If you are a first-time home buyer in 2024, you need to read this blog before moving ahead in your home-buying journey. ​​As the real estate market and mortgage interest rates stabilise, you now have more time to spend on every step of the process. Cost of living has grown more than expected and should be considered before you invest your money in a house.  

Here are 7 tips for Canadian first-time home buyers in 2024: 

1. Check your finances 

First-time home buyers in Canada can purchase a house with just 5% down payment for properties under $500K. If a property costs more than that, you will need a 10% down payment on the amount over $500K. As you save for down payment, work on increasing your credit score because that's how you'll secure a low interest rate at favourable terms. Lastly, make sure that you still have funds for emergencies and closing costs. 

2. Get pre-approved for a mortgage

Mortgage pre-approval is a step where a lender evaluates your financial situation to determine how much they're willing to lend you and at what interest rate. Getting pre-approved helps you understand what you can afford, which in turn helps to narrow down search and place an offer with confidence. 

3. Look up government incentives

The First-Time Home Buyer Incentive allows eligible buyers to finance a portion of their home purchase through a shared equity mortgage with the Government of Canada. Then there's the Home Buyers' Plan that allows home buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home. 

4. Calculate total cost of homeownership

Property taxes, home insurance, maintenance, and utility bills are ongoing costs that can add up. Keep funds aside for the first few months of expenses along with any money you'll need for renovations, buying furniture and other home needs, and for emergency fixes. 

5. Choose the Right Mortgage

As a Canadian, you can choose between fixed-rate and variable-rate mortgage. Fixed-rate mortgages offer stability with consistent payments throughout the term, a recommended path for homebuyers in 2024 since we are expecting rate increases in the near future. On the other hand, variable-rate mortgages might offer lower initial rates but come with the risk of increasing payments. Only choose this route if you plan to sell the property within the next couple years. 

6. Have a backup plan in place

In a competitive market, flexibility and realism are key. You might not find a home that checks every box on your wishlist. Prioritise your needs over wants and be prepared to compromise. If you don't like any properties in your budget, you can look into assignment sales of pre-construction projects that are nearing completion in the next couple years. It's slightly different from traditional real estate sales and can only be done through a trusted realtor. Realtor Catherine Nacar would be happy to help you understand assignment sales and find you a good property in the Greater Toronto Area. 

7. Always get a professional home inspection done 

Once you've found a property that satisfies your wishlist, make a conditional offer that includes a home inspection clause. While you'll have to bear this expense, it prevents you from unplanned expenses in the future, which can go into the thousands of dollars. It also gives you negotiation power and likely reduces the selling price, if there are major issues to be fixed. 


For more first-time home buyer advice and tips, visit Realtor Catherine Nacar's website.