Are you a first-time home buyer feeling a bit overwhelmed? Don’t worry, you’re not alone. To assist you in this exciting journey, we have compiled a helpful checklist. Our goal is to provide you with the necessary information to confidently purchase your first house, condo, or townhome.

Did you know that buying a home involves three stages? First, there’s the planning phase, followed by finding your dream home, and finally, the closing process.

Planning
As a first-time home buyer, the process can be both exhilarating and intimidating. However, with a little preparation, buying your first home can be an enjoyable and rewarding experience. Here’s how you can ensure you’re ready:

1. Determine your affordable price range:
   Before getting emotionally invested in a home, it’s crucial to assess your financial readiness. Consider not only the purchase price but also other costs associated with homeownership, such as insurance, taxes, and utilities. The TD Mortgage Affordability Calculator can help you determine if you can comfortably afford your dream home.
2. Understand down payments:
   A down payment is the initial amount you pay towards the purchase of your home. It is typically a percentage of the total cost. If your down payment is less than 20% of the home’s price, you will need to pay for mortgage default insurance, which protects the lender in case of payment default. The minimum down payment required depends on the purchase price, as outlined below:

• Purchase price $500,000 or less: Minimum 5% of the purchase price.
• Purchase price $500,000 to $999,999: 5% of the first $500,000 and 10% of the portion above $500,000.
• Purchase price $1 million or more: Minimum 20% of the purchase price.

3. Consider important factors when buying a home:
   During the home buying process, it’s important to ask yourself a few questions:

• How long do you plan to live in the house?
• Can you comfortably afford it?
• Is the location suitable for your needs?
• Does the property have room for future growth?
• Is it easily accessible to public transportation?
• What is the quality of the school district?

4. Utilize First-Time Home Buyer Incentives:
   The Canadian government offers several incentives to assist first-time home buyers. Some notable programs include:

• Home Buyer’s Plan (HBP): Allows first-time buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use towards their home purchase.
• Home Buyer’s Amount (HBA): Provides a non-refundable income tax credit for qualifying homes.
• First-Time Home Buyer Incentive (FTHBI): Offers additional funds for a down payment in the form of a shared-equity mortgage with the government.
• GST/HST New Housing Rebate: Provides a rebate on the purchase price of a newly built or substantially renovated home.
• Tax-Free First Home Savings Account: Combines features of an RRSP and a Tax-Free Savings Account (TFSA) to help save for a down payment.

When to Apply for Mortgage Pre-Approval
Follow a systematic approach to buying your home. While working with a realtor and searching for homes, consider applying for a mortgage pre-approval. This will give you an idea of how much a lender could approve you for. Apply for a TD mortgage pre-approval online, and once approved, your interest rate will be held for up to 120 days.

Finding Your Dream Home
Now comes the fun part—finding the perfect home that suits your needs and preferences. Consider the following factors:

1. Seeking professional assistance:
   A realtor can provide valuable guidance throughout the home buying process. Meet with multiple real estate agents to find one with excellent credentials and references. Remember, the seller usually pays the agent’s fees, making it a cost-effective option for buyers. Additionally, hiring a home inspector can help uncover any hidden problems in a potential home.
2. Understanding closing costs:
   In addition to saving for the down payment, it’s essential to set aside funds for closing costs. These expenses, which can amount to approximately 4% of the purchase price, include home inspection fees, title insurance, legal fees, and more.
3. Exploring mortgage options:
   When it comes to financing your home, it’s important to explore different mortgage options. Consider factors such as prepayment flexibility, down payment requirements, and interest rate structures. TD offers mortgages with various features, including open/closed, conventional/high-ratio, and fixed/variable rate options.
4. Crafting a comprehensive offer to purchase:
   Once you find a home that meets your criteria, have a real estate lawyer/notary review your offer before submitting it. The offer should include your legal name, the offered amount, the expiration date, and any necessary conditions prior to closing.

The Closing and Beyond
As you approach the closing process, there are a few more considerations to keep in mind:

1. Obtaining home insurance:
   Your lender will require proof ofhome insurance before finalizing the mortgage. Shop around for insurance quotes to ensure you get the best coverage at a competitive price.
2. Conducting a final walk-through:
   Before closing, it’s important to do a final walk-through of the property to ensure it’s in the agreed-upon condition. Verify that any repairs or agreed-upon changes have been made and that everything is in working order.
3. Closing the deal:
   During the closing process, your lawyer/notary will handle the legal and financial aspects of the transaction. This includes transferring funds, ensuring all necessary documents are signed, and registering the property in your name.
4. Moving in and settling down:
   Once the deal is closed, it’s time to celebrate and start moving into your new home. Plan your move well in advance and consider hiring professional movers or enlisting the help of friends and family. Settle into your new home and enjoy the journey of homeownership.

Remember, this guide provides a general overview of the home buying process for first-time buyers. It’s important to consult with professionals such as real estate agents, mortgage specialists, and lawyers/notaries to ensure you make informed decisions based on your specific circumstances.

Congratulations on taking the first step towards becoming a homeowner. Best of luck in finding your dream home!