First-Time Buyers

Congratulations! You’ve decided to dive into the exciting world of home ownership. This will be one of the biggest and most important milestones in your life, so you want to be sure you’re making the right decisions. Don’t let your first-time mortgage experience be overwhelming – your Edgehill mortgage broker is committed to providing all the advice and guidance you’ll need to help you on your journey.

We’re dedicated to keeping the financial side of the home ownership journey simple and straightforward, providing exceptional advice, ongoing guidance and access to exclusive mortgage rates in Canada. Contact us and take the first step towards home ownership with Edgehill today.

Our simple process

1) Pre-approval

Before you start looking for your dream home, it’s important to determine what you can afford. Lenders will pre-approve buyers up to a maximum amount they are able to borrow based on several variables such as income and credit history. Knowing how much lenders are prepared to loan you (and their rates) allows you to shop within your pre-approved parameters, giving you peace-of-mind that you’ll fall in love with a house that’s within your price range.

An Edgehill mortgage broker can secure your pre-approval from our list of lenders to make your shopping experience seamless. We are an independent mortgage brokerage, meaning we have complete freedom to shop the housing market for your ideal mortgage rates once a deal is confirmed. The pre-approval process also helps us identify any obstacles that can make financing your home purchase more challenging, providing the time to find an appropriate solution before a purchase is made.

2) Deposit

First-time buyers should be aware that a deposit must be submitted alongside an offer to purchase. The deposit is only cashed when the actual sale is firm, but is otherwise intended to demonstrate to the seller that you’re a serious buyer. Be sure to ask your real estate agent about an appropriate value to offer on deposit, and the circumstances in which you could forfeit your deposit.

3) Inspection

We recommend a home inspection as part of the home buying process. Ask your real estate agent to include that any offer to purchase you submit is contingent on an inspection of the property by a qualified professional. A certified home inspector can assess the condition of the home, and provide reports detailing areas that require repair or attention. This is vital in understanding the true value of the property, not what the seller says it is.

4) Appraisal

Essential to mortgage financing, an appraisal is a condition in some mortgage agreements provided by a lender in order to gauge the value of the home. The price of appraisal is dependent on the property: unique homes, remote locations, and large estates tend to have higher appraisal fees, for example. This is an added expense that may come up in your mortgage commitment. Be sure to consult with your Edgehill mortgage broker regarding additional costs that may arise in the home buying process, including land transfer taxes, property surveys, adjustment costs, title insurance and mortgage default insurance.

5) Down payment

Your down payment is the amount of cash you’ll provide towards the purchase. Add this together with the amount provided by a lender and the total is the home purchase price. Home buyers across Canada can purchase a home with as little as 5% (certain conditions apply) of the purchase price (e.g. $250,000 x 5% = $12,500).

6) Closing Costs

We’ll help you develop a budget to ensure you’re prepared for your closing costs ahead of time. These costs can include:

Land transfer taxes
Title insurance
Home insurance
Lawyer’s fees
Moving costs
Incidentals
Home inspection fee

We’ll help you develop a budget to ensure you’re prepared for your closing costs ahead of time, so you can simply deduct the amount from your cash available for down payment, or plan to put the amount aside prior to the closing date (the date that you take possession of the home and property).

7) Beyond Possession

After finalizing closing costs, there are a few more housekeeping tasks to take note of. Beyond home mortgage payments, there are property taxes and potential maintenance fees to consider. It’s rare to purchase a home without adding a few changes to make it truly your own. Try to plan ahead and have some additional funds available to make your new house a home.