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How First Time Home Buyers Can Secure the Best Deal?
March 13, 2025 | Posted by: Dominion Lending Centres National Advantage Mortgages
First-Time Home Buyer’s Guide: Everything You Need to Know Before Buying a Home
Buying your first home is an exciting milestone, but it can be equally intimidating. Due to rising housing prices, the difficulty of saving for a down payment, and shifting mortgage rates, many Canadian first-time home buyers—particularly those in Ontario—are concerned that homeownership is becoming unattainable.
Plus, the government incentives, loan possibilities, and credit criteria; these challenging obstacles make it sense why first-time buyers feel on the verge when buying a home for the first time. GOOD NEWS IS, we at DLC Advantage Mortgage is here to make first home buying the best experience for you.
For your assistance, we’ve constructed this step-by-step guide to help you buy your home in Windsor Ontario. From financing alternatives and first-time home buyer incentives to necessary regulations and useful tools like the First-Time Home Buyer Ontario Calculator, this guide explains all you need to know. By the conclusion, you'll feel more comfortable making the initial move to become a homeowner.
Let’s begin with;
Understanding the Challenges of First-Time Home Buyers
What Most First-Time Buyers Don’t Consider
Never forget to consider the first-time homebuyers down payment. Homeownership comes with a lot of extra expenses. You must budget for more than just the minimal down payment; you also need to account for:
- Property taxes (which vary by municipality)
- Closing expenses (legal fees, land transfer taxes, title insurance, etc.)
- Fees for home inspections (to avoid costly surprises after purchase)
- Moving costs (which can add up quickly depending on distance and services used)
- Household insurance (a mandatory requirement from lenders)
- Continuous upkeep and repairs (which can be unpredictable)
It's critical to make realistic budgetary calculations if you're feeling overburdened. To assess your affordability and estimate your overall expenses, use our First-Time Home Buyer Calculator.
First-Time Home Buyer Requirements in Ontario
If you’re a first-time home buyer Canada, you must fulfill several requirements to be eligible for different mortgage alternatives and incentives. Such as;
- A minimum credit score of 600 (but higher scores get better rates)
- Stable earnings and work history (to prove you can make mortgage payments)
- A minimum 5% down payment is required for residences under $500,000. (higher for more expensive properties)
- Getting through the stress test for mortgages (to ensure you can afford payments even if interest rates rise)
You may find out if you meet these standards and how much you'll need to save by using a First-Time Home Buyer Ontario Calculator. Prior to applying for a mortgage pre-approval, start early to establish financial stability if your funds or credit score need to be improved. .
Government Programs for First-Time Buyers in Canada
To assist homebuyers in buying their homes, the Canadian government offers a number of incentives and programs. These choices may simplify and lower the cost of the procedure. . Here’s an overview:
Home Buyers’ Amount:
Up to $1,500 in non-refundable tax credits are available to you if you meet the requirements. Your tax expense may go down as a result, making it simpler to afford your house.
GST/HST New Housing Rebates
You can qualify for a refund on a portion of the GST or HST taxes you pay when you purchase your house. Your total home-buying expenses may be reduced with this refund.
Home Buyers’ Plan (HBP)
Through this program, you can take up to $35,000 tax-free withdrawals from your registered retirement savings plan (RRSP) to assist with the purchase of your first home.
Good news! This withdrawal cap was raised to $60,000 starting of Budget 2024. Any withdrawals made after April 16, 2024, are subject to this additional amount.
These house loan options can offer significant financial assistance, enabling you to fulfill your aspiration of becoming a homeowner.
Steps to Buying Your First Home in Ontario
Step 1: Start Saving for a Down Payment
One of the largest obstacles for first-time homebuyers is a down payment. Although many purchasers put down much less, it is generally advised to put down 20% of the home's price to avoid additional costs. You may be able to purchase with as little as 5% down, or in certain situations, 0%, depending on the type of loan you have (e.g., VA or USDA loans).
If you have trouble saving for a down payment, look into government programs like Canada's First-Time Home Buyer Incentive, which offers shared equity loans to reduce monthly payments. The cost of buying a property can also be decreased by government programs including homeownership incentives and the First-Time Property Buyer Ontario Down Payment Assistance.
Step 2: Check Your Credit Score
To determine your level of financial responsibility, lenders look at your credit score. While a lower credit score may result in higher interest rates, a high score can help you get better mortgage conditions. Although some lenders in Canada may accept scores as low as 600, a score of 680 or better is preferred for mortgage approval.
Start by paying off high-interest loans and making on-time payments if you want to raise your credit score. Before applying for a loan, you can also raise your score by looking for errors on your credit report and contesting them.
Step 3: Get Mortgage Pre-Approval
Pre-approval for a mortgage is essential as it ensures your affordability. Additionally, it demonstrates to vendors that you are a serious buyer. We at DLC Advantage Mortgage make the pre-approval process easier by assisting you in identifying the loan that best suits your needs and budget.
To obtain pre-approval, you will require:
- History of credit
- Verification of employment
- Details of debt and assets
- Evidence of income (pay stubs, tax returns)
Before you meet with a lender, use an Ontario First-Time Home Buyer Calculator to determine your affordability.
Step 4: Find a Real Estate Agent
An important ally in your house hunt is a real estate agent. They assist you with budget-friendly real estate searches, offer negotiations, and legal documentation.
Seek out an agent who has worked with first-time homebuyers before. A Realtor, who is a member of the Canadian Real Estate Association, may offer professional market insights and adhere to a rigorous code of conduct.
Step 5: Start House Hunting
The exciting phase is about to begin: finding your ideal house! Sort your needs into must-haves and nice-to-haves to help you focus your search. Are you open to a fixer-upper or do you prefer a newer home? Think about things like potential resale value, schools, travel time, and location.
To properly compare properties, don't forget to go to open houses, ask questions, and take notes.
Step 6: Make an Offer
Your realtor will assist you in creating an offer once you've located the ideal house. This covers the closing date, contingencies (such a house inspection), and the amount you are willing to pay. Be ready to pay earnest money, which is a deposit that demonstrates your seriousness to the seller.
In the event that there are other offers, your agent will assist you in creating a strong bid to improve your chances of getting accepted.
Step 7: Schedule a Home Inspection
A house inspection makes sure there are no hidden hazards, such as mold, plumbing, or structural damage. You can renegotiate your offer or negotiate repairs if significant issues come up.
Step 8: Get a Home Appraisal
Before approving your loan, lenders need a house assessment to verify the property's worth. You could have to renegotiate or make the difference if the home appraises for less than the agreed upon price.
Step 9: Close on Your Home
You formally become a homeowner on closing day! Final paperwork must be signed, closing charges must be paid (usually 2–5% of the purchase price), and the keys to your new house must be obtained.
Step 10: Move In and Enjoy Homeownership!
Congratulations! You've made it through the home-buying process successfully. It is now time to get settled and make your new home a home.
Common mistakes First-Time Home Buyer Make
Mistake # 1 - Buying a Home When You’re in Debt
Paying for a house while in debt is like running a marathon with weights on your legs. You’ll struggle to save for a down payment, take on a larger mortgage, or risk missing payments due to other debts. Before buying, clear your debt and build financial stability. DLC Advantage Mortgages can guide you through smarter homeownership.
Mistake # 2 - Underestimating Homeownership Costs
Owning a home comes with ongoing costs—property taxes, HOA fees, and rising utility bills. If you spend all your savings upfront, unexpected repairs could strain your budget. First-time home buyers in Canada should use a first-time home buyer Ontario calculator to estimate costs and ensure long-term affordability.
Mistake # 3 - Buying a House You Can’t Afford
Your mortgage payment should be 25% or less of your take-home pay, including property taxes, insurance, and HOA fees. Use our first-time home buyer Ontario calculator to determine a realistic budget. DLC Advantage Mortgages helps first-time buyers in Canada find a home that fits their finances without overextending themselves.
Mistake # 4 - Making Too Small of a Down Payment
A small down payment means higher monthly payments and additional debt. Aim for 20% down to avoid PMI, which only protects the lender. First-time home buyers Canada can start with 5–10%, but should prepare for extra fees. DLC Advantage Mortgages offers expert advice on down payment strategies.
Mistake # 5 - Getting the Wrong Mortgage
Not all mortgages are equal. Avoid adjustable-rate, FHA, VA, and USDA loans, which come with hidden fees and risks. A 15-year fixed-rate conventional mortgage is the best choice—it saves money and pays off your home faster. DLC Advantage Mortgages helps first-time home buyers in Canada secure the best loan option.
Avoiding these common mistakes will save you money and stress. DLC Advantage Mortgages is here to help first-time home buyers in Canada make confident, informed decisions. Reach out today to get started!
Ready to Buy Your First Home? Let’s Make It Happen!
Buy your first house is a big investment, but it doesn't have to be stressful if you have the right advice. Working with a reputable mortgage broker, researching government programs, and being aware of first-time homebuyer Ontario requirements will help you navigate the process with assurance.
Our specialty at DLC Advantage Mortgage is assisting first-time homebuyers in obtaining the best mortgage alternatives. We are available to assist you with budgeting, selection of the best lender, and First-Time Home Buyer Incentive applications.
To begin your journey to homeownership, contact us right now for a free consultation!