First-Time Home Buyers: Where to Start

The short answer: You don't always need 20% down. Homes under $1.5 million can qualify with less, though mortgage insurance and lender rules apply. See our Down Payments guide for the math, and budget closing costs separately.

 

Work backward from your budget

Start with a monthly payment you're comfortable with, not the maximum you're approved for. Add property taxes, heating, insurance, utilities and condo fees. Leave room for repairs and savings.

 

Your first-home checklist

• Set a monthly housing budget that still leaves room to save

• Gather pay stubs, employment letter, bank statements and your current debt payments

• Know where your down payment is coming from and keep the transfer records

• Get an estimate of legal costs and taxes for the actual property

• Understand your financing conditions before going firm

 

Pre-approval isn't final approval

Once you pick a home, the lender still has to approve the property and verify your documents. Talk to your realtor about including a financing condition.

 

Term vs. amortization

Your term is how long your current contract lasts, often five years. Your amortization is how long it'll take to pay off the whole mortgage, often 25 or 30 years. A lower payment from a longer amortization isn't a cheaper mortgage.

 

Before you remove conditions

Confirm your income and down payment have been verified, the lender has approved the property, and nothing is outstanding. A verbal "you're good" isn't the same as a written approval with conditions met. If anything changes with your job or finances before closing, tell us right away.

 

Related guides

• Down Payments

• Closing Costs

• Mortgage Pre-Approval

 

Let's talk it through

Book a call and we'll go over your options with you.

Alberta: 587-900-0036 | BC: 604-200-3228

 

These guides are general information, not a mortgage offer or personal advice. Every approval depends on lender review of your income, credit, property and documents. Elevate Lending, powered by BRX, serves clients in Alberta and British Columbia.