Buying your first home is exciting, and it’s normal to feel a little overwhelmed too. Here’s the process in plain language, so you know what’s coming.
Start with your real number, not your dream number
Before you fall in love with a listing, find out what you can actually afford. This isn’t just the purchase price — it includes your mortgage payment, property taxes, condo fees (if any), heating, and insurance, all measured against your income and existing debts.
A quick online calculator gives you a rough idea, but a mortgage broker can give you your real number in about 15 minutes, for free, and explain exactly why.
Get pre-approved before you start visiting homes
A pre-approval tells you, and sellers, how much a lender is willing to lend you, and locks in a rate for a set period, often 90 to 120 days.
- You’ll know your price range with confidence
- Your offer will be taken more seriously
- You’re protected if rates go up while you’re searching
Budget for costs beyond the down payment
Many first-time buyers are surprised by costs that show up after the down payment:
- Welcome tax (“taxe de bienvenue”) — a one-time municipal tax, due a few months after closing
- Notary fees — for the legal transfer of the property
- Home inspection — recommended, even for newer homes
- Moving costs, adjustments, and immediate repairs or furniture
A good rule of thumb: set aside an extra 1.5–4% of the purchase price for these costs.
Understand fixed vs. variable, in plain terms
Fixed rate: your rate stays the same for the whole term. Predictable payments, easier to budget.
Variable rate: your rate can move with the market. Payments may go up or down.
Neither is “better” — it depends on your comfort with uncertainty and your financial cushion. A broker can walk you through real numbers for both, based on your situation.
Compare more than just the rate
The lowest rate isn’t always the best deal. Also compare:
- Prepayment flexibility — can you pay extra without penalty?
- Portability — can you transfer your mortgage if you move?
- Penalty for breaking the mortgage early — this can be a big number if your plans change
Work with a mortgage broker — it doesn’t cost you more
A broker shops your file across multiple lenders, not just one bank, and negotiates on your behalf. In most cases, this service costs you nothing, because the lender pays the broker’s fee.
Ask questions, always
A good broker explains the “why,” not just the numbers. If something isn’t clear, that’s a sign to ask, not a sign you’re behind.