Steps to Buying Your First Home
1
Get Pre-Approved
Contact a lender to get a mortgage pre-approval. This shows sellers you're a serious buyer.
2
Find a Real Estate Agent
Work with an experienced local agent who knows the Labrador market. Karen and Roberta can guide you through the process.
3
Search & View Properties
Browse available listings and schedule viewings. Take your time to find the right home.
4
Make an Offer
Submit an offer on your chosen property. Your agent negotiates on your behalf.
5
Home Inspection
Hire a professional inspector to evaluate the property's condition.
6
Finalize Mortgage & Close
Complete mortgage paperwork and close on your new home.
Government Programs for First-Time Buyers
First-Time Home Buyers' Incentive (FTHBI)
- Shared equity mortgage program from Canada Mortgage and Housing Corporation (CMHC)
- Available to first-time buyers purchasing properties up to $500,000
- Government shares in the equity (5-10%) to help reduce your mortgage burden
- Contact your lender for eligibility and application details
Home Buyers' Plan (HBP)
- Withdraw up to $35,000 from your RRSP for your first home purchase
- No immediate tax consequences on the withdrawal
- Must repay the amount to your RRSP over 15 years
- Consult a tax professional or your financial institution for details
Buying a Home in Newfoundland & Labrador
The NL Real Estate Process
- Offer to Purchase: In NL, the standard form is the NLARE (Newfoundland and Labrador Association of REALTORS®) Agreement of Purchase and Sale. Your agent prepares and presents this on your behalf.
- Conditions: Offers typically include conditions for financing approval, home inspection, and insurance. You'll usually have 5–10 business days to satisfy these.
- Property Transfer Tax: Newfoundland & Labrador does not charge a land transfer tax. However, you will pay registration fees to the Registry of Deeds when the property transfers.
- Lawyer Required: Both buyer and seller must retain a lawyer for closing in NL. Your lawyer handles the title search, mortgage registration, and funds transfer.
- Home Insurance: Required before closing. In Labrador, ensure your policy covers frost heaving, water damage, and winter-specific risks.
- First-Time Home Buyers' Tax Credit: Federal tax credit of up to $1,500 (based on $10,000 at 15% rate) — claim on your tax return the year you buy.
- HBP Update: The Home Buyers' Plan RRSP withdrawal limit increased to $60,000 per person as of April 2024.
Labrador-Specific Home Buying Considerations
Climate & Building
Labrador's climate requires robust insulation and heating systems. Inspect for proper protection against cold temperatures and precipitation.
Permafrost Concerns
Some areas are built on or near permafrost. Work with an inspector familiar with Labrador construction challenges.
Heating Costs
Factor in higher heating costs in your budget. Ask sellers about annual heating expenses.
Remote Community Living
Consider proximity to schools, services, and employment. Labrador communities have unique characteristics to explore.
Tools & Resources
Use Our Mortgage Calculator
Estimate your monthly mortgage payments. Enter your loan amount, interest rate, and amortization period to see what works for your budget.
Go to Mortgage Calculator →
Ready to Buy Your First Home?
Karen and Roberta are ready to answer your questions and guide you through the buying process in Happy Valley-Goose Bay.