There’s no doubt, buying a home is likely the biggest financial investment you will make. The best way to make the transition is to be informed. We’re here to ensure you don’t miss a step. Together we will make this as painless as possible. And when you are handed the keys we want you to feel excited about your purchase.

Here is a list of 15 tips for the first-time buyer:

1. Is this the right time? – Don’t get into the housing market because your friends are doing it. Make sure this is something you’re prepared to take on. Home ownership is a long-term responsibility and comes with commitments you don’t face when renting. You will quickly discover that your bank account won’t cover your renovation checklist.

2. What can you afford? – Take a close look at your monthly budget. A VERY close look. Be sure to review every detail. Include your costs for clothing (that includes your shoe fetish), entertainment, and recreational activities. You need to ensure you can comfortably afford not only your monthly mortgage payments, but also the other costs associated with home ownership – condo fees, insurance, utilities, and repairs. Review CMHC’s website for help to determine the maximum you can afford for a home and the related monthly payments.
3. What type of home is right for you? – Are you looking to putter in your own garden? Love that downtown vibe? Would you rather just pay a monthly fee and have everything done for you? Consider the type of home you are looking for and what you can afford – condo, townhouse, duplex, semi-detached or single family home. Also consider the type of ownership structure – freehold, condominium or co-operative.
4. Consider the extra home ownership costs – Homes are money-eating machines! There will always be something you will want to buy to make it better. It may be a new sofa or surround sound for your TV, but more likely it will be the unglamorous expenses that eat most of your budget. In addition to home renovation ideas listen to the advice of the home inspector regarding the age of the roof, gutters, windows, furnace, air conditioner, water heater, and appliances. You will need to start setting aside savings to cover these replacement costs in the future.
5. Get pre-approved – Meet with your lender or mortgage broker to discuss what you can financially afford. Remember that the pre-approval rates are sometimes higher than you can really afford. Calculate your mortgage payments and add in your monthly recreational budget to ensure the payments are realistically achievable. If you know that you can’t survive without going to the bar to watch the game each week with your friends, or a trip to the mall is a weekly must, make sure you have accounted for those extra monthly costs.
6. Use a real estate agent you trust – It’s our job to walk you through the home buying process and make you feel comfortable with each decision you make. We will look for a home in the neighbourhood you want, at a price you can afford. We will compare the purchase price with similar homes recently sold in the area to ensure it’s competitive. And we will negotiate the purchase bearing in mind any repairs required. With over 20 years of experience in the industry, we’d like to think you can trust us. Check our testimonials page for feedback from previous clients or ask us for references. We can also refer you to professionals who are available to help you through the entire home buying process – mortgage lenders, lawyers, home inspectors, and contractors. We will always give you a choice so you can choose the professional with whom you feel most comfortable.
7. Where to buy – Remember that a home purchase is a long-term investment. Consider not only what you need today but also what you may need in the future. Think about the size requirements (condo vs. house/number of bedrooms), your lifestyle and current life stage (do you plan to have kids?), special features in the home (AC, fireplace, pool), neighbourhood, access to public transit, the highway, local shops and your daily activities, local schools, recreation centres, your cultural community and access to your family and friends.
8. Buy new or resale? – Think about what you are looking for in a home. New homes offer the shine of something that has never been used, but you will need to set aside a budget for the additional hidden costs, such as appliances, upgrading features including counter tops, flooring, light fixtures, crown moulding and even paint quality. Post move-in expenses will include window coverings, closet shelving, towel racks, and finishing a basement. You may also live in a construction site for several months or years before the community is finished. GST is charged on a new home, but not on a resale home (on a $300K home, that’s an additional $15K). Most new homebuilders prefer that you buy directly from them without a real estate agent.
9. Buy with your head not your heart – If you watch HGTV or flip through home decorating magazines, you can easily fall in love with the glitz you see. The reality is that no home is perfect. The first home you buy will likely be more humble than you ever imagined. Be prepared to give a home a long look and decide which renovation jobs you might be able to take on yourself. Your inner Martha Stewart might surprise you!
10. Do you consider a fixer upper? – Buying a home that needs some TLC can help with the initial purchase price, but if you plan to take on renovations be sure to set a budget and stick to it. Remember that whatever your budget, there is a good chance the final costs will be higher. The kitchen and bathrooms are the best places to invest for resale purposes, but they are also expensive, messy and time-consuming to renovate. Be sure to set a top price where you stop a project, even if you’d love to go further (that marble counter top may have to wait).
11. What fees are there in addition to the purchase price? – Consider the additional costs associated with the home, such as homeowners’ association fees, condo fees, and taxes. These costs need to be factored into your monthly expenses too.
12. Down payment – Your down payment is the initial cash payment you put towards purchasing the home and is not part of your mortgage. All those years of savings are now being put to good use! Ideally, you should try to have a down payment of 20% of the purchase price. The minimum down payment allowed is 5%. At that rate, your lender will require Mortgage Loan Insurance. This protects your lender if you can’t make your mortgage payments (but not you).
13. Invest in a Home Inspection – We strongly urge you to budget for a home inspection with a qualified and experienced home inspector (approx. $300 - $600). While they won’t find every flaw in the home, they will provide you with a list of deficiencies so you will have a sense of possible expenses down the road. Some issues can be used to negotiate a lower purchase price, while others you can budget for once you have moved in. Not investing in an inspection means that you could be stuck in a home with a bad case of black mold, a broken furnace or faulty wiring and will have no recourse other than to pay for its removal.
14. Hire a good real estate lawyer. A lawyer is a must when engaging in real estate. We can recommend several in the area who might be a good fit for you. Interview them to ensure that you get someone you can work with. You need a pro to guide you through the legalities of transferring land ownership. A good lawyer can be your best defense against future legal troubles. Fees can range from several hundred to over a thousand dollars for their services, but the money saved in legal fees later on will make this a good investment.
15. Closing costs – Making the final payment on your home isn’t your only expense on closing day. Meet with your lender and your lawyer ahead of time to get a full grasp on what is owed as it is usually in the thousands of dollars (1.5% to 5% of the purchase price). For example, a purchase could include the following expenses:
1. Mortgage Application and Appraisal (sometimes waived by bank)
2. Legal Fees & Disbursements
3. GST (for new homes only)
4. Home and Content Insurance
5. Moving and/or Storage Expenses

So there you have it. You can indeed be a homeowner with the help and guidance of many. We are here to help and support you. If you have any questions or want additional detail to any of the information provided here call us. We look forward to making your first home purchase a special one!