YOUR HOME BUYING JOURNEY STARTS HERE

As of January 1, 2022, the Real Estate Services Act (RESA) came into effect. One requirement of RESA is that all clients receiving services must have a service agreement with their agent. This agreement outlines the services provided when buying or selling a home, ensures your agent is representing you, clarifies expectations, and allows me to fully dedicate my expertise to your transaction — from finding or marketing a property to negotiating and closing the deal.

Pre-qualification is an informal estimate of what you might be able to afford, based on the financial details you share. Pre-approval is a more in-depth process where a lender or mortgage broker reviews your income, credit, and debt to confirm the mortgage amount you qualify for.

A deposit is a portion of money paid to show the seller how serious you are about buying the home. It’s typically required within 24 hours of offer acceptance and is held in trust by the listing brokerage. Deposit amounts generally range from $5,000 to $25,000, depending on the purchase price.

A down payment, on the other hand, is the portion of the home’s purchase price you pay upfront when finalizing your mortgage. For example, if you’re putting 10% down on a $400,000 home, the total down payment would be $40,000. If your deposit was $10,000, you would only need to pay the remaining $30,000 to complete your down payment, usually about a week before possession.

Closing costs usually range from 2–2.5% of the purchase price for houses, and around 2.5– 3.25% for condos, depending on the price point. These costs can include legal fees, title insurance, land transfer tax, and adjustments for property taxes or utilities. In Manitoba, land transfer tax is often one of the largest expenses and is calculated based on the home’s value.

With the federal Home Buyers’ Plan (HBP), first-time buyers can withdraw up to $60,000 from their RRSPs (per individual) to use as a down payment, tax-free. The funds must be repaid over 15 years.

CMHC mortgage insurance protects the lender if you default on your loan. It’s required when your down payment is less than 20% of the purchase price. The premium depends on the size of your down payment and is usually added to your mortgage.

A fixed-rate mortgage locks in your interest rate for the term, providing stability in monthly payments. A variable-rate mortgage historically has been a better overall rate but can fluctuate with the market. The right choice depends on your risk tolerance, budget, and where interest rates are headed.

There’s no “right” number. Some buyers find the right fit after two or three showings, while others need to see 10 or more. The key is knowing your priorities, budget, and working with a REALTOR® who can filter homes that truly match your needs.

In Canada, the minimum down payment is 5% on the first $500,000 of a home’s purchase price and 10% on the portion above $500,000. For example, a $600,000 home would require a minimum down payment of $35,000 (5% of $500,000 = $25,000, plus 10% of the remaining $100,000 = $10,000).

While you can’t purchase a home with 0% down directly, some buyers use alternative strategies to fund their down payment, such as borrowing against equity in another property, receiving gifted funds from family, or using RRSP withdrawals through the Home Buyers’ Plan.

Keep in mind that any borrowed funds increase your overall debt load, which lenders will factor into your mortgage approval, and not all down payment sources are accepted by every lender.

The First Home Savings Account (FHSA) is a registered account that helps first-time buyers save for a down payment in a tax-efficient way. Contributions are tax-deductible, and qualifying withdrawals used to buy a first home are tax-free.

Quick facts:

Up to $8,000 per year, $40,000 lifetime per individual.- 
Must be a first-time buyer and at least 18 years old.
Funds can be invested and grow tax-free.
Unused funds can generally be transferred to an RRSP or RRIF if a home isn’t purchased.
Eligibility and rules are subject to federal regulations. Buyers should confirm details with their financial institution or tax professional.