Rahul Arora


A home can be one of the most personally and financially rewarding investments you’ll ever make. But if you’ve never bought a home before, the process may seem a little overwhelming. To help you, I have put together this series of steps to guide you with the process.

1. Getting Pre-Qualified for a Mortgage Mortgage Pre Approval

Getting pre-approved for a mortgage is a good place to start. When you pre-qualify for a mortgage, your lender will look at your:

  • Income

             Banks have different qualification process for Self Employed and Salaried Employees.          

  • Debts

              Such as  Credit card balances, Car loans, Student loans, Lines of credit, Co-signed or guaranteed loans, Liens, Child support

  • Downpayment

              Conventional mortgage (20% down payment);

              Low down payment mortgage (minimum 5% down) Low down payment mortgages require mortgage default insurance(CMHC Insurance)

  • Credit history

      One thing your lender will look at before approving you for a mortgage is your credit score — your record for paying your bills and repaying loans on time. You can get a free copy of your credit file by mail just by asking. For        details, visit Equifax.ca or Transunion.ca

The bank or the lender should give you a pre-approval in writing, with a guaranteed interest rate which is usually valid for 90-120  days .Having a pre-approved mortgage is a great advantage when you’re looking for a home. Knowing the price range that you can comfortably afford will help you narrow your search and ensure you won’t be let down in finding out the home of your dreams is not within your reach. 

2. Narrow your priorities  

Narrowing down your priorities is essential. Knowing what you need and want in your home is critical. If you have kids that go to school or will attend school soon, you must know about the school rankings in the neighbourhood.   A few questions to ask yourself;  A condominium that is closer to your work may be preferable to a larger home with a longer commute? How many bedrooms do you need? What kind of outdoor space do you want? What about counter-tops, appliances, and floors? You can’t get what you want if you don’t know what you want.   

3. Who will you Need?     

Assemble your team to help and guide you with the process. Following professionals should be a part of your team : 

  •  ARealtor  who works exclusively in your best interests. A real estate agent will help you find the right home and will offer you advice on what price to offer and any conditions you might want to consider, including in your Offer to Purchase
  • Alender– a bank or mortgage broker to take you through your financing options
  • Areal estate lawyerto help with the legal aspects of the purchase .

 If possible, get referrals from friends, family and co-workers. It’s important to choose an agent who is familiar with the area where you are searching for a home. You may end up spending a lot of time with your agent checking out homes, so be sure to choose someone you feel comfortable working with.

4. House Hunting 

Now’s the time to pound the pavement and see what’s available. This step can be either incredibly fun or incredibly exhausting. But with a REALTOR® by your side, you’ll be able to land on your dream home much more effectively. Whilerealtor.cais a good place to start searching for homes, your real estate agent will send you custom listings that match your criteria. 

Or you can start your search here Search Homes or Search Condos in Greater Toronto Area

Your realtor can give you access to Collab, you can customise your search and have real-time update from MLS.

House hunting can be the most exciting part of the home-buying process. This is especially true for first-time buyers who have never owned a place of their own. But you must never let those emotions cloud your judgment. You need to balance your enthusiasm with a healthy level of detachment. There's a big difference between needs and wants. One is a deal breaker, the other is not. If you find a house that meets all of your needs and some of your wants, you've probably found your new home.

5. Making an Offer as a First Time Buyer   

You’ve found the perfect home? Congratulations! Your efforts have paid off, all the right boxes are checked and you are in Love :)  Now, if you actually want to make it yours, you have to make a successful offer, one the seller will accept. Your offer must be in writing and will form the Agreement of Purchase and Sale (APS). The APS is a legally binding document which contains:

  • Purchase Price along with the Deposit  (due within 24 hours after the offer is accepted)
  • Closing date (the date you take possession)
  • Inclusions and Exclusion (Always check with your Realtor about this)
  • Conditions that need to be fulfilled such as Home Inspection , Mortgage approval to name a couple.

Once your agent has submitted your offer, the Seller can accept it, reject it or sign back a counter offer. During these back-and-forth negotiations, you may need to compromise on small things, but a great REALTOR will work hard to get you what you want.

6. Meeting Conditions and Providing The Deposit 

Conditions are requirements within the Agreement of Purchase and Sale that must be met for the sale to go through. As a first time Buyer, you may have included a financing condition in your offer, or a condition that allows your lawyer to review the legal details of the property, astatus certificate review by the lawyer or a home inspection condition. And of course, you’ll need to submit a deposit–an amount up to 5% of the purchase price, which is held in trust until close. Once the conditions have been met, the agreement and sale is said to be ‘firm’, and now it’s just a matter of waiting for your closing date. And of course, packing!

7. Closing the Deal  

Your offer has been accepted and you can’t wait to move in … don’t break out the bubbly just yet; you still have to close the deal. Your REALTOR® and lawyer will do most of the closing work. Closing is the point at which the ownership and possession of the property are transferred from the Seller to you. It takes place once all the legal and financial obligations have been met.  

Any Questions?? Get in touch :)