7 Things You Need to Know About Buying Your First Home

7 First-Time Home-Buying Tips

1. A mortgage-rate discount of even 0.15% can save you thousands. Your bank may claim to be offering you a discount, but its rates are often higher to begin with. An expert, salaried mortgage broker can shop around for your best rate and do the lender-haggling for you (for free) while passing along a volume discount that you wouldn't normally be able to access.
   
   
2. Six federal savings programs and 20 provincial rebates or tax credits are available across Canada. Be sure to find out which ones can help with your down payment or home-buying costs. A recent mortgage rule change allows first-time and new-build buyers to extend amortizations from 25 to 30 years with an insured mortgage for lowered payments.
   
   
3. You might only need a 5% down payment. That can be a big deal if you're having trouble saving up. The minimum amount depends on the home's purchase price — 5% for under $500K and less than 20% for under $1.5M (an insured mortgage is required). Thinking 'smaller' might help you afford to get your foot in the (real-estate-owning) door.
   
   
4. You'll need about 2-4% of the home price for closing costs. Be aware that you'll need to cover closing costs that are over and above your down payment, such as Land Transfer Tax, adjustment costs, and lawyer fees. They can't be added to your mortgage loan, and your purchase deal may fall through if you are unable to pay them.
   
   
5. A credit score of 680 can unlock your better mortgage rate. Your credit score plays a significant role in helping you secure your first home. Ensure you pay your bills on time and avoid opening new credit accounts immediately before getting a mortgage pre-approval. Also, the credit score you see on your app (e.g. through Equifax or TransUnion) is your Pinnacle score, but lenders use your FICO score. Your expert broker can pass along your FICO score and outline if it might affect your mortgage application.
   
   
6. Don't cut out the professionals while trying to save a buck. Cheap can be expensive. Finding a good mortgage broker, realtor, and lawyer can help you gain valuable insights and leverage their experience to save money, time, and stress on the right things. Ask around for a good referral, check reviews, and ask questions to ensure you find the best fit for your needs.
   
   
7. One financing condition on your purchase offer can save your (mortgage) butt. Even with a pre-approval in place, your mortgage isn't fully approved until after you've placed a purchase offer. Without this protective condition — you'll be in legal and financial trouble with the seller if you don't get the loan.

Pre-home? Get pre-qualified, quick and easy.

Your expert True North Mortgage broker will offer important affordability details and help you prepare your finances for when you're ready to go home shopping.

Need personalized help now with your home-buying process? We're standing by to answer your questions in your preferred language — and can offer professional referrals through our trusted industry relationships.

Give us a shout, anywhere you are in Canada — online, over the phone or stop by a store location near you.