A home buyer's guide: How to purchase your first home.

If you or someone you know is contemplating homeownership for the first time, consider this the official roadmap. A pocket guide of valuable advice, links to tools and years of realtor and home-buying insights – from understanding the steps involved in the process to an exhaustive closing cost list, I've got you covered.

The home-buying process made simple.

Buying a home can seem overwhelming; there are many moving parts and players. By breaking it down into simple and actionable steps, you can begin planning with ease;

01. Determine your budget

Begin by assessing your finances, factoring in your income, expenses, and any existing debts. This will give you a clear idea of how much you can comfortably afford to spend on a home.

02. Get pre-approved for a mortgage

To strengthen your position as a buyer, getting pre-approved for a mortgage is essential. Reach out to reputable lenders in Kingston, who can evaluate your financial situation and provide you with a pre-approval letter. It shows sellers that you're a serious buyer and narrows down your search to homes within your budget. I can also provide some mortgage specialist contacts to help get you started.

03. Find a trusted real estate agent

Enlisting the help of a knowledgeable real estate agent (hello, there👋) is invaluable. We guide you through the home-buying process, help find suitable properties, schedule viewings, provide local/ neighbourhood/ home sales insights, draft and submit offers, assist you with due diligence and negotiate on your behalf. I should also note that, in general, my commission is paid for by the seller from the proceeds of the home sale.

If you want to hear me talk endlessly about the benefits of home buyer representation or just want to find out more about working together, book a free 10-minute consult.

04. Start house hunting

Armed with your pre-approval, it's time to search for your dream home. Consider your desired neighbourhood, commute times, nearby amenities, and any specific features you require. Viewing multiple properties and comparing them will help you make an informed decision.

05. Make an offer and negotiate

Once you've found the perfect home, work with your agent to draft an offer that includes the price, conditions, and desired closing date. Your agent will negotiate with the seller's representative to achieve the best possible terms for you.

06. Complete the home inspection + appraisal

Hiring a professional home inspector is always advisable and crucial to uncovering any possible issues with the property. Additionally, your lender may require an appraisal to ensure the home's value aligns with your mortgage amount.

07. Finalize financing + insurance

Connect with your mortgage lender to finalize the mortgage details and secure your financing. It's also important to obtain home and title insurance to protect your investment.

08. Closing

On the closing day, review and sign all necessary documents, including the mortgage agreement and transfer of ownership. Pay any remaining closing costs, collect the keys, and you're officially a homeowner!

Getting pre-approved for a mortgage.

Before diving into house hunting, it's crucial to get pre-approved for a mortgage. This step empowers you as a buyer and simplifies your search. Here's how you can get pre-approved:

Gather financial documents

Be prepared to provide proof of income, employment history, bank statements, and other relevant financial documents.

Research financing

Shop around for lenders who offer competitive interest rates and favourable terms. Consult multiple institutions and select one that best suits your needs.

Working with a mortgage agent is also a great option; they have access to multiple lenders and can help you find the appropriate financing based on your circumstances, plans and goals.

Ask me about my trusted mortgage partners. I'm always happy to make introductions and help connect you with qualified home-buying professionals.

Submit your application

Complete the lender's pre-approval application, providing accurate information about your financial situation.

Await the pre-approval letter

Once the lender reviews your application, they will issue a pre-approval letter indicating the maximum loan amount you qualify for. Remember, pre-approval does not guarantee final approval, but it strengthens your position as a buyer.

Factors to consider when choosing your first home.

As you embark on your home-buying journey, here are a few factors to keep in mind as you begin to envision your dream home and view properties with your realtor:

Location

Consider proximity to family, schools, work, parks, public transportation, shopping centers, and other amenities that are important to you. Is there a radius or neighbourhood that would be ideal for your lifestyle? Do you prefer urban or rural living? Do you require waterfront or water access?

Needs vs. Wants

What are your top priorities and wish list items for a home? Consider what you enjoy (or don't) about your current home or space. Be open to reworking these lists as you begin viewing houses and become more familiar with the properties available at your price point.

Size + Layout

Assess your current and future space requirements. Do you need multiple bedrooms, office(s), garages or a backyard? Visualize how you'll utilize each room to ensure it meets your needs.

Condition + Maintenance

Evaluate the condition of the home. Are you looking for a move-in-ready property or one that requires renovations? Consider your budget for repairs and maintenance.

Resale Value

While it may seem far off, it's wise to consider the resale value of the home. Look for properties that have features and amenities that appeal to a wide range of potential buyers.

Closing costs: budgeting beyond the purchase price.

When buying a home, it's important to account for additional costs beyond the purchase price. Here are common closing costs to expect;

Deposit

Typically due within 24 hours of your offer being accepted, the deposit is held in trust by the listing brokerage and deducted from your total purchase price.

Although not a closing cost, it's helpful to plan and have quick access to these funds. 1.5-2.5% of the purchase price is a good guiding figure, although there is

no set rate and it will vary per property.

Home inspection fees

Fees can range from $450 to $600+, depending on the property's size and complexity.

Land transfer tax

The Ontario Land Transfer Tax (OLTT) applies to most home purchases, but as a first‑time homebuyer, you may be eligible for a full or partial refund on the tax payable.

Legal Fees + disbursements

Hiring a real estate lawyer to handle the legal aspects of the transaction is essential. They will assist with the transfer of ownership and ensure all necessary documents are in order. Legal fees for a home purhcase typically range from $1000 to $2000.

*Title Insurance – today, most lenders require title insurance to protect against losses in the event of a property ownership dispute. This is purchased through your lawyer/notary and costs $100-$300.

HST on mortgage default insurance

Though mortgage default insurance itself is financed through the mortgage, HST on the insurance must be paid in cash at the time of close. This insurance tax is applicable if the downpayment is less than 20% of the purchase price.

Moving expenses

Factor in the costs associated with hiring professional movers or renting a moving truck.

Buying your first home is an exciting chapter that requires careful planning and consideration, along with help from a few professionals. As a realtor who educates and empowers first-time buyers, I'm here to support you in your quest to find home, whatever that looks like to you.

If you're ready to kickstart your home buying journey, fill in this short buyer form to get started. If it's not quite time, save this guide for later, and you might consider signing up for my monthly newsletters to learn more about and keep up with the local real estate market.

Good luck, house hunter!