It’s important to get pre-approved before you start shopping. This ensures that you know what you can afford so you don’t waste time and excitement looking at properties outside your budget.

Once you are pre-approved, locking in your approved rate for up to 120 days is a great idea. This will give you time to shop for a home in your price range without having to worry about rates increasing while you look.

Saving for your down payment is great, but don’t forget that you will also need cash at the time your sale closes to cover closing costs. Costs can include appraisals, legal fees, prepaid utilities, taxes etc and usually cost about 3% of the value of your home.

You might feel the urge to pay off all of your outstanding debts before you apply, but not so fast. Having cash in the bank to contribute to a larger down payment etc can help you increase your borrowing power. During the pre-approval process you will gain a picture of what needs to be paid off for your to qualify, and what can remain a monthly payment.

There are multiple federal incentives for first time buyers in Canada. The Home Buyers’ Plan allows you to withdraw funds from your RRSPs to use as a down payment. The First-Time Home Buyer Incentive is a shared equity program in which the government matches your down payment of 5-10%. And a new Tax Free Home Savings account is set to launch in 2023.

The best thing you can do to make your journey easier when buying your first home is to work with an experienced mortgage professional who can guide you through the process. Start your application today!