If you’re looking to make the leap into homeownership, you’ve come to the right place. Whether you’re wanting to buy a house, townhome, condo, new build or land, you need to have a grasp on how a real estate transaction works. We reached out to REALTORS® from across Canada to ask for some of their best advice for first-time home buyers. Hear from the experts on things like:

1. Not getting discouraged if your offer isn’t accepted
2. Being willing to look outside your comfort zone
3. Planning for all expenses
4. Understanding you may have to start small
5. Leveraging technology
6. Being patient with the process
7. How much to spend on your home
8. Finding a REALTOR® early
9. Shopping around for mortgage rates
10. Not completely draining your savings
11. Considering alternative housing options

1. 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. 

“A rejected offer is not the end of your home buying journey,” says Nicole Ryan, a REALTOR® and salesperson with eXp Realty in Dundurn, Saskatchewan. “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.”

2. Be willing to look outside of your comfort zone

“When it comes to finding your ideal home, it’s important to broaden your horizons,” explains Ryan Elliott, a REALTOR® with Royal LePage Atlantic Homestead in St. John’s, Newfoundland and Labrador. “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,” Elliott adds.

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. 

3. 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,” says Lisa Kloeble, a REALTOR® and salesperson with eXp Realty in Saskatoon, Saskatchewan. “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.

4. 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.

“I’ve seen so many articles about buyers worrying about being able to afford to purchase a property,” says Jeneen Marchant, a REALTOR® and associate with RE/MAX Real Estate in Edmonton, Alberta. “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,” echoes Kloeble. “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.”

5. 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],” says Elliott. “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.”

6. 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. 

“Patience is a virtue when it comes to the home buying process,” Ryan explains. “It can be tempting to rush into a decision, especially when you’re eager to become a homeowner. However, finding the right home takes time. 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.”

7. 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,” says Kloeble. “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,” advises Kloeble. “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.”

8. 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,” says Elliott. “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,” explains Marchant. “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.”

9. 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. 

“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.”

10. 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,” says Ryan. “Avoid completely draining your savings for the down payment, as unexpected expenses may arise after purchasing your home. 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. 

11. 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,” Elliott suggests. “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.”

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.