First Time Home Buying Tips for Canadians
Buying your first home is exciting, but it can also feel overwhelming. From choosing the right property to budgeting for closing costs and arranging home insurance, there are many decisions to make before you sign the final paperwork.
These first time home buying tips can help you prepare for the process and avoid common surprises along the way.
- Understand What You Can Afford
Before you begin viewing homes, take time to understand your full budget. Your mortgage payment is only one part of the cost of owning a home.
- A realistic home-buying budget should include:
- Mortgage payments
- Property taxes
- Home insurance
- Utilities
- Condo fees, if applicable
- Community association fees, if applicable
- Repairs and maintenance
- Moving costs
- Furniture and appliances
- Closing costs
Getting pre-approved for a mortgage may help you understand your price range, but it does not replace a full review of your monthly expenses.
- Plan for Closing Costs
Many first-time buyers focus on the down payment and purchase price, but closing costs can add up. These are additional costs paid around the time the purchase is finalized.
Closing costs may include:
- Legal fees
- Land transfer tax, depending on province and municipality
- Title insurance
- Home inspection fees
- Appraisal fees
- Adjustments for property taxes or utilities
- Moving expenses
- Rules and costs vary by province, so ask your real estate professional, lawyer, or mortgage advisor what applies in your area.
- Get a Home Inspection
If you are buying an existing home, a home inspection can help identify visible issues with the property. An inspector may look at the roof, foundation, plumbing, electrical, heating, cooling, insulation, drainage, and other major systems.
A home inspection does not guarantee there are no problems, but it can help you make a more informed decision. It may also help you estimate repair or renovation costs before finalizing the purchase.
- Think Beyond the Purchase Price
A lower purchase price does not always mean a home will cost less over time. Older homes, larger properties, or homes needing renovations may require additional repairs and maintenance.
Before making an offer, consider:
- Age and condition of the roof
- Electrical system updates
- Plumbing condition
- Heating system type and age
- Windows and insulation
- Basement moisture concerns
- Potential renovation costs
- Ongoing maintenance needs
- These details may also affect your home insurance options and premium.
- Research the Neighbourhood
The neighbourhood you choose can affect your lifestyle, commute, and long-term satisfaction with the home.
Consider nearby access to:
- Schools and childcare
- Grocery stores and pharmacies
- Public transit
- Parks, pathways, and playgrounds
- Medical clinics and community services
- Major roads and commuting routes
- Workplaces
- Recreation centres
- Visit the area at different times of day if possible. A neighbourhood may feel different during rush hour, evenings, or weekends.
- Ask the Right Questions About a New Build
If you are buying a new build, the process may be different from buying an existing home. You may need to think about construction timelines, deposit structure, upgrade costs, warranty coverage, and what is included in the purchase price.
Ask questions such as:
- What is the expected completion date?
- What happens if construction is delayed?
- Which finishes and features are included?
- What upgrades cost extra?
- Are landscaping, fencing, appliances, or window coverings included?
- What warranty coverage applies?
- What is covered by the builder and what is covered by the new home warranty program?
- Review all documents carefully before signing and consider getting legal advice if anything is unclear.
- Check for Condo or Community Fees
If you are buying a condo, townhouse, or property in a managed community, you may have monthly fees in addition to your mortgage and utilities.
Ask what the fees cover, how often they can change, and whether there are reserve fund concerns or special assessments. For condos, review available documents carefully with qualified professionals before making a final decision.
- Confirm the Property Is Free of Liens
Before closing, your lawyer will help confirm whether there are registered claims, liens, or other title issues connected to the property. This is an important part of protecting your purchase.
Title insurance may also be discussed during the closing process. Ask your lawyer what it covers and whether it is recommended for your situation.
- Arrange Home Insurance Before Closing
Most mortgage lenders require proof of home insurance before the closing date. Even if you are not required by a lender, home insurance is an important part of protecting your property and personal liability.
When speaking with a home insurance broker, be prepared to answer questions about:
- Property address
- Age of the home
- Roof type and age
- Heating system
- Electrical system
- Plumbing
- Basement details
- Renovations or updates
- Detached structures
- Occupancy date
- Whether the home will be rented or owner-occupied
- Starting the insurance process early can help avoid delays before closing.
- Work With Trusted Professionals
Buying a home involves several professionals, including a real estate agent, mortgage advisor, lawyer, home inspector, and insurance broker. Each person plays a different role in helping you understand the purchase and reduce avoidable risks.
For insurance, a broker can help compare coverage options, explain policy wording, and identify coverage that fits your home and budget.
First-Time Buyer Insurance Considerations
Your first home insurance policy should be based on the details of the property and your personal needs. The cheapest policy may not always provide the right protection.
Ask your broker about:
- Dwelling coverage
- Personal property coverage
- Personal liability coverage
- Sewer backup coverage
- Overland water coverage, where available
- Additional living expenses
- Deductibles
- Exclusions and limits
- Discounts for bundling home and auto insurance
- Coverage options and eligibility vary by insurer and location.
Talk to Rizk Insurance Before You Move In
If you are buying your first home, Rizk Insurance can help you review your home insurance options before closing. Our team can explain what information insurers need, what coverage options may be available, and how your home’s details may affect your premium.
Contact Rizk Insurance today to discuss your home insurance needs before you finalize your purchase.
This article is for general information only and does not replace advice from a licensed real estate, legal, mortgage, or insurance professional.
FAQ
What should a first-time home buyer know before making an offer?
First-time buyers should understand their budget, closing costs, inspection results, neighbourhood, financing conditions, and insurance requirements before making an offer.
Do I need home insurance before closing?
Most mortgage lenders require proof of home insurance before closing. It is a good idea to start the insurance process early so coverage can be ready for the possession date.
Why is a home inspection important?
A home inspection can help identify visible concerns with major systems such as the roof, foundation, plumbing, electrical, and heating. It can help buyers make a more informed decision.
What closing costs should first-time buyers expect?
Closing costs may include legal fees, land transfer tax, title insurance, inspection fees, appraisal fees, adjustments, and moving expenses. Costs vary by province and property.
Can a broker help with first-time home insurance?
Yes. An insurance broker can explain coverage options, compare insurers, help identify discounts, and answer questions about policy limits, deductibles, and exclusions.