First-Time Buyer Resources
First-Time Home Buyer FAQs
Get clear answers about down payments, mortgage insurance, affordability, inspections, closing day, and the ongoing costs of owning your first home.
01 Can I buy a home with only 5% down?
Yes. Under current federal mortgage lending rules, many buyers can purchase a home with as little as a 5% down payment, depending on the purchase price.
A larger down payment can reduce your monthly mortgage payments and eliminate mortgage default insurance once you reach 20%. However, many first-time buyers successfully purchase their first home using the minimum required down payment.
Before beginning your search, it is important to understand your down payment, expected closing costs, and complete monthly budget.
One advantage of buying in Greater Moncton is that many first-time buyers can enter the market at a lower price point than in larger Canadian cities, making homeownership more attainable.
Do not automatically wait until you have saved 20% if buying a home already makes sense for your situation. For some buyers, entering the market sooner may support their long-term financial goals.
02 What is mortgage default insurance?
Mortgage default insurance protects the lender if a borrower is unable to repay their mortgage.
When your down payment is less than 20%, this insurance is generally required. The premium is typically added to the mortgage rather than being paid completely upfront.
Although it increases the mortgage balance slightly, it allows many buyers to purchase a home sooner without needing a large down payment.
Many first-time buyers purchasing in Greater Moncton use less than a 20% down payment, making mortgage default insurance a normal part of the buying process.
Mortgage default insurance is not a penalty. It is simply part of how many Canadians are able to purchase their first home.
03 How much house can I afford?
The amount you can afford depends on your income, debts, down payment, credit history, current interest rates, and monthly financial obligations.
Before beginning your home search, I recommend speaking with a mortgage professional and obtaining a pre-approval. This gives you a realistic budget and helps you shop with confidence.
Many buyers relocating to Greater Moncton discover that their budget stretches further than expected, providing more housing options than they may have had in larger Canadian markets.
Just because you are approved for a certain amount does not mean you need to spend it all. Choose a home that supports both your finances and your lifestyle.
04 What mistakes should first-time buyers avoid?
Some of the most common first-time buyer mistakes include:
- Shopping before obtaining a mortgage pre-approval.
- Focusing only on the home and not the neighbourhood.
- Forgetting to budget for closing costs.
- Making large purchases before closing day.
- Allowing emotions to control important decisions.
- Skipping a professional home inspection.
Working with experienced professionals can help you recognize and avoid many of these common pitfalls.
Every real estate market is different. Understanding local pricing, neighbourhood differences, and resale potential can help you make a smarter long-term investment.
Your first home does not need to be your forever home. Focus on buying a property that supports your needs today while helping you build equity for the future.
05 What is a home inspection?
A home inspection is a professional evaluation of a property’s major systems, components, and overall condition.
The inspector will typically examine areas such as:
- Roofing
- Foundation
- Structural components
- Electrical systems
- Plumbing systems
- Heating and cooling
- Insulation
- Interior and exterior components
The inspection helps identify potential concerns before you finalize the purchase.
Older homes in Greater Moncton can offer tremendous character, but they may also require additional maintenance. A home inspection provides valuable information before you commit to purchasing.
No home is perfect, including a brand-new home. An inspection is not about finding reasons to walk away. It is about understanding the property’s condition.
06 What is title insurance?
Title insurance protects homeowners against certain legal issues involving the ownership of a property.
It may provide protection against title defects, fraud, survey concerns, encroachments, or unpaid liens that were not discovered before closing.
Your lawyer will explain the title insurance policy and its coverage during the closing process.
Title insurance is generally a one-time purchase completed at closing and can provide protection for as long as you own the property.
Title insurance is something you hope you will never need, but you may be very glad to have it if an unexpected ownership issue arises.
07 What happens between offer acceptance and closing day?
After your offer is accepted, you will complete any conditions outlined in the agreement, such as financing approval or a home inspection.
Your lender will finalize the mortgage, your lawyer will prepare the legal documents, you will arrange property insurance, and the transaction will move toward the agreed closing date.
Throughout this period, I will stay in contact with the professionals involved to help ensure everything continues moving forward.
Every transaction includes important deadlines. Staying organized and responding promptly to requests can help keep your purchase on schedule.
Avoid major financial changes before closing. Do not finance a vehicle, open new credit accounts, or change employment without first speaking with your lender.
08 What should I budget for besides my mortgage?
Owning a home involves more than making a monthly mortgage payment.
Other common expenses may include:
- Property taxes
- Home insurance
- Electricity and other utilities
- Internet and television services
- Routine home maintenance
- Unexpected repairs
- Snow removal and lawn care
- Emergency savings
Planning for these expenses can make homeownership feel much more manageable and less stressful.
Utility costs and property taxes can vary based on the home and community. Understanding the complete monthly housing cost before purchasing helps you make a more informed decision.
Set aside a small amount each month for future maintenance and repairs. Even newer homes require ongoing upkeep.
09 How much will my monthly mortgage payments be?
Your monthly mortgage payment depends on several factors, including the purchase price, down payment, mortgage interest rate, amortization period, and mortgage term.
A mortgage professional can estimate your payments based on your financial situation and explain how different down payments, rates, or mortgage terms may affect your monthly budget.
Understanding your monthly costs before beginning your search helps ensure that you are looking at homes that fit comfortably within your financial goals.
Buyers often focus on the purchase price, but your monthly budget determines how comfortable homeownership will feel. Reviewing utilities, property taxes, insurance, and other expenses gives you a more complete financial picture.
Do not purchase solely based on the maximum amount a lender approves. Choose a payment that still allows you to enjoy life, save for the future, and manage unexpected expenses confidently.
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