Top Mortgage Tips for First-Time Buyers in Durham Region

Buying Your First Home? Here’s What You Need to Know About Mortgages

Buying your first home in Bowmanville, Clarington, or Durham Region is an exciting milestone, but navigating the mortgage process can feel overwhelming. With so many financing options, lender requirements, and potential pitfalls, it’s important to be well-prepared.

At Boyle Team Real Estate, led by Marlene Boyle, we help first-time homebuyers understand their mortgage options, secure the best rates, and make informed decisions. Whether you’re buying a condo in Bowmanville, a detached home in Clarington, or a townhome in Durham Region, these mortgage tips will help you get started on the right track.

1. Get Pre-Approved Before You Start House Hunting

Why Is Mortgage Pre-Approval Important?

Before you start looking at homes, it’s crucial to get pre-approved for a mortgage. This step helps you:
✔ Know your budget – You’ll understand how much you can afford.
✔ Show sellers you’re serious – In a competitive market, pre-approved buyers stand out.
✔ Lock in an interest rate – Many lenders offer rate holds for 90–120 days.

How to Get Pre-Approved for a Mortgage in Durham Region

• Check your credit score (aim for 680+ for the best rates).
• Gather required documents (income statements, tax returns, debt information).
• Contact a mortgage broker or lender to compare rates.
• Avoid making large purchases or taking on new debt before closing.

💡 Pro Tip: A pre-approval is not a guarantee of final mortgage approval—your lender will still review your finances before closing.

2. Know Your Down Payment Options

In Ontario, the required down payment depends on the purchase price of the home:

Minimum Down Payment Requirements in Canada

🏡 Homes under $500,000 – Minimum 5% down payment
🏡 Homes between $500,000 and $999,999 – 5% on the first $500K, 10% on the remainder
🏡 Homes over $1 million – 20% down payment required

Can You Buy a Home with Less Than 20% Down?

Yes! But if your down payment is less than 20%, you’ll need CMHC mortgage insurance.

3. Understand CMHC Mortgage Insurance

What Is CMHC Insurance?

CMHC (Canada Mortgage and Housing Corporation) insurance protects lenders when buyers put less than 20% down.

CMHC Premium Rates

• 5–9.99% down → 4.00% of mortgage amount
• 10–14.99% down → 3.10% of mortgage amount
• 15–19.99% down → 2.80% of mortgage amount

💡 Example: If you buy a $600,000 home with a 10% down payment ($60,000), your CMHC premium would be $16,740 (3.10% of $540,000 mortgage).

4. Choose Between a Fixed vs. Variable Mortgage Rate

One of the biggest mortgage decisions you’ll make is whether to choose a fixed or variable interest rate.

Fixed-Rate Mortgage Pros & Cons

✔ Predictable payments – Your rate stays the same for the full term.
✔ Best for risk-averse buyers – No surprises with rising rates.
❌ Slightly higher rates compared to variable mortgages.

Variable-Rate Mortgage Pros & Cons

✔ Lower initial interest rate – Can save money if rates stay low.
✔ More flexibility – Lower penalties if you break your mortgage.
❌ Risk of rising rates – Monthly payments could increase.

💡 Pro Tip: In 2024, many Clarington buyers are opting for fixed rates due to rate uncertainty.

5. Factor in Additional Homebuying Costs

Many first-time buyers focus only on their down payment, but there are other costs to budget for:

Closing Costs (Typically 1.5% – 4% of Purchase Price)

• Land Transfer Tax (Ontario’s LTT on a $700K home is $10,475).
• Home Inspection ($400 – $600) – Helps uncover potential issues.
• Legal Fees ($1,500 – $2,500) – Covers paperwork and title transfer.
• Title Insurance ($250 – $500) – Protects against fraud or ownership disputes.
• Property Tax & Utility Adjustments – Covers prepaid expenses by the seller.

💡 First-Time Buyer Tip: Ontario offers a land transfer tax rebate of up to $4,000 for eligible first-time homebuyers.

6. Consider First-Time Homebuyer Incentives

The Canadian government offers programs to help first-time buyers in Bowmanville and Clarington:

Home Buyers' Plan (HBP)

✔ Withdraw up to $60,000 tax-free from your RRSP to use for a down payment.
✔ Must be repaid within 15 years to avoid penalties.

First-Time Home Buyer Incentive (FTHBI)

✔ The government provides 5% or 10% of your home’s purchase price in shared equity.
✔ Must be repaid within 25 years or when you sell the home.

💡 Pro Tip: Speak to a mortgage specialist to see if these programs fit your situation.

7. Get Help from a Local Real Estate Agent

Navigating the homebuying process in Durham Region can be challenging, but having a trusted real estate agent can make all the difference.

How Boyle Team Real Estate Can Help

✅ Connect you with trusted mortgage brokers for the best rates.
✅ Find homes that fit your budget and lifestyle.
✅ Negotiate the best deal to maximize your investment.
✅ Guide you through the entire process from pre-approval to closing.

📞 Thinking about buying your first home? Contact Marlene Boyle and the Boyle Team today for expert advice!

Final Thoughts: Mortgage Tips for First-Time Buyers in Durham Region

Buying your first home is a big decision, but the right mortgage strategy can save you thousands over the long run.

✔ Get pre-approved before house hunting.
✔ Compare fixed vs. variable rates to see what’s best for you.
✔ Budget for closing costs and unexpected expenses.
✔ Take advantage of first-time homebuyer incentives.

📞 Need guidance? Contact Boyle Team Real Estate today to start your homebuying journey in Bowmanville, Clarington, or Durham Region!