First time homebuyer · incl. newcomers to Canada
Whether you're starting from scratch or you've already done some research, buying your first home is a big deal. And it doesn't have to feel overwhelming.
Some of the first-time buyers I work with come to me self identifying as "knowing nothing". They've never done this before, and their biggest question is usually the most basic one: "Do I even qualify, and what would my payments look like?" If that's you, we'll start at the beginning. I'll walk you through the requirements as they apply to your specific situation, in plain English, step by step. No jargon. No assumptions. Just clear answers.
Others come to me having done their homework. Maybe you've Googled the basics. Maybe you've talked to an AI. Maybe you've even been to the bank and walked away with a number, but you can tell they didn't take the time to explore the bigger picture with you. You want to understand the nitty gritty: how does paying off debt change your purchasing power? What about putting 5% down versus 20%? What does an owner-occupied rental look like? How do different scenarios affect your interest rate and your long-term wealth?
If that's you, you've come to the right place. These are the conversations I love having. The bank's rushed, transactional approach often isn't compatible with the level of guidance someone in your shoes needs. I'll dig in with you and help you compare your options properly so you can make a decision you feel good about.
Either way, my job is to close the gaps. Translate the complicated stuff into plain English. And help you make the best long-term decision for your situation.
You're starting from scratch and don't know what you don't know.
You haven't even thought about pre-approval yet. You just know you'd like to buy a home someday and you're not sure where to start. Let's start at the beginning. There are no dumb questions.
You've done some research, maybe even been pre-approved by the bank, but feel like you didn't get the full picture.
You walked away with a number, but no one talked you through how different scenarios change your purchasing power. You want a second opinion from someone who'll actually dig in.
You're wondering if you can afford to buy now or if you should wait.
Maybe rates feel high. Maybe your down payment isn't quite where you want it to be. Maybe you've got some debt you're working through. Let's run the numbers honestly and figure out whether now is right, or whether a clear plan to be ready in 6 or 12 months makes more sense.
You're a New Canadian purchasing your first home in Canada.
Whether you're on a work permit or have your permanent residency, the path to buying your first Canadian home looks a little different.
A few things to know if you're new to Canada
Buying your first home in Canada is absolutely possible, whether you're here on a work permit or you've got your permanent residency. The rules are a bit different depending on your status, and there are a few extra things to plan for. Here's what you need to know from someone who has helped hundreds of new Canadians navigate this process.
As of 2026, you need at least 6 months remaining on your work permit at the time your purchase closes. Generally, if you're just starting the pre-approval process, you'll want at least 12 months remaining on your permit. That gives you enough time to house hunt and close on a property before your deadline.
That means the home you buy has to be your primary residence. Rentals and investment properties aren't an option until your status changes.
If you have your PR, you can buy on the same terms as any other Canadian resident.
Because you're new to Canada, especially if you've arrived in the past two years, you likely haven't had time to build much Canadian credit history yet. That's normal, and there are alternative credit verification programs designed for exactly this situation. Lenders may accept things like a copy of the credit report from your home country, bank statements, rental payment history, utility bill payments (power, phone, internet), or proof of payments to other services. Understanding what's required for these alternative verification programs before you start house hunting is crucial. I help my newcomer clients prepare for this upfront so there are no surprises later.
If your down payment is coming from outside Canada, lenders need to trace where the funds come from and how they got here. The documentation requirements can be tricky to navigate alone. This is one of the most common areas where newcomers get tripped up. I'll walk you through exactly what you need so we can verify your funds properly.
If any of this applies to you, let's talk. Book a call and we'll map out your unique path forward.
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Pre-qualification is an initial step that gives you an estimate of how much you might be able to borrow, based on self-reported information.
A pre-approval, on the other hand, is a more thorough process where a broker and/or lender reviews your credit score, financial details, and income, giving you a more accurate loan amount.
Pre-approvals are still never a full guarantee of approval, the home and documents are only approved once an offer is accepted, however it is crucial when you’re ready to make an offer on a home and shows sellers that you're serious, and demonstrate the financial ability to purchase.
A rate held for a mortgage pre-approval is usually valid for 60 to 120 days, depending on the lender. If you don't find a home within that time frame, we can easily renew or extend the pre-approval to ensure you’re still ready to make an offer when you find the right property.
Mortgage default insurance (often referred to as CMHC insurance) is required if your down payment is less than 20% of the home’s purchase price. This insurance protects the lender in case of default, and it allows you to buy a home with a smaller down payment and access the lowest rates.
There are 3 providers of default insurance in Canada. CMHC, Sagen, and Canada Guaranty.
The minimum down payment depends on the price of the home. For homes under $500,000, you’ll need at least 5% of the purchase price. For homes between $500,000 and $999,999, you’ll need a minimum 5% on the first $500,000 and 10% on the remaining balance. I can help you figure out what works best for your situation!
Most people like the idea of closing on their new purchase before needing to move out from their existing home, or before it's even being sold.
If you don't plan to have your home sold before buying: There are a number of strategies for this, highly dependent on your unique situation such as access to funds, debt ratio, credit, etc.
If you do plan to have your home sold before buying: The most common way to this is through a Bridge loan.
The one consistent piece of advice regardless of strategy is to start the financial planning piece early.
I can help you make a plan for how to best schedule your transactions for a smooth move.
The better question might be, "how fast can you get me all the required information for your application?" haha!
Ok all jokes aside, the process varies client to client, but the timeline for mortgage approvals typically it takes about 5 to 10 business days from when you submit your full application.
The key is to provide all the necessary documentation upfront to avoid delays. I’ll work closely with you to ensure a smooth and efficient process.
Closing costs typically range from 1.5% to 4% of the purchase price of your home and include things like legal fees, home inspection, title insurance, and land transfer taxes. For the purposes of verification, lenders require us to confirm 1.5% is available for legal fees however there can be other costs involved depending on your unique situation and decisions around your homebuying experience (e.g hiring movers or not, etc. )
To increase your chances of mortgage approval, ensure your credit score is strong, save for a larger down payment, and reduce any existing debts.
I can help you review your financial situation and provide strategies to strengthen your application no matter the starting point.
The precise documents required vary from person to person based on unique circumstance, however here are a few of the most common requirements:
Government photo ID
Recent paystub
Most recent two years' T4s
Letter of employment
Tax returns (if self-employed)
Most recent 3 months of bank/investment statements for your down payment
Mortgage statement*
Property tax statement*
*If you already own a home
1) Changing your financial situation after pre-approval (increased debt, switching jobs, spending your down payment etc.)
2) Transferring money across multiple accounts. All funds need to be verified over 90 days, including any large or unusual deposits. Simplify your life (and your broker's) by choosing 1-2 accounts to accumulate your down payment in and keep every record proving the source of large deposits.
3) Not having monthly bank statements. Yes, this sounds exactly as ridiculous of an issue as it is when it comes up at the last minute. Save yourself anxiety, and make sure the accounts you're accumulating funds in produces monthly statements that you can easily access. You will need them.
Yes, as long as your cosigner understands what they're signing up for and is willing and able to help.
One thing to know upfront: cosigning now with the intent of removing that person later can be a great way to get into the housing market. But that person's ability to come off title later is never guaranteed. There are additional legal fees to make the changes when the time comes, and the lender at that point will need to re-qualify the mortgage on your income alone. In many cases, this strategy still makes a lot of sense. It just needs to be considered carefully, like any other major mortgage decision.
If you're considering a cosigner, let's talk through the pros and cons together so you and they are going in with eyes wide open.
There are lots of reasons why someone might choose one over another, and it's not one size fits all. This is one of the things that trips up a lot of my financially cautious first time buyers.
A bigger down payment lowers your monthly payment and reduces the default insurance premium you'll pay. At 20% down, you skip the default insurance premium entirely, which can save you thousands of dollars. A smaller down payment keeps more cash in your pocket for renovations, an emergency fund, or other priorities. There's no universally right answer.
The best way to make this decision is to get nitty gritty about what's most important to you financially and compare the numbers in your specific situation. That's exactly what we'll do together.
No, it doesn't. But here's what does matter: we need to know where it came from.
If your down payment has arrived in your account within the last 90 days, we'll need bank statements for the account the funds originally came from, or other proof of source. The reason for this is government anti money laundering guidelines, which apply to every lender in Canada. We need to determine whether the funds came from a known source (like your regular employment income) or whether any large lump sum deposits need to be explained.
The good news: talking about this upfront prevents a lot of heartache later. Let's get this figured out early so there are no surprises at the closing stage.
That's perfectly fine. The key is documentation.
My first recommendation is simple: keep every single piece of paperwork. That generally includes 3 months of bank statements from the source account in your home country, the wire transfer record showing the money was sent to Canada, the bank statement from the source account showing the funds going out, the wire statement for that withdrawal, and the deposit record here in Canada.
If your down payment comes from a home sale or another type of financial asset, the requirements are a bit different and case by case. The overarching rule is the same though: your down payment needs to be carefully verified so we can clearly prove the source to meet government requirements.
If you're not sure what you need, ask. I'd rather help you gather the right paperwork upfront than scramble at the last minute.
Two ways to begin. Pick what feels right for where you're at.
Book a 30 minute call. If you're not sure what path makes sense, this is the best first step.
Start your application directly. We'll set up the call from there.
Either way, we'll end up having that conversation. It's just a question of which one comes first.