First-Time Home Buyer? Everything You Need to Know About Getting a Mortgage

Buying your first home is one of the biggest financial decisions you’ll ever make. It’s exciting, but it can also feel overwhelming when you start thinking about mortgage rates, down payments, and approvals.

This guide breaks everything down in simple terms so you feel confident and prepared when you’re ready to apply for a mortgage.

What Does a Mortgage Broker Do?

A mortgage broker is a licensed professional who helps you find the best mortgage based on your financial situation.

Instead of going to just one bank, a broker compares multiple lenders to offer you better options, competitive rates, and advice tailored to your goals.

Your broker works for you — not the bank.

Step 1: Understand Your Financial Position

Before you apply for a mortgage, it’s important to know where you stand. Lenders look at:

• Your credit score
• Your income and job stability
• Your current debts
• Your savings and assets

A stronger financial profile increases your chances of approval and helps you qualify for lower interest rates.

Step 2: Save for Your Down Payment

Your down payment is the money you pay upfront toward your home.

In Canada, the minimum down payment is typically:

• 5% for homes up to $500,000
• 10% for the portion between $500,000–$999,999
• 20% for homes $1 million or more

The more you put down, the less you’ll borrow — which means lower monthly payments and less interest long-term.

Step 3: Get Pre-Approved

Mortgage pre-approval helps you understand how much you can afford before you start shopping for a home.

It gives you:

• A clear budget
• More confidence in negotiations
• Strength when making offers

A mortgage broker can help you get pre-approved fast, while showing you options from multiple lenders instead of just one.

Step 4: Choose the Right Mortgage Type

There is no “one-size-fits-all” mortgage. The right choice depends on your financial goals and risk comfort.

Fixed Rate Mortgage

Your interest rate stays the same throughout your term. This offers stability and predictable payments.

Variable Rate Mortgage

Your rate changes with the market. It often starts lower but can go up or down over time.

Open vs Closed Mortgage

• Open mortgages allow early repayment without penalties but usually have higher rates.
• Closed mortgages have lower rates but penalties for early repayment.

A broker helps you choose the best option based on your lifestyle and future plans.

Step 5: Budget for Closing Costs

Many first-time buyers forget to prepare for closing costs.

These usually include:

• Legal fees
• Home inspection costs
• Land transfer tax
• Property insurance
• Moving expenses

You should plan for about 1.5%–4% of your home’s purchase price in closing costs.

Why Work With a Mortgage Broker?

Here’s why working with a broker makes a big difference:

✔ Access to multiple lenders
✔ Personalized strategies
✔ Support through paperwork and approval
✔ Competitive mortgage rates
✔ Expert guidance from start to finish

And in most cases, using a broker costs you nothing.

Ready to Take the First Step?

Getting a mortgage doesn’t have to be confusing.

If you’re buying your first home or want to explore your mortgage options, connect with a mortgage broker today and start with a solid plan.

Your home buying journey starts with the right advice.

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