Are you a first-time homebuyer?

Your first home can seem like a daunting purchase.

We’re here to help you navigate through it, and come out on top.

Congratulations

on taking steps towards
purchasing your first home!

Let’s get you set up for success:

Welcome to our First Time Homebuyer’s Guide, your go-to resource for all things related to

purchasing your very first home. We’re thrilled to be a part of your journey, and we’re here to

ensure you’re well-equipped with the knowledge you need to make informed decisions.

Why You Should Consider a Mortgage Broker

Discover the benefits of partnering with a mortgage broker by following this informative link

HERE. Unveil the reasons why a mortgage broker can be a valuable ally in your home buying

journey.

Understanding Mortgage Qualification

We're here to provide you with a comprehensive overview of the factors that come into play when determining your eligibility for a mortgage. When it comes to determining your eligibility or a mortgage, two key calculations come into play: Gross Debt Servicing (GDS) and Total Debt Servicing (TDS).

The GDS calculation factors in essentials like your mortgage payment (including the stress test), property taxes, heating costs, and strata fees. Meanwhile, TDS takes your housing expenses and total debt payments – including credit cards, lines of credit, loans, and support payments – into account. Generally, GDS should not exceed 39% and TDS should stay within 44% of your gross monthly income. Delve deeper into our INCOME GUIDE to explore different income sources for your mortgage application, and be sure to check out the list of REQUIRED DOCUMENTS.

Crucial Credit Insights

Mortgage lenders typically require at least two sources of credit with limits of $2000 or more. Timely payments hold paramount importance, especially within the most recent 2 years. For an in-depth understanding of how credit scores work and their calculation, check out our INFORMATIVE CONENT on credit scores. We highly recommend taking a moment to review your credit report; HERE is a handy link to help you get started.

Navigating Your Down Payment

Understanding down payments is pivotal. For properties up to $500,000, a minimum of 5% is required, while properties exceeding $500,000 will require 5% on the first $500,000 and 10% on anything over and above. If you’re setting your sights on properties surpassing the $1,000,000 mark, a minimum of 20% down will be necessary. First-time homebuyers can explore helpful tools for easing their down payment journey HERE.

Property Considerations

Certain property types can affect financing. Lenders often prefer well-maintained, marketable properties. If the property has unique attributes such as a suite or alternative waste systems, we’re here to guide you accordingly.

Familiarize yourself with our checklist of property characteristics that might impact your financing decisions:

- Alternative waste systems (holding tank, lagoon)

- Non-municipal or well water sources

- Multiple titles or lots

- Poor condition of the home

- Wood foundation

- Mobile/Manufactured homes

- Large acreages

- Outbuildings affecting property value.

Navigating Closing Costs

Aside from the down payment, it’s crucial to allocate funds for associated fees when purchasing a home. Around 1.5% of the purchase price should be earmarked for these costs. They include:

- Mortgage Default Insurance (for purchases under 20% down)

- Property Transfer Tax (varying by province)

- Legal Fees

- Title Insurance

- Appraisal (if required)

- Home Inspection

- Home Insurance

Explore our detailed breakdown of closing costs and use our calculator for a clearer picture of these expenses.