{"id":5770,"date":"2021-08-16T00:15:00","date_gmt":"2021-08-16T00:15:00","guid":{"rendered":"https:\/\/301webdemo.com\/oegema\/?p=5770"},"modified":"2026-02-06T04:57:54","modified_gmt":"2026-02-06T04:57:54","slug":"the-first-time-home-buyers-guide","status":"publish","type":"post","link":"https:\/\/www.ona.ca\/blog\/the-first-time-home-buyers-guide\/","title":{"rendered":"The First Time Home Buyer\u2019s Guide"},"content":{"rendered":"\t\t
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Buying a home is an exciting milestone in your life. However, it can be a complicated and very expensive process. From finding the right agent to arranging your mortgage and from house-hunting to putting in offers, you want to have a better idea of what\u2019s in store. Here we provide your first-time home buyer\u2019s guide to help make the whole home buying process easier.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Understand The Importance of Your Down Payment\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Saving up for your down payment is the first step in the\u00a0home buying process<\/a>. However, this step often requires years of saving to come up with a reasonable down payment that will reduce your mortgage and improve your chances of mortgage eligibility. Although the minimum required for a $500,000 home is just 5%, this is still $25,000. Also, realistically, unless you intend to buy a condo apartment, you aren\u2019t likely to find a home for this price close to an Ontario urban centre. Realistically, you should probably be saving enough for the next level which is 5% for the first $500,000 and then 10% for the balance. So for a home that costs $600,000, you would need $25,000 for the first $500,00 and then another 10% for the $100,000 remaining balance. This totals $35,000. Understanding how much you\u2019ll need for your down payment is very important to avoid disappointment if you find your dream home and can\u2019t put enough down to purchase it. A good idea is to keep an eye on housing prices in your favourite areas, so you have a fair estimate of how much you\u2019ll need to save. Remember, the more you can put down on your home purchase, the lower your mortgage rates and the more equity you have in your home from the moment of closing. Note: For down payments below 20%, you must purchase\u00a0mortgage loan insurance. In some cases, your lender might require you to get mortgage loan insurance even if your down payment is higher, which usually applies to people who have poor credit or are self-employed. So these costs must be considered when determining how much you can afford for your overall mortgage payment.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Apply For a Pre-approved Mortgage\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Once you have your down payment squared away it\u2019s time to approach lenders to find a mortgage. It might seem too early in the game for this step, but pre-approval serves many purposes. First, it tells you the maximum a bank is willing to lend you for your mortgage. This is key as it confirms a) how much down payment you\u2019ll need and b) your budget. Second, you\u2019ll have a better understanding of how much your monthly payments will be for your mortgage to make sure you feel comfortable with your budget. Third, you\u2019ll lock in an interest rate for up to 130 days. Should interest rates drop in the meantime, you\u2019ll qualify for the lower rate. Keep in mind it also helps you avoid disappointment should you want to put in an offer only to find you don\u2019t qualify. Pre-approval also provides negotiation power, especially if you are involved in a bidding war and others aren\u2019t pre-approved.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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How to Apply For Mortgage Pre-approval\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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You can apply for pre-approval at any of the following institutions:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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