Step 1: Check Your Financial Readiness
Before you start house-hunting, take a clear look at your finances.
- Credit Score: Lenders use this to decide your interest rate and approval. Aim for 680+ for better terms.
- Debt-to-Income Ratio: Try to keep your monthly debts (loans, credit cards, etc.) under 40% of your income.
- Savings: Beyond the down payment, you’ll need funds for closing costs, moving, and a safety cushion.
Step 2: Understand Down Payments
Your down payment impacts your mortgage size and monthly payments.
- In Canada, the minimum down payment is:
- 5% for homes under $500,000
- 10% for the portion above $500,000 (up to $1M)
- A larger down payment means smaller monthly payments and less interest over time.
Step 3: Get Pre-Approved for a Mortgage
A mortgage pre-approval shows sellers you’re serious and helps you shop within your budget.
- Locks in an interest rate for 90–120 days
- Gives you a clear price range
- Speeds up the closing process when you find the right home
Step 4: Learn About Mortgage Options
Not all mortgages are the same. As a first-time buyer, here are the key ones to consider:
- Fixed-Rate Mortgage: Steady payments for predictable budgeting.
- Variable-Rate Mortgage: Payments may change with interest rates — good if you want flexibility.
- First-Time Homebuyer Programs: Government incentives can reduce your costs (such as the First-Time Home Buyer Incentive or RRSP Home Buyers’ Plan in Canada).
Step 5: Don’t Forget Closing Costs
Closing costs typically range from 2–4% of your home’s purchase price. These include:
- Land transfer taxes
- Legal fees
- Title insurance
- Home inspection and appraisal fees
Step 6: Work With a Mortgage Partner You Trust
Buying your first home isn’t just about finding a house — it’s about building a solid financial foundation. At LendPro, we guide first-time buyers through every step, from pre-approval to closing, so you can focus on the excitement of homeownership instead of the stress.
✅ Ready to buy your first home?
Contact LendPro today to explore your options, get pre-approved, and take the first step toward owning your dream home.
