First-Time Buyer Mortgage Guide (Ontario): A Clear 7-Step Path

Buying your first home is exciting—and confusing. You’ll see new terms, lots of documents, and a flood of opinions. This guide is the simple version: what matters, what doesn’t, and how to move from “curious” to “keys in hand.”

What you’ll get here: A plain-English overview of the mortgage journey in Ontario, plus a quick checklist and answers to the questions I hear most. No rate spam, no hype.

1) Clarify your goal and timeline

Decide your must-haves (location, bedrooms, commute) and your when (e.g., “within 3–6 months”). This helps align pre-approval limits, closing dates, and how long your rate hold needs to cover.

2) Know the numbers that actually matter

• Down payment: Save what you can; lenders mainly care that it’s proven and from acceptable sources (e.g., savings, eligible gifts).
• Monthly comfort zone: Work backward from a payment you can live with year-round, not a max.
• Debt picture: Lower balances and clean, on-time payments help your overall qualification.

Quick tip: Before you shop, pull your own credit report and fix obvious issues (old addresses, errors). Small fixes can improve terms.

3) Get a real pre-approval (not just a calculator result)

A genuine pre-approval reviews income, liabilities, and down payment documents and can hold a rate for a period of time. It prevents surprises when you make an offer and helps your Realtor negotiate with confidence.

Have ready:

• Government ID
• Recent pay info (or business financials if self-employed)
• Down payment history (bank statements / gift letter if applicable)
• Summary of liabilities (cards, loans, lines of credit)

4) Shop homes with your numbers in mind

Share your maximum and your comfortable target with your Realtor. Ask them to flag properties with things that can impact financing (e.g., legal vs. non-legal basement suites, condo special assessments, unusual property types).

5) Offer accepted? Move fast on the mortgage file

Submit the purchase agreement and MLS listing right away. Your lender will confirm income, review property details, and—if needed—order an appraisal. Respond quickly to any document requests to keep closing on schedule.

6) Lawyer & closing day checklist

Your lawyer will handle title searches, tax adjustments, and closing funds. You’ll bring ID, insurance info, and any remaining down payment/closing funds as directed. I coordinate with your lawyer so funds arrive on time.

7) After you get the keys

Set up auto-payments, keep an eye on prepayment options, and plan a reminder to review your mortgage well before renewal. Good mortgage strategy continues after closing.

Mini-FAQ

Do I need 20% down? Not always. Many first-time buyers purchase with less than 20% down using an insured mortgage. The “right” down payment balances cash flow, emergency savings, and long-term plans. (We’ll tailor this to you.)

What’s the “stress test” about? Lenders must qualify you at a higher test rate than your contract rate. It’s there to ensure you can handle payment changes. I’ll translate how it applies to your file in plain numbers.

Will a gift from family work? Often, yes—if it’s properly documented with a signed gift letter and funds are traceable. I’ll give you the exact wording/template and timing.

I’m self-employed—am I out of luck? Not at all. Lenders look at income differently. We’ll build a file that reflects your real income picture using the right documentation.

How long does a pre-approval last? Typically long enough to shop comfortably; we can refresh it if timelines shift.

What to do next

Serving Markham/Unionville and clients across Ontario.

About me

I’m Man Fung, Mortgage Agent Level 1 with Caliber Mortgage Inc. I help first-time buyers make smart, confident decisions—without jargon.