First-Time Home Buyers

A guide to help you on your path to buying your first home.

Buying your first home?

Buying your first home is an unforgettable experience. A blend of exciting and overwhelming. You’re looking for a home where you expect to spend a lot of time, to grow and put roots down, and you’re wondering how the heck you’re going to make it happen.

We get it, we’ve been there too! It may seem like there are a lot of hoops to jump through, but we’re here to help. Nest Mortgage, based in Vancouver, B.C., has helped thousands of first-time home buyers in Canada navigate the often-confusing waters of mortgages and home buying.

Your questions, answered

You probably have a million questions. Like, Where do I start? How much can I afford? How much should my down payment be? And many more.

You’ve come to the right place. At Nest, we do everything we can to make the process of buying your first home as simple and stress-free as possible. Our first-time home buyer guide aims to answer the most common questions for first-timers. If you have other questions, don’t hesitate to reach out. And let’s get the process started together.

First-time Home Buyer FAQs

How much does a mortgage broker like Nest cost?

Nothing! For virtually every mortgage solution, there is no cost to you. From our first consultation to your application to the day you sign your mortgage, there’s no fee for using our services.
How is a mortgage broker different from a bank?

Banks only offer products, including mortgages, from their own institutions. That’s just a single source of mortgage options. Licensed mortgage brokers, like Nest, can source mortgages from a huge selection of banks and lenders with a variety of policies. That means we have many more options to consider, and many more opportunities to find you a better rate than your bank will provide.
Should I still talk to my bank first?

There’s really no need to! We work with every major Canadian bank and lender to find the best possible mortgage products, so we’ll be reaching out to your bank anyway. Your bank will not always have your best interest in mind. As an independent, we will get you the best possible solution today and stay with you throughout the life of your mortgage.
How much home can I afford?

That’s the million dollar question. It typically comes down to your savings and earnings. We'll help you assess how much savings you have, how much you should allocate towards a down payment, whether you will have support from family members, and how much you can afford on a monthly basis. Your current income is a good place to start. Try our mortgage calculator to get an idea of how much you can afford based on your savings and your income. Then go to “Get Started” to connect with Nest.
What’s the process for getting approved?

It’s simple and straightforward. After you know roughly how much you’re planning to spend on a new home, fill out our online application to get started. After you fill out the application and provide a few supporting documents, the team at Nest starts looking for the best possible mortgage for you. We use our cutting-edge technology to search offers from over 230 lenders, to source the ideal product for your needs. We’ll provide you with a summary report that outlines your options, along with instructions for how to move forward.
How much do I need for my down payment?

For most people, the minimum down payment you can make is 5 percent for the first $500,000 of the purchase price, and 10 percent for the portion between $500,000 and $999,999. For homes that cost $1 million and greater, the minimum down payment is 20 percent of the purchase price.

For a $700,000 home, the minimum down payment is calculated as follows:
$500,000 x 5% = $25,000
$200,000 x 10% = $20,000
For a total minimum down payment of $45,000.

Note: If you’re self-employed or have a weak credit score, you may require a larger down payment.
What’s the difference between a down payment and a deposit?

A down payment is a lump sum you plan to apply to a purchase. It comes from money you have on hand and can afford to pay now, from savings or gifts, for example. It’s a portion of the total cost of your home, so the larger the down payment you make, the smaller the mortgage you will need. See the question above about the minimum down payment requirements.

A deposit is a portion of your total down payment placed in trust to show the seller of a home that you’re serious about your intent to buy. It’s also called “consideration” in some regions. The deposit is typically made sometime after the seller has accepted your offer to purchase the home and before you take formal ownership of the property. Again, the deposit makes up a portion of your down payment, it is not in addition to your down payment.
Can I use my RRSPs to buy a home?

Using the Government of Canada’s Home Buyers Plan, first-time home buyers can withdraw up to $35,000 from their RRSPs, tax free, to buy or build a home. You are required to repay the funds you withdraw within 15 years. You qualify as first-time home buyer if, in the past four years, you did not occupy a home that you or your current spouse or common-law partner owned. In other words, even if you have previously bought a home, you may qualify for the Home Buyers Plan and be able to use RRSPs. See the Government of Canada website for details.
Are there any closing costs or other fees I should know about?

Additional costs to consider when buying a home may include legal fees, an appraisal expense, GST (for new homes, such as pre-sales), home inspection fee and property transfer taxes. We’ll provide a detailed summary of the costs you can expect. Some good news: unless your mortgage needs are extremely complex, which is very rare, Nest's services do not cost you a dime.

Don’t believe us? Check this out

Joe Harb

A pleasure to work with. They pre-approved my mortgage and checked in periodically to see how my house hunting was going. When I found the right place, Nest Mortgage was quick with responses and provided information and advice wherever possible. They still continue to check in and see how things are going. Experts in the industry, you can rest easy using their services.

Sarah Richards

As a first time home buyer in the intimidating Vancouver market, I had a lot of questions and fears about the process. Nest was with me all the way, helping guide me through everything I was unsure about. They treated me like I was their #1 customer, and not just in the care and attention the paid. They also got me an amazing rate on my mortgage.

Gabby Still

Referred to us by a friend, the team at Nest was able to help us out with our mortgage renewal. It being our first time renewing, we had some issues and also a ton of questions that Ray and Merissa took care of without hesitation. We would recommend Ray and his team to anyone who’s looking for a mortgage broker.