First-Time Buyer FAQs

In Canada, the minimum depends on the price of the home. On a lower-priced home it can be as little as 5%, and the minimum goes up in steps as the price rises. If you put down less than 20%, you'll also need mortgage default insurance (see the question on mortgage default insurance below). The right amount for you depends on your savings, your monthly budget and how much cash you want to keep in reserve. Book a free call and I'll work out your minimum and a comfortable target with you.

A pre-approval is a lender's early look at your income, debts and credit. It tells you roughly how much you could borrow and can hold a rate for a set time. It is not a promise to lend. A full approval comes after you have an accepted offer, when the lender reviews the property itself and verifies all your documents. Getting pre-approved first helps you shop with confidence and spot any issues early. Ready to start? Book a call and we'll begin your pre-approval.

If your down payment is less than 20% of the price, lenders generally require mortgage default insurance. It protects the lender, not you, if a loan isn't repaid. The cost is usually added to your mortgage rather than paid upfront, and it depends on the size of your down payment. It is what makes buying with less than 20% down possible. I'll show you what it would add in your situation. Book a call and we'll run the numbers.

The stress test checks that you could still afford your payments if rates went up. Lenders qualify you at a rate higher than the one you'll actually pay. This can lower the amount you're approved for, but it doesn't change your actual rate or payment. It's one of the main reasons buyers are surprised by their budget, so it's worth knowing your number before you shop. Book a call and I'll show you how it affects you.

With a fixed rate, your rate stays the same for the term, so your payment is predictable. With a variable rate, your rate moves with the lender's prime rate, so your costs can go up or down. Neither is right for everyone. It depends on your budget, how much change you're comfortable with, and your plans for the next few years. Book a call and we'll compare both for your situation.

Lenders look at two things: how much of your income would go to housing costs (mortgage, property tax and heating), and how much would go to all your debts combined, such as car loans and credit cards. Your credit history and down payment matter too. What a lender will approve and what feels comfortable each month aren't always the same number, and we'll look at both. Book a call and bring a rough idea of your income and debts.

On top of your down payment, plan for land transfer tax, legal fees, title insurance, a home inspection and moving costs. In Toronto, you pay both the Ontario and the City of Toronto land transfer tax. First-time buyers may qualify for rebates on these. Your real estate lawyer will confirm the exact amounts before closing. Book a call and I'll help you build a closing-cost budget so nothing catches you off guard.

Often, yes. The federal Home Buyers' Plan lets eligible first-time buyers withdraw from their RRSP and repay it over time. A First Home Savings Account (FHSA) lets you save for your first home with tax advantages. Each program has its own limits and rules, so check the details with your accountant or the Canada Revenue Agency. Book a call and we'll plan how your savings fit into your purchase.

Most lenders ask for photo ID, proof of income (recent pay stubs and an employment letter, or two years of tax documents if you're self-employed), proof of your down payment (usually 90 days of bank statements), and details of any debts. Once you have an accepted offer, you'll also need the purchase agreement. Every file is a little different, so I'll send you a checklist built for you. Book a call to get yours.

For most standard residential mortgages, the lender pays the brokerage, so there's no fee to you. Some situations, such as private or certain alternative lending, can involve fees. If any fee applies to you, I'll tell you in writing before you agree to anything. Book a free call to talk through your options.