Entering the housing market as a first-time home buyer can feel overwhelming. After all, buying a home will probably be one of the largest financial decisions you will ever make.

This is what first-time home buyer Claire[1]found when she sought to buy a condominium unit in Mississauga. Fresh out of university, she quickly found work as a software analyst at a global tech firm. However, her student debts hindered her ability to apply for a mortgage from a traditional lender.

In the last part of this series of real customer stories, we look at Claire’s homeownership journey and how working with a broker allowed her to find the best mortgage for her unique financial circumstances as a first-time home buyer.

A look at first-time home buyers

Many first-time home buyers like Claire see buying a home as an important part of putting down roots in a place they can call their own. In fact, a 2022 study from the Bank of Canada found that first-time home buyers were the largest group of home buyers in Canada, making up half of all home purchases between 2014 and the first half of 2021.

Like other first-time home buyers, Claire was excited about becoming a homeowner and felt she was ready for the responsibilities of repaying a mortgage. However, she faced challenges when she tried to apply for a mortgage at her bank.

Encountering challenges

Looking to buy a newly built condo, Claire was able to offer a 20% down payment by combining savings from a part-time job she had as a student with a financial gift she received from her parents.

However, since she also had started repaying her student loan, her bank considered her monthly payment obligations inflated and declined to offer her a mortgage. Other traditional lenders also did not look at Claire’s entire financial story – including her current income from a stable role with a tech firm and her future earning potential – and could not help her with the loan she needed to buy the condo.

Overcoming hurdles with a mortgage broker

Fortunately, she was able to meet with a mortgage broker who was willing to listen to her entire story. One benefit of working with a mortgage broker is that they work with many different lenders – including alternative lenders like Home Trust. When Claire’s broker brought her story to us, we found that, with her down payment and income potential, we could offer her a one-year Classic mortgage. This allowed Claire to finally close on her condo and move into her new home.

The benefits of a mortgage broker for first-time home buyers

From her experience, Claire learned that working with a mortgage broker helped her connect with alternative lenders willing to listen to her entire financial story. Since mortgage brokers are familiar with the ins and outs of the mortgage landscape, her broker was in the best position to answer her questions and guide her through the application process.

At Home Trust, we partner with trusted brokers who work to understand your unique needs. You can ask them about our offerings or visit hometrust.ca/mortgages to learn more. 

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[1] Based on real customer stories but details altered to protect customer identity.