A down payment is a big step for homebuyers, but definitely not the only one.
As a realtor in the Halifax market, Sandra Pike estimates less than half of buyers she sees are actually ready to buy a home. Many have some of the pieces in place, but not the full suite.
鈥淎 lot of them say, 鈥極kay, I've made a decision鈥� and take a look at houses,鈥� said Pike, from The Pike Group at Royal LePage Atlantic. 鈥淎nd people want to write offers and then go get their financing in place.
鈥淏ut as a first-time homebuyer, if you write [an offer] on one of my listings, I am asking for your letter of approval. And if I don鈥檛 have it, I don鈥檛 want to look at your offer. I don鈥檛 want to put my own sellers in conditional purgatory, waiting for you to get your financing together.鈥�
In addition to having a down payment, Pike explained, buyers should be working with an experienced mortgage broker who can help them with debt service ratios, and determine what they can actually afford. They should have a pre-approval 鈥� not just a pre-qualification 鈥� a great credit score, and a budget for everything else: closing costs, inspections, moving, insurance, and furniture.
鈥淲e had someone the other day who wanted to purchase,鈥� Pike said. 鈥淪he had $250,000 in cash 鈥� but really bad credit.鈥� This prospective buyer was unable to obtain financing.
Before the search for a new home, buyers should have some stability in their careers and the readiness to accept a major new responsibility, said Robert Saunders, CEO of Ownright, a service that helps homebuyers with the legal and logistical side of closing on a property.
鈥淢y advice would be to make sure you鈥檙e looking at the full cost of ownership,鈥� he said, adding that a lot of people aren't focused on things like closing fees and property maintenance costs.
鈥淗ome ownership is a big lifestyle shift, for some of those reasons, and also just the responsibility of having to carry a mortgage.鈥�
Condo buyers should have a professional legal review of the status certificate, which details financial and legal information about the unit and condo corporation, Saunders pointed out. First-time buyers don鈥檛 anticipate some of the information in these certificates and what that means for their future costs.
鈥淭hat can actually show you the historical trend of changes to maintenance fees, any issues in the building that might cause changes to your common expenses, and things like that,鈥� Saunders said.
鈥淲e work a lot with that younger demographic buying condos 鈥� that鈥檚 one of the biggest things we see during the transaction process. People are surprised about these fees that they didn鈥檛 really fully understand before taking ownership of their property.鈥�
Getting ready to buy means a lot of research and online calculators, he added 鈥� legal fees, mortgage insurance for buyers who don鈥檛 have a 20 per cent minimum down payment, and land transfer taxes, from which some first-timers and provinces are exempt.
Buyers also need to be prepared for a lifestyle change if they are pursuing cheaper property, Pike said, especially if they are moving from urban to rural.
During the pandemic, she saw buyers fleeing Ontario and British Columbia, snapping up less expensive, rural properties in Nova Scotia. It did not go well for everyone, she said. Driving to a store or gym or doctor could take an hour.
鈥淚t鈥檚 not just buying a house and, you know, looking at the ocean,鈥� Pike said. 鈥淥r buying something that鈥檚 inexpensive. There are a lot of things that come with it, if you鈥檙e buying rural.鈥�
Another thing that surprises buyers: a lot of homes need work. Unless you are fortunate enough to be in the high-end market, it鈥檚 possible many listings within your price range could need tens of thousands in repairs, Pike said. Many buyers are not prepared for those costs, she added.
Lastly, first-time home buyers should plan to stay in place for a minimum of three years, but ideally five or more, Pike said. If having children is in the future, wait to get a home with the extra bedroom; don鈥檛 assume you can just upgrade in two years.
Adding up the equity you鈥檝e gained and potential price increases, but subtracting the costs of the transaction and realtor commissions 鈥� it鈥檚 still three to five years to come out ahead, Pike said.
The pandemic saw major price increases, she noted, but generally, most should plan to build equity over several years before selling and buying again.
With everything else in place, buyers are ready if they are willing to ask for help from their team of professionals: broker, realtor, and lawyer.
鈥淵ou鈥檙e not afraid to ask questions or say 鈥業 don鈥檛 understand this,鈥欌�� Pike said. 鈥淏ecause this is a big deal.鈥�
This report by The Canadian Press was first published May 27, 2025.
Nina Dragicevic, The Canadian Press
