Get pre-approved before you shop
A pre-approval tells you what you can actually afford, locks in a rate for a set window while you search, and makes any offer you make far more credible to a seller.
Know what you’re bringing to the table, and where it’s coming from
Lenders require proof of your down payment source: recent account statements, and if any of it is a gift from family, a signed gift letter plus proof of the transfer. This is a hard requirement, not a formality, so build it into your timeline early.
Two accounts most first-time buyers should know about
The Home Buyers’ Plan lets you pull up to $60,000 from your RRSP tax-free to put toward your first home ($120,000 for a couple), as long as you pay it back into your RRSP over the next 15 years.
The First Home Savings Account works differently: you can put in up to $8,000 a year (up to $40,000 total), and unlike the HBP, you never have to pay it back; it’s simply yours once you take it out for a home.
The good news is you don’t have to choose. Most first-time buyers can use both accounts together, which can meaningfully boost what you’re able to put down.
Understand the stress test
Lenders don’t just qualify you at your actual rate. They qualify you at a higher “stress-tested” rate to confirm you could handle payments if rates rose. This affects how much you’re approved for, so it’s worth understanding upfront rather than being surprised by it mid-process.
Know your minimum down payment
In Canada, the minimum scales with price: 5% on the first portion of the purchase price, rising to 10% and then 20% as the price increases. Anything under 20% down requires mortgage default insurance, which adds a premium to your mortgage, but it’s also what makes lower-down-payment purchases possible at all. First-time buyers and new-build buyers also have access to longer amortization options than they did a few years ago, which can meaningfully lower a monthly payment.
Gather your documents early
Typically: recent pay stubs or an employment letter, tax documents (two years, if you’re self-employed), bank statements showing your down payment, and ID. Getting these ready before you need them is one of the easiest ways to speed up your approval.
BC buyers: know your Property Transfer Tax exemptions
This is a separate tax from your mortgage, paid at closing, and BC has two programs that can reduce or eliminate it. The First-Time Home Buyers’ Program is for buyers who’ve never owned a home before, and fully exempts purchases up to a set price, with a partial exemption just above that. The Newly Built Home Exemption works similarly, but it’s open to anyone buying a qualifying new-construction home, not just first-timers, and the price threshold is higher.
If you’re a first-time buyer looking at new construction, it’s worth checking which of the two actually saves you more; they don’t always add up the same way.
Last but not least: talk to a broker before you talk to a bank
- A bank can only offer you their own products.
- A broker compares your file across dozens of lenders at once, which matters most for first-time buyers who don't yet have an established banking relationship working in their favour.