A Step by Step Guide for First Time Buyers in Ontario
Buying your first home can feel overwhelming, you will encounter words you’ve never heard, paperwork you didn’t expect and decisions that seem bigger than life. But let me assure you. You are not alone. Every experienced homeowner started right where you are with a dream, questions and excitement. This guide will walk you through everything you need to know as a first time homebuyer in Ontario.
Ask Yourself.
Asking the right questions can prevent financial and emotional stress. Here are the list of questions first time homebuyer should ask themselves:
What is my current financial situation? Your income, savings, debts and credit score.
How much can I afford to spend on a home?
Is my job or income stable enough for a long term commitment?
What kind of life do I want to build and what kind of home will support that? Do I picture myself living in a condominium? A family friendly townhouse in the suburbs? A cozy home near parks and schools?
Your “why” is just as important as your “what.” The clearer your vision, the easier your decisions will be.
2. Understand Your Budget
Knowing your numbers will empower you to shop smart and avoid financial surprises. I highly recommend to speak with your mortgage advisor and get pre-approved. This will tell you how much you can afford and strengthen your offer when time comes.
Things to consider:
Your income and current expenses
Your credit score. If your score is higher, you will have a better mortgage rate.
Your savings for a down payment. Minimum of 5% down payment for homes under $500,000.
Closing cost. Typically, 3% of the purchase price which includes legal fees and land transfer tax.
3. Use the Program Designed for You
Ontario have created incentives and rebates to support first-time homebuyers like you.
Home Buyer’s Plan (HBP) - you can withdraw up to $60,000 tax free from RRSP for your down payment.
First Home Savings Account (FHSA) - you can save up to $40,000 tax free for your first home.
Land Transfer Tax Rebates - you can get up to $4,000 from Ontario and $4,475 from Toronto (if applicable).
First-Time Home Buyers Tax Credit - you can claim up to $1,500 on your taxes
GST/HST New Housing Rebate (Pre-construction) - you can save on taxes when buying a new build home.
Ask your mortgage advisor to help you access to these incentives and rebates.
4.Find the Right Home
Here comes the exciting part! Once you get your mortgage pre-approval letter, your budget is set. Your Realtor (hopefully me!) will help you explore neighbourhoods for properties you like to see. Give you detailed comparable listings to understand the value vs. price. Attend showings and open houses. Spot the red flags or golden opportunities the property have.
Buying a home is more than a transaction. It’s a chapter in your story and you deserve to find the right fit.
5. Make an Offer and Close the Deal
Once you’ve found the right home, your Realtor will help you make an offer and negotiate the pice. Organize a home inspection. Work with your lawyer to close the deal. Then, you can get your mortgage finalized.
Buying your first home can feel big because it is. But it’s also beautiful, empowering and rewarding.
I’d be honored to walk this journey with you and discuss how these apply to your personal situation, so don’t hesitate to reach out.
Marie Jain M. Angeles, Realtor
Direct Line: (416) 857-5246
email: angelesrealestate@outlook.com
Jayson A. Angeles, Realtor
Direct Line: (647) 994-5246
email: jangelesrealestate@outlook.com
Right at Home Realty, Brokerage
480 Eglinton Ave W, Suite 30
Mississauga, Ontario L5R 0G2
