🏠 The Essential Homebuying Guide for Canadians
By Give A Heck Financial
Helping people live life on purpose and not by accident for 22 years
Why First-Time Buyers Need More Than Just a Mortgage Calculator
Buying your first home in Canada used to feel simple. You saved a bit, found a realtor, and hoped you’d qualify. But today’s market demands more from hopeful buyers—more knowledge, more strategy, and more clarity on what really matters.
At Give A Heck Financial, I’ve spent over two decades helping people live life on purpose, not by accident. This guide is your invitation to do just that in your homebuying journey.
✅ The Real Rules of Minimum Down Payments
The “5% rule” is often quoted, but rarely understood in full. Here’s what it actually looks like in 2025:
- 5% down is allowed for homes up to $500,000
- For homes $500,001–$999,999, you’ll need 5% of the first $500K and 10% of the rest
- Homes over $1M require 20% (and are ineligible for CMHC insurance)
📌 Example: On a $400,000 home, 5% equals $20,000 down.
🛡️ The Truth About CMHC Insurance
Let’s be blunt: CMHC isn’t for you—it’s for your lender. It protects them in case you can’t make your payments. But it still plays a vital role in your buying power by allowing you to purchase with less than 20% down.
Here’s what it costs (added to your mortgage, not paid upfront):
- 5% down → 4.00% premium
- 10% down → 3.10% premium
- 15% down → 2.80% premium
And yes, this premium gets tacked onto your mortgage principal. That means a $15,200 fee becomes part of your long-term repayment total. Understanding this can help you make smarter decisions about how much to put down and when.
💼 What It Actually Costs to Buy a $400K Home
Let’s break it down:
- Down Payment (5%): $20,000
- CMHC Premium (4%): $15,200
- Final Mortgage: $395,200
- Legal, Appraisal, and Closing Fees: $3,000–$5,000
✅ Total cash required upfront: around $23,000–$25,000
It’s not just the down payment—it’s the full stack of early expenses that makes or breaks readiness.
💸 Hidden Costs of Homeownership People Rarely Budget For
Too often, I hear, “Our mortgage will be the same as our rent!” And yet, after keys are handed over, reality sets in:
- Property taxes ($2K–$5K/year)
- Home insurance ($800–$1,500/year)
- Utilities (electricity, water, heat): $2,500–$5,000/year
- Repairs & maintenance (budget ~1% of home value annually)
- Condo fees or community levies
📌 Owning has rewards. But it also has recurring responsibilities.
📊 Monthly Mortgage Payment Estimate (25-Year Amortization @ 4.59%)
| Down Payment | Monthly Payment (est.) |
| 5% | ~$2,180 |
| 10% | ~$2,040 |
| 15% | ~$1,920 |
| 20% | ~$1,770 |
Remember, CMHC premiums are included above when applicable. What you save monthly by increasing your down payment can add up fast.
🏦 The FHSA: Your Best Friend in Saving for a First Home
If you’re a first-time homebuyer, there’s good news: the First Home Savings Account (FHSA) is now fully live across most Canadian banks.
Here’s why it matters:
- Save up to $8,000/year
- Max out at $40,000 over your lifetime
- Contributions lower your taxable income
- Withdrawals are tax-free when used to buy your first home
- No payback requirements (unlike RRSP HBP)
It’s like combining the best parts of a TFSA and an RRSP—and putting them to work for your future home.
🧠 Want Even More Leverage? Stack FHSA + RRSP HBP
Here’s what you can do:
- Open an FHSA and contribute up to $40,000
- Use your RRSP for the Home Buyers’ Plan (HBP) to withdraw up to $60,000 (with a 15-year repayment schedule)
- That’s up to $100,000 per buyer—or $200,000 per couple—toward a home, tax-favoured
Smart stacking like this separates the prepared from the overwhelmed.
🧾 Create Your Own Affordability Snapshot
Ask yourself:
- What’s my gross income before tax?
- What are my monthly debt obligations?
- How much do I have saved (FHSA, RRSP, other)?
- What would be a realistic monthly cost of living for me?
Don’t just rely on the bank’s pre-approval. Take ownership of your own numbers—it’s the most powerful move you’ll make.
Final Thoughts
Buying a home is more than signing mortgage papers—it’s a milestone that shapes your life for years to come. Whether you’re months away or just starting to save, the best investment you can make is in clarity, confidence, and financial literacy.
If you want a downloadable version of this guide or a worksheet to map your own numbers, send me a quick DM. I’ll send it over personally—no strings attached.
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© 2025 Give A Heck Financial
Helping people live life on purpose and not by accident for 22 years
This content is educational and not a substitute for personalized financial advice.