Is Your "War Chest" Ready for the Housing Market?

Most first-time buyers start with listings, but the real work happens before the first showing. From maximizing your FHSA to locking in the 2026 RRSP limits, we’ve mapped out the essential “pre-shopping” checklist.

The Pre-Game

Before we begin looking at homes, you need to look at your bank accounts; the foundation on which everything is built. First things first, grab a copy of your credit report. It’s best to do this early so you can give yourself time to dispute any errors or to pay down balances. Next, decide where your down payment will be coming from (savings account, an investment, or a gift from family). Note that a down payment can be as little as 5% of the purchase price. Third, there are programs in place to help you save and to withdraw those saving tax-free for your home purchase. Those programs are the First Home Savings Account (FHSA) or the RRSP Home Buyers’ Plan (HBP). Lastly, apart from the down payment, it is absolutely crucial to set aside roughly 2-4% of the purchase price for land transfer taxes (Ontario offers first-time home buyers up to a $4,000 rebate), legal fees (you will require a real estate lawyer to handle the closing), home inspection (do not skip this step), and title insurance. 

Assemble Your Dream Team

Surrounding yourself with trusted professionals who actually have your back can save you thousands of dollars and endless headaches. You don’t have to navigate this venture alone. Finding a trusted mortgage broker can help you work out the best plan of action for your goals. They shop across multiple lenders and platforms to find you the best rates with ideal terms, rather than locking you into one bank’s default rates. The next step is to partner with a buyer’s agent. Ask friends and family who they’ve worked with, shop online, have a look and see who is active in the area you are interested in and contact a few of them for an interview. Remember that they are vying for your business, so there is no need to feel any pressure or obligation to work with any of them. Look for someone who answers your questions patiently and really understands your needs. After this, line yourself up with a real estate lawyer. Again, ask for a friend’s referral, shop online and read the reviews. The best price isn’t always the best for your protection. This is likely the biggest investment of your life, so it is best practice to protect yourself and your investment with the best. 

Get Officially Pre-Approved

Your lender will gather your paperwork (recent pay stubs, T4s/tax returns, Notices of Assessment, and proof of down payment, and then this is where it starts to feel real. You get your budget, you’ll know how much you’re able to borrow, and you’ll have a rate locked in for 90-120 days (if a better rate or option becomes available, you will have the capability to have the better option). An important thing to consider: just because you qualify for a certain amount doesn’t mean you have to spend it. Ask your lender to calculate your monthly payments for you. You want to manage it so you are able to still enjoy life, travel, and buy groceries without making sacrifices. 

The Fun Part (House Hunting)

Your pre-approval letter is in hand, you are officially a serious buyer and in the market. Now you can hit the pavement with confidence! It’s time to separate the “Must-haves” from the “Nice-to-Haves“, and don’t be afraid to be a little ruthless here. Things like having 3-bedrooms and being close to public transit are very important to you, they’re your non-negotiable criteria, and that is key information for your real estate agent. You can also start scoping out your target neighbourhoods to see what life is like during the day, rush hour, mid-day or in the evenings. Aside from the home itself, the overall vibe of a neighbourhood or community is key, and a good local agent can help to ensure that you are informed. Once inside a chosen home, be sure to look past the furniture and the decor (the lipstick). What’s happening behind those things? How does the roof look? What about the windows, the electrical panel? Can you smell or see any sign of moisture in the basement? These are all good questions to ask your agent, and after acceptance of an agreement to purchase a home, your home inspector. 

From Offer to Keys

You’ve done it! You’ve found the home you envision living your life in. Time to cross the finish line. Your agent will gather all of the necessary paperwork, ensure you understand what it is you will be signing, help you decide on a competitive offer price, and insert added conditions to the offer to ensure your protection (financing and home inspection conditions typically are 5-7 business days depending on the market). Being a first-time buyer, a home inspection is crucial. Any decent certified home inspector should be able to tell you if there are major costly issues, minor issues, potential major or minor issues, what to keep an eye on, etc to ensure you are not buying a money pit. 

The housing market can move quite fast, but by having a checklist like this at hand keep you in the driver’s seat. Download or print this list, check off that first box, and let’s get you into your very first home!