The Ultimate First-Time Home Buyer Guide for Homebuyers
Buying your first home is one of the most exciting financial milestones you’ll ever experience. It can also feel overwhelming.
Questions like:
- How much down payment do I need?
- What credit score is required?
- Should I get pre-approved first?
- What are closing costs?
- How much can I actually afford?
are common among first-time buyers.
The good news is that buying your first home doesn’t need to be complicated when you understand the process.
Step 1: Determine Your Budget
Before looking at homes, it’s important to understand your affordability.
Lenders review:
- Income
- Employment history
- Credit score
- Existing debt
- Down payment
Many buyers are surprised to learn they qualify for more—or less—than expected.
A mortgage pre-approval helps establish a realistic budget before you start shopping.
Step 2: Save Your Down Payment
Current minimum down payment requirements:
Homes Under $500,000
5% minimum
Homes Between $500,000 and $1.5 Million
5% on the first $500,000 plus 10% on the remaining amount.
The larger your down payment, the smaller your mortgage balance and monthly payment.
Step 3: Use the FHSA
The First Home Savings Account is one of the most valuable tools available to first-time buyers.
Benefits include:
- Tax deductions
- Tax-free growth
- Tax-free withdrawals for a home purchase
Many buyers save thousands in taxes while building their down payment fund.
Step 4: Understand Mortgage Insurance
If your down payment is under 20%, mortgage default insurance is required.
Benefits include:
- Access to homeownership sooner
- Competitive interest rates
- Lower minimum down payment requirements
Step 5: Budget for Closing Costs
Many buyers focus entirely on the down payment and forget about closing expenses.
Plan for:
- Legal fees
- Home inspection
- Appraisal
- Title insurance
- Moving expenses
Budget approximately 1.5%–4% of the purchase price.
Step 6: Get Pre-Approved
A pre-approval helps you:
- Understand your budget
- Lock in a rate
- Shop with confidence
- Strengthen your offer
Step 7: Find the Right Mortgage
Not all mortgages are created equal.
Important considerations include:
- Fixed vs variable rates
- Prepayment privileges
- Portability
- Penalties
- Flexibility
The lowest rate isn’t always the best mortgage.
Common Mistakes to Avoid
- Shopping before pre-approval
- Taking on new debt
- Draining savings completely
- Ignoring closing costs
- Choosing solely based on rate
Why Work With me?
As a Mortgage Broker who is licensed and serving Alberta and Newfoundland, I help first-time buyers understand their options and navigate the mortgage process from start to finish.
Whether you’re six months away from buying or actively house hunting, I can help you create a personalized plan.
Ready to Buy Your First Home?
Book a consultation today and let’s create a mortgage strategy that works for your goals.
Sincerely
Janet Hong, AMP, CCRMC
Mortgage Broker
Mortgage Alliance | Enrich Mortgages
NL: 26-08-JH342-1
AB: 671095
📲 Text 709-763-1844/587-487-5010
📧 mortgages@janethong.ca
🔗 www.janethong.ca