Welcome to an exciting chapter in your life—buying your first home! If you’re planning to make this dream a reality in 2025, early preparation is key. Here’s how to set yourself up for success and work effectively with a REALTOR® to find the perfect home in New Brunswick, Canada.
Step 1: Start Saving and Budgeting
Begin by assessing your financial readiness. Saving for a down payment, closing costs, and other expenses is essential. The Canadian Mortgage and Housing Corporation (CMHC) recommends aiming for at least 5% of the home’s purchase price for your down payment, though having more is better. Why? Your financial situation may demand you make 10%, 20% or even 35% down payment.
Create a realistic budget based on your income and expenses, factoring in potential mortgage payments, property taxes, and home maintenance. Tools like the Government of Canada’s Budget Planner can help you stay on track.
Step 2: Secure Mortgage Pre-Approval
Before house hunting, get pre-approved for a mortgage. This gives you a clear understanding of your price range and shows sellers you’re a serious buyer. Start with your bank and remember to shop around for the best rates and terms for you.
Step 3: Define Your Needs and Wants
Create a list of “must-haves” (number of bedrooms, location) and “nice-to-haves” (extra features). Knowing your priorities helps your REALTOR® identify the best matches in the market.
Step 4: Working with a REALTOR: Your Expert Partner
A REALTOR® can make the home-buying process smoother, especially for first-time home buyers (but also for homeowners). Here’s how to maximize this relationship:
- Communicate Openly: Be clear about your budget, preferences, and timelines.
- Ask Questions: Whether it’s about the market, neighborhoods, or the buying process, don’t hesitate to ask.
- Leverage Their Network: REALTORs have connections with inspectors, lenders, and lawyers, saving you time and effort.
- Trust Their Expertise: REALTORs understand market trends and can guide you in making competitive offers.
WE PAY ATTENTION TO YOUR UNIQUE NEEDS. Our attention to detail saves you time, effort and money.
Step 5: Take advantage Government Programs for First-Time Buyers
Take advantage of government incentives designed to support first-time homebuyers IF you qualify:
- First-Time Home Buyer Incentive: A shared equity program to lower monthly mortgage payments. Learn more at Canada.ca as these programs are constantly reviewed and some may already have been suspended.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP to buy your first home without penalties. Visit HBP Details.
- New Brunswick Down Payment Assistance Program: Check your eligibility for provincial programs that offer financial support. Learn more at NB Home Ownership Program website.
Step 6: Be Prepared for Closing Costs
In addition to your down payment, budget for costs like legal fees, land transfer taxes, other government fees and home inspections. These can amount to 1.5%–4% of the home’s purchase price.
Final Thoughts
Buying your first home is a journey filled with excitement and learning. With careful planning and a knowledgeable REALTOR® by your side, you’ll be well on your way to homeownership in 2025.
🎯 Are you new to the Greater Moncton Area and you are looking for a REALTOR® to help you get a rental, sell or buy a home when you arrive or later? Click here to send a message or book a free physical or virtual meeting with me.
*The information provided here is for educational purposes only. Consult professionals before making any financial or real estate decisions.
*This is not intended to solicit Sellers or Buyers under contract.
