Buying your first home can feel like standing at the base of a mountain you’re not sure you can climb. At Nowik Mortgage, we’ve helped clients across Alberta, including Calgary and Nanaimo, reach the dream of homeownership by getting smart about every part of the process – from deposits to purchase timing to working with a mortgage and home insurance broker early on.
Understand What You’re Up Against
Canada’s housing market is tough. Investor demand is driving up prices, especially in urban centres like Calgary, Toronto, and Vancouver. The average first-time buyer today is almost a decade older than in the 1980s, and the average home price has outpaced incomes. Amortization periods have shortened, making mortgage qualification harder. So what does that mean? It means you need more than a deposit – you need a plan.
Boost Your Down Payment And Borrowing Power
The more you can put down, the less you need to borrow, and that has a direct impact on how easily you can qualify for your mortgage.
Some of our clients have combined savings accounts like the FHSA and RRSP Home Buyers’ Plan to maximize their funds. Others have automated their savings, taken on freelance work, or received family gifts.
Improving your credit score above 680 can also open the door to better mortgage terms. And don’t forget to keep your debt-to-income ratio in check – it’s one of the first things lenders look at.
Get Creative With Your Property Choices
We always encourage first-time buyers to think beyond the traditional dream home. Smaller homes, condos, townhouses, and properties with secondary suites can be more attainable starting points. Buying during off-peak seasons like winter can also give you more negotiating power.
Teaming up with a partner or friend? A formal co-ownership agreement can make this a smart, affordable option. Buying outside the city centre or in emerging markets can help you stay within budget while still building equity.
Use The Property To Work For You
If your property has income potential, use it! Renting out a basement suite or spare room can offset monthly payments.
Leverage Tactical Mortgage Planning
Choosing the right mortgage structure is as important as choosing the right house. A longer amortization period or a more flexible term can make qualification easier. Comparing mortgage rates between lenders is a must, and something we do every day for our clients as mortgage and home insurance brokers.
Look into land transfer tax rebates for first-time buyers and ask your employer if any homeownership programs are available.
Final Thoughts
Owning a home in today’s market isn’t impossible – it just takes a smarter approach. With the right plan, personalized guidance, and a trusted mortgage team on your side, you can stop renting and start building equity sooner than you think.
Talk to a home insurance broker and mortgage expert today.