Adulting 101: Tips for Buying a House

Buying your first home feels exciting… and overwhelming. Trust me, I’ve been there.

Two years ago, when I signed the papers for my first house, I thought I was prepared. I had done the research, talked to my bank, and worked with a real estate agent. But even with all that, there were still surprises.

So, if you’re thinking about stepping into homeownership, here’s are tips and advice you need to know before buying a house.

Step 1: Understand What You Can Actually Afford

Before you even start scrolling through listings, get clear on your budget. And not just the number your bank gives you — the real cost of buying and owning a house.

Budget Beyond the Down Payment

This is one of those tips I wished I knew before buying a house ... Everyone focuses on the down payment — and yes, it’s crucial. But your actual cost of homeownership is much more than that.

You’ll need to budget for:

• Land transfer taxes
• Legal fees
• CMHC taxes
• Home inspections
• Property insurance
• Moving expenses
• Future maintenance (Spoiler alert: things break.) 

(We’ll talk about these and a few other expenses in more detail in Step 7.)

A good rule of thumb? Add at least 3–5% of the purchase price for closing costs alone. 

DID YOU KNOW? Eggs are so expensive in the States that realtors are offering them as a home buying bonus?

Don’t Max Out Your Pre-Approval

When the bank says you’re pre-approved for $600,000, it doesn’t mean you should spend it all. Use that number as a ceiling, not a goal. Buying below your limit gives you breathing room for unexpected costs — like if your furnace quits in the dead of winter.

Step 2: Get Your Credit In Order

Before you apply for a mortgage, take a close look at your credit. A little effort here can save you thousands over the life of your loan.

Check Early and Fix Errors

This is one of the first tips you should start with when you're thinking of buying a house – check your credit score early in the process.

Mistakes on your credit report can lower your score and impact your mortgage rate. And fixing them can take weeks (or months). The earlier you catch issues, the better.

Good Score = Better Rates

The higher your score, the better the interest rates lenders will offer.

Even a small difference in your mortgage rate can save you thousands over the life of your loan. So, it's worth the effort.

BARRIE 360: How to get out of debt: 19 ways to pay off your debt faster ...

Step 3: Pre-Approval vs. Pre-Qualification

Shopping without a pre-approval is like going to the grocery store without your wallet. Don’t waste time falling in love with homes you can’t afford.

They’re not the same thing.

• Pre-Qualification is a quick estimate based on unverified info.
  
• Pre-Approval is a formal offer from the bank, with verified income and credit details.

Go for pre-approval. It shows sellers you’re serious and speeds up the process when you’re ready to make an offer.

Step 4: Pick the Right Team

Buying a house isn’t a solo mission. Surround yourself with experts who’ll have your back at every step.

Bank vs. Mortgage Broker: Who Should You Work With?

When it comes to getting a mortgage, you’ve got options. Banks and mortgage brokers both get you a loan, but they go about it differently.

Banks offer their own mortgage products. If you already bank with them, it can feel convenient — plus, you might score loyalty perks or discounts.

Mortgage brokers shop around. They work with multiple lenders to find you the best rate and terms. Think of them like a matchmaker for your mortgage.

There’s no right or wrong answer. If you like simplicity, stick with your bank. If you want to compare options and potentially save money, a broker can be a smart move.

Pro tip: Talk to both before you decide. It doesn’t cost you anything to compare.

Real Estate Agent: More Than a Door Opener

Find an agent who understands your needs, listens more than they talk, and is familiar with the local market. 

Our real estate agent knew exactly what we were looking for, made excellent recommendations and gave us lots of great feedback and advice on every property we looked at. We never felt like we were putting him out and he still takes time to answer any questions we have about sweat-equity and investments we make in our home. 

All this is to say – your agent is your advocate. If they don’t help you feel confident and informed, find someone who will.

Lawyer: Get One Early

Your lawyer does a lot more than you think: title searches, zoning questions, contract fine print. Don’t wait until closing day to get them on your side.

Step 5: Don’t Skip the Inspection (Seriously)

Even if the house looks perfect, get it inspected.

Spot Hidden Problems

Even if the market is hot, don’t waive the home inspection unless you’re fully prepared to take on hidden problems.

A proper inspection could reveal:

• Old electrical wiring
• Foundation cracks
• Plumbing nightmares
• Roof issues
• Asbestos

Negotiation Leverage

If problems do come up, you might be able to negotiate repairs or a lower price with the seller.

Step 6: Understand Your Mortgage Options

Not all mortgages are created equal. Next on our list of tips is taking the time to understand the pros and cons of each type of mortgage before buying a house.

Fixed vs. Variable Rates

Fixed-rate mortgages: Your interest rate stays the same for the full term. It’s steady, predictable, and great for budgeting — you always know what your payments will be.

Variable-rate mortgages: Your rate moves with the market. If rates drop, you save money. If they rise, you’ll pay more. It’s a gamble, but one that can pay off in the right conditions.

Talk to your bank or broker about what fits your comfort level. And remember: what works for your friend might not work for you.

Term Lengths and Payment Flexibility

Look beyond just the interest rate. Ask about:

• Prepayment privileges
• Penalties for breaking your mortgage early
• Payment frequency options
• Lump sum payments and extra mortgage payments

Life happens — make sure your mortgage can adapt.

RELATED: Types of mortgages in Canada: Which is right for you? 

Step 7: Beware of Hidden Costs

The purchase price is just the beginning. There are a lot of hidden (and not-so-hidden) costs that come with homeownership.

Property Taxes & Utilities

Your property taxes might be higher than expected, especially if you’re moving into a newly developed area. Call your city or town office to get an accurate estimate before you buy.

Also, ask the sellers for their average utility bills. It helps you budget realistically.

Maintenance and Repairs

Consider whether there is anything you need to do before you move in like painting, changing carpets or installing a fence. 

You also want to set aside 1%–3% of your home’s value annually for maintenance. Trust me — you’ll need it. I learned this the hard way when our washer started leaking and the roof turned out to be older than we were told. 

PRO TIP: Check all of the lights and fans to see if they work before you sign on the dotted line. When we moved in, half of our fixtures didn't work and needed to be replaced. While you at it, check all the taps and water pressure as well.

CMHC Taxes

If your down payment is under 20%, you’ll need mortgage insurance. CMHC premiums can quietly add thousands to your total cost. While it’s usually rolled into your mortgage, the tax has to be paid out of pocket.

Land Transfer Taxes

This is a one-time fee you pay when you take ownership of your home. It varies by province and the home’s price. Pro tip: some cities (like Toronto) also add their own tax on top.

Title Insurance

Title insurance protects you from any legal issues that might arise regarding the ownership of your property. These issues can include unpaid property taxes or ownership disputes. It’s an additional one-time fee but worth it for the peace of mind.

Legal Fees & Disbursements

Beyond your lawyer’s base fee, expect to pay for things like title searches, land registration, and other filing costs. These are called "disbursements," and they add up quickly.

Moving Costs

Whether you rent a truck or hire movers, expect to spend a few hundred to a few thousand dollars to get your stuff from point A to point B. 

Don’t forget to budget for packing supplies, pizza for your helpers, and time off work if needed.

Home Insurance

Your lender will require proof of home insurance before you close the deal. This protects you (and them) from disasters like fires, floods, or theft. Rates vary based on the home, location, and coverage.

Appliances & Furniture

Your dream home might not come with the fridge, washer, or dryer. And if it does? Budget for replacements down the line — sellers often leave behind older models.

Step 8: Think Long Term

Don’t just buy for today — think about how long you’ll stay in this home.

Resale Value Matters

Even if you think this is your "forever home," life changes.  Look for:

• Growth potential in the neighborhood
• Good school zones (they boost resale value, even if you don’t have kids)
• Proximity to transit and amenities

Future-Proof Your Decision

Is there room to grow in the house if your family expands? Can you work from home comfortably if needed? These are things that a lot of people forget to consider.

Step 9: Trust Your Gut (But Do the Math)

It’s easy to get emotional about a house. It’s your future home, after all.

But step back and check:

• Does it meet your needs, or just your wants?
• Are you stretching too far financially?
• Are you ignoring red flags because you’ve fallen for the curb appeal?

It’s not uncommon for people to make an offer on a house because it's modern and sleek on the inside only to find out there are major structural issues. 

Step 10: Don’t Judge a Book by Its Cover

I swore I’d never buy a house with cantilevers. I didn’t understand why someone ould build a house with them and didn’t like the way they looked — at all. When we were walking up to the house we eventually bought we noticed it had cantilevers. My husband and I actually laughed at the idea of buying it as he said, “Imagine we buy this place.”

Well, we did. And we absolutely love it. So much so, we have a plaque in our home that reads: “Imagine we buy this place” with our purchase date.

The lesson? Keep an open mind. You might be surprised by what feels like home once you step inside. 

Step 11: Celebrate Responsibly

Last on our list of tips is to take a moment to celebrate after buying your house. You’ve earned it!

But resist the urge to splurge immediately on all-new furniture or expensive renovations. Give yourself time to settle in and rebuild your savings buffer.

Be Ready, But Stay Flexible

Buying a house is a major milestone, but it’s also a learning curve. Chances are you’ll encounter surprises — some good, some not-so-good — and that’s okay.

The key is to prepare as much as you can, build a trustworthy team, have a support system in place and remember that no question is too small to ask. If something feels unclear, speak up. You’re the one signing the dotted line, after all.

By following these tips for buying a house, you'll be better informed and prepared. Good luck on your home-buying journey! You’ve got this.

Looking for more? Stay tuned for our upcoming guide: What Happens After You Get the Keys — A New Homeowner’s Survival Checklist.