How to Plan Smart Before You Start Shopping

Buying your first home is exciting, but if you don’t go in with a clear budget, it’s easy to feel overwhelmed or worse, stretched too thin. Creating a budget before you start looking isn’t just about knowing what you can afford. It’s about protecting your future self from financial stress.

Here’s what you need to know to build a realistic and confident budget for your first home.

Start With What You Can Afford Monthly

Instead of thinking only about the purchase price, start with the monthly payment you’re comfortable with. Your mortgage payment is just one part of the equation. You’ll also need to account for:

A good rule of thumb is to keep your housing costs below 35 percent of your gross monthly income.

Know Your Down Payment Options

In Canada, the minimum down payment depends on the purchase price:

Remember, the bigger your down payment, the lower your mortgage and the less CMHC insurance you’ll need to pay.

Factor In Closing Costs

Many first-time buyers forget to budget for closing costs. These usually range from 2 to 4 percent of the purchase price, and they include:

You’ll need to have these funds ready at closing, separate from your down payment.

Don’t Empty Your Savings

It’s tempting to put every dollar you have toward your down payment, but it’s smarter to leave a cushion. Once you move in, you’ll probably face some immediate costs—furniture, paint, tools, or minor repairs. Life happens, and having some emergency savings will keep you from turning to credit.

Use a Mortgage Professional for a Full Picture

Online calculators are great for estimates, but they don’t always show the full picture. A mortgage agent (like me) can walk you through a detailed budget based on your income, debts, lifestyle, and long-term plans. We can also help you compare mortgage types, find the best rates, and uncover programs or incentives you might qualify for.

Final Tip: Be Realistic, Not Just Optimistic

It’s exciting to dream big—but stick to a number that makes you feel comfortable, not just approved. A home should give you stability and peace of mind, not stress over every payment.

Budgeting is your foundation. The better your plan, the smoother everything else goes. If you want help creating a personalized home budget or just want to run your numbers by someone, I’m here whenever you’re ready.