Step 1: Check Your Credit Score (and Improve It if Needed)

✅ Get a free copy of your credit report from Equifax or TransUnion.
✅ Aim for at least 680 to access the best rates.
✅ Pay down high-interest debt and avoid late payments.

Step 2: Set Your Budget

✅ Use the Gross Debt Service (GDS) and Total Debt Service (TDS) rules:

• GDS ≤ 35% of gross monthly income

• TDS ≤ 42% of gross monthly income
  ✅ Include closing costs in your budget (1.5%–4% of purchase price).

Step 3: Save Your Down Payment

✅ 5% minimum on homes up to $500,000
✅ 5% on first $500K + 10% on remainder (up to $999,999)
✅ 20%+ for homes over $1M (avoids mortgage insurance)

💡 Pro Tip: Use your First Home Savings Account (FHSA) and Home Buyers’ Plan (HBP) together for maximum tax advantages.

Step 4: Gather Your Documents

✅ Government ID
✅ Proof of income (pay stubs, T4s, NOAs)
✅ Employment letter
✅ Bank statements (last 3 months)
✅ List of assets & liabilities

Step 5: Get Pre-Approved

✅ Lock in your rate for 90–120 days
✅ Know your exact price range before shopping
✅ Avoid emotional overspending

Step 6: Choose Your Mortgage Type

✅ Fixed — stability & predictable payments
✅ Variable — potential savings if rates drop
✅ Decide between open (flexible) vs. closed (lower rate, penalties for breaking early)

Step 7: Understand Mortgage Insurance

✅ Required if down payment < 20%
✅ Premium added to your mortgage
✅ Provided by CMHC, Sagen, or Canada Guaranty

Step 8: Take Advantage of First-Time Buyer Programs

✅ FHSA — save $8K/year tax-free
✅ HBP — withdraw up to $60K from RRSP
✅ Land Transfer Tax Rebates — provincial & municipal savings
✅ First-Time Home Buyer Incentive — shared equity option

Step 9: Avoid These Deal-Breaking Mistakes

❌ Changing jobs before closing
❌ Taking on new debt (car, furniture, credit cards)
❌ Skipping a home inspection
❌ Forgetting about property taxes & maintenance costs

Step 10: Work With a Mortgage Broker

✅ Compare offers from multiple lenders
✅ Understand fine print & penalties
✅ Navigate complex paperwork with expert help

Quick Reference: First-Time Mortgage Timeline

1. 3–12 months before: Check credit & start saving

2. 3–6 months before: Get pre-approved

3. House hunting: Stick to your budget & checklist

4. After offer accepted: Final approval & closing prep

5. Closing day: Sign, pay, get keys

Final Word
With this checklist in hand, you’ll move through the mortgage process with confidence — and avoid the pitfalls that trip up many first-time buyers.

Want a personalized first-time buyer plan?
I can map out your budget, pre-approval strategy, and lender options so you get the best start possible.

📞 Book a Call