Mortgages for Millennials: What You Should Know Before Buying

Buying a home is one of the most significant financial decisions you’ll ever make. For millennials, this decision often comes with a mix of excitement, uncertainty, and a lot of questions. As a Mortgage Associate with Akal Mortgages Inc. in Saskatoon, I’ve had the opportunity to help many first-time buyers — especially millennials — understand the mortgage process and make informed choices.

In this blog, I’ll walk you through the key things every millennial should know before diving into homeownership in Canada.

1. Understand Your Budget: It’s More Than Just the Down Payment

When planning to buy a home, most people focus on the down payment, but that’s just one piece of the puzzle. Other costs include:

  • Closing costs (usually 1.5% to 4% of the home price)
  • Home inspections
  • Appraisal fees
  • Legal fees
  • Moving expenses
  • Ongoing property taxes and utilities

Before applying for a mortgage, calculate your total monthly housing expenses, not just your mortgage payments. This will give you a realistic view of what you can afford.

2. Improve Your Credit Score

Your credit score plays a critical role in the mortgage approval process. Lenders use it to assess your risk as a borrower. A higher score can get you better interest rates and more favorable terms.

Tips to improve your credit:

  • Pay your bills on time
  • Keep credit card balances low
  • Avoid applying for multiple credit products at once
  • Regularly check your credit report for errors

If your credit isn’t perfect, don’t worry — there are still options available. As a mortgage professional, I can help you find solutions tailored to your situation.

3. Know Your Mortgage Options

One of the biggest myths I hear from millennials is: “I need a huge down payment to buy a home.” The reality is, there are many mortgage products designed for first-time homebuyers that require as little as 5% down.

Some options to consider:

  • Fixed-rate mortgages: Your interest rate stays the same for the entire term. Ideal if you want stability.
  • Variable-rate mortgages: The interest rate can fluctuate with the market. Often starts lower but comes with some risk.
  • High-ratio mortgages: If your down payment is less than 20%, you’ll need mortgage insurance from CMHC, Sagen, or Canada Guaranty.
  • Incentive programs: First-Time Home Buyer Incentive (FTHBI) and RRSP Home Buyer’s Plan (HBP) can help you with your purchase.

Understanding your options is crucial. I always take the time to explain every choice to my clients, ensuring they choose what’s right for their future.

4. Get Pre-Approved Before House Hunting

A mortgage pre-approval helps you:

  • Know how much you can afford
  • Lock in an interest rate for 60–120 days
  • Show sellers you’re a serious buyer

In today’s competitive market, a pre-approval can give you a valuable edge. It also helps you set realistic expectations before you start looking at homes.

5. Don’t Forget About Lifestyle Factors

Buying a home isn’t just about numbers. Think about how the location and type of property will fit into your long-term lifestyle.

Ask yourself:

  • Do you plan to stay in the area for at least 5 years?
  • Will your job or family situation change?
  • Are you prepared for ongoing maintenance?

Millennials value flexibility, and sometimes renting makes more sense — but if you’re ready to plant roots, owning can be a smart investment for your future.

6. Work With a Trusted Mortgage Professional

With so many mortgage options, programs, and lenders out there, it’s easy to feel overwhelmed. That’s where I come in. As a Mortgage Associate in Saskatoon with Akal Mortgages Inc., I work for you, not the bank.

What I offer:

  • Access to over 50+ lenders across Canada
  • Personalized mortgage solutions based on your goals
  • Step-by-step guidance throughout the entire home buying process
  • Honest advice and support — even after your mortgage is finalized

I take pride in making the mortgage experience smooth and stress-free, especially for first-time buyers like millennials.

Final Thoughts

Buying your first home is a big step — but it doesn’t have to be a scary one. With the right planning, knowledge, and support, you can turn your dream of homeownership into reality.

If you’re a millennial looking to buy a home in Saskatoon or anywhere in Saskatchewan, I’d love to help you navigate the journey. Whether you’re just getting started or ready to get pre-approved, reach out and let’s talk.

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