Ontario First Time Home Buyers

It is possible - even with no money down!

Buying your first home is exciting! Keep in mind that buying a home is likely the largest investment you will ever make.  Make sure you get the mortgage that meets your needs.  We help first time buyers purchase homes and we will go the extra mile to make sure that the mortgage rate and program that you get is the best one for your situation.

Purchasing your First Home - What are the costs?

Down Payment - In order to obtain the best interest rate, you may want to consider putting a down payment of at least 5% down on a home.  You may also obtain a down payment from a family member.  The lender will likely require that the family member sign a gift letter stating that the money is actually a gift, and that you are not required to pay them back.  If you are applying for a CMHC insured mortgage, make sure the down payment is in your possession prior to making the offer to purchase the home.

Lawyer Fees - Shop around, many lawyers charge different fees for real estate transactions.

Land Transfer Tax - This is a tax that is paid to the provincial government to transfer the title of a property from one owner to another.  Your Realtor or Lawyer will be able to provide you with a figure.

Mortgage Insurance - This is an insurance premium charged on real estate transactions where the down payment on the property is less than a 25%.  It can be either paid up-front, or added onto the amount of the mortgage.  The two providers of this insurance are GE & CMHC.

Registration Fees - This is paid to the provincial government.  It's a fee paid to the government for recording the transfer of the title,  and registering the mortgage.

Property Taxes -  At the time of the sale your lawyer will determine whether the seller has already paid their property taxes for the year.  If they have, the lawyer will determine on a pro-rated basis, how much is owed back to the seller.  If they have not yet been paid, the seller is required to pay them up-to-date from the proceeds of the sale of the home. 

Municipal Levies - These are miscellaneous charges assessed my the municipality for special services provided to the homes in the area that cannot be paid from general tax revenues.  Large road and sewer improvements are an example.

Mortgage Appraisal Fees - The lender may require an inspection of the property.  The cost is usually between $200 and $300.  If the mortgage is a high ratio mortgage and is insured by CMHC or GE, they will usually cover this cost.