Buying your first home feels overwhelming because you don't know what you don't know. This guide fixes that. By the time you finish reading, you'll understand every step, every cost, and every decision you'll face. No surprises.
Your Credit Score Matters (But It's Not Everything)
In Canada, lenders typically want a minimum credit score of 680 for the best mortgage rates. Below 680, you can still get approved, but you'll pay a higher rate. A few quick ways to improve your score before applying:
- Pay credit cards below 30% of your limit
- Don't open new credit accounts in the 6 months before applying
- Make sure there are no errors on your credit report (request a free copy from Equifax or TransUnion)
The 20% Down Myth
Get Pre-Approved First
Before you look at a single home, get pre-approved. This tells you exactly what you can afford and shows sellers you're serious. Pre-approval locks in your interest rate for 90-120 days, protecting you if rates rise.
Mortgage Broker vs. Bank
| Mortgage Broker | Your Bank |
|---|---|
| Shops 30+ lenders for the best rate | Offers only their own products |
| Free to you (paid by the lender) | No separate fee either |
| Can find solutions for tricky situations | Stricter qualifying criteria |
| Works on your schedule (evenings, weekends) | Branch hours, appointment-based |
The purchase price is not the full cost. Here's what you'll actually pay, broken down so there are zero surprises on closing day.
The Real Cost of a $550,000 Home (5% Down)
| Cost | Amount | Notes |
|---|---|---|
| Down Payment (5%) | $27,500 | Minimum for this price range |
| CMHC Insurance Premium | ~$20,900 | 4% of mortgage, added to loan |
| Legal Fees | $1,500 - $2,000 | Lawyer or notary for title transfer |
| Property Transfer Tax | $9,000 | 1% on first $200K, 2% on balance |
| Home Inspection | $400 - $600 | Paid before closing |
| Appraisal | $300 - $500 | Sometimes covered by lender |
| Title Insurance | $200 - $400 | Protects against title defects |
| Moving Costs | $500 - $2,000 | Depends on distance and volume |
| Total Cash Needed | ~$30,400 - $33,000 | Beyond the down payment |
What About Monthly Costs?
Your mortgage payment isn't the only monthly cost. Budget for property taxes (varies by municipality), home insurance ($100-200/month), strata fees if applicable ($200-500/month), utilities ($150-300/month), and a maintenance fund (set aside 1% of home value per year).
Working With a Realtor
In most cases, working with a buyer's agent costs you nothing directly. The seller typically pays commission for both agents as part of the listing agreement. Your realtor is your advocate, negotiator, and guide. They have access to the MLS (Multiple Listing Service), the database where all active and sold listings live, and can set up automated searches tailored to your criteria.
Setting Up Your Search
Your realtor will set you up with an MLS search that emails you new listings the moment they hit the market. You'll also get access to sold data so you can see what homes actually sell for, not just what they're listed at. Focus on:
- Location: Neighbourhood, commute time, schools, amenities
- Property type: Detached, townhouse, condo/apartment
- Must-haves vs. nice-to-haves: Separate your deal-breakers from your wish list
- Price range: Search $10-20K above and below your budget to see what's out there
Three Prices You Need to Understand
| Price Type | What It Means | How to Use It |
|---|---|---|
| Assessment Value | BC Assessment's estimate for tax purposes, based on July 1 values | Rough baseline only. Often outdated by 6-18 months. |
| List Price | What the seller is asking | A marketing number. Could be priced high (testing the market) or low (inviting multiple offers). |
| Appraised Value | A professional appraiser's opinion of market value | This is what the bank uses to confirm the home is worth what you're paying. Required for financing. |
The full playbook
Read the full playbook free on Skool.
This is a preview. The other 32 sections and the branded PDF are in the free Elevation Real Estate HQ community, with weekly group calls.
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