Module 1 of 6 · First-Time Homebuyer Series · Canadian Edition

Are You Ready
to Buy?

Your readiness and credit foundation — the essential first step every Canadian first-time buyer needs before anything else.

01Series Overview

02Readiness Check

03Canadian Credit

04Score Improvement

+Bonus Checklist & FAQ

Presented by Shanna Davis
Mortgage Broker · Licence #500549 · Licensed Since 2013

Welcome · Your Complete Series Overview

Welcome to Your First-Time Homebuyer Series — Canadian Edition

Buying your first home in Canada is one of the most significant financial decisions you will ever make. This 6-module series was built specifically for Canadian buyers — with real Canadian rules, real programs, and real guidance from 13 years of helping Canadians get into their first home.

MODULE 1 — YOU ARE HERE

Are You Ready? Your Readiness & Credit Foundation

MODULE 2

Your Money Plan — Savings, Down Payment & Canadian Programs

MODULE 3

Getting Preapproved — Documents, Stress Test & Rate Hold

MODULE 4

Finding Your Home & Making a Smart Offer

MODULE 5

From Accepted Offer to Keys in Hand

MODULE 6

Closing Costs, Rebates & Your Complete Canadian Summary

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A note from ShannaYou do not need to be ready to buy today to benefit from this series. The earlier you start learning, the stronger your financial position will be when the right time comes. Let's build your foundation together.

Module 1 · Why We Start Here

Why Every First-Time Buyer Needs to Start With Readiness

The biggest mistake first-time buyers make is jumping straight to home browsing before they understand where they stand financially. According to CMHC's 2025 Mortgage Consumer Survey, more than half of first-time buyers did not feel financially ready when they purchased. This module gives you an honest foundation — so when you are ready, you are truly ready.

51%

of first-time buyers did NOT feel financially ready — CMHC 2025 Mortgage Consumer Survey

680+

Credit score needed for best mortgage rates in Canada

3 yrs

Employment history Canadian lenders want to see

$0

Cost of working with a mortgage broker — paid by the lender

Source: CMHC Mortgage Consumer Survey, 2025

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Know Where You Stand

An honest assessment of your income stability, savings, and credit health before you spend time looking at homes you may not yet qualify for.

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Save Valuable Time

Buyers who do the readiness work upfront move through the process faster, with fewer surprises and less stress when it matters most.

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Get a Better Rate

Improving your credit score before applying — even by 40 to 60 points — can mean the difference between thousands of dollars saved over your mortgage term.

Module 1 · Step 1 — Readiness Assessment

5 Honest Questions Every Canadian First-Time Buyer Must Ask

Before you look at a single listing, answer these five questions honestly. They are not designed to discourage you — they are designed to tell us exactly what to work on together.

1

Is my employment stable and consistent for at least 3 years?

Canadian lenders want a minimum 3-year employment history. Salaried, self-employed, contract, or commission income all qualify — but each is documented differently. Consistency matters more than income size.

2

Do I have savings for both my down payment AND closing costs?

These are two separate amounts. Your down payment gets you into the home. Closing costs (1.5–4% of purchase price) cover the legal and administrative expenses of completing the transaction. Both must be available.

3

Do I know where my credit stands with both Equifax and TransUnion?

In Canada your credit is tracked by two separate bureaus. You don't need a perfect score — but knowing your number now, even 12 months before buying, gives us time to improve it strategically and get you a better rate.

4

Am I planning to stay in this area for at least 3 to 5 years?

The upfront costs of buying a home take time to recoup. If your career, city, or life situation may change in the near term, timing your purchase thoughtfully can save you from a costly short-term mistake.

5

Am I prepared for the full responsibilities of Canadian homeownership?

Beyond your mortgage — property taxes, home insurance, maintenance, repairs, and condo fees if applicable. Setting aside 1–2% of your home's value annually for upkeep is a smart habit to build from day one.

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RememberAnswering "not yet" to any of these questions is not a setback — it is a starting point. It tells us exactly what to focus on first so that when you are ready, you move through the process with confidence.

Module 1 · Step 2 — Understanding Your Credit

Your Credit Score in Canada — What It Means and Why It Matters

Your credit score is one of the most important numbers in your homebuying journey. It directly affects whether you qualify, which lenders will work with you, and what interest rate you receive — which impacts your monthly payment for years.

Two Bureaus, One Picture

In Canada your credit is tracked by two separate bureaus — Equifax and TransUnion. Both maintain their own file and lenders may check one or both. The good news is that when you work with a mortgage broker on your preapproval, your broker pulls your Equifax report on your behalf — you do not need to do this yourself before reaching out. Simply connect with your broker and they will handle the credit review as part of the preapproval process. If you would like to review your own report beforehand out of personal curiosity, you are welcome to — but it is never a requirement before your first conversation.

Credit Score Range	Rating	What It Means for Your Mortgage
760 and above	Excellent	Best available rates from all lenders
725 to 759	Very Good	Competitive rates across most lenders
680 to 724	Good	Qualifies for most mortgage products
640 to 679	Fair	More limited lender options available
600 to 639	Minimum	Some insured mortgage programs available
Below 600	Rebuild	Focus on credit improvement before applying

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What Your Score Affects

Whether you qualify at all. Which lenders and products are available. The interest rate you receive. Your maximum approved purchase price. Even a 0.5% rate difference can mean thousands saved over your term.

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Your Broker Handles This

When you begin your preapproval with a mortgage broker, your broker pulls your Equifax credit report on your behalf as part of the process. You do not need to check your credit before your first call — just reach out and we take it from there.

Module 1 · Step 3 — Credit Improvement

Practical Steps to Strengthen Your Credit Before You Apply

Credit improvement is not complicated — it is consistent. These are the exact habits that move the needle, based on how Canadian credit scoring actually works.

✅ Actions That Help Your Score

Pay every bill on time, every single month — payment history is the largest factor
Keep credit card and line of credit balances below 30% of the available limit
Check both Equifax and TransUnion reports for errors and dispute any inaccuracies
Keep older accounts open and in good standing — length of history matters
Maintain a healthy mix of credit types — a card and an installment loan together tend to score better

❌ Actions That Hurt Your Score — Avoid These

Applying for new credit cards, car loans, or any financing during the mortgage process
Missing or making late payments on any account
Maxing out or carrying high balances on credit cards
Closing old accounts in good standing — this shortens your credit history
Co-signing on someone else's loan or credit product
Large purchases or new financing of any kind once your file is submitted

📅 Timeline — How Long Does It Take?

If your score needs meaningful improvement, give yourself 6 to 12 months of consistent positive behaviour before applying. The results compound over time. Moving from a 660 to a 720 credit score before applying could save you thousands of dollars in interest over your mortgage term — the patience is absolutely worth it.

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Broker tipAs your mortgage broker I review your full credit profile with you as part of the preapproval process — you never need to figure this out on your own before reaching out. Your first call with me is the starting point. From there we identify exactly what to work on together and build a clear plan to get you mortgage-ready.

Module 1 · Course Reference — Full Outline

Your Complete 6-Module Series at a Glance

Use this as your reference guide throughout your entire homebuying journey. Each module builds on the last — together they give you a complete Canadian homebuying roadmap.

1

Readiness & Credit Foundation

5 readiness questions
3-year employment requirement
Equifax & TransUnion explained
Canadian credit score ranges
Credit improvement strategies

2

Savings & Down Payment

First Home Savings Account (FHSA)
RRSP Home Buyers' Plan ($60K as of April 2024)
Combining FHSA + RRSP
Canadian down payment rules — updated 2026 thresholds
CMHC insurance explained

3

Getting Preapproved

Preapproval vs. prequalification
Canadian document checklist
Notice of Assessment (NOA)
The mortgage stress test
Rate hold advantage

4

Finding Your Home & Offering

Needs vs. wants framework
Working with a buyer's agent
Showing checklist
Canadian offer anatomy
Multiple offer situations

5

Offer to Keys

Condition period & fulfillment
Home inspection process
Lender appraisal
Your real estate lawyer's role
Closing day step by step

6

Closing Costs & Rebates

Budget 1.5–4% for closing costs
BC PTT exemption — up to $8,000 on first $500,000
Ontario LTT refund ($4,000)
Toronto LTT refund ($4,475)
Federal Tax Credit ($1,500)

Module 1 · Summary & Next Steps

You Have Completed Module 1 — Here Is Where You Stand

Take a moment to recognize what you now know. This foundation will make every other module in this series more meaningful and more actionable.

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What You Now Know

The 5 key readiness questions. How Canadian credit bureaus work. What your credit score range means. Exactly what helps and hurts your score. Why 3 years of employment history matters to Canadian lenders.

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Your Action Items

Pull your credit reports from Equifax and TransUnion. Note your current score. Identify any errors to dispute. Honestly assess the 5 readiness questions. Write down what needs attention before applying.

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Coming Up in Module 2

Your Money Plan — the First Home Savings Account, RRSP Home Buyers' Plan (updated to $60,000 per person as of April 2024), Canadian down payment rules, and how to build your savings strategy for maximum advantage before applying.

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Canadian AdvantageThe most prepared buyers get the best outcomes. Canada offers first-time buyers some of the most powerful savings and tax programs in the world — and you are about to learn all of them in Module 2.

Bonus Resource · Interactive Master Checklist

First-Time Homebuyer Master Checklist — Canadian Edition

Track your progress through every stage of the Canadian homebuying process. Click each item to mark it complete as you go.

0% Complete

🏁 Getting Started — Readiness & Credit

Completed the 5 readiness questions honestly and identified areas to work on

Confirmed I have a minimum 3-year verifiable employment or income history

Connected with my mortgage broker — they will pull my Equifax credit report on my behalf as part of the preapproval process

Reviewed my credit report results with my broker and understand my current score and range

Identified any errors on my credit report and discussed with my broker how to address them

💰 Savings & Down Payment Preparation

Opened a First Home Savings Account (FHSA) or confirmed my eligibility and plan to open one

Reviewed my RRSP balance and confirmed whether HBP-eligible funds are available (90-day seasoning rule)

Calculated my total available down payment from all sources — FHSA, RRSP HBP, personal savings, and any gifted funds

Confirmed I have separate savings in place for closing costs (budget 1.5–4% of purchase price on top of down payment)

If receiving a gifted down payment from a family member — confirmed a signed gift letter will be available for the lender

📄 Preapproval Documents

Gathered last 3 years of Notice of Assessment (NOA) letters from the CRA

Pulled last 2–3 years of T4 slips

Obtained most recent 30–60 days of pay stubs

Secured a current letter of employment confirming position, salary, and start date

Gathered last 3 months of bank statements for all accounts

Gathered RRSP, TFSA, and FHSA account statements

Have government-issued photo ID ready (passport or driver's licence)

Submitted mortgage preapproval application through my mortgage broker

Received preapproval letter and confirmed my rate hold period (90–120 days)

🏠 The Home Search

Written my needs vs. wants list before attending any showings

Connected with and engaged a licensed buyer's real estate agent in my province

Researched target neighbourhoods — property tax rates, school ratings, transit, and resale trends

Attended home showings with a structured checklist of what to look for

📋 Offer & Conditions

Reviewed comparable sales with my agent before setting an offer price

Submitted purchase offer including financing, inspection, and title conditions

Paid my deposit into trust as agreed in the purchase contract

Scheduled and completed a professional home inspection within the condition period

Reviewed inspection report and negotiated any repairs or credits with the seller if warranted

🏦 Mortgage Finalization

Submitted final mortgage documents to lender after offer acceptance

Lender appraisal completed and came in at or above purchase price

Received final mortgage approval and signed mortgage commitment letter

🔑 Closing Day

Engaged a real estate lawyer licensed in my province

Reviewed Statement of Adjustments and confirmed exact amount required on closing day

Confirmed eligibility for all applicable first-time buyer rebates and my lawyer is applying them

Arranged certified cheque or wire transfer for the closing balance

Completed the final walkthrough of the property before closing

Attended lawyer's office, signed all mortgage and title documents

🎉 Received keys on possession day — I am a Canadian homeowner!

Bonus Resource · Frequently Asked Questions

First-Time Buyer FAQs — Canadian Edition

These are the real questions I hear from first-time Canadian buyers every week. Answered clearly, honestly, and without jargon.

How much do I really need to save before buying a home in Canada? ▾

Plan for four separate amounts. First, your down payment — minimum 5% on the first $500,000 of the purchase price, plus 10% on everything above $500,000 up to $1,499,999. Homes $1,500,000 and above require a flat 20% minimum — updated December 2024. Second, closing costs — budget 1.5% to 4% of the purchase price on top of your down payment. Third, CMHC insurance PST if applicable in your province — must be paid in cash at closing. Fourth, a move-in reserve for moving costs, immediate repairs, and the first few months of homeownership surprises. On a $650,000 home in Ontario with 10% down, budget roughly $65,000 down plus $10,000 to $20,000 in closing costs plus your reserve. Important note — having the down payment is only part of the picture. You must also income qualify for the mortgage amount. We cover income qualification in detail in a later module. Your broker will build you a precise number for your specific situation.

Can I use my RRSP and my FHSA together on the same home purchase? ▾

Yes — and this is one of the most powerful financial strategies available to Canadian first-time buyers. You are permitted to use both programs on the same qualifying home purchase. Under the RRSP Home Buyers' Plan, as updated in the 2024 Federal Budget effective April 16, 2024, you can now withdraw up to $60,000 per person tax-free, provided the funds have been in your RRSP for at least 90 days. If you are purchasing with a partner who also qualifies as a first-time buyer, together you can access up to $120,000 combined from your RRSPs alone. Under the First Home Savings Account you can withdraw your full balance up to $40,000 completely tax-free with no repayment required. Combined, a single first-time buyer could access up to $100,000 ($60,000 RRSP HBP + $40,000 FHSA). A qualifying couple could access up to $200,000 combined using both programs together. This is an extraordinary advantage that every eligible Canadian buyer should be maximizing as early as possible.

What is the Canadian mortgage stress test and how does it affect my approval? ▾

The Canadian mortgage stress test is a federal requirement that applies to all mortgage applicants at federally regulated lenders. It requires you to qualify not at your actual offered rate but at the higher of the Bank of Canada's published qualifying rate or your contract rate plus 2%. In practical terms, if your lender offers you 5%, you must prove you could still afford payments at 7%. This reduces your maximum approved purchase price compared to qualifying at your actual rate. As your broker I factor the stress test into your preapproval from the very first conversation so there are never any surprises. I also have access to lenders and credit unions that may have different qualifying approaches — which is one of the key advantages of working with a broker.

What is the difference between a mortgage broker and going directly to my bank in Canada? ▾

When you go directly to a bank, you see only their products at their rates. A mortgage broker is an independently licensed professional who works with dozens of lenders — including major banks, credit unions, monoline lenders, and alternative lenders — and negotiates on your behalf. My services cost you nothing. Brokers are compensated by the lender upon funding your mortgage. For first-time buyers especially, working with a broker means access to programs you would never find on your own, better rates than a single bank can offer, and an experienced advocate in your corner who explains every step of a process you have never done before.

How does the Canadian preapproval rate hold work and why does it matter? ▾

When a Canadian lender issues your preapproval, they simultaneously lock in the interest rate available at that moment for the full duration of the preapproval period — typically 90 to 120 days. This is called a rate hold. If rates rise during your home search, your hold protects you at the lower rate. If rates drop before you complete your purchase, you qualify for the lower rate. The rate hold only ever works in your favour. Getting preapproved early in a rising rate environment can save you a meaningful amount of money every month for years to come — and it costs you nothing.

Do I qualify for the Property Transfer Tax exemption in BC or the Land Transfer Tax refund in Ontario? ▾

In British Columbia you may qualify for a PTT exemption on homes valued at $835,000 or less if the home will be your principal residence, you are a Canadian citizen or permanent resident, you have never owned a principal residence anywhere in the world, and you meet BC residency requirements. Important — the exemption applies to the first $500,000 of the purchase price only, saving up to $8,000. On homes above $500,000 you still owe PTT on the portion above $500,000. For example, on a $750,000 home the total PTT is $13,000, the exemption is $8,000, and you still owe $5,000. A partial exemption applies on homes between $835,001 and $860,000. In Ontario first-time buyers receive a provincial Land Transfer Tax refund of up to $4,000. If purchasing within the City of Toronto an additional municipal refund of up to $4,475 is also available — for a combined Toronto saving of up to $8,475. Every Canadian first-time buyer also qualifies for the federal First-Time Home Buyers' Tax Credit providing up to $1,500 in tax savings. Your real estate lawyer applies these at closing — confirm your eligibility with both your broker and your lawyer well in advance.

What are the three dates on a Canadian purchase contract and why do they matter? ▾

This is one of the most commonly misunderstood parts of Canadian real estate. The completion date is when the legal transfer of ownership takes place — your lawyer registers the title in your name and the seller receives their funds. The possession date is when you are entitled to physically take possession and receive the keys. In most transactions these are the same day, but occasionally a seller negotiates one to two extra days in the home after closing. The adjustment date is when property taxes, condo fees, and other ongoing costs are divided between buyer and seller. Your Statement of Adjustments prepared by your lawyer will show exactly how these costs are split. Always clarify all three dates clearly in your purchase contract before signing.

What happens if my home does not appraise at the purchase price? ▾

If the lender's appraisal comes in below the purchase price you have three options. First, renegotiate with the seller — present the appraisal and ask them to reduce the price to the appraised value. Many sellers will negotiate rather than lose the deal. Second, make up the difference in cash — you cover the gap between the appraised value and your purchase price with additional funds from your own savings on top of your original down payment. Third, walk away — if you have a financing condition in your offer and cannot reach an agreement, you are entitled to void the contract and have your deposit returned. This is one of the key reasons your mortgage broker always recommends keeping your financing condition in place, particularly in markets where prices are moving quickly.

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You Have Built Your
Foundation

You now have the readiness framework, the credit knowledge, and the Canadian-specific tools to take your first confident steps toward homeownership. The path forward is clearer than you think — especially with the right guide.

✅ Readiness Assessed

✅ Credit Understood

✅ Score Strategy Set

✅ Checklist In Hand

✅ FAQs Answered

📞 Book a Free Consultation with Shanna

Module 1 Complete · Continue to Module 2 — Your Money Plan: Savings, Down Payment & Canadian Programs 🍁

Are You Readyto Buy?