Buying your first home is exciting — but the process can feel overwhelming without a clear plan.
If you’re a first time home buyer in Canada in 2025, the market is competitive, rules keep evolving, and preparation is your biggest advantage.

With over $150M in mortgages funded, I’ve helped hundreds of first-time buyers navigate the process from pre-approval to closing. This guide will break down each step, so you can confidently move forward and avoid costly mistakes.

Step 1: Know Your Budget Before You Start House Hunting

As a first time home buyer in Canada, your budget isn’t just about the purchase price — it includes your down payment, closing costs, and monthly expenses.

Minimum Down Payment Rules (Canada 2025):

• Under $500,000 → 5% of purchase price

• $500,000–$999,999 → 5% on first $500k + 10% on the remainder

• $1M+ → 20% minimum (no CMHC insurance available)

Other Costs to Budget For:

• Closing costs: 1.5%–4% of purchase price (legal fees, land transfer tax, title insurance)

• Moving expenses, utilities setup, and home inspection fees

💡 Tip: Use a mortgage affordability calculator to see what you can truly afford — and factor in your lifestyle expenses.

Step 2: Get a Mortgage Pre-Approval

If you’re a first time home buyer in Canada in 2025, pre-approval is your golden ticket.
It tells you:

• The maximum amount you can borrow

• The interest rate you can lock in for 90–120 days

• That sellers can take you seriously in a competitive market

Documents You’ll Need:

• Income proof (T4s, pay stubs, NOAs if self-employed)

• Credit report & score

• ID and proof of down payment

Step 3: Build Your First-Time Buyer Team

• Mortgage Advisor/Broker — Gives access to 40+ lenders and the best mortgage product for your needs

• Realtor — Guides you through neighborhoods, offers, and negotiations

• Lawyer/Notary — Handles the closing and title transfer

• Home Inspector — Protects you from buying a property with hidden issues

Step 4: Search for Your Home

Decisions to Make:

• Location vs. property size — which matters more to you?

• Property type — detached, semi-detached, townhouse, condo

• Must-haves vs. nice-to-haves — create a checklist before you start viewing homes

💡 2025 Market Insight: Big cities like Toronto, Vancouver, and Ottawa remain competitive, but suburban and smaller cities may offer better value for first-time buyers.

Step 5: Make Your Offer

Your offer includes:

• Price

• Deposit (typically ~5%)

• Conditions (financing, inspection)

• Closing date

💡 Tip: As a first-time home buyer, balance being competitive with protecting yourself through reasonable conditions.

Step 6: Finalize Your Mortgage

Once your offer is accepted:

• Provide updated documents to your mortgage advisor

• The lender may order an appraisal

• Review and sign your mortgage commitment letter

Step 7: Closing Day

Your lawyer will:

• Transfer funds to the seller

• Register you as the new owner

• Hand you the keys to your first home

Be ready to pay:

• Remaining down payment

• Closing costs

Extra Tips for First Time Home Buyers in Canada (2025)

1. Use Government Programs:

   • First-Time Home Buyer Incentive

   • RRSP Home Buyers’ Plan (withdraw up to $35,000 tax-free)

   • Land transfer tax rebates (provincial and municipal)

2. Protect Your Credit:

   • Avoid large purchases or new loans before closing

3. Plan for Ownership Costs:

   • Set aside 1–2% of your home’s value annually for maintenance and repairs

Final Word for First Time Buyers

Being a first time home buyer in Canada in 2025 is both exciting and challenging. The right preparation — and the right team — can make all the difference.

Want a personalized first-time buyer plan?
I’ll help you get pre-approved, find the right mortgage, and navigate the process from start to finish.

📞 Book a Call