Now that the new year is here, have you decided to make your resolution to buy your first home come true? It seems that 2025 is shaping up to be a great year for home buyers but it’s important to be sure you’re ready for one of the largest purchases of your life. I’ve helped out many first time buyers and, in this guide, I’ve broken things down into manageable steps to turn your dream into reality.
First-Time Home Buyers, This Is Why 2025 Is A Great Year To Buy.
If you’ve been waiting to buy a home, this could be your moment. Home prices have dropped significantly – around 15-18% from their 2022 peak – and there’s more inventory available than we’ve seen in years. This combination has created a rare window of opportunity in the housing market.
The outlook is getting even better. Interest rates are expected to ease, which will make monthly payments more manageable. Plus, upcoming changes to mortgage rules, including the option for 30-year amortization periods, will make homeownership more accessible, especially for first-time buyers.
Bottom line: between lower prices, better selection, falling interest rates, and friendlier mortgage terms, now might be the perfect time to make your move into homeownership.
First Of All, Review Your Reasons For Buying Your First Home
Start by being clear on why you want to buy a home. Understanding your motivation and your requirements will keep you focused when you’re looking into the details of finding a home.
Ask yourself these questions:
- Why do you want to buy a home? Are you looking to invest, start a new family or embrace a new lifestyle?
- What is the best type of home for you? Do you want a big yard, additional amenities or a maintenance-free lifestyle? Are you looking for a condo, townhouse, or a detached home?
- What area do you want to live in? Do you want the convenience of city living or are you willing to commute to work? Will you need to be close to schools and transit?
Now that you’ve figured out your motivation and the basic idea of what you’re looking for, you can start the home buying process.
Take A Look At Your Finances
Your finances are naturally the biggest piece of the home buying puzzle. Take a good look at your monthly income and spending habits, using my mortgage calculator to figure out a target amount for your home buying budget. Consulting with a mortgage broker and financial planner will increase your confidence and set realistic guidelines before you start house hunting.
In Canada, you’ll need at least 5% down for homes under $500,000, and that percentage increases for pricier properties. You’ll also need a credit score of 660 or higher to help you secure better mortgage rates.
Research First Home Buying Incentives
Here’s some good news: Canada offers several programs to help first-time buyers. The First Home Savings Account (FHSA) lets you save $8,000 yearly tax-free for your down payment. You can also borrow up to $35,000 from your RRSP through the Home Buyers’ Plan, or use a TFSA for flexible, tax-free savings. The government even offers an interest-free loan of 5-10% of your home’s purchase price through their First-Time Home Buyer Incentive.
Build Your First Home Buying Team
Since this is your first home, it’s a good idea to consult experts to make sure you are making the right move, accessing all the available incentives, and timing your purchase properly. Build relationships with professionals who can guide you – a mortgage broker to find the best rates, a financial planner who will help you look at the bigger picture of your financial goals, and a real estate agent who knows your desired area well. Eventually, you will also need a lawyer and home inspector to protect your interests – ask for recommendations from your other “team” members to find trusted experts that they’re used to working with.
Stay On Top Of The Real Estate Market
As you save up, keep tabs on the housing market in your target neighbourhoods using sites like MLS.ca and realtor.ca. It’s also a good idea to follow real estate websites for information on mortgage rates and trends in the market. Even better, work with a mortgage broker who will do all this research for you and keep you informed of the best times to take advantage of lower mortgage rates.
Be Willing To Change Your Plans
Stay flexible with your plans. Markets change, and so might your circumstances – maybe you’ll need more time to save, or perhaps a raise will speed up your timeline. The key is to keep moving forward while adjusting your strategy as needed. Consulting your mortgage broker will make it easier to understand the best options and timing for buying your first home so it’s a good idea to talk to one right away.
Ready to Take The Leap Into Home Ownership? Give Me A Call, I’ll Find The Best Rates And Options For You
Ready to make your homeownership dreams come true in 2025? Let’s get started! Whether you’re just beginning to save or ready to get pre-approved, as a mortgage broker and financial advisor, I’m here to guide you every step of the way.
Looking for the best rates and a stress-free home buying experience? Give me a call at 705-315-0516 or book a free consultation. Don’t wait – your perfect home is out there, and together we can make it yours!