Congratulations on deciding to become a homeowner!
Buying a home is a huge financial commitment, but one that comes along with many benefits.
When you're ready, we can talk about how to use your mortgage to increase your wealth, but for now, here's a whole bunch of useful information
Buying a home is a huge financial commitment, but one that comes along with many benefits.
When you're ready, we can talk about how to use your mortgage to increase your wealth, but for now, here's a whole bunch of useful information
The Home Buying Process
step 1 - save up some money
You'll need funds available to cover your down payment and closing costs for your home purchase
Down Payment
How Much?
If you're buying a home that you're going to live in full time, then the minimum down payment required is 5% of the first $500,000 of purchase price and 10% of every dollar over $500K up to $1.5 Million
Example:
So if you buy for $350,000 - then you'll need at least $17,500 for your down payment. ($350,000 x 5%)
If you buy for $700,000 - then you'll need $45,000. ($500K x 5% = $25,000 + $200K x 10% = $20,000...Total $45,000)
If the home you're going to live in is $1.5M or more, then you'll need a minimum of 20% and sometimes more depending on the Lender and the total price.
If you're buying a 3-season vacation property, you usually need a 10% down payment.
If you're buying a 3-4 unit rental property and you're going to live in one unit, you'll need 10%.
If you're buying a rental property, you'll need a minimum down payment of 20%
If you're buying a home that you're going to live in full time, then the minimum down payment required is 5% of the first $500,000 of purchase price and 10% of every dollar over $500K up to $1.5 Million
Example:
So if you buy for $350,000 - then you'll need at least $17,500 for your down payment. ($350,000 x 5%)
If you buy for $700,000 - then you'll need $45,000. ($500K x 5% = $25,000 + $200K x 10% = $20,000...Total $45,000)
If the home you're going to live in is $1.5M or more, then you'll need a minimum of 20% and sometimes more depending on the Lender and the total price.
If you're buying a 3-season vacation property, you usually need a 10% down payment.
If you're buying a 3-4 unit rental property and you're going to live in one unit, you'll need 10%.
If you're buying a rental property, you'll need a minimum down payment of 20%
Closing Costs
In addition to your down payment, you'll need money to cover legal fees, land transfer tax, title insurance, and other miscellaneous costs.
Your Lawyer will calculate the total cost, but in Manitoba you should be prepared for closing costs to be around 3% of the purchase price of the home you're buying.
Example:
If you buy a home for $500,000, expect $15,000 for closing costs
Your Lawyer will calculate the total cost, but in Manitoba you should be prepared for closing costs to be around 3% of the purchase price of the home you're buying.
Example:
If you buy a home for $500,000, expect $15,000 for closing costs
Where Can Down Payment and Closing Cost Money Come From?
- Personal savings/investments - Look into the First Home Savings Account (FHSA) program. The FHSA account allows your money to grow tax-free and also provides income tax benefits while you're saving up for your first home. Here's a link to the website for more information: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
- Gift from family
- RRSP's - if you're a first time buyer you can withdraw up to $60K from your RRSP's tax free. The program is called the Home Buyer's Plan. Here's a link to the website for more info: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
- Manitoba Metis Federation - If you're Metis, you may qualify for a grant to help you buy your first home. Here's a link to that website for more information: www.mmf.mb.ca/first-time-home-purchase-program
- In certain circumstances, it's possible to borrow
step 2 - Get Pre-approved
The pre-approval process tells you how much you are qualified to spend on a home.
It's important to complete the pre-approval process before you seriously start shopping for a home.
Here are the steps:
Once I have all the documents, and everything looks good, I'll issue the pre-approval!
Your pre-approval doesn't expire, it just has to be updated every couple of months.
**IMPORTANT NOTE** Your pre-approval is based on your financial situation at the time. If your financial situation changes (job change, debt increase, etc.) your pre-approval may no longer be valid. It's important to keep your financial situation the same (or improved) between the pre-approval stage and taking possession of a home.
DO NOT:
It's important to complete the pre-approval process before you seriously start shopping for a home.
Here are the steps:
- Mortgage Application - I collect your personal information, income, assets, and liabilities
- Credit check - I'll check your credit to make sure it's suitable for mortgage lenders
- Document Collection - I'll collect documents to prove your income and down payment as Lenders require this proof in order to approve a mortgage application. The required documents vary depending on your specific financial situation.
Once I have all the documents, and everything looks good, I'll issue the pre-approval!
Your pre-approval doesn't expire, it just has to be updated every couple of months.
**IMPORTANT NOTE** Your pre-approval is based on your financial situation at the time. If your financial situation changes (job change, debt increase, etc.) your pre-approval may no longer be valid. It's important to keep your financial situation the same (or improved) between the pre-approval stage and taking possession of a home.
DO NOT:
- Change jobs
- Finance anything - any additional debt will reduce your approval amount.
- Co-sign on a loan for someone - even though they are making the payments, it becomes a debt on your mortgage application which reduces the amount you qualify for
- Neglect your credit - keep using your credit, but be sure to make all payments on time and don't allow balances to exceed limits.
step 3 - go shopping
I recommend working with a Realtor when shopping for a home as opposed to just looking online and calling the person on the listing to view the property.
Connecting with a good Realtor from the start will make the process so much easier and in today's market, you need a good Realtor looking out for you to navigate the craziness.
BONUS - You don't pay a Realtor anything to help you buy a home!
Important Notes:
When you write an offer on a home, you'll need to include a deposit with the offer. If your offer is accepted, your deposit cheque will be cashed and if the sale goes through, then that money becomes part of your down payment.
It's a good idea to include certain conditions in your offer such as a finance condition and a home inspection condition.
A finance condition protects your deposit in case something weird happens and we can't get financing on the property. The finance condition allows you to back out of the deal and get your deposit back without and issues
A home inspection is a good idea to make sure the home you're buying isn't going to fall apart soon after you take possession.
Speak with your Realtor about including these conditions in your offer.
Connecting with a good Realtor from the start will make the process so much easier and in today's market, you need a good Realtor looking out for you to navigate the craziness.
BONUS - You don't pay a Realtor anything to help you buy a home!
Important Notes:
When you write an offer on a home, you'll need to include a deposit with the offer. If your offer is accepted, your deposit cheque will be cashed and if the sale goes through, then that money becomes part of your down payment.
It's a good idea to include certain conditions in your offer such as a finance condition and a home inspection condition.
A finance condition protects your deposit in case something weird happens and we can't get financing on the property. The finance condition allows you to back out of the deal and get your deposit back without and issues
A home inspection is a good idea to make sure the home you're buying isn't going to fall apart soon after you take possession.
Speak with your Realtor about including these conditions in your offer.
Step 4 - arrange the mortgage
Once you're offer is accepted, it's time to arrange the mortgage.
We'll discuss suitable mortgage options based on the home and your future plans with the home and your finances.
Then I'll shop around to find you the best deal on the right mortgage.
I may need a few more/updated documents from you at this time.
Once the mortgage is all approved, we'll have some documents to sign to complete the approval
We'll discuss suitable mortgage options based on the home and your future plans with the home and your finances.
Then I'll shop around to find you the best deal on the right mortgage.
I may need a few more/updated documents from you at this time.
Once the mortgage is all approved, we'll have some documents to sign to complete the approval
step 5 - arrange home insurance
Once the mortgage is all approved and the home inspection is good, your Realtor will satisfy the conditions on your offer with the seller and it's a done deal!
Now you'll need to arrange home insurance for your new home because mortgage lenders require you to keep insurance on your home as long as you have a mortgage on it...it's a good idea to keep insurance on it even if you don't have a mortgage.
I recommend working with a home insurance broker as they will shop around for the best deals for you.
Once you have the insurance all set up, you'll get something called a binder letter as proof of insurance and you'll need to provide that to your lawyer before you can get the keys to the home.
Now you'll need to arrange home insurance for your new home because mortgage lenders require you to keep insurance on your home as long as you have a mortgage on it...it's a good idea to keep insurance on it even if you don't have a mortgage.
I recommend working with a home insurance broker as they will shop around for the best deals for you.
Once you have the insurance all set up, you'll get something called a binder letter as proof of insurance and you'll need to provide that to your lawyer before you can get the keys to the home.
step 6 - meet with your lawyer
You'll need a Lawyer to complete the purchase for you.
You'll sign the final documents with the lawyer, pay the balance of your down payment, pay closing costs, provide proof of insurance to the Lawyer. You'll also get the keys from the Lawyer.
The meeting will take place just before possession day.
Don't worry, the Lawyers office will reach out to you and provide you with a list of what you need to bring and set an appointment to meet with you.
You'll sign the final documents with the lawyer, pay the balance of your down payment, pay closing costs, provide proof of insurance to the Lawyer. You'll also get the keys from the Lawyer.
The meeting will take place just before possession day.
Don't worry, the Lawyers office will reach out to you and provide you with a list of what you need to bring and set an appointment to meet with you.
possession day!
You're now a home owner!!
On possession day, go to your new home and check everything out to make sure everything is there that's supposed to be and that everything works as it should. If not, call your Realtor and Lawyer right away.
Take your meter readings and set up your utility accounts.
Call a locksmith to re-key your exterior locks...you want to be the only one with a key to your house.
Move your stuff in and enjoy!
On possession day, go to your new home and check everything out to make sure everything is there that's supposed to be and that everything works as it should. If not, call your Realtor and Lawyer right away.
Take your meter readings and set up your utility accounts.
Call a locksmith to re-key your exterior locks...you want to be the only one with a key to your house.
Move your stuff in and enjoy!
Tax Savings
When you purchase your first home, you can apply for a home buyer's tax credit. Here's a link for more info: Home Buyer's Tax Credit Program
If your first home is a brand new home, you may be eligible for a GST credit. Here's a link for more info: GST Credit Program
You can also talk to your Accountant about other expenses that you can write off related to your home purchase.
If your first home is a brand new home, you may be eligible for a GST credit. Here's a link for more info: GST Credit Program
You can also talk to your Accountant about other expenses that you can write off related to your home purchase.
Your Power Team
Buying a home is a big deal, involving a lot of money.
Mistakes can be very expensive so it's always recommended that you work with professionals to help you before, during, and after you take possession.
Professionals provide education and guidance in their area of expertise to protect your best interests and help you make decisions that are right for you.
There are a lot of moving parts to purchasing a home so here's a list of the pro's you should consider.
Don't worry, I work with some of the best in each category so I can always refer an expert if you'd like.
Mistakes can be very expensive so it's always recommended that you work with professionals to help you before, during, and after you take possession.
Professionals provide education and guidance in their area of expertise to protect your best interests and help you make decisions that are right for you.
There are a lot of moving parts to purchasing a home so here's a list of the pro's you should consider.
Don't worry, I work with some of the best in each category so I can always refer an expert if you'd like.
Mortgage Planner / Broker
- Get you pre-approved
- Help you understand the costs
- Educate you on mortgage options/strategies
- Arrange the mortgage once a home is chosen
Realtor
- Understand your wants/needs
- Show you properties
- Educate you on important details
- Negotiate the purchase
Financial Planner/Advisor
- Your home should be included in your financial plan.
- The equity you build up in your home can be used to grow your wealth and reduce your income taxes.
Lawyer
- Review purchase contract and mortgage documents
- Complete all required paperwork
- Process the transfer of ownership
Accountant
- If you're going to rent part of your home out, run a business out of it, or implement advanced mortgage strategies, you should use an Accountant to make sure you're not paying too much tax.
Life Insurance Broker
- Life/Disability/Critical Illness insurance isn't required, but it's a good idea to explore and see if it makes sense to you
Home Inspector
- A home inspection done prior to purchasing your home can be priceless. They'll point out the good and bad so that you know exactly what you're buying.
Home Insurance Broker
- Understand your needs
- Educate you on options
- Shop for the best product and price
- Arrange the policy
Useful Programs
Purchase Plus Improvements
What is the Purchase Plus Improvements Program?
The Purchase Plus Improvements (PPI) program is a Canadian mortgage option that allows homebuyers to finance both the purchase price of a home and the cost of renovations in one single mortgage.
Instead of taking separate loans or using high‑interest credit, buyers can roll renovation costs into their mortgage at standard mortgage rates.
The Purchase Plus Improvements program helps Canadians:
How It Works
Here’s a simplified breakdown of the process:
1. Find a home that needs improvements
You make an offer just like normal, but you also plan renovations (e.g., kitchen updates, flooring, bathrooms).
2. Get quotes for the planned renovations
You collect contractor quotes up front and submit them to the lender as part of the mortgage application.
These quotes help determine the as‑improved value of the home.
These must be proper quotes, not just numbers written on the back of a business card.
3. Lender approval
The lender will review the file and determine if the planned renovations add the necessary value to the home. They may require an appraisal to determine what the home will be worth after renovations.
Your down payment is based on this as‑improved value, not just the purchase price.
4. Mortgage closes/Possession Day
Renovation funds are held back with the lawyer (to ensure the work actually gets done).
5. You complete the renovations
You complete all the work (usually within 90–180 days).
Most lenders require a licensed contractor—DIY work is often not accepted.
6. Inspection & fund release
After renovations are complete, the lender often requires and inspection of the property.
If the work aligns with the approved quotes, the lender releases the held‑back funds.
In many cases, buyers must front costs and are reimbursed afterward.
What Types of Renovations Are Allowed?
Generally not allowed:
These are just general guidelines for this program. Each Lender has their own specific guidelines they use for this program.
What is the Purchase Plus Improvements Program?
The Purchase Plus Improvements (PPI) program is a Canadian mortgage option that allows homebuyers to finance both the purchase price of a home and the cost of renovations in one single mortgage.
Instead of taking separate loans or using high‑interest credit, buyers can roll renovation costs into their mortgage at standard mortgage rates.
The Purchase Plus Improvements program helps Canadians:
- Buy homes that need work
- Finance renovations at low mortgage rates
- Avoid separate renovation loans
- Increase the value and appeal of their home from day one
How It Works
Here’s a simplified breakdown of the process:
1. Find a home that needs improvements
You make an offer just like normal, but you also plan renovations (e.g., kitchen updates, flooring, bathrooms).
2. Get quotes for the planned renovations
You collect contractor quotes up front and submit them to the lender as part of the mortgage application.
These quotes help determine the as‑improved value of the home.
These must be proper quotes, not just numbers written on the back of a business card.
3. Lender approval
The lender will review the file and determine if the planned renovations add the necessary value to the home. They may require an appraisal to determine what the home will be worth after renovations.
Your down payment is based on this as‑improved value, not just the purchase price.
4. Mortgage closes/Possession Day
Renovation funds are held back with the lawyer (to ensure the work actually gets done).
5. You complete the renovations
You complete all the work (usually within 90–180 days).
Most lenders require a licensed contractor—DIY work is often not accepted.
6. Inspection & fund release
After renovations are complete, the lender often requires and inspection of the property.
If the work aligns with the approved quotes, the lender releases the held‑back funds.
In many cases, buyers must front costs and are reimbursed afterward.
What Types of Renovations Are Allowed?
- Generally allowed:
- Kitchen/bathroom upgrades
- Flooring, painting, fixtures
- Roof, windows, HVAC
- Basement finishing
- Accessibility improvements
Generally not allowed:
- Luxury additions (pools, hot tubs)
- Major landscaping
- Furniture/appliances
These are just general guidelines for this program. Each Lender has their own specific guidelines they use for this program.
CMHC Eco Improvement Program
The CMHC Eco Improvement program provides a 25% partial refund on mortgage loan insurance premiums (up to $5,000) for homeowners with CMHC insurance who spend at least $20,000 on eligible energy-efficient, eco-friendly, and sustainability-focused home renovations.
This program is for existing homeowners or homebuyers looking to upgrade their home, encouraging sustainable renovations to improve energy efficiency.
Key Details & Eligibility
Eligible Upgrades: Building envelope (insulation, windows, doors, roof), heating/cooling (HVAC), renewable energy (solar, geothermal), and water-saving fixtures.
Requirements
Minimum $20,000 spent on improvements, with a 2-year deadline to submit a refund request after closing.
Goal
To reduce environmental impact, lower energy costs, and align with Canada's 2050 carbon neutrality goals.
Application: Documentation including paid invoices/receipts must be submitted directly to CMHC.
Benefits
Financial Return: 25% of the insurance premium is refunded.
Long-term Savings: Reduced energy consumption leads to lower utility bills.
Increased Property Value: Energy-efficient homes are more attractive to buyers.
This program can be useful if you're purchasing your home with a down payment of less than 20% (and therefore require mortgage default insurance) and you're planning on upgrading the home in the above noted areas.
If you think that you may want to take advantage of this program, please let me know so that I can request that our Lender use CMHC for the mortgage default insurance (there are 2 other insurance companies besides CMHC)
The CMHC Eco Improvement program provides a 25% partial refund on mortgage loan insurance premiums (up to $5,000) for homeowners with CMHC insurance who spend at least $20,000 on eligible energy-efficient, eco-friendly, and sustainability-focused home renovations.
This program is for existing homeowners or homebuyers looking to upgrade their home, encouraging sustainable renovations to improve energy efficiency.
Key Details & Eligibility
Eligible Upgrades: Building envelope (insulation, windows, doors, roof), heating/cooling (HVAC), renewable energy (solar, geothermal), and water-saving fixtures.
Requirements
Minimum $20,000 spent on improvements, with a 2-year deadline to submit a refund request after closing.
Goal
To reduce environmental impact, lower energy costs, and align with Canada's 2050 carbon neutrality goals.
Application: Documentation including paid invoices/receipts must be submitted directly to CMHC.
Benefits
Financial Return: 25% of the insurance premium is refunded.
Long-term Savings: Reduced energy consumption leads to lower utility bills.
Increased Property Value: Energy-efficient homes are more attractive to buyers.
This program can be useful if you're purchasing your home with a down payment of less than 20% (and therefore require mortgage default insurance) and you're planning on upgrading the home in the above noted areas.
If you think that you may want to take advantage of this program, please let me know so that I can request that our Lender use CMHC for the mortgage default insurance (there are 2 other insurance companies besides CMHC)
