First Time Home Buyer? What to Know Before You Start Looking

Short answer: Before you look at homes, get clear on your timeline, build a realistic monthly budget, check your credit, plan your down payment and closing costs, and get pre-approved by a mortgage broker. Doing it in that order keeps you from falling for a home you can’t buy.

Buying your first home is exciting, but it can feel overwhelming. It’s easy to get caught up in scrolling listings and saving favourites. Before you start booking showings, a few steps now can save stress and money later.

1. Get Clear on Your Timeline and “Why”

Ask yourself:

• Why do I want to buy right now?
• How long do I realistically plan to stay in this home?
• Are there life changes coming, like a job move, starting a family or relocating?

If you plan to stay only one or two years, buying can still work, but we’ll look carefully at closing costs, possible penalties and resale. Staying three to five years or more usually makes buying more attractive.

Your “why” shapes the type of home (condo, townhouse, detached), the neighbourhood and your mortgage structure (term length and flexibility).

2. Understand Your True Budget, Not Just the Approval Number

Many first time buyers ask, “How much can I get approved for?” Just as important: “What monthly payment actually feels comfortable?”

Build a simple monthly budget

Start with take home pay, then subtract:

• Existing debt payments (loans, credit cards, lines of credit)
• Groceries and essentials
• Childcare or family obligations
• Subscriptions, phone, internet and insurance
• Savings goals (RRSP, TFSA, FHSA, emergency fund)

What’s left is your room for housing costs:

• Mortgage payment
• Property taxes
• Heat and utilities
• Condo fees, if any
• A small maintenance allowance

We compare what a lender might approve with what feels comfortable. It’s normal for those numbers to differ.

3. Check Your Credit (It Doesn’t Need to Be Perfect)

Lenders look at:

• On time payments
• How much of your available credit you use
• Collections, judgments or other major issues

Quick credit tune ups

• Pay at least the minimum on every account (set up autopay)
• Keep balances below 30% to 50% of each card or line limit
• Avoid opening new accounts right before you apply

If there are past issues, talk to us before you apply. With your consent we can pull your credit and explain how it affects your options.

4. Build Your Down Payment and Closing Cost Plan

First time buyers usually don’t need 20% down:

• 5% on the first $500,000
• 10% on the portion from $500,000 to $1,500,000

Plan for closing costs

• Legal fees and disbursements
• Title insurance
• Home inspection
• Tax and utility adjustments
• Moving costs and day one essentials (locks, blinds, paint, small repairs)

Common down payment sources

• Personal savings, TFSA and FHSA
• RRSP through the Home Buyers’ Plan
• A gift from immediate family
• Proceeds from selling another property

Lenders usually ask for 90 days of history on your down payment funds. Gifts need a signed gift letter. We guide you through it.

→ Learn more: How Much Do I Really Need for a Down Payment?

5. Talk to a Mortgage Broker Before Touring Homes

Many buyers look at homes first, then scramble for financing. Do it the other way around:

1. Speak with a mortgage broker
2. Understand your numbers and get pre-approved
3. Then view homes in your realistic range

It avoids heartbreak and makes you a stronger buyer when you make an offer.

→ Related: Pre-Approval vs Pre-Qualification

How Lacroix Mortgage Group Helps

We start with a discovery call, whether you’re buying this month or next year. We build a personal budget and timeline, review your credit, plan your down payment and documents, and handle the pre-approval when you’re ready.

Ready to Take the First Step?

Even if buying is a year away, starting the conversation now makes a real difference. Book a discovery call.

This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.