Your Guide to Securing Your First Mortgage in Ontario

Buying your first home is an exciting milestone, but it also comes with significant financial responsibilities. At Bedi Mortgage Advisors, we understand the challenges of navigating Ontario’s real estate market, where high property prices can make homeownership seem daunting. That’s why we’re here to help you plan for both the obvious and hidden costs of owning a home.

Can You Afford Your First Home in Ontario?

Many first-time buyers rely on bank affordability calculators to estimate how much they can borrow. While these tools are helpful, they often leave out critical expenses that can impact your budget. For example:

• Property Maintenance Costs: Think about long-term expenses like replacing a roof, fixing plumbing, or upgrading appliances.
• Utility Bills: Monthly costs for water, electricity, heating, internet, and phone services can quickly add up.
• Home Upgrades and Renovations: Whether it’s repainting walls or modernizing your kitchen, personalizing your new home often comes with extra costs.

A mortgage calculator can give you a starting point, but it’s essential to look beyond the numbers and consider all the recurring and one-time costs of homeownership.

Hidden Costs to Prepare for When Getting a Mortgage in Ontario

1. Mortgage Insurance Premiums
   If your down payment is less than 20% of the property’s value, you’ll need to pay for mortgage default insurance. This premium is added to your mortgage and includes PST, which must be paid upfront.

2. Property Appraisal Fees
   Lenders often require an independent property appraisal to ensure it meets their criteria. This fee is typically paid by the buyer and can vary depending on the property type and location.

3. Bridge Financing
   If your new home purchase closes before the sale of your current property, you may need bridge financing to cover the gap. While convenient, it can be expensive, so it’s worth discussing your options with a mortgage specialist.

4. Status Certificate for Condos
   Condo buyers should budget for a status certificate, which outlines the financial and legal standing of the condominium corporation. This is a critical document to review before finalizing your purchase.

5. Legal Fees, Title Insurance, and Land Transfer Tax
   These costs are necessary to complete your home purchase. Land transfer taxes, in particular, can be a significant expense, as they are calculated as a percentage of your property’s purchase price.

Why Planning Ahead Matters

Homeownership is about more than just qualifying for a mortgage—it’s about managing the ongoing costs of maintaining and upgrading your home. By understanding these expenses upfront, you’ll be better prepared to enjoy your new property without financial stress.

At Bedi Mortgage, we specialize in helping first-time buyers navigate the complexities of the Ontario real estate market. From calculating your budget to exploring the best financing options, our team is here to guide you every step of the way.

Let’s Get Started

Are you ready to take the first step toward homeownership? Contact Bedi Mortgage today to learn more about securing your first mortgage in Ontario