The First Home Buyers Strategy

by Jeffery A. Keill, CFP, CIM, FMA, FCSI, CEA

The idea of buying a first home can be, well, overwhelming to say the least. The financial commitment, the legal jargon, and the overall lifestyle change of home ownership can make people second guess their decision to buy. For many achieving the down-payment required and the thought of having a debt so large leaves a feeling of being out of reach. This paper is written for those people who have a basic desire to own their first home and willing to take the necessary steps to being a first-time homeowner. With these simple steps, home ownership is achievable. Have a plan and then execute on it.

Successfully owning your home and buying a house are not the same thing. The latter is transactional and full of potential misfires and problems. Successfully owning your home involves moving into and living in a home that suits both your life goals and your financial budget over several years of ownership. It is true, most people’s first homes are seldom their forever home, but the purchase should still be part of a bigger life cycle plan. 

Four Key Steps to Successfully Owning Your First Home: 

1. Work with a trusted Advisory Team to understand the homes that fit into your life’s plans.

2. Work with a trusted Advisory Team to understand the “Price” you must pay to achieve your goal.

3. Work with a trusted Advisory Team to develop a plan.

4. Work with a trusted Advisory Team to execute on the plan.

Step 1.  Understand Your Home’s Fit Into Your Life’s Plans

This is an important first step as it leads you to consider the life you want to lead. Home ownership has many benefits above financial. It is a place of solitude, peace, and security. It creates a sense of accomplishment and pride. It allows us to extend our imagination and display our core beliefs, culture, and outlook on life. It is a place where families make memories and a place where friends gather. What kind of home fits your personal life goals? Over the first 5 years (which is how long people tend to own their first home), what will be important in your life? If you plan on staying longer, say 10 years, what home will work with your plans? Rural? Urban? Semi-detached? Single Family? Large yard or no yard? Garage or no garage? Of course, many people would like a Buckingham Palace, but this may not be the wisest choice for the first home. 

Here's a quick list of some basic considerations (circle the ones most important to you and your partner):

Some Considerations:

• Property Size: Large yard, small yard, no yard or acreage.

• Property Type: Semi-detached, Condo, Single Family or Farmhouse.

• Bedrooms: 2 bedrooms, 3 bedrooms, 4 bedrooms or 5 bedrooms.

• Work From Home: Office Space, 2 Offices, Work Garage or other specific space.

• Proximity: Schooling, close to work,  stores and near family

• Age of Home: New, 1-20 years, 21-50 years, heritage home, or not a factor.

• Usage: Family gatherings, social parties, quiet/private.

• Drive way needed: 1 car, 2 car, Multi car, Boats, Trailers ect.

• Recreational: Pool/Hot tub, fenced yard, firepit, or garden space.

• Family: Kid friendly, no-kids, pets, guest room, granny suite ect.

• Most Important Room: Kitchen/dinning, bedroom, living room or garage or other.

Step 2: Understand The “Price” vs “price”.

This is where many people fail. Deciding on the home you would like to live in is the Dream. The “Price” you pay is the Reality. When I speak of “Price” I am not talking about the purchase price but the actual relationship you have with your cashflow that will be required to fund the successful home ownership. The financial aspect of buying a home is mathematical that is the small-p “price”. The art of achieving the acquisition of the first home is not limited to just the mathematical price. Most people understand the math once explained. If you want a $500,000 home and you want to put down 10% this would mean you need $50,000 for a down-payment. This is part of the small-p price. Getting the $50,000 down-payment is where the rubber meets the road… or where the foundation meets the earth, to be more appropriate. This $50,000 requires a savings plan and even more important: commitment by all parties to the purchase strategy. This is the large-P “Price. The fact remains that we all have other things in life calling for our money. Small things and Big things. Important in the moment, but often insignificant detractors that take savings from our goal. The house purchase must figure into this as a priority over most other discretionary savings. This “Price” which is not even monetary really but more behavioural and is one of the biggest contributors to failure in the path towards successful home ownership. Once you have committed to your goal and are willing to pay the Price, you can work on the rest of the small-p price or costs: the purchase price of the home you want, building up the down-payment, getting your credit score ready, mortgage expectations, etc

. 

Step 3: Develop a Plan

This is the mathematical part where your behaviour must answer the call. This is where we construct the approach. How much savings is needed, what period of time, by what method, under which account, and who’s name. Working with a trusted Advisory Team can help considerably to work out the math. Professionals such as a quality realtor, mortgage broker, real estate lawyer, and Financial Advisor can help you develop a plan and avoid common pitfalls and mistakes. These professionals will help you with the hard questions and keep you on the right path.

In building up your Down-Payment, you will learn about various plans, strategies, and options such as:

• First Home Savings Account (FHSA) 

• First Time Home Buyers Plan (RRSP)

• Tax Free Savings Accounts

• Non-Registered Investments

• Pre-Authorized Savings Plans

Each of these have their own benefits, downsides, and limitations. It may very well require most people to use more than one of these strategies to meet their goals. You can learn more in Part 2 of our Serious Money Discussion series in the paper First Home Buyers: Accounts.

In the process of building up your Credit Worthiness you will begin to understand how good credit is created and maintained to help make obtaining a mortgage easier. You will learn concepts about:

• Beacon Score

• TDSR and GDSR

• Conventional and High Ratio Mortgages

• 4 C’s of Credit (Collateral, Credit History, Cashflow, and Character). 

Step 4:  Execute

All right… we now have: a desired home we are targeting, we have prioritized our life to pay the Price and the price, we have developed a plan of how to get there… now we can Execute!

Any goal without a plan is just a dream. A goal with a well thought out plan is still but a dream but, the execution is what will get us there.

Allow our team of trusted advisors to help get you there.

• Start systematically saving.

• Start improving your credit worthiness.

• Start to research properties that match your wishes.

With the right preparation and support, first-home buyers can achieve stability, independence, and a valuable investment for their future.

Posted May 2026