How to Buy Your First Home in Ontario

This blog is your starter guide to buying a home for the first time. We’ll talk about how to buy your first home in Ontario, tax benefits for first time home buyers, the home buying process, and more.

Being a first time home buyer is undoubtedly exciting, but it can be intimidating too! There’s a good chance that your first home will be the biggest purchase you’ve made in your life so far. When the time comes, you’ll want to be ready. There are a lot of steps to buying a house, and if you don’t know what to expect, things can get overwhelming in a hurry.

As a real estate team that specializes in helping first time home buyers, we’re here to help!

Saving Up For Your First Home

One of the first steps to buying a house for the first time in Canada is saving up. If you’ve already secured the necessary funds to buy a home, you can skip to the next section of this blog.

A home is not a small purchase – especially in Ontario. So, unless you’re a lottery winner or have access to substantial financial support, you’ll need to have a diligent savings plan for at least a few years before you head to the market.

Here’s the good news. Most first time home buyers in Canada have access to certain financial programs that can make the savings process easier and faster. One great example is the First Home Savings Account, or FHSA for short.

The FHSA is a unique type of savings account where you can make tax-deductible contributions on your way to saving up for a house. These contributions max out at $8,000 a year to a total of $40,000, so there are some serious benefits. You also won’t be taxed when you’re eventually ready to withdraw your FHSA savings, as long as you’re using the funds properly.

Looking for more information on how to buy a home? Explore these related readings.

• Do You Need to Include Conditions in Your Buying Offer?
• How to Budget for Buying a Home in Vaughan
• What Goes Into Buying Your First Home?

Know What You Can Afford to Spend

Once you’ve got enough saved up, it’s time to figure out what you can actually afford to spend on your first home. This process is more intricate than you may expect.

Rather than using your savings to buy a property outright, you’ll instead be making a down payment on your home and supplementing the remaining costs with a mortgage. So, the next step in your homeownership journey is to find out how much of a mortgage you qualify for (aka your ‘borrowing capacity’). Luckily, this is fairly simple to do.

As a first time home buyer, the easiest way to assess your budget is by getting pre-approved for a mortgage. It doesn’t matter how early you are in the home buying process, connecting with your bank (or the lender of your choice), mulling over your personal finances, and getting pre-approved can give you a solid idea of what you can afford.

Understanding the Costs of Buying a House

As you’re putting together your first home budget, don’t forget to account for some of the other costs that can come with it. Beyond just the cost of the house itself, you will be on the hook for additional expenses like legal fees, land transfer taxes (before rebates), insurance, and moving costs.

Curious about other costs that come with buying a house? Read our blog about the hidden costs of purchasing real estate.

Know What You Need

Now that you know a little more about your financial resources, it’s time to sit down and think about what you’re looking for in your first home. Consider how many rooms you may need, which neighbourhoods you like best, and how your needs might change over the next few years.

One thing to remember is that your first home probably won’t be your forever home. In other words, there’s a good chance that you might not find something that checks every last box on your wishlist without breaking your budget – and that’s okay.

At the end of the day, your first home is ultimately a stepping stone to your dream home. That doesn’t mean that you can’t find a great place to begin your journey of homeownership, but it’s helpful to keep in mind as you begin house hunting.

Thinking about buying your first home in Vaughan, Ontario? Check out these blogs next.

• Is Vaughan in Toronto?
• Is Vaughan a Good Place to Raise Kids?
• What Are Vaughan’s Top Neighbourhoods For Families?

Work With the Right Real Estate Agent

Working with a Realtor has all kinds of advantages, especially as a first time home buyer. So, once you have an idea of what you’re looking for in a first home and what you can afford to spend on it, it’s time to find a great real estate agent. That’s where we come in.

As the number one real estate team in Vaughan, Ontario, we’ve helped countless first time home buyers find the right place for their family – and we can do the same for you.

We understand your unique needs and market position as a first timer. Leveraging our expertise, we’ll help you make the most of your budget, ensuring you get the best deal possible once you’ve found “the one”.

Buying your first home? The Lino Arci Team can help! Call 416-571-2724 or send an email to info@arciteam.com today!