First-Time Homebuyer Checklist
Everything you need to know before buying your first home—from someone who's helped dozens of first-time buyers navigate this journey.
From Savie Wander
Buying your first home is exciting—and overwhelming. I've helped many first-time buyers through this process, and I know the questions you have. This checklist covers everything I wish someone had told my first-time buyer clients before they started.
Before You Start: Are You Ready?
Not everyone is ready to buy right now—and that's okay. Here's how to know if you're ready:
Financial Readiness Checklist
- Down payment saved: Minimum 5% for homes under $500,000, 10% for $500,000-$999,999, 20% for $1M+
- Closing costs budgeted: $4,000-$8,000+ for legal fees, land transfer tax, inspections, etc.
- Emergency fund: 3-6 months of expenses (homeownership comes with surprises)
- Stable income: Lenders want to see consistent employment (usually 2+ years)
- Good credit: Score of 680+ (720+ gets you better rates)
- Debt under control: Low debt-to-income ratio (under 40% is ideal)
If You're Not Ready Yet
That's okay! I've helped clients who thought they weren't ready, but after reviewing their situation, we found they actually were. And I've helped others who needed to wait and save more. The key is being honest about your situation. Let's talk—I can help you create a plan to get ready.
Financial Preparation: The Numbers You Need
1. Down Payment
In Canada, minimum down payments are:
- Homes under $500,000:5% minimum
- $500,000 - $999,999:5% on first $500K, 10% on remainder
- $1,000,000+:20% minimum
First-Time Buyer Programs
As a first-time buyer, you have access to programs that can help:
- •RRSP Home Buyers' Plan: Withdraw up to $35,000 from your RRSP tax-free (must repay within 15 years)
- •First-Time Home Buyer Incentive: Government shares in equity (5% for existing homes, 10% for new builds)
- •Land Transfer Tax Rebate: Up to $4,000 rebate in Ontario (up to $8,000 in Toronto)
- •GST/HST Rebate: For new construction homes
2. Closing Costs
Many first-time buyers are surprised by closing costs. Budget for:
One-Time Costs
- • Legal fees: $1,500-$2,500
- • Land transfer tax: Varies
- • Home inspection: $400-$600
- • Appraisal: $300-$500
- • Title insurance: $200-$400
Ongoing Costs
- • Home insurance: $1,200-$2,000/year
- • Property taxes: Varies by city
- • Utilities: $200-$400/month
- • Maintenance: 1-3% of home value/year
3. Monthly Housing Costs
Your mortgage payment isn't your only monthly cost. Factor in:
Use our mortgage calculator to estimate your payment.
Credit & Documentation: Get Your Paperwork Ready
Check Your Credit Score
Your credit score affects your mortgage rate. Here's what you need to know:
Below 680
May have difficulty getting approved. Work on improving credit first.
680-719
Good credit. You'll get approved, but rates may be higher.
720+
Excellent credit. Best rates available.
Documents You'll Need
Start gathering these now—it takes time:
Income Documents
- Pay stubs (most recent 2-3)
- T4 slips (last 2 years)
- Tax returns (last 2 years) with NOA
- Employment letter (if requested)
Banking Documents
- Bank statements (3 months, all accounts)
- Proof of down payment source
- RRSP statements (if using Home Buyers' Plan)
Other Documents
- Photo ID (driver's license or passport)
- Credit report (you can get free copies)
- Proof of other assets (investments, etc.)
Get Pre-Approved: Know Your Budget
Pre-approval is step #1. Don't start looking until you have this.
Step 1: Choose a Mortgage Broker or Lender
I always recommend a mortgage broker—they shop multiple lenders for you and can often get better rates. In the GTA, rates vary significantly between lenders, so shopping around matters.
Step 2: Submit Your Application
Provide all the documents we discussed above. The more complete your application, the faster it goes.
Step 3: Get Your Pre-Approval Letter
This letter shows sellers you're serious and tells you exactly how much you can borrow. It's usually valid for 60-90 days.
Important: Pre-Approval ≠ Final Approval
Pre-approval is based on your financial situation. Final approval depends on the specific property you want to buy. The lender will appraise the property and verify everything before final approval.
Finding Your First Home: What to Look For
Location, Location, Location
For first-time buyers, location is often more important than the house itself. Consider:
- •Commute: How long is your drive to work? Test it during rush hour.
- •Schools: Even if you don't have kids, good schools help resale value.
- •Amenities: Grocery stores, parks, transit—what do you need nearby?
- •Future growth: Is the area developing? This affects appreciation.
Property Type Considerations
House
Pros: More space, yard, privacy
Cons: More maintenance, higher costs
Townhouse
Pros: Balance of space and maintenance
Cons: Shared walls, condo fees
Condo
Pros: Low maintenance, amenities
Cons: Less space, condo fees, less privacy
My Advice for First-Time Buyers
Your first home doesn't have to be your forever home. Many first-time buyers start with a condo or townhouse, build equity, then move up to a house later. Don't stretch your budget trying to get everything you want in your first purchase.
Focus on: location, condition, and potential. You can always renovate later, but you can't change the location.
Making an Offer: Your First Negotiation
This is where having an experienced agent really helps. I guide first-time buyers through every step.
What Goes in an Offer
- Purchase price: Based on comparable sales and market conditions
- Deposit: Usually 1-5% of purchase price
- Conditions: Home inspection, financing, etc.
- Closing date: Typically 30-60 days
First-Time Buyer Tip
Don't skip conditions just to make your offer more competitive. As a first-time buyer, you need the protection of a home inspection and financing condition. I help you balance competitiveness with protection.
Closing Checklist: The Final Steps
2-4 Weeks Before Closing
- ✓ Finalize mortgage with lender
- ✓ Hire a real estate lawyer
- ✓ Get home insurance quotes and purchase policy
- ✓ Arrange utilities transfer (hydro, gas, water)
- ✓ Book movers (if needed)
- ✓ Schedule final walkthrough
1 Week Before Closing
- ✓ Confirm closing date and time with lawyer
- ✓ Arrange bank draft for closing costs
- ✓ Confirm final walkthrough date
- ✓ Notify important parties of address change
Closing Day
- ✓ Sign all legal documents
- ✓ Transfer funds
- ✓ Receive keys!
- ✓ Take possession of your new home
Download Home Closing Checklist
Get a printable checklist with your branding. Perfect for keeping track of your moving or closing tasks.
Downloads as HTML file. Open in browser and use Print → Save as PDF to create a PDF version.
Download Moving Checklist
Get a printable checklist with your branding. Perfect for keeping track of your moving or closing tasks.
Downloads as HTML file. Open in browser and use Print → Save as PDF to create a PDF version.
Common First-Time Buyer Mistakes (And How to Avoid Them)
1. Not Getting Pre-Approved First
I've seen buyers spend months looking, find their dream home, then discover they can't get financing. Get pre-approved first—it saves time and heartache.
2. Forgetting About Closing Costs
Many first-time buyers focus only on down payment. Closing costs can be $4,000-$8,000+. Budget for them.
3. Stretching Budget Too Thin
Just because you're pre-approved for $800,000 doesn't mean you should spend it all. Leave room for life, maintenance, and emergencies.
4. Skipping Home Inspection
In competitive markets, some buyers waive inspections. Don't. A $500 inspection can save you thousands.
5. Not Understanding Total Monthly Costs
Your mortgage payment is just one cost. Factor in property taxes, insurance, utilities, and maintenance.
Ready to Buy Your First Home?
I specialize in helping first-time buyers navigate this journey. Let's talk about your situation and create a plan.