5 Financial Factors First-Time Buyers Should Consider on Their Path to Home Ownership
Buying your first home is exciting, empowering—and, let’s be honest, a little intimidating. As a real estate agent in Winnipeg, I’ve walked alongside many first-time buyers who start their journey full of hope but quickly realize there’s more to buying a home than just picking one you like.
The truth is, homeownership is as much a financial decision as it is a lifestyle decision. Understanding the numbers upfront can save you stress, keep you on track, and help you buy confidently.
Here are five financial factors every first-time home buyer in Winnipeg should consider before making the leap into homeownership.
1. Your Down Payment and Mortgage Options
The down payment is your ticket to ownership—and one of the first numbers you should calculate.
Minimum Down Payments in Canada
5% for homes under $500,000
5% of the first $500,000 and 10% of the remaining portion for homes between $500,000 and $999,999
20% for homes $1M+
If you put less than 20% down, you’ll also need mortgage default insurance (CMHC insurance), which protects the lender but increases your monthly payment.
Pro Tip: First-time buyers can often access the First-Time Home Buyer Incentive or the Home Buyers’ Plan (HBP) to withdraw up to $35,000 from an RRSP for their down payment.
As your realtor in Winnipeg, I always recommend sitting down with a mortgage professional before house hunting. Getting pre-approved not only clarifies your budget but strengthens your offer when you find the right home.
2. Your Monthly Budget (Beyond the Mortgage)
First-time buyers often focus only on the purchase price and mortgage payments—but monthly homeownership costs are broader:
Mortgage payment (principal + interest)
Property taxes (varies by neighborhood)
Home insurance (mandatory for lenders)
Utilities (hydro, water, natural gas)
Internet/cable
HOA or condo fees (if applicable)
A realistic budget ensures you can comfortably afford your home long after the keys are in your hand.
Example:
Home price: $350,000
5% down payment: $17,500
Approx. monthly payment (mortgage + tax + insurance): $1,750–$1,950
When I work with first-time buyers, I encourage them to calculate the “true monthly cost” of a home before falling in love with a property. This prevents financial surprises after closing.
3. Closing Costs You Can’t Ignore
Your down payment isn’t the only upfront cost. Many first-time buyers are surprised by closing costs, which generally add 1.5%–4% of the home price. These can include:
Land Transfer Tax (LTT)
Manitoba charges an LTT based on the home’s value.
First-time buyers may qualify for a partial refund in some cases.
Legal fees (for your lawyer to handle contracts and title transfer)
Title insurance (protects you from ownership disputes)
Home inspection fee
Appraisal fee (sometimes required by lenders)
Adjustments (unpaid property taxes or utilities by the seller)
Pro Tip: I often recommend setting aside at least 2% of the purchase price for closing costs. That way, when you get to the finish line, you’re financially prepared.
4. Emergency Fund and Maintenance Budget
Owning a home means you’re the landlord now—so if the furnace breaks or the roof leaks, you’re the one who pays for it.
A good rule of thumb is to save 1% of your home’s value annually for maintenance and unexpected repairs. For a $350,000 home, that’s about $3,500 a year or roughly $300/month.
Typical first-time home costs can include:
Furnace or A/C tune-ups or replacement
Appliance repairs
Roof, gutter, or siding repairs
Plumbing or electrical fixes
Pro Tip: Even new builds can have unexpected expenses. Having a safety net ensures your dream home doesn’t become a financial burden.
5. Long-Term Financial Impact
Before signing on the dotted line, consider how your mortgage and home expenses align with your long-term goals:
Will this purchase still feel comfortable if interest rates rise?
Are you planning to start a family, change jobs, or pursue other investments?
Is this your “starter home” or do you want to stay for 10+ years?
As a real estate agent in Winnipeg, I help first-time buyers think beyond the immediate excitement of buying. A well-planned purchase balances your current lifestyle with your future financial stability.
Bonus: Leverage Professional Guidance
Navigating the financial side of buying your first home is much easier with the right team:
Mortgage broker or lender: To secure the best rates and understand your borrowing capacity.
Real estate agent in Winnipeg: To guide you to homes that fit your budget and help you negotiate the best deal.
Lawyer: To ensure all contracts, titles, and funds are handled correctly.
First-time buyers who take the time to plan, budget, and understand the numbers often enjoy the process more and avoid costly mistakes.
Ready to Start Your Path to Homeownership?
Buying your first home is a big milestone—but you don’t have to do it alone.
As a dedicated realtor in Winnipeg, I specialize in helping first-time buyers:
Understand their financial picture
Navigate every step of the buying process
Avoid pitfalls and feel confident in their decision
📞 Contact us today for a first-time buyer consultation. Together, we’ll map out your financial plan, explore the best neighborhoods, and take the stress out of buying your first home.
Your journey to homeownership starts with clarity—and I’m here to guide you every step of the way.
