What First Time Home Buyers in Markham Get Wrong

The short answer

• Many buyers underestimate closing costs, which typically run 2 to 4 percent of the purchase price on top of the down payment.
• Getting pre-approved (not just pre-qualified) before house hunting is what tells you your real price range.
• Markham’s mix of freehold homes, townhomes and condos each carry very different ongoing costs and buyers rarely compare them properly.
• Waiving a home inspection to compete in a bidding situation is one of the costliest shortcuts a first time buyer can take.
• New construction in Markham comes with its own timeline and cost surprises that resale homes do not have.
• First time buyers often overlook government rebates and incentive programs that could reduce their upfront cost.

Why First Time Home Buyers in Markham Underestimate Closing Costs

The purchase price is the number everyone talks about, but it is not the number you need at closing. In Ontario, buyers pay a provincial land transfer tax and Toronto adds a municipal one on top for properties within the city. Markham buyers only pay the provincial tax, which is one thing working in their favour compared to buyers just south of Steeles Avenue.

On top of that tax, expect legal fees, title insurance and adjustments for things like prepaid property tax or utility deposits the seller has already covered. None of these numbers are fixed, they vary by lawyer, property value and situation, so ask your real estate lawyer for a written estimate as soon as you have an accepted offer. A safe rule of thumb is to set aside 2 to 4 percent of the purchase price for these costs and confirm the actual figure before you remove financing or other conditions.

Getting Pre-Approved Before You Start Looking

A lot of first time buyers walk into open houses with a rough idea of what they can afford based on an online calculator. That is not the same as a mortgage pre-approval from a lender, which looks at your actual income, debts, credit and down payment to confirm what you can realistically borrow.

Without that pre-approval letter, sellers and their agents may not take your offer seriously, especially in a competitive segment of the Markham market where multiple offers are still common on well priced homes. Pre-approval also protects you from falling in love with a home that is out of reach, which is one of the more disheartening things that happens to first time buyers.

What a Pre-Approval Actually Locks In

A pre-approval usually holds your quoted interest rate for a set period, often 90 to 120 days, while your income and credit are assessed. It is not a guarantee of final approval, the lender still needs to approve the specific property, but it gives you a realistic budget and a rate to plan around. Confirm the exact terms with your lender since they vary.

Freehold, Townhome or Condo: Comparing the Real Costs

Markham offers a wide range of housing types, from detached homes in older neighbourhoods to newer condo towers near Highway 7 and the Unionville GO corridor. First time buyers often compare these options purely on purchase price, without factoring in the ongoing costs that come with each.

• Freehold detached and semi-detached homes have no monthly maintenance fee, but the buyer is responsible for all repairs, landscaping and snow removal.
• Freehold townhomes sometimes include a smaller common fee for shared elements like a private road, but this is not universal.
• Condo townhomes and apartments have a monthly maintenance fee that covers building insurance, common areas and sometimes utilities, but this fee can rise over time.

Neither option is automatically the smarter buy. It comes down to your monthly budget, how much home maintenance you want to take on yourself and how much certainty you want in your monthly costs.

Skipping the Home Inspection to Win a Bidding War

When a home in Markham gets multiple offers, some buyers assume that waiving the inspection condition will make their offer more attractive. It can, but it also removes your only real chance to find out about a furnace nearing the end of its life, water damage in the basement or foundation issues before you own the problem. An inspection typically costs a few hundred dollars, a small price against a repair bill that could run into the thousands. If you are buying in a competitive situation, talk to your agent about options like a pre-offer inspection or a shorter inspection period rather than removing the condition entirely.

New Construction Surprises First Time Buyers Differently

Markham has a steady supply of new build homes and condos and first time buyers are often drawn to the idea of a brand new property with no history of repairs. What catches many of them off guard is the closing process itself.

New builds often have occupancy dates that shift, additional charges called development levies or Tarion warranty fees that are not always obvious in the original price and a longer overall timeline between signing and moving in. If you are considering new construction, ask the builder’s sales office for a full breakdown of extra costs in writing and have your own lawyer review the purchase agreement before you sign anything.

Overlooking Rebates and Incentive Programs

There are a few programs designed specifically to help first time buyers and they are easy to miss if nobody mentions them. Ontario offers a land transfer tax rebate for eligible first time buyers and there are federal programs related to registered savings plans and tax-free accounts for a first home purchase.

Eligibility rules and rebate amounts change from time to time, so confirm the current details with the CRA or the Ontario Ministry of Finance rather than relying on what a friend or forum post says. A mortgage broker or accountant familiar with first time buyer programs can also confirm what you personally qualify for.

Comparing Costs: Freehold vs Condo in Markham

Cost or Factor	Freehold Home	Condo or Condo Townhome
Monthly maintenance fee	None, but owner covers all upkeep	Yes, covers building insurance and common areas
Responsibility for repairs	Fully on the owner	Shared for the building, individual for the unit
Typical upfront price in Markham	Generally higher	Generally lower
Predictability of monthly costs	Lower, repairs are unpredictable	Higher, fee is set but can increase
Best suited for	Buyers who want full control and space	Buyers who want lower upfront cost and less upkeep

What to Do Next

If you are getting ready to buy your first home in Markham, here is where to start this week:

• Book a conversation with a mortgage broker or lender to get a real pre-approval, not just an online estimate.
• Ask your lawyer for a rough closing cost estimate based on the price range you are considering.
• Make a list of what matters most: freehold versus condo, commute to transit, school catchment and your true monthly budget including fees and property tax.
• Confirm which government rebates or programs you may be eligible for before you write an offer.
• Walk through a few open houses in different Markham neighbourhoods to get a feel for pricing and pace before you are under pressure to decide quickly.

Buying your first home in Markham is a big decision and the goal is to walk into it with clear numbers and no surprises waiting at closing. I’m Kirby Chan and I work with first time buyers across Markham every day, helping them figure out what actually fits their budget and find a home they are genuinely comfortable buying. If you want to talk through your specific situation, reach out any time and let’s map out a plan together.