finances ready to getting the keys, with the numbers and programs that actually matter here.
What should I do before I even look at a listing?
Get a mortgage pre-approval. It is the first step, and it changes everything. A mortgage broker looks at your income, your debts and your down payment, then confirms how much you can borrow and holds a rate for you.
With that number in hand, you shop in the real world. You know what you can afford, a seller takes you seriously, and you skip the letdown of touring homes over budget.
How much do I actually need for a down payment?
The minimum down payment follows a sliding scale by price: 5 percent on the first $500,000, then 10 percent on the portion between $500,000 and $1,500,000. At $1,500,000 and up, you need 20 percent.
- A $400,000 home: 5 percent, or $20,000.
- A $700,000 home: 5 percent on $500,000 ($25,000) plus 10 percent on $200,000 ($20,000), for $45,000.
- A $1,600,000 home: 20 percent, or $320,000.
Below 20 percent down, your loan has to be insured (CMHC or a private insurer). The premium is added to the amount you borrow. It is not an obstacle, it is what lets you buy with less cash on hand. You just need to plan for it.
One recent change worth knowing: on an insured mortgage, you can now spread the amortization over 30 years instead of 25, either as a first-time buyer or when you buy new construction. A longer amortization lowers your monthly payment, which can help you qualify, though you pay more interest over the life of the loan. Your mortgage broker can run it both ways and show you the difference.
What programs help a first-time buyer?
- The FHSA (first home savings account)Contribute up to $8,000 a year, $40,000 for life. Deductible when you contribute, tax-free when you withdraw for a first home.
- The Home Buyers' Plan (HBP)Withdraw up to $60,000 from your RRSP tax-free for your down payment, repaid over fifteen years.
- The first-home buyers' tax creditA federal credit worth up to roughly $1,500 at tax time.
- The GST/QST rebate on new buildsOn a new property under certain price thresholds, part of the tax can be rebated to you.
What costs surprise first-time buyers?
The listed price is not the total cost. Budget for these on top of the down payment, often 1.5 to 4 percent of the price depending on the case.
- The welcome tax (transfer duties)A one-time bill from the municipality, a few weeks after the purchase. Estimate it ahead with the tool on this site.
- Notary feesOften $1,200 to $2,000, paid by the buyer here.
- The pre-purchase inspectionRoughly $400 to $800. A cost I almost always recommend.
- AdjustmentsYou reimburse the seller for municipal and school taxes already paid for the period after possession.
- Home insuranceRequired by the lender, effective on possession day.
What happens when I find the one?
- 1We put in a promise to purchase, with the price and your conditions.
- 2We write in your protections: financing, inspection, sometimes the sale of your current home.
- 3The seller accepts, declines or counters. We negotiate.
- 4Once accepted, we fulfill the conditions: inspection, final financing, documents.
- 5The file moves to the notary for the signing and possession.
Every condition is there to protect you. An inspection that turns up a problem, financing that does not come through: those are exit doors planned in advance. We never sign and hope it works out.
New or resale: where do I start?
Both have their place. New construction and pre-sales give you a home nobody has lived in, a construction warranty, and sometimes time to save while it is being built, but with their own rules (deposits, GST/QST, timelines). Resale is real and immediate, often better located. It is a big part of what I do, so we talk it through for your situation, with no bias either way.
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Frequently asked questions
How much money do I really need to buy a first home?
The minimum down payment starts at 5 percent of the price, but budget for closing costs on top, often 1.5 to 4 percent. On a $400,000 home, that is roughly $20,000 down plus a few thousand in costs. A pre-approval gives you the exact figure for your situation.
Can I use my RRSP and my FHSA at the same time?
Yes. The HBP lets you withdraw up to $60,000 from your RRSP tax-free, and the FHSA holds up to $40,000 for life. Both combine for a first purchase, which helps a lot with building the down payment.
Do I really need a pre-purchase inspection?
In almost every case, yes. For a few hundred dollars, an inspector catches problems you would not see on a visit. It is also a condition that lets you renegotiate or walk away if something serious comes up.
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This guide is general information to help you make sense of things, not legal, tax, or financial advice. Rules change and every situation is different, so confirm anything that affects a decision with the right professional, a notary, lawyer, accountant, or mortgage broker, or reach out and I'll point you the right way.
