First Time Home Buyer Approval in Canada
Purchasing a home is one of the most important decisions you will ever make. Choosing the right mortgage professional to partner with can be the crucial first step towards helping you achieve your home buying goals.
At TurnedAway.ca, we will help fulfill your dream of homeownership and make the process quick and easy for you. Apply for financing now. Let’s turn your dream home into reality!
Am I Eligible For First Time Home Buyer Programs?
Qualifications For First Time Home Buyer Canada
To be eligible for Canada’s federal and provincial first-time homebuyer programs, you must meet several criteria:
Must be eighteen years old and above
Must be a citizen of Canada or a permanent resident
The property/home you’re purchasing must be located in Canada
Must not have owned a house previously
Must live in your new home as your primary residence within a year of purchasing it
Buying a house for the first time can be exciting and overwhelming. That’s where we come in. We are here to help you get the best approval for your first-time home buyer mortgage application!
Call Us: 1-855-668-3074
Steps in Buying Your First Home
To help you get started on your home ownership journey, here are the steps you must take plus some helpful tips:
Save for a Down Payment
When purchasing a home, having a minimum 20% down payment will provide you with added freedom in the process and save you thousands of dollars on interest payments and mortgage insurance.
Establish a Good Credit Score
Building a favorable credit report should be one of your priorities before purchasing a home, and this can be achieved by taking pre-emptive steps to better your credit, such as:
- Avoiding late mortgage payments
- Aiming to keep your credit utilization rate as low as possible
- Keeping an excellent credit history
- Reducing and keeping track of the number of credit inquiries on your account
A favorable credit score and a reliable income are essential components when attempting to get approved for a mortgage.
Check Your Housing Affordability
A range of factors influences housing affordability, including:
- The amount of your down payment
- Your Total Debt Service (TDS) Ratio (your annual housing-related expenses + debt expenses divided by your gross income)
- Your Gross Debt Service (GDS) Ratio (your annual housing-related expenses divided by your gross income)
- Current monthly expenses are not exceeding after-tax income.
Determine Where to Buy a Home
After budgeting for your new home you must decide where to purchase it and consider key aspects like the following:
- Average commute time
- Access to public transport
- Neighborhood parks and facilities
- Security levels
- School rankings (if you have children)
Calculate Your GDS/TDS and Pass the Mortgage Stress Test
Understanding your Gross Debt Service (GDS) and Total Debt Service (TDS) will give you an insightful view of how well-prepared you are to pass the Canadian Mortgage Stress Test.
Get an Estimate of the Closing Costs
It’s important to get an estimate of the closing costs when buying a home for the first time so that you can budget for these expenses and understand the full cost of purchasing a home.
When buying a house in Ontario, it’s wise to budget 3-5% of the purchase price for closing costs. Land Transfer Tax and Lawyer & Legal Fees are the most significant contributors to these expenses.
Investigate Assistance Programs
Try to explore the assistance programs available. You may qualify for tax credits that make buying a home more achievable. You may also get help with the down payment, closing costs, and other related costs.
To get desirable results, it’s best to seek professional advice and assistance from one of our expert brokers at TurnedAway.ca.
Get a Mortgage Pre-approval & Shop Around for the Best Rate
A pre-approval is a mutual agreement between you and your lender. Remember that getting a pre-approval doesn’t mean you cannot compare different rates.
Obtaining pre-approval for a mortgage can be incredibly helpful in the long run, as it grants you knowledge on how much your mortgage loan may come to and what kind of interest rate you are eligible for.
Arrange A Home Inspection
Ensure there are no issues with the property, so you can adjust your offer price accordingly before making a purchase and avoid any unpleasant surprises. Doing your homework before making an offer can save you time and money in the future.
Make Your First-Time Home Buying
A Rewarding Experience!
Mortgage Approvals for First-Time Home Buyers
As a first-time homebuyer, your credit score and down payment will open the door to some of the best mortgage rates. Even if you have never purchased before, having good credit and a substantial down payment make all the difference in finding the best loan.
To ensure a hassle-free buying process, turn to us at TurnedAway.ca! We’ll make your first home buyer mortgage approval as smooth and easy as possible.
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Turn To Us And Trust The Process!
As a first-time homebuyer, you can make your dreams of owning a home come true with careful planning and preparation. By saving your down payment strategically, monitoring your credit score, and researching the mortgage rates available, you are one step closer to owning your dream home!
With TurnedAway.ca, you’ll get the professional assistance you need for a hassle-free, fulfilling home buying experience. We are excited to guide you on your journey toward becoming a first-time homeowner! Apply now!