The process from pre-approval to keys, what it costs, and where first-time buyer rebates apply.
Start with the number, not the listings
A pre-approval is a lender looking at your income, debts and credit and telling you, in writing, how much they will lend and at what rate — usually with that rate held for a set period while you shop. It is the first real step, because it turns “what can we afford?” from a guess into a ceiling you can search against.
Pre-qualification is not the same thing. It is an estimate from a few numbers you type in; a pre-approval is documents and a credit check. Sellers and their agents know the difference, and in a competing-offer situation it shows.
What it costs beyond the price
The down payment is only part of the cash you need. Ontario charges land transfer tax on every purchase and Toronto adds a municipal one on top; then come legal fees, title insurance, and adjustments for anything the seller prepaid. Keeping roughly 1.5–4% of the price aside for closing, on top of the down payment, is the working rule.
If your down payment is under 20%, your mortgage must be insured and the premium is added to the loan. The calculators on this site apply both the minimum-down-payment rules and the insurance so the payment you see is the real one.
Where first-time buyers get a break
Ontario refunds first-time buyers up to $4,000 of provincial land transfer tax, and Toronto refunds up to $4,475 of its municipal tax. Federally, the Home Buyers' Plan lets you draw on your RRSP for a first home, and a First Home Savings Account lets you save for the down payment tax-free. Limits and conditions change, so we confirm the current figures with you before you lean on them.
The process, in order
Pre-approval, then a search with real criteria — areas, must-haves, deal-breakers. Viewings, where we tell you what the photos don't. An offer with the right conditions for that property: financing, a home inspection, and for a condo a review of the status certificate. Then the closing: your lawyer searches title, registers the deed, moves the money, and hands you the keys on the day.
Nothing in that list is unusual. What matters is having someone who has done it many times walking you through it the first time.
