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Knowing how to buy your first home isn't obvious
Knowing how to buy your first home isn't obvious
Buying your first home is one of the most important achievements of your life. So why does the process behind it feel like rocket science?
Most first-time buyers know a few pieces of the process. You probably know you need a mortgage, you know you'll eventually make an offer, and maybe you've even heard about something called “closing day.”
But the actual journey from starting the search to getting keys in hand is not obvious at all.
That is exactly why we created a First Time Home Buyer Checklist. It lays out the entire process, step by step, so you know what's coming next instead of figuring it out as you go.
Download the checklist here at https://bit.ly/FTHB-Ownright, or keep reading for a simple walkthrough of how the home buying process actually works.
1. Start preparing before you make an offer
Before you start shopping for a home, it helps to have a few basics in place.
Get mortgage pre-approval A lender reviews your finances and tells you roughly how much you can borrow. This gives you a clear budget and shows sellers you are serious.
Work with a trusted real estate agent A great agent will help you:
Find homes
Book showings
Advise on pricing
Prepare and submit your offer
Prepare your deposit The deposit is money you send shortly after your offer is accepted to show the seller you are serious. It is usually held in trust and applied toward your down payment at closing.
Deposits are often due quickly, so make sure the money is easy to access, such as:
In an easy to access account, such as a chequing or savings account
In an account you can wire or bank draft from quickly
If your funds are tied up in investments or accounts with transfer delays, it can create stress when the deadline arrives.
Plan for closing costs When you buy a home, there are a few costs required to legally transfer ownership of the property. These are called closing costs.
They typically include things like:
Land transfer tax paid to the government
Legal fees for your lawyer to complete the transaction
Title insurance to protect your ownership of the property
A simple rule of thumb is to set aside about 1.5% to 4% of the purchase price for closing costs, depending on the property and location.
Your lawyer will calculate the exact amount before closing so there are no surprises.
2. What to do when you make an offer
Once you find the home you want, your real estate agent will prepare the Agreement of Purchase and Sale (or APS).
This document outlines the terms of the deal, including the price and any conditions attached to the offer.
Before submitting the offer, make sure you carefully review:
Financing conditions — this gives you time to confirm your lender will approve the mortgage for the property.
Home inspection condition — this allows you to inspect the home for major issues before committing to the purchase.
Status certificate review (for condos) — this allows your lawyer to review the condo corporation’s financial and legal documents to make sure there are no major issues.
The seller will then review your offer and can:
Accept it
Reject it
Send back changes (called a counteroffer)
Once both sides agree and sign the agreement, the offer becomes accepted. After your offer is accepted, you will typically need to submit your deposit quickly according to the terms in the agreement.
One of the most important steps at this stage is contacting a real estate lawyer. Retaining a lawyer as soon as your offer is accepted helps ensure the closing process runs smoothly.
3. What happens after your offer is accepted
Once the deal becomes firm, the legal closing process begins.
At this stage, you will typically:
Send your Agreement of Purchase and Sale to your lawyer
Finalize your mortgage approval with your lender
Provide your lawyer’s information to the lender
Arrange a home inspection (if applicable)
Begin shopping for property insurance
Start planning your move
Behind the scenes, your lawyer begins important legal work that protects you as the buyer.
This includes:
Reviewing the agreement
Conducting a title search — verifying that the seller legally owns the property and that there are no unexpected liens or claims attached to it
Reviewing the status certificate for condos — examining the condo corporation’s financial and legal records to check for issues like major debts or upcoming special assessments
Completing mortgage instructions from your lender
Preparing your closing documents
This work ensures the property can be safely transferred to you on closing day.
4. Preparing for closing
As closing day approaches, your lawyer will provide a final statement of adjustments. This document outlines the exact amount you need to bring to close the transaction.
The total amount may include:
Land transfer tax
Legal fees and disbursements
Title insurance
Adjustments for property taxes, utilities, or condo fees
Before closing, you will also:
Send your closing funds to your lawyer
Review and sign your closing documents
Confirm your moving arrangements
Your lawyer will guide you through these steps to ensure everything is ready before closing day arrives.
5. What actually happens on closing day
Closing day is when ownership of the property officially transfers to you.
From the buyer’s perspective, your main responsibility is to stay reachable in case anything requires your attention.
Your lawyer will handle the rest of the process, including:
Registering your ownership and mortgage
Sending purchase funds to the seller’s lawyer
Notifying the municipality of the ownership change
Confirming the transaction with your real estate agent
Once the funds are transferred and the ownership is registered, the transaction is officially closed and you receive confirmation that the home is yours.
At that point, your real estate lawyer will share how to pick up the keys, often from a lockbox at the property.
Then you officially own your new home!
6. After closing: a few final steps
Once the home is officially yours, there are still a few practical items to take care of.
You should:
Update your address with banks and service providers
Set up property tax payments if they are not included in your mortgage
Begin settling into your new home
And of course, take a moment to celebrate your first home.
A smoother closing experience
For many first-time buyers, the most stressful part of the process is simply not knowing what happens next. Having a clear roadmap makes the journey much easier.
At Ownright, we help buyers navigate every step of the closing process by coordinating with lenders and agents, preparing the legal documents, and ensuring the transaction is completed accurately and on time.
Buying your first home should feel exciting, not overwhelming. With the right guidance and a clear checklist, you can approach closing day with confidence.
