540 Hugel Avenue Midland, Ontario, Canada, L4R 1V9
The Mortgage Centre Logo

First Time Home Buyer

Welcome to the adventure of buying your first new home. 

A good mortgage broker takes care of the details to ensure a safe, smooth and simple process to home ownership. In an effort to simplify the process, here are some key subjects we can guide you through.

The Process

Research Tips

  • Know your budget and know what you’re looking for. Find a realtor and mortgage broker you trust, they are free!
  • Talk to a friend or loved one who owns a home. 
  • Research mls.ca. 
  • Check your own credit for free at equifax.ca. 
  • Use our mortgage calculator. 
  • Set long-term goals considering that this likely won’t be your last home. 
  • Make a list ofquestions to ask your mortgage broker and realtor.


Real pre-approvals include your true affordability and set you out for full approval. A true pre-approval gives you a rate hold, if rates go up you have locked in your rate, if rates go down you get the lower rate. A true pre-approval means your mortgage broker has reviewed your credit and all necessary documents. This process prevents any surprises when putting an offer in on your potential home.

Documents Required:

Employed Applicants:

  • Paystubs
  • Employment letter
  • 2 years T4’s & possibly Notice of Assessments
Self-employed applicants:
  • 2 years T1’s (with statement of business activities)
  • Notice of Assessments
  • Business licences or Articles of Incorporation

Required from all applicants:

  • 90 day history of down payment; name must be included on statement
  • Gift letter with history of where the funds came from (if applicable)
  • Void cheque – from any account you want the mortgage payments to come from
  • Government issued photo ID
  • Bank statements showing 1.5% of the purchase price for closing costs

More or less documents may be required depending on the situation.

Get a Team Working for You

Having great professionals around you is the key to a happy and smooth transaction.

  • Mortgage Broker – Your first step. We are free and paid by the lender! A good mortgage broker lights your path and heads you in a safe direction.
  • Realtor – This relationship should be a right fit. Your realtor should seek to learn what you need, right now as well as for the future. Your broker can recommend someone they know and trust.
  • Lawyer – Call a lawyer ahead of time, and get a price if you’d like. Lawyers prefer to know as soon as possible if they have to close a deal. Purchasing a home should be a fun experience! Your broker can recommend a great legal team.
  • Financial Advisor – Now that you have a mortgage, it’s time talk to a financial advisor about your insurance needs. Again, ask your broker for someone he knows and trusts.

From Shopping to Moving In

You are now pre-approved and are ready to put an offer on a home.

  • Get a good deal and make an offer conditional on financing and inspection for a minimum of 5 business days.
  • Once your offer is accepted, send it to your mortgage broker. Your realtor will require a deposit.
  • Your broker will submit the file for full approval while you have the place inspected.
  • Once approved, an appraisal may be required, which is one reason we need a conditional period for financing.
  • When all broker documents are signed and finished the lender will send all the documents to your lawyer. You will get a call from the lawyer to see them and bring a bank draft for your down payment.

Congratulations, the countdown for keys has begun.

Down Payment

Besides verifying income, your down payment is the most important part of final approval.

  • Most lenders require a 90 day history of the accumulation of savings for a down payment.
  • If the down payment is being gifted, a gift letter is required from the gift as well as a bank statement showing the gifted money going into your account.
  • Closing costs are also verified via a 30 day history. 1.5% of purchase price.
  • If down payment is borrowed, proof is required.
  • RRSP’s may also be used.

Closing costs

  • Lawyer $1,200 – $1,800
  • Inspection $300 – $500
  • Appraisal $300 – $500
  • Land Transfer Tax – First time home buyers get a refund of up to $4000.
  • Always be prepared to show your lender that you have 1.5% of purchase price for closing.

More Benefits for First Time Home Buyers

Have more questions? Contact us now.

Back to all mortgage types

© The Mortgage Centre | Website by mediasuite.ca