First-Time Buyer Mortgage Checklist

Welcome to Homeownership!

Buying your first home is one of life's biggest milestones. This comprehensive checklist will guide you through each step of the process, ensuring you're prepared, confident, and ready to make informed decisions. Let's turn your homeownership dreams into reality.

1 Decide What You Want

Choose your preferred neighbourhood(s)
Research areas based on commute, schools, amenities, and future growth potential.
List must-have features
Define your non-negotiables: bedrooms, bathrooms, size, parking, yard, etc.
Create a nice-to-have list
Identify features you'd love but can live without for now.
Consider your timeline
Determine when you need to move and work backwards from there.

Pro Tip

Don't fall in love with the first house you see online. View multiple properties to understand what's available in your price range before making emotional decisions.

2 Calculate Affordability

Determine your budget and maximum purchase price
Use the 28/36 rule: housing costs shouldn't exceed 28% of gross income.
Assess down payment amount
Minimum 5% for homes under $500K, 10% for portion above $500K.
Calculate closing costs
Budget 1.5-4% of purchase price for legal fees, taxes, inspections, etc.
Estimate monthly homeownership costs
Include mortgage, taxes, insurance, utilities, maintenance, and repairs.
Build an emergency fund
Aim for 3-6 months of expenses separate from your down payment.

Money-Saving Tip

Remember that CMHC insurance is required for down payments under 20%. This is a one time fee added onto the mortgage amount but as an insured mortgage holder, you also get to access the absolute best rates. Pro-Tip: PST on CMHC insurance is due at your lawyer's office when signing off before closing. Check out our CMHC premium calculator and our debt servicing calculator.

3 Prepare Your Documents

Proof of down payment
Bank/investment statements for 90 days, RRSP statements if using HBP, gift letter if applicable.
Government-issued photo ID
Driver's license or passport for all applicants.
Income verification
Recent pay stubs (2-3 most recent), employment letter, last 2 years' T4s and NOAs.
Additional income documentation
Support payments, rental income, pension, investment income, etc.
Credit report and history
Obtain your free credit report and address any issues early.
Existing debt statements
Credit cards, loans, lines of credit - current balances and minimum payments.

4 Get Professional Guidance

Find a trusted mortgage agent
Get pre-approved with a mortgage professional who understands your needs.
Choose a knowledgeable Realtor
Select an agent familiar with your target areas and first-time buyer process.
Hire a real estate lawyer
Essential for contract review, title search, and closing procedures.
Arrange for home inspection
Find a certified inspector and understand what's included in their report.
Plan for property insurance
Shop for quotes early; you'll need coverage before closing.

Expert Advice

Your mortgage agent should be your first call, not your last. Get pre-approved before you start house hunting to understand exactly what you can afford and to strengthen your offers.

5 Explore First-Time Buyer Programs

First-Time Home Buyer Incentive
5-10% shared equity loan from government (specific conditions apply).
Home Buyers' Plan (HBP)
Withdraw up to $35,000 from RRSP tax-free for down payment.
First-Time Home Buyer Tax Credit
Non-refundable tax credit worth up to $750.
GST/HST New Housing Rebate
Available for new construction or substantially renovated homes.
Provincial programs
Research Ontario-specific programs and municipal incentives.

6 Final Steps Before Closing

Complete final walk-through
Inspect the property 24-48 hours before closing.
Confirm closing funds with lawyer
Arrange certified cheque or wire transfer for remaining balance.
Set up home insurance
Policy must be active before you receive keys.
Arrange utility transfers
Electricity, gas, water, internet, cable - transfer or set up new accounts.
Update your address
Notify bank, employer, CRA, insurance companies, subscription services.
Plan your move
Book movers, take time off work, arrange help from friends/family.

Moving Day Success

Keep important documents (ID, insurance papers, closing documents) with you during the move. Don't pack these in boxes that might get lost or delayed.