You’ve Saved for a Down Payment—Now What?

Crossing the First Milestone

You’ve done the hard part—sacrificed takeout, skipped a few vacations, and said no to the “just one more coffee” temptations. And now? You’ve saved up a solid down payment. That’s no small feat, and it deserves recognition. But as exciting as it is, many couples hit this point and think: now what?

This next stage is where your preparation meets strategy. Whether you're dreaming of a modern condo, a cozy family home, or something in between, turning that down payment into keys in hand involves a few essential steps.

Let’s walk through exactly what to do—so you feel confident, informed, and ready to make a smart move.

Understanding Pre-Approval vs. Pre-Qualification

Let’s clear up some common confusion.

Pre-qualification is a quick estimate—often done online or over the phone—based on the financial info you provide. It’s helpful, but not a firm commitment from a lender.

Pre-approval, on the other hand, means a lender has verified your income, credit, and finances and is willing to loan you a specific amount. It’s more formal, and far more powerful when you're house hunting.

Why it matters:
In competitive markets, a pre-approval letter signals to sellers that you’re serious and financially ready. It can be the difference between getting your dream home—or missing out.

Getting Pre-Approved: What You’ll Need and How to Start

Getting pre-approved is simpler than it sounds—but it does require a bit of preparation.

Documents you’ll typically need:

• Recent pay stubs and employment verification
• Tax returns (usually last 2 years)
• Bank account statements
• Credit history
• Government-issued ID

Many lenders now offer pre-approvals online or over the phone, but it’s still wise to shop around. Rates, terms, and service can vary—so don’t feel locked into the first offer you see.

Tip:
Use a mortgage broker if you’re feeling overwhelmed. They can help you compare lenders and match you with the right financing based on your goals and situation.

Building a Realistic Home Buying Budget

Saving for a down payment is just one piece of the puzzle. To avoid financial surprises, it's essential to build a holistic budget for your entire home purchase—and the life that comes after.

Here’s what to factor in:

1. Closing Costs:
These can include legal fees, title insurance, land transfer tax, and more. A good rule of thumb? Budget an extra 1.5% to 4% of your home’s purchase price.

2. Property Taxes and Insurance:
Ongoing costs that vary by region. Make sure to ask your REALTOR® or lender for estimates based on your target neighbourhood.

3. Utilities and Maintenance:
Home maintenance, heating, plumbing fixes—homeownership comes with new responsibilities. Set aside a portion of your budget (around 1% of the home value per year) for unexpected repairs.

4. Lifestyle and Future Goals:
Don’t forget what matters most: vacations, hobbies, kids’ activities, or even that kitchen reno you’ve been dreaming of. Leave room to live—not just to own.

The Role of a REALTOR® in Your Journey

You don’t need to do this alone. A great REALTOR® can guide you through each step, advocate on your behalf, and help you avoid costly mistakes.

Here’s how they help:

• Local Market Expertise: They’ll know if a listing is fairly priced.
• Negotiation Power: From price to closing dates to contingencies, your REALTOR® fights for your interests.
• Streamlined Process: Coordinating showings, paperwork, inspections—it’s all easier with a pro in your corner.

How to choose the right one:
Ask about their experience with first-time buyers, their communication style, and their knowledge of your desired neighbourhood. If you’re unsure, start with a coffee meeting—chemistry and trust matter.

And remember: in most cases, the buyer's agent is paid by the seller, so this level of support typically costs you nothing out of pocket.

Exploring Mortgage Options

Not all mortgages are created equal. Understanding your options helps you align your home financing with your lifestyle and goals.

Common mortgage types:

• Fixed-Rate Mortgage: Your rate stays the same for the term. Predictable and stable.
• Variable-Rate Mortgage: Tied to the prime rate—lower to start, but fluctuates with the market.
• Adjustable-Rate Mortgage (ARM): Similar to variable, but with payments that adjust too (vs. just interest portion).

Other mortgage programs to know:

• Conventional Mortgage: Requires 20% down to avoid mortgage insurance.
• CMHC-Insured Mortgage: For buyers with less than 20% down—helps get you in the door.
• First-Time Buyer Incentives: Government-supported programs that offer lower rates or shared equity options.

Pro tip:
Don’t just chase the lowest rate. Consider the flexibility of the terms, penalties for early repayment, and your long-term financial plans.

House Hunting Tips for First-Time Buyers

This is where things get exciting—and sometimes overwhelming. Touring homes, imagining your future, and scrolling late-night listings can be a thrill. But to keep it productive and stress-free, here are a few house hunting tips tailored for first-time buyers:

1. Create a ‘Needs vs. Wants’ List
Separate your must-haves (like 3 bedrooms, walkability to work, or a pet-friendly yard) from nice-to-haves (like a spa bathtub or vaulted ceilings). It helps keep emotions in check and decisions grounded.

2. Understand the Local Market
In Kelowna, for instance, market conditions can shift seasonally. Your REALTOR® will help you interpret pricing trends and neighbourhood dynamics.

3. Be Strategic with Showings
Visit homes during different times of day. That sunny morning light might reveal traffic noise by 5 p.m. Don't be afraid to take notes or photos to help compare later.

Bonus tip: Bring a friend or family member to a second showing—they might spot something you missed.

Making an Offer: From Strategy to Negotiation

When you find the one, it’s time to move from dreaming to doing.

How to build a strong offer:

• Price: Your REALTOR® will run a comparative market analysis to guide your bid.
• Deposit: A solid deposit (often 5%) shows the seller you’re serious.
• Contingencies: These may include financing approval, home inspection results, or the sale of your current home if applicable.

Negotiation tips:

• Be respectful, not aggressive—tone matters.
• Keep emotions in check. Sometimes walking away is the power move.
• Rely on your REALTOR®’s advice—they’ve seen dozens of negotiations and can protect your interests.

Remember: The first offer isn’t always the last. Counteroffers and even backup offers are common—so stay flexible but clear on your limits.

Home Inspection and Appraisal Essentials

Once your offer is accepted, it’s time to double-check that what you’re buying is truly worth it.

Home Inspection:

• Uncovers hidden issues like roof damage, plumbing problems, or outdated wiring.
• Gives you leverage to negotiate repairs—or even walk away if red flags are serious.
• Costs around $600 in Kelowna but is well worth the peace of mind.

Appraisal:

• Required by lenders to confirm the home’s market value.
• If the appraised value is lower than your offer, you may need to renegotiate or bridge the difference.

Pro tip: Be present during the inspection if possible. You’ll learn a lot about the home’s systems and how to maintain them down the road.

Common First-Time Homebuyer Mistakes to Avoid

Even smart, financially prepared buyers can stumble. Here are the most common pitfalls—and how to sidestep them:

1. Skipping Pre-Approval
We touched on this earlier, but it bears repeating. Without a pre-approval, your offer may not be taken seriously—and you could fall in love with a home outside your actual budget.

2. Underestimating Total Costs
Buying a home doesn’t end with the down payment. Many couples overlook closing costs, property taxes, strata fees, and future maintenance needs. Building a complete budget avoids financial strain down the road.

3. Letting Emotions Lead
That “dream kitchen” or perfect sunset view can cloud judgment. Stay grounded by referring back to your needs vs. wants list and listening to your REALTOR®’s advice.

4. Skimping on the Home Inspection
Trying to save a few hundred dollars here can cost you thousands in repairs later. Always inspect.

Avoiding these missteps helps turn your excitement into confidence—not regret.

Navigating the Subject Removal Period and Closing

Once your offer is accepted and the inspection is complete, you're officially in the home stretch. Here’s what to expect:

The Subject Removal Period:

• This is the time when financing is finalized, inspections are done, and all contingencies are cleared.
• It typically lasts 7–10 days in BC, but can vary based on the offer.

Closing Day Prep:

• You’ll receive a statement of adjustments detailing final costs.
• Legal documents are signed with your lawyer or notary.
• Your lender releases the mortgage funds, and title transfers to your name.

Final Walkthrough Checklist:

• Ensure all agreed-upon repairs are complete.
• Check appliances, plumbing, and lights.
• Confirm that nothing has been removed or damaged since the offer was accepted.

And then—congratulations! You get the keys and officially become homeowners.

Post-Purchase Planning

The move-in party might be tempting, but setting up a solid plan for homeownership is just as important.

Build a Homeowner’s Budget:

• Include your mortgage, utilities, insurance, strata fees (if applicable), and a home maintenance savings fund.
• Plan for seasonal costs—like snow removal or A/C maintenance in Kelowna’s warmer months.

Set Up an Emergency Fund:

• Aim for 3–6 months of expenses, especially in case of job changes or unexpected repairs.

Think Long-Term:

• Keep up with small maintenance tasks to avoid costly repairs later.
• Consider small updates that build equity—like energy-efficient upgrades or cosmetic improvements.
• Track your home’s market value annually, especially if you’re thinking of moving or refinancing in the future.

Owning a home isn’t just a transaction—it’s a long-term investment in your future security and happiness.

Working with Professionals: Your Homebuying Team

Buying your first home is exciting—but also complex. That’s why having the right people on your side can make all the difference. Think of your homebuying team as your real estate dream crew.

1. REALTOR®
Your guide, advocate, and negotiator. A great REALTOR® helps you navigate listings, make informed decisions, and avoid costly missteps. They’re with you from the first showing to key handover.

2. Mortgage Broker or Lender
They help you secure financing and explain your options. A broker compares multiple lenders to get you the best rate and terms.

3. Lawyer or Notary Public
In BC, a lawyer or notary handles the legal side of your transaction. They review contracts, register your title, and ensure everything is above board on closing day.

4. Home Inspector
A licensed inspector uncovers issues that could cost you later. From roof condition to electrical systems, they help you buy with eyes wide open.

Surrounding yourself with trusted experts reduces stress and gives you the confidence to make smart, informed choices at every step.

Final Thoughts

You’ve already accomplished something huge—saving for a down payment. Now, armed with the right information and the right team, you’re ready to take the next steps toward homeownership with clarity and confidence.

Remember: this journey is about more than buying a house. It’s about building a life—one filled with growth, stability, and the space to create new memories.

Whether you’re weeks away from touring homes or just starting to research mortgage options, take it one step at a time. Ask questions. Trust your instincts. Lean on your REALTOR®.

5 FAQs for First-Time Homebuyers

1. Is pre-approval necessary before house hunting?
Yes, getting pre-approved shows sellers you're serious and financially qualified. It can strengthen your offer and help you shop with confidence.

2. What costs should I budget for beyond the down payment?
Expect to pay for closing costs, property taxes, insurance, inspections, and ongoing maintenance. A realistic budget ensures no financial surprises.

3. How do I choose the right REALTOR®?
Look for someone experienced in your area, responsive to your questions, and comfortable explaining the buying process. Referrals and interviews can help.

4. Can I still buy a home if I don’t have 20% down?
Yes! With less than 20% down, you may qualify for an insured mortgage through CMHC. This allows you to enter the market sooner with manageable monthly payments.

5. What happens after my offer is accepted?
You’ll enter the subject removal period where inspections, financing, and paperwork are finalized. Once cleared, you’ll prepare for closing day and receive your keys.