Mortgages 101: Buying Your First Home
Getting a mortgage for your first home is a big financial commitment. The number of options can be overwhelming. Follow the three steps below to learn more about the mortgage process and how to find the mortgage that best meets your needs.
Step 1: Know what you need and want in a mortgage
- Down payment
find out how much money you need to put down to be able to get a mortgage. - Down payment financing option: Home Buyers' Plan
see how you could use RRSPs for the down payment. - Mortgage payments: understanding interest versus principal
learn how your mortgage payments are applied to the loan. - Choosing an amortization period
see how this affects how much interest you pay. - Choosing a mortgage term and type
look at your options before making your choice. - Understanding fixed and variable interest rates
read about the differences and how the decision will affect your payments. - Frequency of payments
see how accelerated payment options can save you thousands of dollars. - Mortgage default insurance
get the details and examples of how this works. - Other insurance options
learn about other mortgage insurance you may be offered. - Mortgage option: Cash back
things to consider before you commit.
Step 2: Shop around and get pre-approved
- Before you start shopping around for a mortgage
make sure your credit report is in order to avoid problems. - Understanding the pre-approval process
find out how the process works and get prepared. - Qualifying for a mortgage
understand the formulas used to calculate your borrowing limit.
Step 3: Make the right decision for your needs
- Other costs to consider
get prepared for the other costs involved in owning a home. - Your rights and responsibilities
learn about the information you must receive to help you understand key details of your mortgage.
Related Resources
- Mortgage Qualifier Tool
Find out if you qualify for a mortgage for the property you want. - Mortgage Calculator Tool
Look at your payment options to see when you can be mortgage-free. - Budget Calculator
Plan your budget to help achieve your financial goals. - Mortgage Quiz
Test your mortgage knowledge.
- How will my penalty be calculated if I break my mortgage before the end of my current term, so I can take advantage of lower interest rates?
- Can my financial institution make me take out insurance when I apply for a loan or a mortgage?
- Can my financial institution refuse to provide me with a copy of my mortgage appraisal, even though I've paid for it?
- What's the difference between coercive tied selling and beneficial tied selling?
- How does the amortization period affect the cost of my mortgage?
- Can I refuse to provide my financial institution with information about my income when I renew or apply for a mortgage?
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