Essential tips for first-time homebuyers in Canada: What you need to know in 2025

Buying your first home is exciting, but it can also feel overwhelming. Between rising prices, mortgage rules, and understanding what you can actually afford, it’s easy to feel lost. The good news? With the right information and a clear plan, you can navigate the process with confidence.

At Tingsapp, we know that buying a home often leads to planning your next big move. Just like our app makes moving easy, this guide is here to make your home-buying journey simple and stress-free.

Here’s what first-time homebuyers in Canada need to know in 2025.

 

Understand your budget

Before you start browsing homes, get clear on what you can actually afford.
Consider:

• Your income

• Monthly expenses

• Savings for a down payment

• Closing costs (like lawyer fees, inspections, and land transfer taxes)

In Canada, most lenders follow the "stress test" to make sure you can afford your mortgage, even if interest rates rise.
Tip: Use an online mortgage affordability calculator to get a starting point.

Save for your down payment

In Canada, you typically need:

• 5% down payment for homes under $500,000

• 10% down on the portion between $500,000 and $999,999

• 20% down for homes over $1 million

Saving early can help you reach your goal faster.
Some programs like the First Home Savings Account (FHSA) and the Home Buyers' Plan (HBP) can help you use tax-free savings or RRSP funds toward your down payment.

Get pre-approved for a mortgage

Mortgage pre-approval gives you a clear budget and shows sellers you’re serious.
When getting pre-approved:

• Compare rates from multiple lenders

• Ask about fixed vs. variable rates

• Check the mortgage term and payment flexibility

Getting pre-approved early can help you move quickly when you find the right home.

Understand first-time homebuyer incentives

There are several programs to help first-time buyers in Canada:

• First Home Savings Account (FHSA): A tax-free way to save up to $8,000 per year, up to $40,000 total.

• Home Buyers' Plan (HBP): Borrow up to $35,000 from your RRSP tax-free for your down payment.

• First-Time Home Buyer Incentive: The government offers a shared-equity loan to lower your mortgage payments.

• Land Transfer Tax Rebates: Available in some provinces and cities.

These programs can reduce upfront costs and make buying your first home more affordable.

Choose the right location

Think carefully about where you want to live.
Ask yourself:

• How long is the commute to work or school?

• Is the area safe and family-friendly?

• Are public transit, parks, or shops nearby?

• What’s the potential for future growth?

In cities like Vancouver, some neighborhoods are more affordable than others, but they may have longer commutes.

Work with trusted professionals

Buying a home is a team effort.
You may need:

• A real estate agent to help you find the right home and negotiate

• A mortgage broker to secure the best rate

• A home inspector to check the property’s condition

• A real estate lawyer to handle paperwork and protect your interests

A good team can save you time, money, and stress.

Don’t skip the home inspection

Even in a competitive market, always schedule a home inspection.
A professional inspection can reveal:

• Structural issues

• Plumbing or electrical problems

• Roofing concerns

• Hidden water damage

Knowing the true condition of the home helps you make a smart, informed decision.

Plan for additional costs

It’s not just the mortgage you need to budget for.
Other costs include:

• Closing fees (legal, appraisal, insurance)

• Property taxes

• Moving expenses

• Utility setup fees

• Ongoing maintenance and repairs

Tip: Set aside 1 to 3 percent of the home’s purchase price each year for future repairs.

Be patient and stay flexible

The real estate market in Canada can move fast, especially in places like Vancouver or Toronto.
It may take time to find the right home at the right price.
Stay flexible with your timeline, and remember:

• You might need to compromise on size or location.

• It’s okay to walk away if the numbers don’t work.

• New listings appear every day.

Trust that the right home will come.

Make moving day simple with Tingsapp

Once you’ve found your dream home, Tingsapp is here to make your move easy.
With Tingsapp, you get:

• Fixed pricing with no hidden fees

• Professional, trusted movers

• Simple booking and tracking through our app

Whether you’re moving a few items or your entire home, we’re here to help.

Download Tingsapp today and enjoy a stress-free moving experience as you start your next chapter.