Buying your first home comes with a lot of unknowns — and most buyers ask the same key questions.

Understanding these basics helps you avoid surprises and feel more confident in the process.

Here are the answers every first-time buyer should know 👇

1️⃣ What’s the best rate I can get?

Rates depend on your full application — not the ads you see online.

✔️ employment type matters

✔️ credit score matters

✔️ down payment matters

Advertised rates often come with conditions, restrictions, or short closing deadlines.

2️⃣ How much can I qualify for?

Lenders use debt-service ratios to determine your maximum mortgage amount.

✔️ they measure income vs housing costs

✔️ they factor in all monthly debts

✔️ they ensure the payment is affordable

A lower debt load means more borrowing room.

3️⃣ How much do I need for a down payment?

The minimum depends on the purchase price and type of property.

✔️ as low as 5% for owner-occupied homes

✔️ higher down payment for rentals

✔️ 20% avoids default insurance

A larger down payment reduces monthly payments and long-term interest.

4️⃣ What if I don’t have the full down payment?

There are acceptable sources of down payment beyond savings.

✔️ gifted funds from family

✔️ RRSP withdrawals (with repayment rules)

✔️ certain lender-approved borrowed funds

Your broker can structure the source properly so it meets lending guidelines.

5️⃣ What does a lender review when approving me?

Lenders look for overall stability and financial responsibility.

✔️ employment history

✔️ income type and consistency

✔️ debts and credit behaviour

✔️ property type and condition

They must confirm you can afford the home — and that the home is good security.

6️⃣ Should I choose a fixed or variable rate?

It depends on your comfort with payments changing.

✔️ fixed = predictable

✔️ variable = flexible

✔️ penalties differ between the two

Your risk tolerance and long-term plans determine the best fit.

7️⃣ What credit score do I need?

Higher scores unlock better rates and smoother approvals.

✔️ strong credit improves options

✔️ lower scores limit lenders

✔️ some lenders allow lower scores at higher cost

Your broker can show which lenders fit your score range.

8️⃣ What if my credit score isn’t great?

Most credit issues can be improved with the right steps.

✔️ keep balances under 30% of limits

✔️ avoid new loans before approval

✔️ clear any old or incorrect collections

Small changes can raise your score quickly if done consistently.

9️⃣ How much are closing costs?

Buyers should budget for additional expenses at closing.

✔️ legal fees

✔️ inspections

✔️ appraisal if required

✔️ land transfer tax (province-specific)

✔️ title insurance

A safe estimate is 1.5% of the purchase price, depending on the region.

10️⃣ How much will my mortgage payment be?

Payment amounts depend on several factors working together.

✔️ down payment size

✔️ interest rate

✔️ amortization

✔️ mortgage insurance

✔️ payment frequency

Your broker can calculate exact numbers based on your full application.

💬 Final Thought

Understanding these key questions in advance makes your first purchase smoother, easier, and far less stressful.

If you want personalized numbers based on your income, debts, and down payment, message The Frontline Mortgage Group anytime. 💬