A couple standing in front of their new home with a sold sign displayed Thinking about buying your first home in St. John's or nearby communities like Paradise, Mount Pearl, or Conception Bay South? Becoming a homeowner is a major milestone, and it's perfectly normal to feel both excited and overwhelmed.

This guide outlines the whole process. It starts with getting a mortgage pre-approval and ends with getting your keys on closing day. It also highlights  that could save you a lot of money.

This summary will help you make smart, confident choices, and answer typical first-time home buyers questions. Start browsing homes perfect for your budget right now.

Step-by-Step Guide for First-Time Home Buyers

Step 1: Secure Your Mortgage Pre-Approval

The first step is figuring out your budget. Meet with a mortgage specialist at a bank or broker to check your finances. This is called pre-qualification. They'll estimate what you can comfortably afford for a home. Next, get pre-approved for a mortgage. Pre-approval means you fill out a formal application and undergo a credit check. This leads to a written promise from a lender for a specific loan amount.

This not only lets you know your price range but also signals to sellers that you're a serious buyer with conditional financing in place. (Sellers are much more receptive to offers from pre-approved buyers.) With your pre-approval in hand, you won't waste time on homes outside your budget, and you can move quickly when you find "the one."

Payment Calculator

This mortgage calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate.

Step 2: Define Your Needs and Wants

Before you start house-hunting, make a list of what you need versus what you want in a home. Needs are the things you cannot change. For example, this includes the number of bedrooms for your family. It also includes having a home office space. Lastly, it means being within a certain distance to work. Wants are the nice-to-haves – like a garage, a big backyard, or that dream kitchen island. It helps to write these down as two columns.

This exercise will focus your search on homes that meet your requirements. (Be realistic that your first home might not check every box on your wish list – prioritize the things that matter most.) By figuring out your needs and wants early, you can avoid distractions, such as viewing homes that seem nice but don't fit your lifestyle.

Step 3: House Hunting with a Local Realtor®

With a clear budget and criteria, you're ready to start looking at homes! It's smart to work with a knowledgeable local Realtor® who understands the St. John's market. A buyer's agent will guide you to neighborhoods that fit your lifestyle and budget, whether you're interested in a downtown St. John's row house or a quieter suburb like Mount Pearl or Paradise. Your Realtor® will set up home viewings and help you spot the pros and cons of each property.

As you visit homes, stay organized – keep notes or photos of the homes on your tour so you can compare features once you complete the tour. Pay attention to such things as the location and surroundings of each property. Is the area safe and well-kept? Are there schools, parks, or shops nearby?

Think about resale value too: a home in a good location will be a better investment in the long run. It's easy to feel strong emotions about a house that "feels right." Your agent will help you stay objective. They will remind you of your must-haves. Enjoy the process – this is the fun part where you get to imagine your future in different homes!

Step 4: Making an Offer (and Doing Due Diligence)

Once you find a house that you love, it's time to make an offer. Your Realtor® will help you determine a fair offer price by looking at recent sales in the area and the home's condition. When drafting the offer, it will typically include conditions (contingencies) to protect you as a buyer and a down payment to demonstrate your intent to proceed.

Two important ones are a financing condition (if for some reason your lender doesn't finalize your mortgage, you can back out) and a home inspection condition.

Always get a home inspection on a first home – or any home, for that matter. A professional inspector will examine the property's structure and systems (foundation, roof, electrical, plumbing, etc.) and give you a report on any issues. This helps ensure there are no costly surprises after you move in.

If the inspection reveals serious problems, you can renegotiate or even walk away if the condition is in place. Assuming everything looks good and your offer is accepted, you're nearly at the finish line. Before closing, it's wise to do a final walk-through of the property with your realtor to make sure it's in the same condition as viewed and any agreed-upon repairs or inclusions (like appliances) are as expected.

Step 5: Closing the Deal

Closing day is when all the legal and financial pieces come together – and you get the keys to your first home! A few days before closing, you'll meet with your lawyer (or closing agent) to sign the paperwork, which includes the mortgage agreement and property transfer documents.

You'll need to arrange payment of the down payment (minus whatever deposit you paid with the offer) and any closing costs at this time. In Newfoundland and Labrador, closing costs for buyers are relatively modest – for example, the land transfer tax (registration fee) is about 0.4% of the purchase price, plus a similar 0.4% on the mortgage amount, and you'll have legal fees as well.

Make sure you've also set up home insurance to be effective on closing day. On the day of closing, the title of the property is transferred to your name and your mortgage funds are released to the seller. Then it's official – you are a homeowner! Now you can celebrate and start moving into your new home.

Why Choose The Hann Group

For more than 24 years The Hann Group has guided hundreds of buyers and sellers across St. John's, Mount Pearl, Paradise, Torbay, Flatrock, Conception Bay South, Portugal Cove–St. Philips, and Logy Bay–Middle Cove–Outer Cove. Our hyper-local market knowledge, unwavering integrity—we never double-end a listing—and sharp negotiating skills give you conflict-free representation, precise pricing advice, and fewer surprises from offer to closing.

To maximize exposure, we built top-ranking platforms like LarryHann.com and StJohnsCondos.ca, helping clients sell faster and for more. Clear, proactive communication keeps you informed at every step, and our client-first philosophy tailors strategies to your goals—whether you're securing your first condo or upsizing to a family home. Ready to make your next move? Fill out the form below or call (709) 728-1169 for a no-obligation chat with The Hann Group.

First-Time Home Buyer Programs and Incentives

One of the great things for first-time buyers in NL is that there are programs and incentives to help you financially. Here are some resources to look into:

  • Newfoundland & Labrador First-Time Homebuyers Program (FHP): A provincial program that provides a repayable down payment loan up to 5% of the home's price (to a max of $17,500 in the St. John's area) and a grant of up to $1,500 to cover 50% of your closing costs.
  • Federal Home Buyers' Plan (HBP): A federal program that lets you withdraw from your RRSP savings to use as a down payment. Under the HBP, you can take out up to $60,000 tax-free (if you have a spouse or partner, each can withdraw $30,000). You then pay that money back into your RRSP over 15 years.
  • First-Time Home Buyers' Tax Credit: When you purchase your first home, you can claim a tax credit of $10,000 on your tax return for the year of purchase. This credit can net you up to $1,500 in tax relief – a nice bonus to help with all those new-home expenses.
  • First Home Savings Account (FHSA): A new savings plan in Canada that lets first-time buyers save money tax-free toward their first home (similar to how an RRSP or TFSA works, but specifically for home buying). You can contribute up to $8,000 per year, up to a $40,000 total, and withdrawals (including growth) are tax-free if used for a home purchase. An FHSA can be a great way to build your down payment faster.

These programs can make a huge difference in affordability for newcomers to the market. It's worth researching each one to see if you qualify. (For the Newfoundland FHP, for example, you apply through Newfoundland and Labrador Housing; for the federal programs, you usually take advantage through your bank or on your tax return.)

Taking advantage of incentives designed for first-time buyers can save you money and make homeownership more attainable.

Frequently Asked Questions for First-Time Buyers

What is the minimum down payment I need to buy a home?

In Canada, the minimum down payment for a primary residence depends on the purchase price. For homes up to $500,000, it’s 5%. For any portion of the price between $500,000 and $999,999, you need 10% for that portion. (E.g., a $600,000 home would require $35,000 – that’s 5% of the first $500k ($25k) + 10% of the next $100k ($10k).) If the purchase price is $1 million or more, a full 20% down is required. Many first-time buyers in St. John’s purchase below the $500k range, so a 5% down payment is often sufficient. Just remember that if your down payment is under 20%, you will need to pay for CMHC mortgage insurance (this protects the lender, but it allows you to buy with less down). Mortgage insurance is added to your mortgage payments. It’s usually worth it to get into your first home sooner with a smaller down payment, as long as you budget for the slightly higher payments.

What costs should I budget for besides the down payment?

Great question – the down payment is the biggest chunk, but not the only cost in buying a home. Closing costs in Newfoundland include things like the land transfer tax (approximately 0.8% of the purchase price when you combine property and mortgage registration fees), legal fees (solicitor or title attorney to handle the closing, which might be around $1,000–$1,500), a home inspection fee (approximately $400–$600), and adjustments (reimbursing the seller for any pre-paid property taxes or utility bills). It’s wise to set aside roughly 1.5%–4% of the home price for closing costs in total. On a $300,000 home, for example, 3% would mean $9,000 reserved for these expenses. If you’re using the provincial First-Time Homebuyers Program, remember it can cover up to $1,500 of your closing costs as a grant, which is a helpful offset. Lastly, don’t forget moving expenses and some cushion for any immediate repairs or furnishings you’ll need when you move in.

Are there any first-time buyer incentives or grants I should know about?

Yes – as discussed above, both the provincial government and federal government offer programs to help first-time buyers. The big one locally is the NL First-Time Homebuyers Program, which gives a 5% down payment loan and closing cost assistance (you apply through NL Housing). Federally, the Home Buyers’ Plan lets you use RRSP funds (up to $60k) for your down payment, and there’s a First-Time Home Buyers’ Tax Credit worth $10k. There’s also the new First Home Savings Account which is like a TFSA to save for your first home. These programs can provide significant financial help. It’s a good idea to talk to your bank or financial advisor about which programs you qualify for. We can also connect you with local mortgage specialists who are familiar with these incentives.

What credit score do I need to get a mortgage?

Most lenders in Canada prefer to see a credit score in at least the mid-600s for mortgage approval, though some will go lower or higher depending on circumstances. If your score is 700 or above, you’re generally in good shape and will qualify for most loans at the best rates. Scores around 600-680 may still get approved but possibly at slightly higher interest rates or with more conditions. Below ~600, you might need to go to a specialty or “B” lender and have a larger down payment. If you’re not sure about your credit, it’s best to check it early in the process (you can request your score/report from credit bureaus for free). Tip: If your score needs improvement, spend a few months to pay down debts and avoid taking new credit – even a small bump in credit score can help get a better mortgage rate. Also, avoid making big purchases or opening new loans during the home-buying process, as that can affect your mortgage approval.

How long does it take to buy a house from start to finish?

The timeline can vary, but here’s a rough idea: Getting pre-approved for a mortgage might take a few days up to a week. Shopping for a home can take anywhere from a couple of weeks to a few months, depending on how specific your needs are and the available inventory in St. John’s. Once you make an offer and it’s accepted, it usually takes about 30 to 60 days to close on the property (during which you’ll do the inspection, finalize the mortgage, and your lawyer will do a title search). So overall, the process might take as short as 2 months or as long as 6+ months in total. If you’re in a rush, let your Realtor® know your timeline – sometimes closing can be expedited, or you can look at homes that are already vacant for faster possession. Conversely, it’s okay if you take your time; the key is finding the right home at a pace you’re comfortable with.

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