Mortgages
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Buying your first home in Canada is an exciting milestone that requires careful planning and strategic decision-making. This comprehensive guide breaks down the complex process of home buying into clear, manageable steps, incorporating the latest programs and insights for first-time buyers in 2025.
In Canada, a first-time home buyer has never owned a home or hasn’t owned one in the last four years. This status qualifies you for special programs and incentives to make your first home purchase more accessible and affordable.
Financial preparation
Your financial foundation is crucial. Focus on three key areas:
Budget: Carefully assess how much you can truly afford based on your income, savings, and existing expenses.
Credit Score: Aim for 680 or higher to secure the most favourable mortgage rates. This demonstrates financial reliability to lenders.
Debt-to-Income Ratio: Maintain this below 44% to improve your mortgage approval chances and financial health. There are options if you do not meet these criterias. Reach out to our team to see how.
Step 2: Down payment planning (Click here to use our mortgage qualifier calculator tools)
Understanding down payment requirements is critical:
New for 2025: Explore the First Home Savings Account (FHSA), which allows tax-free savings specifically for home purchases. Canadians can contribute up to $8,000 annually, with a lifetime maximum of $40,000.
Step 3: Explore first-time Home buyer programs
Take advantage of available support:
Step 4: Get a pre-approval and start your home search
Work with professionals to streamline your journey:
Step 5: Mortgage selection and submission
Our team will help you select a mortgage that aligns with your financial goals:
Step 6: Close on your financing
Final steps to homeownership:
A dedicated mortgage agent can:
$500,000 or less
5%
$500,000 – $1,500,000
5% of the first $500,000; 10% of the remaining amount
Over $1,500,000
20%
A tax-free account allows up to $8,000 annual contributions (lifetime max $40,000) specifically for home purchases.
Yes, through the RRSP Home Buyers’ Plan, you can still withdraw up to $35,000 tax-free (note: this amount has not increased to $60,000 as previously stated).
Aim for 680 or higher for optimal mortgage rates.
Conclusion
Purchasing your first home is a significant financial milestone. With careful planning, professional guidance, and an understanding of available resources, you can successfully navigate the path to homeownership.
Disclaimer: Always consult with a mortgage specialist for the most up-to-date and personalized advice tailored to your specific situation.
Contact us today to explore your options, get expert advice, and secure the deal you deserve. After all, a little proactive effort now could save you thousands down the road—and that’s a win worth celebrating.
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After you submit the form, we’ll reach out to discuss your goals, address any questions, and provide customized, no-obligation quotes. Feel free to let us know if there’s anything else you need!
After you submit the form, we’ll reach out to discuss your goals, address any questions, and provide customized, no-obligation quotes. Feel free to let us know if there’s anything else you need!
After you submit the form, we’ll reach out to discuss your goals, address any questions, and provide customized, no-obligation quotes. Feel free to let us know if there’s anything else you need!
After you submit the form, we’ll reach out to discuss your goals, address any questions, and provide customized, no-obligation quotes. Feel free to let us know if there’s anything else you need!
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