While the journey to first-time homeownership can be full of dizzying highs and lows, understanding the mortgage process can make the trip a lot smoother.

Once you’ve applied and been pre-approved for a mortgage you can start your home search with confidence, knowing what you can afford.

There are generally four things first-time home buyers should do before applying for a mortgage:

1. Establish your home buying team

2. Budget beyond the home purchase price.

3. Get pre-approved for a mortgage

4. Organize your financial statements

Let’s take a more in-depth look at what you need to know when prepping for a mortgage application.

First, what is a mortgage and how does it work?

In simple terms, a mortgage is a loan given by a bank or mortgage lender used to buy real estate. It typically involves multiple parties who all play an essential role in the application process, such as:

• the lender (this could be a bank, credit union or private institution);

• mortgage advisor; and

• the borrower (or buyer).

The buyer uses funds from a mortgage loan to pay the lender for the property and the buyer repays any money borrowed, plus applicable interest and fees, over a set duration at regular intervals.

A portion of each payment is used to pay down the amount borrowed (also known as the principal) and a portion of the payment is applied to interest. The mortgage is registered on the property with the applicable provincial or territorial land registry office.

In many cases, the buyer can move into the new home as soon as the closing is complete (although the terms of the sale/purchase agreement can sometimes specify a later move-in date).

Below are some other important terms related to mortgages.

📅 Amortization period

This is the length of time it takes to pay off a mortgage in full.

📈 Interest rate

This is the cost you pay to borrow money. It can be fixed or variable. A fixed rate stays the same for the duration of your mortgage term, giving you predictable payments. A variable rate fluctuates with the lender’s prime rate, so your mortgage payment can fluctuate as the lender’s interest rate goes up and down.

💳 Payment frequency

The number of payments you make over a year is known as the payment frequency. Payments can be made monthly, bi-weekly, or weekly. Some lenders also allow for double-up payments which let you make additional payments on top of your regularly scheduled payment, helping you pay down your principal faster.

The way in which a mortgage is structured is unique to the financial situation of each borrower. A mortgage agreement can be impacted by many factors, including credit score, debt-to-income ratio, and salary. It’s important to speak with a mortgage advisor who can look at your full financial picture and build a mortgage that meets your life needs.

1. Establish your home buying team

Buying a home isn’t something you should do alone. Before you start browsing listings, make sure you have the right people in your corner.

🏦 Mortgage specialist

Connecting with a mortgage specialist is usually a good first step in the mortgage application process. The earlier you connect with them, the more time you have to strengthen your position before you apply. An RBC Mortgage Specialist can help you:

• clarify the application process;

• understand what you can realistically afford;

• walk you through your mortgage options; and

• get you set up for pre-approval.

Once you find the home you’d like to purchase, a mortgage specialist will work with you to design a mortgage—including the interest rate type, payment frequency and amortization period—that’s right for you.

🏡 REALTOR®

A REALTOR® brings local market knowledge, negotiation experience, and access to listings that can make a real difference in a competitive search. They can help you narrow down your options and guide you through the offer process with confidence.

🔎 Home inspector

Once you find a property you love and are serious about making an offer, a qualified home inspector can help make sure there are no costly surprises hiding behind the walls, in the attic, with the foundation, or with the structure of the home. If you have one in your corner early on, it can help speed up the offer process, too.

⚖️ Your real estate lawyer or notary

They handle the legal side of your transaction like reviewing contracts, managing title transfers, and making sure everything is in order on closing day. In Quebec, a notary is required by law; in other provinces, a real estate lawyer fills this role.

2. Budget beyond the home purchase price

Budgeting is another important element of preparing yourself to apply for a mortgage. Getting pre-approved can give you an idea of what you might be able to afford, which can give you a good starting point.

A budget isn’t just about the purchase price. First-time home buyers are often surprised by how many costs come alongside it like closing costs, home insurance, property taxes, and maintenance.  When you map all of that out upfront, you make decisions with a lot more confidence and a lot less stress.

Just because a buyer is pre-qualified for a certain loan amount, doesn’t mean they’d be comfortable making those mortgage payments at the current interest rate. Make sure you use an online affordability calculator to give you a better sense on where you stand, financially. RBC has their Mortgage Affordability Calculator that can give buyers a sense of the total costs associated with purchasing a home, including heating costs and property tax. REALTOR.ca also has an affordability calculator, making it easy to figure out finances when one listing turns into 20 tabs and a completely new five-year plan.

3. Get pre-approved for a mortgage

A mortgage pre-approval is when a lender formally reviews a borrower’s income, debts, and assets. Pre-approvals are typically valid for three to four months. This is an exciting step in the mortgage application process because buyers can use this information to make serious offers on properties. Some sellers prefer when buyers are pre-approved, as it’s less likely the deal will fall through due to financial issues.

Here’s more information on a pre-approval, including what you need to get started.

Pre-approval is also a great time for buyers to consider the pros and cons of the different mortgage types available to them.

When a buyer comes in pre-approved, the whole process moves faster and with fewer surprises. We’ve already reviewed your income, your debts, your assets. So when you find the right home, there’s no scrambling. The financing piece is handled, and everyone at the table knows it. Just as importantly, a pre-approval also gives you the confidence to house hunt and submit an offer knowing what you can actually afford.

4. Organize your financial statements

First-time home buyers should organize all the necessary financial documents early on in the mortgage application process. Lenders will need this information to process the loan.

The financial documents required typically include:

✓employment and income verification (i.e. copy of recent pay stubs);
✓confirmation of your down payment (i.e. savings or investment statements);
✓a pre-approval certificate; and
✓bank account statements.
Once an offer is accepted, the mortgage application process tends to move swiftly. Having the right documents in place ensures first-time home buyers can finalize their purchase as quickly as possible. It’s also important to secure these documents in advance if a home purchase takes place during a holiday when banks and major financial institutions are closed.

When offering home buying advice to clients, Atwal recommends narrowing the search to homes that align with both lifestyle needs and pre-approved budget.

“It’s about what type of home you would love, as well as what works for your whole financial picture. The clearer you are on that going in, the more confident every decision feels.”

Here’s where the realistic budget comes in handy. A lender may refuse to finance a home if the offer price is higher than what the buyer can afford. Sticking to a budget can help first-time buyers avoid rejection.

While shopping around, buyers should also consider what kind of home they want to live in. Fixer-uppers or unfinished homes have very different financing implications than move-in-ready properties.

Getting the right mortgage can be as important as finding the perfect property. If you’re looking to purchase your first home or property, Eileen or Jesse can help with everything from house hunting to selecting a mortgage specialist.

Getting your home ready to sell can take some work, but it’s worth it to help maximize your opportunity for the best offers possible. Sell it, toss it, donate it. If you haven’t used it in the last six months, it’s got to go. Buyers believe the way they view the home is how they’re going to live in it, so make sure it’s looking as ready as possible!

It’s important to not get overwhelmed by the process. It’s easy to go down a rabbit hole of downsizing and decluttering when you’re looking to list. Your closets and garage do not have to be perfect. Focus on your main living areas and ensure those spaces look fresh and bright.

Remember: renovations aren’t mandatory when preparing your home to sell

Before you go and spend thousands of dollars on updating your kitchen or bathroom for purely aesthetic reasons when trying to sell your home, check in with your REALTOR® to see if that’s necessary. Everyone thinks you need a new kitchen or bathroom to sell a home and that’s not the case. Many buyers love a house that hasn’t been updated as long as it’s been cared for and clean. A clean home goes a long way!

What to do in the kitchen before listing your home

Even though you may not have to fully renovate your kitchen before selling, you still should make sure it’s in tip-top shape for any walkthroughs or open houses. Keeping the space bright, clean, and organized is crucial.

To get your kitchen ready for selling, clear all surfaces—for photos and showings you want the countertops to be clutter free. Having everything put away shows potential buyers you have enough storage for all of your kitchen appliances and knick knacks.

No one likes cooking or baking in the chaos of a dirty, unorganized kitchen. You’ll have buyers open cupboards to check to see how much storage is available, so try to make sure what they find isn’t off putting. Ensure there are no cooking odours from the day before, and that garbages and recycling bins are empty.

Ask yourself these questions about the kitchen:

• Refrigerator spotless inside and out? 

• Is it organized? Spoiled food discarded? 

• Frost removed in the freezer? Light bulbs working? (Buyers look!) 

• Oven and  stove top clean? Burner trays cleaned? 

• Sinks clean? Faucets working properly and leak-free?

• Garbage disposal in good working condition? 

• Dishwasher clean and stain-free?  

Is your bathroom ready for prospective home buyers to see?

Similar to kitchens, it’s essential for bathrooms to look and smell clean. Shelves should be organized and highlight the amount of space that’s available. New towels should be put out and garbage bins emptied. Make the buyers feel welcome with a scented candle or plug in, but make sure it’s not too strong—that can be off putting as well. The main thing is getting the clutter off the counters just like your kitchen.

Ask yourself these questions about the bathroom:

• Fresh soap on display?

• Sinks spotlessly clean, faucets working properly?

• Tub and shower surfaces clean? 

• Towels stain-free and hanging neatly?

• Shower curtains clean and in good repair? 

• Toilet extra clean and working properly? 

• Medicine cabinet cleaned out? 

Preparing your living room, dining room, and bedrooms before your home hits the market

Your living areas—including living rooms, dens, dining rooms, studies, and bedrooms—need to be inviting to potential buyers, and not overloaded with personal items that detract from the space itself. Sometimes that means finding inexpensive items to replace what you currently have. Staging the furniture to use the space efficiently is key as well. Think of how photos would look.

For bedrooms they need to feel comfortable and relaxing, not chaotic. It’s best to put away most of the family photos, jewelry boxes, etc.—anything that sits on top of a night table or dresser. And, the bed must be made. All of this is an effort to show the person who owns the home is really looking after it and they are on top of things. This impression is carried through to all other aspects of the home, like cleaning, maintenance, and overall care.

Ask yourself these questions about the living room, dining room, and bedrooms:

• Everything thoroughly vacuumed/dusted? 

• Excess furniture removed?

• Remaining furniture clean and in good repair? 

• Wood and other surfaces clean and polished?

• Bookshelves neat, organized and clutter-free?

• Children’s games/toys stored neatly? 

• Fragile items removed and stored? 

• Smaller valuables removed/locked away? 

• Window coverings open for views and sunlight?

• Mirrors clean and in good repair? 

• Fireplace clean, logs/kindling stacked neatly?

What to do with your home’s yard before listing

Outside your home is also important when it comes to selling. Your front yard needs to make a great first impression, and any other yard space should make it easy for potential buyers to envision how relaxing it would be to enjoy. Make sure no kids’ toys are left on the lawn and all landscaping lights are working. Make sure your gate latches are working and functional. First impressions are everything and the exterior of the home is your first impression.

Cut your grass, maintain weeds, remove any debris from the yard. You want people to be able to imagine throwing a ball in the yard and being able to use it in whatever way they may have in mind. You don’t want them to envision how much work they would have to put into it.

Ask yourself these questions about the yard:

• Driveways and sidewalks clear of snow and ice? 

• Lawns freshly mowed/edged? 

• Large bare spots repaired? 

• Trees pruned, hedges trimmed? 

• Flower beds weeded and tidy; dead plants replaced?

• Junk and scrap removed? 

• Lawn furniture clean, organized, and in good repair? 

• Bicycles, children’s toys stored neatly?

• Firewood organized and neatly stacked? 

• Dog runs secure, yard free of “doggy deposits”?

What people often overlook before putting their home up for sale

Cleaning your windows is a big one. Wiping down light switches and baseboards goes a long way, as well. When those things are clean it gives the buyer confidence that other, perhaps more important things, are taken care of. If you have dark bedding, consider replacing it with a lighter colour—it brightens the room and photographs so nicely. 

At the end of the day, Eileen will help ensure your home is in the best shape possible before listing, but there are some things you can start doing in advance to help move the process along.

What if I can’t find something that checks every box on my list?

It’s completely normal that a home buyer might have to make some compromises or consider renovations in any home they buy to make it function perfectly for them.

This happens and sometimes you have to recheck those boxes and pick the most important ones to you. You also have to take into consideration what’s realistic within your budget. I want Khloe Kardashian’s house as it checks all my boxes, but I know it’s not realistic for my price range.

When a buyer struggles to find a home that meets all their criteria, we advise prioritizing the list into ‘essential’ and ‘desirable’ features. We focus the search on properties that meet the essential requirements, while offering creative solutions or compromises for the additional desires, ensuring you find a home that fulfills your most important needs.

What if I buy/sell now, but prices drop/rise? 

Real estate is cyclical. There’s no ‘right time to buy.’ The main factor is ensuring what you buy is something you’re going to be happy with, whether you have a five or 20-year plan. Everyone’s situation is different—some need to sell in a specific time frame due to many factors. REALTORS® are here to advise you on what could be in your best interests to ensure you’re getting the outcome you’re looking for.

There’s no crystal ball to predict the future market—it’s influenced by various factors. What’s important is whether you’re comfortable buying or selling in the current market. If the timing is good for you and your family, then it’s the right time to make your move. Understanding your comfort level with market fluctuation is important in making informed decisions. Ultimately, this decision to buy or sell should be based on your individual circumstances, financial goals, and understanding current market conditions. REALTORS® and financial advisors can provide some insights into market trends and help you make informed decisions.

What if my home sells before I buy a new one? 

There can be both opportunities and challenges to selling your home first. Selling your current home first can give you a better understanding of your financial position, as you’ll know how much equity you have available for your next purchase. As a buyer making an offer without the contingency of needing to sell, you may have stronger negotiating power and a more attractive offer. However, if you sell first you may need to arrange for some temporary housing.

The pressure then is to find a new home, as you have a specific timeline before vacating your current residence. You’ll also need to plan for storage solutions for your belongings during the transition, which could be renting a storage space or finding temporary storage solutions. Communicate with all parties involved, including your REALTOR® and potential buyers/sellers. This way everyone is apprised of timelines and any potential challenges.

If you’re in the process of selling and buying at the same time, it’s a good idea to have a plan in place before even starting the process. In case your home does sell before you find a new one, ask yourself if you’re able to rent or live with family members for a few months. Can you put some of your belongings in storage? Go over your options so you aren’t left in a stressful situation. Best case scenario, everything will line up for you, but you can never know, so plan ahead!

What if I can’t find a home in the neighbourhood I want? 

Location is No. 1 when buying a property. If you’re wanting a certain location or area of the city and nothing is becoming available, just be patient.

If a client can’t find a home in their preferred neighbourhood, we’ll suggest exploring similar areas that offer comparable attributes to the neighbourhood the buyer is seeking.

What if I get cold feet while I’m looking at homes?

It happens. Buying a home is a big decision and investment. Finding a Realtor you click with and who can guide you through the process can also be really important in how you feel. When you have poor guidance, it’s hard to feel comfortable in any situation.

It’s OK to have reservations, and it’s important to address them promptly and proactively. Your REALTOR® is there to support you and make sure you feel satisfied and confident in finding the home that feels right for you. If you feel you need to back away and pause for a while, be upfront with your REALTOR® so they can respect that, and halt scheduling showings until you feel ready. If there are specific challenges, discuss them with your REALTOR® so you can find some solutions together. You need to be sure of your decisions once you think you’re going to write an offer, as walking away after an offer gets accepted opens you up to the possibility of losing your deposit.

When a client gets cold feet while looking at homes, a REALTOR® digs deeper into understanding the source of the buyer’s apprehension. We revisit the client’s priorities to ensure the home search is in alignment with their true needs and desires, providing reassurance and guidance throughout the process. The buyer is in the driver seat and we’re there to be a trusted guide.

What if my home needs a lot of repairs when it’s time to list it?

Your REALTOR® will be able to come in and let you know what could be worth repairing. No sense dumping a ton of money into the property if it isn’t going to have a factor on what it can sell for. Your REALTOR® should have connections with contractors and other tradespeople to bring in and give you quotes and opinions on what’s truly necessary.

If you feel your home needs many repairs, ask your REALTOR® to come and give their expert opinion on what repairs they think could add value to your home and which would not. If you’re on a tight budget, your REALTOR® can give you an idea of what your home is worth without repairs and you can make a decision if selling is right for you without completing them.

What if I submit an offer on my dream home and it gets rejected?

Work with your REALTOR® to structure the best possible offer you can. If it’s truly your ‘dream home’ you don’t want to leave anything on the table and lose it knowing you had more to give. Especially in multiple offer scenarios, you need to come to play ball.

If you submit an offer and it’s rejected, you can always submit a new and more appealing offer for the seller to consider. If that’s not possible, remember, ‘if not this, something better.’ There’s a reason it didn’t work out, and there’s a home out there that’s better for you.

What if I don’t see anything I like when I start looking?

Sometimes it takes looking at 20-plus homes, sometimes it just takes one to find something you like. Don’t get discouraged, you’ll find the right one.” 

Don’t feel defeated. Trust the process and ‘the one’ will come and you’ll know it as soon as you walk through the doors.

If a client doesn’t find appealing options initially, a REALTOR® views this as part of the process. We use the client’s feedback to further tailor the search, we ask lots of qualifying questions to provide insight into any disconnection. Depending on the market conditions, supply that matches the buyer’s goals may simply be low and patience may be the key.

What if I put in an offer and then the home fails inspection?

In Saskatchewan, buyers can add a home inspection as a condition and in the event the buyer is unhappy with the report, they have the option to walk away, with a fully refunded deposit.

If major issues come up, it’s an opportunity for you to walk away from the deal, but if it’s something that can be fixed. Negotiate that the seller fixes it or takes the cost of repair off of the purchase price. You have options!

Sometimes there are unexpected issues that come to light during a home inspection. REALTORS® should thoroughly review the inspection report with the client. Often follow-up appointments with skilled tradespeople are necessary to provide further insight and quotes into the issues and concerns. We discuss the implications of these issues and negotiate on the buyer’s behalf for necessary repairs and/or price adjustments, assuming the buyer wishes to stay engaged with the property. However, sometimes the issues are outside the comfort zone of the buyer and it’s necessary to terminate the offer and explore other properties.

It would be impossible—or at the very least, miraculous—to go through a home sale or purchase without a few what-ifs. This is why working with a REALTOR® who can provide guidance, support, and expertise is key. Don’t let your imagination run rampant when there are professionals ready and waiting to help! 

1. Be willing to look outside of your comfort zone

When it comes to finding your ideal home, it’s important to broaden your horizons. Step beyond familiar neighbourhoods and consider exploring lesser-known areas. By venturing outside your comfort zone, you open yourself up to a wider range of housing options, potentially discovering hidden gems.”

Remember, each neighbourhood has its own unique charm and character. Attend local events, visit parks and amenities, and immerse yourself in the culture of different neighbourhoods. Exploring unfamiliar communities gives you the opportunity to discover vibrant new environments that may surprise and delight you.

Your REALTOR® will also be able to assess trends in potential neighbourhoods, giving you the full picture of where a community stands before making a decision.

2. Plan for all expenses, not just your down payment

Your down payment is important, but it’s not the only expense to consider when saving for a home.

Don’t overlook additional expenses like closing costs, property taxes, and homeowner’s insurance, and potential maintenance fees. By considering these costs from the start, you can develop a more precise financial plan and avoid any unforeseen financial burdens in the future.

Curious about the financial responsibilities of buying a home? Here’s our guide on determining if you’re financially ready to buy a home. Oh, and don’t forget about furnishings and finishing touches; you’ll want to make your new place feel like home, and those costs should be included in your budget.

3. Understand you might have to start small

Your first purchase won’t necessarily be your last purchase. Though the idea of a starter home may mean different things to different people, it typically means starting in a smaller space before working up to your forever home.

Everyone has to start somewhere, and there’s nothing wrong with starting in a nice, more affordable condo, townhome, or semi-detached property versus a larger single-family home. Just because you can afford a higher price based on your pre-approval, sometimes it’s better to start a bit smaller. Buying real estate has stepping stones versus going straight to the end game.

Starting small can be an excellent strategy for first-time buyers. Don’t underestimate the potential of a cozy starter home that may not tick all the boxes, but can serve as a stepping stone towards your dream house. By beginning with a more affordable option, you can accumulate equity, build your financial stability, and eventually upgrade to a larger or more desirable property in the future.

4. Leverage technology

No, technology can’t replace the experience of walking into a home side-by-side with your REALTOR® and feeling it out, but it can help you get a better sense of what’s available in your area, or maybe let you explore homes that aren’t in your neighbourhood.

Technology can be your greatest ally [as a home buyer]. Use online platforms, real estate apps (like the REALTOR.ca app), and virtual tours to explore properties remotely. This allows you to cast a wider net, investigate new areas, and narrow down your options before embarking on physical visits. Embracing technology empowers you to make informed decisions and saves valuable time during the home buying process.

5. Be patient with the home buying process

While yes, some people walk into their first open house and instantly know it’s the home for them, that’s typically not the case. For some, it can take months to find the right home. Sure, it can be frustrating, but that patience will pay off.

It can be tempting to rush into a decision, especially when you’re eager to become a homeowner. Be patient, trust the process, and keep searching for the right match. Remember, a little extra time invested can lead to finding a home that truly meets your expectations and brings you long-lasting happiness.

6. Think about how much you want to spend on your home

You’ll need to give serious thought to how much you want to spend on your home itself, remembering you’ll also need to pay utility bills, insurance, mortgage, and property taxes.

It’s essential to evaluate how much you truly want to spend on your house, taking into account not only your mortgage approval, but also your long-term financial goals. While it may be tempting to stretch your budget to the maximum, remember a higher mortgage means higher monthly payments and potentially more strain on your finances. Take the time to assess your comfort level and choose a mortgage amount true to your lifestyle and future aspirations.

It’s also important not to get drawn into the “just a little bit more” mentality.

Stick to your budget and prioritize what truly matters to you. It’s easy to get caught up in comparing your home to others or engaging in bidding wars that push your limits. Stay true to your financial plan and focus on finding a home that meets your needs, provides you with comfort, and is in line with your long-term goals.

7. Find a REALTOR® early

The expertise of your REALTOR® is invaluable from the start, and can help steer you in the right direction before you head too far down a wrong path.

To navigate uncharted territory confidently, it’s crucial to seek guidance from experienced professionals. Enlist the help of a REALTOR® who specializes in the areas you’re exploring. These experts possess insider knowledge, market insights, and a deep understanding of local dynamics.

Your REALTOR® will also help with the more complex components of buying a home, from mortgage shopping to legal issues.

Buying a home is a major life event and it will never be completely stress-free, but our job as your REALTOR® is to guide you along the way and to ensure every step is completed before moving on to the next one. Between pre-approval, home shopping, possession, and beyond, a REALTOR® is there to help. There are also many other unplanned expenses and legal issues with buying a property where you need a professional to help guide you along the way.

8. Shop around for mortgage rates

Whether you’re working with a mortgage broker or going directly to lenders, you’ll want to get a few different options before locking in with one rate. Luckily, REALTOR.ca makes it super easy to rate shop.

“When it comes to getting a mortgage, resist the urge to settle for the first rate that comes your way,” Kloeble suggests. “Invest the time to explore different lenders and compare rates. Partnering with a lender who understands your financial objectives can lead to a rate tailored to your needs, resulting in significant savings throughout the loan term. By putting in a little extra effort to research and analyze rates, you can maximize long-term savings while ensuring your financial well-being.”

9. Don’t completely drain your savings

There’s nothing wrong with putting down a large down payment on your first home, but make sure you’re not using every dollar you’ve saved in order to do it.

While it’s exciting to invest in your dream home, it’s crucial to maintain a financial safety net. It’s wise to keep some savings aside for emergencies, repairs, or any unforeseen circumstances. By maintaining a financial cushion, you can navigate homeownership with greater peace of mind and financial security.

You should also look into different first-time buyer savings accounts to help maximize your dollar.

10. Consider alternative housing options

Just as you might be stepping out of your comfort zone for neighbourhoods and features, you should also be looking at different types of housing and homeownership.

Explore different types of properties such as townhouses, condos, or even older homes. These alternatives may offer compelling advantages like lower maintenance, enhanced amenities, or larger properties. By embracing diversity in housing options, you expand your chances of finding the perfect home that suits your unique lifestyle.

11. Don’t get discouraged if your offer isn’t accepted

It’s bound to happen. You find what you think is the only home you’ll ever love, put in an offer, and it ends up getting rejected. Don’t let this halt your journey! Instead, use it as motivation to find something even better.

While it’s normal to feel disheartened, don’t let it dampen your spirits. Keep a positive mindset and remain dedicated to finding your perfect home that aligns with your needs and preferences. Working with an experienced REALTOR® can make a significant difference.

By taking these tips from the pros into account—and reaching out to your own REALTOR® for support—you can move through the home buying process with less stress and more time to enjoy the ride.

Buying a home is a major milestone, but beyond choosing the right neighbourhood, securing financing, and signing on closing day, there’s another important decision that often doesn’t get as much attention: how you legally own a home.

If you’re buying with a spouse, partner, family member, or even a friend, you’ll likely encounter two common ownership structures in Canada: joint tenancy and tenants in common.

They may sound similar, but the difference between them can shape everything from inheritance to what happens if one owner wants to sell. Here’s a simple breakdown of what they mean and when each might make sense.

What does ‘how you hold title’ mean?

When you buy a property, your name is registered on title. If you’re purchasing with someone else, you must decide how the ownership is structured.

The way you hold title determines what happens if one owner passes away, wants to sell their share, or if the relationship between owners changes. It may seem like a small detail during the home buying process, but it can have significant legal and financial implications down the road.

The two most common forms of co-ownership are joint tenancy and tenants in common.

What is joint tenancy?

Joint tenancy means two or more people own the property together, with equal ownership shares.

The defining feature of joint tenancy is something called the right of survivorship. This means that if one owner dies, their share automatically transfers to the surviving owner or owners.

This structure is most used by:

• married couples;

• common-law partners; or

• long-term partners purchasing a primary residence together.

With joint tenancy, ownership of the property is shared equally between all parties. One of the defining features of this structure is the right of survivorship, which means that if one owner passes away, their share of the property automatically transfers to the surviving owner or owners.

Because of this, the deceased owner’s portion does not become part of their estate and typically cannot be left to someone else in a will.

For many couples, this structure simplifies estate planning and avoids probate on the property.

However, joint tenancy may not be suitable in all situations. If one owner wants their share to go to someone other than the co-owner, joint tenancy may not align with that intention.

What are tenants in common?

A tenants-in-common co-ownership allows two or more people to own a property together, but not necessarily in equal shares.

For example, one owner could hold 70% of the property while the other holds 30%, depending on how the buyers choose to structure the arrangement.

Ownership percentages are typically determined based on contribution, agreement, or legal advice.

Unlike joint tenancy, tenants in common does not include the right of survivorship. If one owner passes away, their share becomes part of their estate and is distributed according to their will or provincial succession laws.

This structure is often used by:

• friends purchasing together;

• siblings inheriting property;

• investment partners; or

• buyers contributing different amounts to the purchase.

Tenants in common offers more flexibility, but it also requires clear planning and legal documentation.

Why this decision matters

Choosing between joint tenancy and tenants in common can affect several important aspects of homeownership, including estate planning, potential tax implications, and how financial risk is shared. It can also influence what happens if circumstances change in the relationship between owners, as well as how things are handled if one owner decides they want to sell their share of the property.

For example, in a tenants-in-common arrangement, one owner can sell or transfer their share independently. In a joint tenancy, ownership is more tightly connected.

Your REALTOR® can help flag these considerations early in the process and recommend when to involve a real estate lawyer.

What if you’re buying with a friend or family member?

Buying a home with someone other than a spouse is becoming more common across Canada, and for good reason. Teaming up with a friend, sibling, or family member can be a smart strategy to make the path to homeownership feel a lot more achievable.

However, it’s especially important to do the following:

• clearly outline ownership percentages;

• discuss what happens if one party wants to sell;

• understand how expenses and maintenance will be handled; and

• put agreements in writing.

A formal co-ownership agreement drafted by a lawyer can help prevent misunderstandings down the road.

Can you change ownership structure later?

In many cases, yes, but it requires legal documentation and potential fees.

For example, joint tenants can “sever” a joint tenancy to become tenants in common. However, this process varies by province and situation.

Because ownership affects long-term rights and obligations, it’s important to choose carefully from the beginning and check the rules and regulations in your area.

Why you should consult a REALTOR® and lawyer

The legal side of buying a home can feel overwhelming, but that’s why you surround yourself with professionals.

Your REALTOR® (among many other things) can:

• explain common ownership structures;

• help you think through practical scenarios; and

• connect you with trusted legal professionals.

A real estate lawyer can ensure:

• your ownership aligns with your intentions;

• the proper documentation is filed; and

• you understand your rights and responsibilities.

Buying a home is not just about where you live. It’s also about how you legally hold your asset.

Whether joint tenancy or tenants in common makes sense for you depends on your relationship, financial goals, and long-term plans.

Before you finalize your purchase, make sure you understand your options and have the right professionals guiding you every step of the way.

If you’re preparing to buy, connect with me today to help navigate not just the home search, but the important decisions behind the scenes.

Have you been renting for a period of time wondering when would be a good time to buy? The answer isn’t as straightforward as you think. It’s a mix of both what’s happening in your personal life and what’s happening in the real estate market. 

Whether you’re simply ready to settle down or you’re facing increasing rent, this article explores signs that may let you know it’s time to start the home buying process.

1. You’re ready to settle down

What “settling down” looks like changes from person to person, but generally, if you’re ready to commit to one home and one location for the foreseeable future, and you’ve grown tired of renting, you may be ready to buy. While the home buying market can be tough to enter at times, when you compare rent with mortgage payments, in some cases you could be saving money with homeownership—or at least building up your equity. 

Even with high interest rates, when you’re paying a mortgage, a portion of that is going into your own equity in comparison to rent which all goes to paying someone else’s equity.

2. You’re financially ready

Buying a home is one of the biggest purchases someone can make in their life. Good thing we have a complete breakdown of what you need to know financially in order to prepare.

The transaction involves a lot of moving pieces including a good credit score and a sufficient down payment. Plus, after the sale, there are many costs from property taxes to mortgage payments, to new furniture and maintenance.

Depending on your purchase price, down payments can be as little as 5%, although most people aim to have 20% ready. With pre-construction, you can put down 5%, and then pay in installments at a later time which can be ideal for people hoping for some extra time to save. 

A bank or lender will also make sure you have a good credit score. So, if you’re paying your bills on time, have a good debt-to-income ratio, and your credit score is steadily increasing—these are all good signs it’s the right time to buy. 

3. You’re comfortable with the long game

The real estate market, like any other, can and will continue to cycle. 

One sign you’re ready to buy is you’re thinking long term, which helps to eliminate some fear that comes along with market turbulence. Having a long-term strategy can ensure you’re not waiting on the sidelines for the next best time. 

When interest rates go down, home prices typically go up, so getting in the market now may help you to see larger gains in the next few years. You may be ready to buy if you’re looking to build equity and believe in the market growth of the area you’re thinking of buying in, and are in a position to make an investment that could take some time to vest.

4. You have a stable career 

If you have a secure job and money saved, real estate is one of the best ways to secure your future.

Having a stable career can be a good sign you’re ready to purchase. Mortgage lenders want to see you’ve been at your company for a good period of time and are typically more favourable towards permanent, full-time work. 

You should also consider the overall employability in a given region. If you decide to leave your current job in two years’ time, will you have to move again in order to find something in your field?

Although the right length of employment will differ depending on the job and career path, no matter what, having a plan B is important. Your Plan B can help you develop a strategy for the unexpected, like job layoffs and emergencies. Plan B might be additional savings or other living arrangements. 

5. You’re itching for projects 

Renting has a full suite of benefits, but your ability to renovate or do some more intensive DIY or reno projects around the house are typically limited. If you find yourself wanting to personalize a home, it could mean you’re ready to buy a place to make it your own. 

There are a few different avenues if this is the case. You could look into pre-construction homes, understanding there’s a different down payment structure and it might be more than a year before you’re in the new space. New construction means you can pick the fixtures, finishes, and sometimes certain layout aspects of a new home, but it’s not a full customization. 

You could also look at purchasing an unfinished home, which allows you to personalize specific elements without having to do a complete custom-build. It does require specific permits and loans, so you’ll need to understand the specifics—a REALTOR® can help you with this.

There’s also the option of buying an older home that needs some renovations. The benefit here is you’ll be able to live in your home while the work is done (provided it passes inspections) and you can do your projects gradually.

6. You’ve met with a REALTOR® 

Some think the right time to talk to a REALTOR® is when you’re ready to pull the trigger on a home, but actually you should start much sooner. 

A REALTOR® can give you insight, knowledge, and resources that can inform your choices. They can help you wrap your head around all the big and small aspects of homeownership and provide you with market research that can help you get closer to finalizing your decision to buy.

“It’s all about when you feel ready and you’re within your means,” says Duggal. 

Buying your first home can sometimes feel like a lifetime away, but you may be closer than you know. If you’re still unsure of whether the time is right, meet with a REALTOR® to explain your situation and get their professional opinion. 

Ready to take your home hunt to the next level? Give me a call 250-689-8809 today.

1. Your REALTOR® helps you define your goals and stay on track.

Buying a home starts with setting clear goals. A REALTOR® begins the process by thoroughly understanding your needs, lifestyle, and financial situation. Whether it’s your first home or your next big move, they’ll help you establish realistic expectations and make decisions to fit your budget and aspirations.

A strong start ensures you stay grounded and avoid potential pitfalls like emotional overspending or pursuing the wrong property. Your REALTOR® acts as your sounding board, helping you prioritize what matters most and guiding you to a home that aligns with your vision of homeownership.

2. Your REALTOR® provides expert insights and clarity.

From fluctuating prices to neighbourhood trends and competitive listings, it’s easy to get overwhelmed. A REALTOR® can help you cut through the noise.

As market experts, REALTORS® provide tailored insights and bring clarity to the home buying process. They can:

• help you assess the fair market value of properties;

• offer expert advice on neighbourhoods, schools, amenities, and future resale potential; and

• uncover opportunities to match your unique needs, including homes you may not have considered.

With a REALTOR® by your side, you gain access to reliable, data-driven advice, giving you confidence that you’re making an informed investment.

3. Your REALTOR® can help protect you from hidden risks and challenges.

A home may look perfect at first glance, but what about the hidden issues or risks? REALTORS® have the experience and trained eye to help you spot some major red flags, such as structural concerns, outdated systems, or other potential problems. They can connect you with trusted professionals, like home inspectors or legal experts, and work with you to ensure you have as much information about a property’s condition as possible before putting in an offer.

The home buying process is also full of unexpected challenges, from bidding wars to last-minute changes. Your REALTOR® often anticipates these hurdles and can guide you through them with expertise, keeping you on track to reach your goals.

4. Your REALTOR® is your advocate during negotiations.

Negotiating a home purchase can be intense and stressful, especially in competitive markets. This is where your REALTOR® shines. They’re skilled negotiators who are working to protect your interests, ensuring you get the best price and terms possible.

From crafting a strong offer to managing counteroffers and conditions, REALTORS® have the strategic know-how to help navigate tricky negotiations. Their objective and expert perspective can help you stay calm and focused while securing the best possible outcome.

Think of your REALTOR® as your champion—someone who has your back, representing your best interests every step of the way.

5. Your REALTOR® helps coordinate the closing process.

The final stage of buying a home—closing—is often the most complex. It involves a maze of legal paperwork, financial details, and critical deadlines. Your REALTOR® helps ensure no detail is overlooked, and you understand and can navigate this intricate process with certainty.

They coordinate with lawyers, lenders, and other parties involved to ensure a seamless transaction. By safeguarding your investment and providing meticulous oversight, your REALTOR® helps give you peace of mind as you reach the finish line of the home buying process.

BONUS: your REALTOR® is your trusted partner.

Buying a home is exciting, but it’s also demanding—financially, emotionally, and logistically. Your REALTOR® is dedicated to making the process as smooth, stress-free, and rewarding as possible. Whether they’re negotiating on your behalf, fielding late-night calls, or hustling to arrange a last-minute home tour, REALTORS® go the extra mile for their clients.

Did you know? Not every real estate agent is a REALTOR®. REALTORS® are members of the Canadian Real Estate Association (CREA) and adhere to a strict Code of Ethics that protects clients, the public, and other REALTORS®. This commitment to professionalism and integrity sets them apart, ensuring you receive competent, professional, reliable service every time.

Ready to take the first step toward homeownership?

Here's five home selling pointers to consider as your house hits the market this season.

The holiday season doesn’t have to put your home sale on pause. In fact, selling a home in the early winter can sometimes present benefits, like having less competition compared to busier times of year.

Here are a few pointers to keep in mind when listing your home for sale during the holidays.

DO: Hire a trusted real estate agent

Enlisting the help of a trust real estate agent is a critical step in the home selling process any time of year. As a local housing market expert, your agent will leverage their experience and expertise to help you complete a smooth transaction and reach your real estate goals. An agent can help with setting a competitive listing price, staging, marketing, negotiating on your behalf and so much more.

DON’T: Forget to keep your home showing-ready

It’s essential to keep your house clean and clutter-free for showings – these two qualities can help the place appear as a blank canvas to prospective homebuyers. During the holidays, when your home may see more foot traffic and your schedule is busier than usual, it’s crucial to maintain that showing-ready standard.

Pair down on personal items in common areas, put away things like dishes and toys, wipe down all surfaces, keep up with dusting and regularly remove pet-related mess. To accommodate holiday travels, buyers may want to tour your home on short notice, so it’s best to be prepared to depart as needed.

DO: Stage your home with the season in mind

Winter is a great time to make your home feel inviting to prospective buyers. Use simple touches like knit throw blankets, cozy pillows and upgraded area rugs to add comfort and texture. If you have a fireplace, pile logs in a nearby firewood rack and consider having it safely lit during showings. Keep the focus on the home’s highlight features while adding just enough seasonal warmth to make buyers feel at home.

Plus, don’t forget the importance of scent. Infusing your space with wintertime favorites like cinnamon, vanilla or pine can be a thoughtful way to set the scene.

DON’T: Overdo the seasonal decorations

Holiday decorations can enhance a home’s appeal, but be careful not to go overboard with them while your place is on the market. Keep seasonal flair simple and neutral so buyers can focus on the space, not the decorations.

A wreath on the door, decorated mantle or seasonal accessories dotted throughout can add a festive touch without distracting from the home itself. Setting the dining table is a way to show prospective buyers what hosting for the holidays could look like at home. And when it comes to curb appeal, less can be more – so consider avoiding cluttered outdoor displays as they can draw attention away from your home’s best qualities.

DO: Understand local housing market conditions

Market conditions vary by location, so it’s important to talk to your agent about what housing trends look like in your area, and what home selling expectations look like for your unique transaction.

For example, during the holidays, there may be fewer homebuyers house hunting, but those who are actively looking may be motivated to move quickly in hopes of kicking off the new year in a new space or accommodating their timely life changes. Plus, the potential for fewer homes hitting the market could give your listing a competitive edge.

Feeling holly and jolly – and ready to sell your home? Get in touch with Eileen Today

Buying a home is a significant investment that requires careful financial planning. One key aspect of buying a home is making a down payment, and coming up with one tends to be a source of stress for potential homebuyers. While there are various ways to save for a down payment, you may wonder if you can use your life insurance policy to help cover the costs. The good news is that it is possible to use life insurance for a down payment if you have the right type of policy. Let’s learn more about tapping into your life insurance policy for a down payment.

Rethinking Your Down Payment Strategy

Putting down 20 percent or more offers real benefits. It can help you avoid mortgage insurance costs like CMHC premiums, secure better interest rates, and reduce your monthly payments. But trying to hit that number at all costs doesn’t always make sense. If it means delaying your home purchase while prices climb, or draining your savings to the point where you have no financial cushion, the trade-off may not be worth it. Instead, consider other ways to strengthen your down payment. You might use the Home Buyers’ Plan through your RRSP, dip into your FHSA or TFSA, or look into borrowing against life insurance for down payment support. These options can help you boost your upfront contribution without sacrificing long-term financial stability.

Using life insurance for a down payment is becoming more common for those who want to keep their investments intact. If you use whole life insurance for down payment funds or take a life insurance loan for down payment purposes, you may be able to access capital quickly without relying on traditional credit. This can be helpful if you want to avoid mortgage insurance or make a stronger offer in a competitive market. The right approach depends on your overall financial picture, but a well-balanced down payment strategy should leave you with both equity in your home and enough liquidity to stay flexible.

Step-by-Step Guide to Using Life Insurance for Down Payment

If you have a permanent life insurance policy that has built up cash value, you might be holding a financial resource that could help you step into homeownership sooner.

Step 1: Find Out If You Have the Right Kind of Policy

You need the correct type of policy to use your life insurance policy as a down payment. Unlike term life insurance, which only covers you for a set period, a permanent life insurance policy covers you for your entire life and accumulates cash value over time. The more premiums you pay, the bigger the cash value grows. Once the cash value reaches a large enough balance, you can borrow against that value as you would on a credit card or loan. However, you will pay interest each month (or out of the death benefit) until the debt is repaid.

Some insurance companies also offer universal life insurance, allowing you to contribute extra money to the policy. This builds a larger cash value and more money to borrow from later. The only type of life insurance that you can’t use toward a down payment is term life insurance because it does not have a cash value to borrow from.

 Step 2: Get the Right Advice

Before using life insurance for a down payment, talk to a financial advisor or insurance specialist, ideally someone who understands how tax rules and mortgage requirements work in Canada. They can walk you through the pros and cons, flag potential tax issues, and explain how a life insurance loan for down payment use might affect your long-term plans. A good advisor can also help you compare other options like the Home Buyers’ Plan (HBP), the First Home Savings Account (FHSA), or a TFSA, depending on what’s available to you.

Not all lenders accept borrowed funds for the minimum down payment, so your advisor can also help you structure and explain the source of funds properly, especially if you’re borrowing against life insurance for down payment flexibility or planning to use whole life insurance for a down payment.

Step 3: Inquire About the Policy’s Cash Value

If you decide to move forward after speaking with an advisor, your next step is to investigate the policy’s cash value and the rules for accessing it. Contact your provider to ask about the current cash surrender value, any applicable fees, and loan interest rates. Inquire if they use “direct recognition,” which can lower dividend payouts on borrowed amounts, and clarify how the death benefit will be affected as interest accumulates.

To avoid delays on a time-sensitive life insurance down payment, ask about minimum loan amounts and how long processing takes. It can take years for the cash value to grow enough to make a life insurance loan for down payment worthwhile, particularly if you’re borrowing against life insurance for down payment support or relying on whole life insurance for down payment flexibility. Just remember, using these funds will reduce the final payout to your beneficiaries.

Step 4: Choose the Best Way to Access Your Funds

Loan – A loan is the best choice if you still want to retain your life insurance coverage. The loan will have interest due, accumulating over time, so it is best to repay the loan as soon as possible if you intend to keep the policy for a long time. However, if you make the required premium and interest payments, there is no term limit, so you are not obligated to pay it back in any particular time frame. You should, however, be aware that some lenders will not allow you to borrow funds for your down payment. Typically, you must provide the minimum required funds yourself, but you could borrow to increase your down payment.

Withdrawal or Partial Surrender – When you withdraw or partially surrender your life insurance policy, you reduce your death benefit by the amount of cash withdrawn. If you have a high cash value relative to your death benefit, it could impact your policy significantly. It could also result in surrender fees during the first years of your policy. However, a withdrawal is a good option if you don’t mind a lower death benefit but still want to keep some life insurance coverage.

Full Surrender – If you want to access the total value of your life insurance policy and do not need to keep it in force, you can surrender your policy in full. Your life insurance policy will be gone when you do this, but you can access the total cash value minus any applicable surrender charges.

Step 5: Preparing Your Life Insurance Down Payment for Lender Review

Once you’ve accessed your funds, inform your mortgage broker or lender. They’ll likely want to see where the money came from, especially if you’re putting down less than 20 percent and need mortgage loan insurance. If you’re using a life insurance down payment, be ready to share documentation like a withdrawal summary or loan agreement, and clearly explain how you plan to handle any repayments. Timing matters. Life insurance transactions can take time, so start early to avoid last-minute delays.

Step 6: Keep an Eye on Your Policy After the Purchase

Even after using your life insurance for a down payment, your work isn’t done if you took out a policy loan. Borrowing against life insurance for a down payment can affect your coverage long-term if left unmanaged. As interest adds up, your loan balance grows, and if it ever exceeds the cash value, the policy could lapse. That triggers a tax bill on the unpaid loan balance, which gets treated as income, and you lose your coverage at the same time. To avoid this, review your policy annually, monitor the loan closely, and if possible, make interest payments or partial repayments. Whether you’re using whole life insurance for a down payment or another permanent policy, regular reviews help you avoid policy lapses and surprise tax bills.

Benefits of Borrowing from Your Life Insurance Policy for a Down Payment

A life insurance policy with cash value is a very appealing way to help with down payment costs for homebuyers. Here are a few other benefits of tapping into your life insurance policy to cover a down payment:

Lower Interest Rates and Mortgage Payments – When a down payment covers 20 percent of the purchase price (or more) instead of the minimum 5 percent, you may qualify for a lower interest rate, which means lower monthly payments too. You will also not have to purchase mortgage default insurance. All of this means more money in your pocket.

Coverage for Other Costs – Since a permanent life insurance policy can be borrowed against relatively easily, you can also access it for other expenses like the home inspection, renovations, moving costs, or furniture to make your home move-in ready.

Accessible Liquid Assets – Many policyholders use their cash value as a savings account to be accessed in an emergency. If they fall behind on their mortgage payments, they could borrow against the policy and use the funds to get up to date. This safety net gives mortgage lenders more confidence in a potential borrower, resulting in lower interest rates.

Using Life Insurance for Your Down Payment

Using life insurance for a down payment can be a viable option for some homebuyers. Still, carefully consider the implications of borrowing from your cash value before deciding. While life insurance can provide a source of cash to cover a down payment, it’s important to remember that borrowing against your policy can reduce its value and may have tax implications. Make sure that you still have enough coverage to protect your loved ones in the event of an unexpected death. Considering all available alternatives and making an informed decision that aligns with your long-term financial goals is essential. Your financial advisor and insurance provider can help determine if this approach is right for you.