How Much Can I Afford as a First-Time Buyer?

For most first-time buyers, this is the best place to start.

Before you begin seriously looking at homes, it’s helpful to understand what a lender may be willing to lend you — and, just as importantly, what monthly payment feels comfortable for you.

Your mortgage qualification can depend on several factors, including:

Your income
Your current debts and monthly obligations
Your credit history
Your available down payment
Property taxes and applicable strata or condo fees
Current mortgage rates
The mortgage qualifying rate
The type and location of the property you’re purchasing

A mortgage pre-approval can give you a much clearer idea of your potential price range before you start making offers.

Already looking at homes? Let’s find out what your numbers look like.

GET PRE-APPROVED

How Much Down Payment Do I Need?

You do not necessarily need a 20% down payment to purchase your first home.

The minimum down payment depends on the purchase price and the mortgage financing available to you. If your down payment is less than 20%, mortgage default insurance will be required.

Depending on your circumstances, your down payment could potentially include:

Personal savings
Funds held in a First Home Savings Account (FHSA)
Eligible funds withdrawn from an RRSP through the Home Buyers’ Plan
A financial gift from an immediate family member
Other eligible sources

If you’re not sure whether you have enough saved yet, don’t automatically assume homeownership is out of reach.

Sometimes the best first step is simply finding out where you stand.

First-Time Home Buyer Programs That May Help

There are federal programs and mortgage options specifically designed to help eligible first-time buyers in Canada.

These may include:

First Home Savings Account (FHSA)

An FHSA can help eligible first-time buyers save toward the purchase of a qualifying first home while receiving valuable tax advantages.

Home Buyers’ Plan (HBP)

Eligible first-time buyers may be able to withdraw up to funds from their RRSP under the Home Buyers’ Plan to put toward a qualifying home purchase.

30-Year Amortization

Eligible first-time buyers may have access to a 30-year amortization on an insured mortgage. This can reduce the required monthly mortgage payment, although a longer amortization may increase the total interest paid over the life of the mortgage.

Different programs have different eligibility requirements, and provincial programs and closing costs can also vary depending on whether you’re purchasing in British Columbia or Alberta.

I’ll help you understand which programs and mortgage options may apply to your particular purchase.

Buying Your First Home in British Columbia

I work with first-time homebuyers throughout B.C., with many of my clients purchasing in the Tri-Cities, Maple Ridge, and the Fraser Valley.

If you’re buying in British Columbia, there are some province-specific costs and programs to consider, including B.C.’s Property Transfer Tax and the First Time Home Buyers’ Program.

Depending on your eligibility and the property you’re purchasing, you may qualify for a full or partial Property Transfer Tax exemption.

We’ll factor these costs into your planning so that you’re looking at the total cost of purchasing your first home, not simply your down payment and monthly mortgage payment.

Buying Your First Home in Alberta

I also work with first-time homebuyers purchasing property throughout Alberta.

Although the basic mortgage qualification process is similar, provincial closing costs, taxes, legal requirements, and available programs can differ from British Columbia.

If you’re moving from B.C. to Alberta, purchasing your first home after relocating, or simply exploring whether your buying power could take you further in Alberta, I can help you understand the mortgage side of that decision.

Don’t Forget About Closing Costs

Your down payment isn’t the only money you’ll need when purchasing your first home.

Depending on the property and province, you may need to budget for expenses such as:

Property Transfer Tax in BC on purchases above $500,000
Legal fees
Home inspection
Appraisal, if required
Property insurance
Property tax adjustments
Strata or condo-related adjustments, where applicable
Provincial taxes or registration costs, where applicable
Moving expenses
Other property-specific closing costs

One of the things I can help you do early in the process is estimate the total amount of cash you should have available, not just your minimum down payment.

That means fewer surprises when it’s time to close.

Why Work With a Mortgage Professional for Your First Home?

Your first mortgage is a big financial decision, and the lowest advertised interest rate isn’t necessarily the same thing as the right mortgage.

Different lenders have different qualification requirements, mortgage features, prepayment privileges, penalties, and lending policies.

Working with a mortgage professional gives you the opportunity to explore options from multiple lenders rather than being limited to the products offered by one bank.

More importantly, I’ll explain those options in plain language so you understand what you’re agreeing to.

If this is your first mortgage, you should feel comfortable asking questions — including the ones you think you should already know the answer to.

That’s what I’m here for.

Your First-Time Home Buying Process

1. Start With a Conversation

Tell me where you are in the process.

You might be ready to buy now, six months from now, next year, or simply wondering whether buying a home is realistic.

You don’t need to have everything figured out before contacting me.

2. Review Your Financial Picture

We’ll look at your income, debts, credit, available down payment, and other factors that may affect your mortgage qualification.

3. Determine Your Buying Power

I’ll help you understand approximately how much mortgage you may qualify for, along with potential payments and costs.

We’ll also talk about something equally important:

What can you comfortably afford?

The maximum amount you can qualify for and the amount you actually want to spend aren’t always the same.

4. Get Pre-Approved

When appropriate, we’ll complete the mortgage pre-approval process so you can begin shopping with a clearer understanding of your financing.

5. Find Your Home

Once you know your budget, you and your Realtor can focus on finding the right property.

6. Finalize Your Mortgage

Once you have an accepted offer, I’ll work with you through the mortgage approval process, lender requirements, and financing conditions, and help keep you informed as your purchase moves toward completion.

First-Time Home Buyer FAQs

Do I need 20% down to buy my first home?

No. Depending on your purchase price and circumstances, you may be able to purchase your first home with less than 20% down. Mortgages with less than 20% down require mortgage default insurance and are subject to lender and insurer qualification requirements.

Should I get pre-approved before looking at homes?

It’s a good idea. A mortgage pre-approval can help establish your potential price range, estimated payments, and financing options before you begin seriously shopping.

How much money should I have saved?

That depends on your purchase price, required down payment, province, and expected closing costs.

Rather than focusing only on your down payment, I recommend calculating the total amount of cash you’ll need to complete your purchase.

Can my parents help with my down payment?

Potentially. Lenders do permit gifted down payments from immediate family members, subject to their individual policies and documentation requirements.

Can I use my FHSA and RRSP toward my first home?

Eligible buyers may be able to use both a qualifying FHSA withdrawal and funds withdrawn through the Home Buyers’ Plan toward the same qualifying home, provided the applicable requirements are met.

Can a first-time buyer get a 30-year mortgage?

Eligible first-time homebuyers may have access to a 30-year amortization on an insured mortgage. Whether that makes sense for you depends on your circumstances, budget, and longer-term financial goals.

Do first-time buyers receive additional benefits in B.C. or Alberta?

There may be federal and provincial programs, tax considerations, and other benefits available depending on where you’re purchasing and your individual eligibility.

Because these programs and eligibility requirements can change, I’ll help you identify the ones that may apply when you’re ready to purchase.

When should I contact a mortgage professional?

Ideally, before you start seriously shopping for a home.

But you don’t need to be ready to make an offer next week.

If buying your first home is something you’re considering within the next year, an early conversation can help you understand what you’re already doing well and what you may want to work on before you’re ready to buy.

Ready to Start Planning Your First Home?

You don’t need to know exactly what you can afford.

You don’t need to understand all the mortgage terminology.

And you don’t need to be ready to buy tomorrow.

That’s where we start.

Whether you’re just beginning to save or you’re already looking at listings every night, I’m happy to help you understand what your next step should be.

Kristin Woolard
Mortgage Professional | Dominion Lending Centres Producers West Financial

Over 20 Years of Mortgage Experience
Serving home buyers throughout British Columbia and Alberta

Have questions about buying your first home? Let’s talk.

BOOK A CALL WITH KRISTIN