Ready to buy your first home?

Step 1: Mortgages & Financing

Getting Pre-Approved for a Mortgage

Before you start house hunting, it’s important to know what you can afford. A mortgage pre-approval gives you a clear budget, locks in an interest rate (usually for 90–120 days), and shows sellers that you’re a serious buyer.

Your lender will review:

  • Income
  • Debts
  • Down payment
  • Credit history

With pre-approval in place, you can focus on homes that truly fit your budget — and avoid financing surprises later.

Pro Tip: Pre-approval doesn’t guarantee financing on every home. Lenders often require an appraisal to confirm the property’s value before releasing funds.


Understanding Mortgage Basics

Mortgages can be confusing at first, but breaking them down makes them easier:

  • Term: The length of time your mortgage agreement is in effect (typically 1–5 years).
  • Amortization: The total time it will take to pay off your mortgage, usually 25 years or more.
  • Payments: Most are blended (principal + interest). Over time, more of your payment goes toward reducing the principal.
  • Interest Rates: Choose between fixed (stable payments) or variable (payments fluctuate with rates).
  • Types of Mortgages:
  • Conventional: 20% down or more
  • High-Ratio: Less than 20% down, requires CMHC insurance
  • Secondary: Additional financing behind a primary mortgage (less common for first-time buyers)


Step 2: Government Programs for First-Time Buyers

The government offers several programs designed to make buying your first home easier:

  • Home Buyers’ Plan – Borrow up to $35,000 from your RRSP tax-free
  • Land Transfer Tax Rebates – Partial refunds in Ontario and Toronto
  • First-Time Home Buyers’ Tax Credit – A $750 tax credit
  • First Home Savings Account (FHSA) – Save for your down payment tax-free

📖 Related Resource: First-Time Buyer Programs & Incentives


Step 3: Creating Your Wish List

What’s most important in your first home? Think about:

  • Must-haves (bedrooms, outdoor space, parking)
  • Nice-to-haves (updated kitchen, hardwood floors)
  • Non-negotiables (commute times, neighbourhood feel)

Location is just as important as the property itself. Explore our Toronto Neighbourhood Guides for an inside look at the GTA’s best communities.


Step 4: Building Your Team

You don’t have to do this alone. Your home-buying team will include:

  • A REALTOR® – Your trusted advisor and guide (that’s me!)
  • A Mortgage Broker/Bank – To secure financing
  • A Real Estate Lawyer – To handle contracts and protect your interests

Tip: Ask for referrals, read reviews, and don’t be afraid to interview multiple professionals before choosing.

📖 Related: 10 Questions to Ask When Hiring a REALTOR®


Step 5: Understanding Costs

Beyond your down payment, there are additional costs to budget for:

Closing Costs (Before & On Closing Day)

  • Deposit (usually 5%)
  • Home inspection & appraisal fees
  • Legal fees ($1,800–$3,000)
  • Title insurance ($250–$400)
  • Ontario & Toronto land transfer taxes (use our calculator)
  • Adjustments for property tax, condo fees, or utilities


Ongoing Costs of Ownership

  • Property taxes
  • Utilities (hydro, gas, water)
  • Home insurance
  • Condo fees (if applicable)
  • Maintenance (1–3% of the home’s value annually)

📖 Related: How Much Can I Afford? Setting Your Budget


Step 6: Searching for Your Home

Once you’re pre-approved and know your budget, the fun begins — house hunting!

Your REALTOR® can set you up with REALM, a tool that delivers live MLS updates and customized listings. This ensures you see properties the moment they hit the market.

Remember: while wish lists are important, many buyers simply “know” when they’ve found the right home.

📖 Related: Searching for a Home Like a Pro


Step 7: Making an Offer

When you’ve found the one, it’s time to make an offer. Your offer (Agreement of Purchase and Sale) will include:

  • Price
  • Deposit
  • Closing date
  • Inclusions (appliances, fixtures, etc.)
  • Conditions (financing, inspection, status certificate for condos)

Negotiations can be stressful — but with an experienced REALTOR® guiding you, you’ll be prepared for every scenario, including multiple offers or bidding wars.

📖 Related: How to Win a Bidding War


Step 8: Closing the Deal

Closing is when the home officially becomes yours. Your lawyer and lender handle the legal and financial details while you prepare for move-in day.

📖 Related: Closing Costs Explained


Ready to Buy Your First Home?

Buying your first home in Toronto is a major milestone, and the journey doesn’t have to feel overwhelming. With the right guidance, knowledge, and support, you can confidently step into homeownership.