Buy Your First Home

Ultimately, what you can afford will depend on a number of factors – your income and earnings, how much you’ve saved, any help from parents or other family members. Begin by assessing your current financials, creating and reviewing your budget, and using our Mortgage Affordability Calculator to help.

There are rules around the minimum down payment needed. For a property $500,000 or less, 5% down is required; for those costing $500,000 - $999,999 you’ll need 5% down on the first $500,000 and 10% of the remainder. For a property worth $1 million or more, you’ll need 20%.

If you have an RRSP, the Home Buyers’ Plan option lets you withdraw up to $60,000 from your RRSP to put toward your down payment without having it considered as taxable income. The money withdrawn is considered a “loan” from your RRSP so you will have to replace it within 15 years (with a 5-year extended grace period depending on when you took out the funds).

If you have one, you can also access funds in your First Home Savings Account (FHSA) or your Tax-Free Savings Account (TFSA). Speak to an advisor if you need further information.

Typically, a preapproved amount is the maximum amount determined for your mortgage. Each situation is different and will depend on your needs and finances. Be sure to review your financials, discuss with a BlueShore Financial advisor, or use our Mortgage Affordability Calculator as a helpful guide.

It can take time to find the right home, go through the offer process, and finalize the sale. Rates can change in that time. It is best to discuss this directly with your BlueShore Financial advisor.

We recommend that first, you work with a team of professionals – your BlueShore Financial advisor, a real estate agent, a lawyer, and so forth. They have the knowledge, experience and expertise to guide you through the process. A home purchase can have many steps including offers and counter offers, inspections, legal paperwork, and more. Working with a team of professionals will save you time and effort, giving you greater peace of mind.

Your BlueShore Financial advisor can help connect you with people in their network should you need further help.

Begin by listing out the type of property, amenities, and location you desire – but also be realistic. Review property listings online to get an idea of what’s available, asking prices, and the communities that best suit your scenario.

Finding and buying the right home can take time. Each situation is unique to each person and can change quickly. It is best to discuss any extension, as needed, with your BlueShore Financial advisor.

Buying a property can be a challenging process – it can move quickly, it can be competitive, and come with disappointments. It is best to understand this ahead of time and to be prepared for any inevitability. Working with a team of professionals can help ease the process and keep you focused on your goals, with a realistic and practical approach.

There are essentially two types of mortgages: fixed rate or variable rate – the one you choose will depend on a number of factors and what best suits your needs. In a fixed rate mortgage, your interest rate is set for the term of the mortgage you’ve negotiated with your lender. Payments are predictable and regular and remain so until your term is over and you need to renew your mortgage.

For a variable rate mortgage, your interest fluctuates with the current interest rate of the lender. If conditions are favorable, you may be able to save on the cost of borrowing in the long run, however, you don’t have the same predictability as in a fixed-rate – especially if rates fluctuate. 

There may also be room for some creativity. A “hybrid mortgage” lets you go “fixed” for a portion of your mortgage (providing some payment certainty) and variable for the rest (allowing for the possibility of savings, which variable rates have historically offered over fixed rates). Speak to an advisor to determine the best option for your mortgage. 

A mortgage and the purchase of a home is a legal agreement and likely one of the most complicated matters you will engage in – it is highly recommended that you seek the counsel and advice of a legal professional. And once you’ve made the agreement, you will need the services of a lawyer or notary to finalize the documents and legal paperwork of your home purchase. Your BlueShore advisor will assist you with finding a credible and experienced real estate lawyer or notary to help you finalize your home purchase.

Aside from the basics of home and mortgage insurance, you should also consider protecting your investment and the interests of your loved ones by purchasing a life insurance policy. This can help to protect them and your investments should it ever be needed. Ask your BlueShore Financial advisor – we can connect you with our insurance and wealth protection experts to review your specific needs.