Buying your first home isn’t just about ownership, it’s also about building wealth. We don’t want to sugar coat this reality- real estate isn’t a lottery ticket or a “get rich quick” move. It’s a long game, and your home works double duty: giving you a space that fits your lifestyle now and grows equity for your future. 

Think of it this way- how much are you paying in rent? If your current rent is way under market, you might not need to rush into anything. But if you’re basically paying someone else’s mortgage and carrying costs, it could be smarter to put that money towards your own home. Tools like a Rent vs. Buy Calculator can help you decide whether buying makes sense right now, or if it’s better to wait until the timing lines up with your goals.

Five Stages to becoming a First Time Home Buyer

There are typically five stages involved in the resale home buying process for first time buyers: nailing down the numbers, budgeting for the transaction, searching for the right house, building your offer, closing and move-in, and long term wealth building. 

Our team has created a guide to help break each stage of the buying process down into manageable, actionable steps so you can take confident steps towards your first purchase!

Stage 1: Nailing Down the Numbers

Financing

The very first step in your home buying journey is to get a clear picture of your financing. That usually means sitting down with a mortgage professional (or a few) to figure out exactly what you qualify for and what fits comfortably within your budget.

Bank vs. Mortgage Broker—what’s the difference?

• Banks: They’ll show you the handful of mortgage products they offer, but at the end of the day, banks are always looking out for themselves first. Their terms are built to minimize their risk. That’s not to say you shouldn’t check to see if they have a good offer for you, because they might.
  
  

• Mortgage Agents/Brokers: These professionals shop the market on your behalf. They have access to a wide range of lenders and can build a more customized, “white-glove” plan that takes your unique financial picture into account. Our team recommends that you get in touch with at least one private mortgage agent or professional (not affiliated with a bank) in addition to your bank to make sure you’re exploring all of your options. They may need you to provide a little extra paperwork, but the extra help these professionals provide is well worth it. 

Why financing comes first:

• If you’re financeable right now (and what price range you should stay in so you don’t stretch yourself too thin financially).
  

• If you’re close but not quite there, what income goals or debt pay-downs will help you qualify in the near future.
  

• If you’re not financeable yet, they’ll give you a clear roadmap to get there.

The financing stage is about clarity. When you know your numbers, you can move forward with confidence- the foundation of a successful first purchase.

Here’s a handy list of documents your mortgage agent will ask for, courtesy of one of our local mortgage agents- Mark Carr 

Local Mortgage Agents and Advisors 

We’ve interviewed a lot of financers- and there’s three locals that really stand out to our team when it comes to recommendations for first time home buyers: 

Carlin Poole

Vine Group Mortgage Brokerage 

Carlin is very personable and always down for a chat. Carlin is a great option for first time buyers who appreciate an educational approach and have questions about how to leverage their first home as an investment. 

Mark Carr 

Marbelle Financial Services Inc. 

Mark works with a slew of lenders and will make sure you get the best mortgage at the best rate. He does not mess around! We appreciate how thorough he is, and how available he makes himself to his clients. 

Jennifer Kerr

Mortgage Architects 

Jennifer is a genius when it comes to creative financing and is an awesome option for self-employed professionals. Jennifer has also helped families make their first purchase with the help of the Hastings County Home Ownership Downpayment Assistance Program- so she’s a great resource if you’re curious about that and qualify. 

Hastings County Home Ownership Downpayment Assistance Program

The Home Ownership Assistance Program  (HOAO) is available to people who are currently renting in Hastings County, have a combined household income of $105,700 or less, and are hoping to buy a house at a maximum purchase price of $558,867.  You could qualify to receive 10% of the purchase price up to a maximum of $30,000 as a forgivable loan! Pretty spectacular news for first time home buyers. 

Here’s more information! 

Stage 2: Budgeting for the Transaction

When you’re planning your first home purchase, it’s important to know that your down payment and mortgage aren’t the only expenses. There are upfront costs that aren’t usually rolled into your financing, and you’ll want to budget for them so nothing catches you off guard.

Both your deposit and your transaction costs are funds you’ll need to have liquid and ready around the time you make your offer, not tied up in investments or accounts that take time to access. Your deposit is usually due right after offer acceptance, and most transaction costs come up during the conditional period or at closing. Having this money accessible ensures your deal moves forward smoothly without last-minute stress.

Besides your deposit and down payment, you should plan to set aside roughly 1.5%-4% of the purchase price to cover closing costs. These vary from deal to deal, but here are the most common:

The Deposit

Think of your deposit as proof you’re serious. It’s money on the table that shows the seller you’re committed to the deal.

Four things to know about the deposit: 

1. It is not the same as your down payment, but it will be credited toward it on closing.
   

2. We’ll make sure your deposit is protected before the deal is firm: if you back out during your conditional period (inspection, financing, etc.), your deposit is fully refundable. Once the deal is firm, your deposit will be held in trust (typically by the listing brokerage) until closing, and then is credited towards the final purchase price and your down payment.
   

3. How much to plan for your deposit: In our local market, for homes under $700K, a deposit of about $10,000 is considered standard and is generally acceptable to sellers here. If you’re buying a new build, a larger deposit may be required by the builder
   

4. When you need your deposit funds: The deposit funds must be liquid and ready to go, typically within 24 hours of your offer being accepted, into the seller’s brokerage or lawyer’s trust account.

Land Transfer Tax (LTT) 

When you buy a home in Ontario, you’ll need to pay a Land Transfer Tax at closing. The good news? If you’re a first-time buyer, you may qualify for a rebate of up to $4,000. That means you won’t pay any LTT until your purchase price passes about $368,000.

So how is it calculated? Land Transfer Tax works a lot like income tax. Your purchase price is split into “brackets,” and each bracket is taxed at a different percentage.

Here’s how it breaks down:

• On the first $55,000 → 0.5%
  

• From $55,000 to $250,000 → 1.0%
  

• From $250,000 to $400,000 → 1.5%
  

• Over $400,000 (for one- or two-family homes) → 2.0%
  
  

For example, if you buy a $400,000 home, you don’t just pay 1.5% on the whole thing. You’d pay:

• 0.5% on the first $55,000
  

• 1.0% on the next $195,000
  

• 1.5% on the final $150,000

Feeling a little lost? Don’t worry- here’s a link to a handy land transfer tax calculator! Make sure to double check with your accountant about any additional taxes that need to be paid. 

Other Transaction Costs 

• Legal Fees: Real estate lawyers handle the title search, registration, and closing funds. Expect around $1,200–$2,000.
  

• Title Insurance (optional): Protects you from issues like title fraud or survey errors. Usually $250–$400.
  

• Appraisal Fee: Sometimes required by your lender. $300–$500.
  

• CMHC/Mortgage Default Insurance: If you’re putting less than 20% down, this premium is added to your mortgage, but in Ontario the 8% PST portion is paid upfront.
  

• Example: On a $400,000 purchase with 5% down, the CMHC premium is about $15,200, and the PST you’ll need to pay upfront is $1,216.
  

• Home Inspection: $400–$600
  

• Well Inspection: $300–$500
  

• Septic Inspection: $300–$700
  

• Sewer Line Inspection: $300–$500

Banking Considerations

When you’re buying your first home, your lender will want to understand where your down payment is coming from. Think of it as helping them check the boxes so your financing goes through smoothly. Some sources are super straightforward, others just need a little extra paperwork, and a few aren’t typically accepted. With the right planning, almost everything can be managed.

What lenders look for:

They love down payments that are traceable, legitimate, and not tied to borrowed debt. The easiest way to make this happen is to have your down payment funds sitting in your account for at least 90–120 days before you apply. That way, everything shows up clearly on your bank statements and the approval process is simple.

Sources that work really well:

• Personal savings (with 90+ days of history)
  

• Gifts from parents or close family (with a short letter confirming it doesn’t need to be repaid)
  

• RRSP withdrawals through the Home Buyers’ Plan
  

• TFSA withdrawals (with account statements)
  

• Proceeds from selling another property
  

• Inheritance (with the supporting legal documents)

Sources that can work with the right documentation:

• Gifts from extended family or friends
  

• Money transferred from overseas
  

• Business accounts
  

• Sale of personal items
  

• Investments or crypto sales

Sources that usually don’t fit:

• Unrecorded cash (like handing over a stack of bills)
  

• Borrowed funds, credit cards, or payday loans
  

• Crowdfunding or GoFundMe contributions

The good news: If your down payment money starts out in one of these trickier categories, it’s still possible to use it. You’ll just want to deposit it into your account and let it “settle” there for about 90 days before applying for your mortgage, so it looks clean and traceable.

Stage Two: The Home Search

This is where the fun begins! Now that you know your numbers and have a budget in mind, we can confidently move into the “home search” phase of your journey. There are three essential “parts” to the home buying process that our team works on with you to make sure we’re on the right track: 

Part A: Clarifying what matters most

Every buyer has a different picture of their first home. To help us find the right fit, we’ll start by asking questions like:

• What are your non-negotiables?
  

• How long do you plan to live in your first house?
  

• What do your family, career, or lifestyle plans look like in the next few years?
  

• Do you need something move-in ready, or are you open to a fixer-upper if the price is right and you’ve got the budget and skills?
  
  

Part B: Understanding your house-hunting style

Some people love browsing Realtor.ca and sending us listings all day long. Others prefer that we filter everything down and present only the top options. Neither is right or wrong—it’s all about what feels comfortable for you.

Part C: Creating a tailored plan

Your home search is never “one size fits all.” That’s why our team uses a detailed intake questionnaire to understand your goals, must-haves, and preferences. You can check it out here! Once we have a clear picture, we’ll create a personalized plan that works for you and makes the search exciting, not stressful.

Stage 3- Building Your Offer 

Once you’ve found a home you love, the next big milestone is making an offer. Here’s what every first-time buyer should know about this part of the process:

1. Your Offer Is More Than Just Price

Price matters, but your offer is actually a package of terms and conditions. Sellers look at the full picture. That includes:

• Offer price (what you’re willing to pay). Our team uses real market data to help you decide on an appropriate offer price.
  

• Deposit (usually around $10,000 in our local market for homes under $700K, credited toward your down payment at closing)
  

• Closing date (when you take possession, often 30–90 days out)
  

• Conditions (protections for you, like financing approval, a home inspection, or reviewing the status certificate if you’re buying a condo, reviewing rental agreements on rented appliances, etc)
  

• Inclusions/exclusions (appliances, light fixtures, window coverings, etc.)

2. Conditions Are There to Protect You

First-time buyers sometimes worry that adding conditions makes their offer weaker. This might be true in certain situations- but we advise you to include them when the market allows so you can be protected. If you know there are going to multiple offers on a particular home, you can also do a “pre-offer inspection.” This allows you to proceed with a clean offer, without flying blind. 

Again, If you decide to back out during the conditional period, your deposit is refunded. Once you waive conditions, your offer is “firm,” and the deal moves forward to closing.

3. Negotiation Is Normal

It’s rare for an offer to be accepted exactly as written. Sellers might counter with a different price, closing date, or deposit. Don’t stress — this is where we guide you, explain your options, and help you decide whether to adjust or hold firm.

4. Timing Matters

In competitive markets, you may face offer deadlines or even multiple-offer situations. In quieter markets, you might have more flexibility. Either way, having your financing pre-approval, deposit, and documents ready means you can act quickly and confidently.

5. You Don’t Go Through This Alone

Writing an offer can feel intimidating on your own. Not to worry- we’re available to you through every step of the process. We draft the offer paperwork, explain every clause, and walk you through each decision. Our job is to protect you, advocate for you, and make sure you’re comfortable every step of the way.

Stage Four: Closing and Move-In

It’s closing day,  the finish line of your home buying journey and the start of life in your new home! On this day, your real estate lawyer takes the lead. They’ll handle the closing procedures, transfer the funds, register the property in your name, and coordinate with us so you can get your keys.

What happens leading up to closing:

• Utilities: As soon as your deal goes firm, we’ll send you a checklist of utilities to set up or transfer into your name for the date of closing.
  

• Home Insurance: Your lender will require proof of insurance before closing. We’ll double-check with you to make sure this is in place and timed correctly.
  

• Final Walkthrough (if needed): In some cases, we may schedule a quick visit to confirm the property is in the same condition as when you bought it.

On closing day itself:

• Your lawyer completes all the paperwork and releases the keys.
  

• We’ll be checking in to make sure everything goes smoothly and to support you with any last-minute details.

Even after you’ve moved in, our team is always available to you. Whether you have questions about your home, want updates on the local market, or need a referral to a trusted contractor, inspector, or service provider, we’re only a call or message away.

Think of us as your go-to resource long after the keys are in your hand. We’re here to support you, keep you informed, and make sure you feel confident not just on closing day, but throughout your entire time as a homeowner.

Stage five: Long Term Wealth Building 

Buying your first home is just the beginning. Every mortgage payment goes towards equity and ownership, and every smart decision today sets you up for more opportunities tomorrow. As local agents, we’re here to help you see the bigger picture- not just getting the keys, but using your first home as a foundation for long-term financial stability and leverage in future moves. Whether it’s building equity to trade up, investing in renovations that pay off, planning your next steps down the road, we’re always available to talk and help you focus your wealth on choices that protect your investment and future.