A first-home mortgage plan starts with a documented down payment, an affordable household budget and a separate closing reserve. Pre-approval is conditional; final financing still depends on you and the property.
Start with a budget you can live with
Before you shop, consider both the lender’s maximum and a payment that leaves room for your life. Property taxes, utilities, insurance, repairs and closing costs all belong in the plan.
Understand pre-approval
A pre-approval is a conditional assessment, not a promise of final financing. The property, appraisal and your financial circumstances still need to meet lender requirements. Ask which documents have been reviewed, how long any rate hold lasts and what conditions remain.
From an accepted offer to closing
Once you find a home, timing matters. We help organize your financing file and explain outstanding lender conditions. Your lawyer or notary handles the legal closing and confirms your final cash requirement.
- Review the financing condition before removing it.
- Keep the source of your down payment documented.
- Tell your mortgage professional before changing jobs or taking on new debt.
Separate three cash requirements
Plan the deposit due under your purchase agreement, the down payment required by the lender and the additional cash required at closing. The deposit is generally part of the purchase funds, but its timing may be much earlier. Ask your lawyer and mortgage professional to reconcile the amounts and dates.
An example of available cash
Illustration only: a household with $90,000 in savings that sets aside $15,000 for closing expenses and $10,000 as a reserve has $65,000 left to consider for a down payment. This does not determine an affordable property price or confirm a minimum down payment; those require a separate calculation and lender review.
First-time buyer definitions can differ
A federal savings program and an Ontario land-transfer-tax refund may use different eligibility tests. Previous ownership, a partner’s circumstances and residency can matter. Check each program separately rather than assuming that one approval establishes eligibility for all benefits.
Questions to bring to your mortgage conversation
Does pre-approval guarantee the home I choose will be financed?
No. The lender still reviews the property, appraisal, documents and outstanding conditions. Confirm what remains before removing a financing condition.
Can a gifted down payment be used?
Lenders may accept gifts subject to their requirements. Explain the source and obtain the requested evidence; do not assume borrowed funds will be treated as a gift.
How does this apply to your plans?
No obligation. A personal conversation with Tajwar.
Further reading: FCAC: Preparing for a mortgageFCAC: Down paymentsFCAC: choosing a mortgageOntario: first-time homebuyer refund
General information, not a commitment to lend. Mortgage eligibility, costs and terms depend on your circumstances and the lender.