Since last year's federal changes to mortgage lending, most first-time buyers now are in the same situation as buyers of 30 years ago, before high-ratio mortgage insurance and long amortizations. If you have a down payment of under 20 per cent, you'll require government backed mortgage insurance(CMHC or Genworth). And that means you'll have to take pragmatic steps toward a home purchase.
Remember, your first home won't be your dream home. It's just your first step. So save as much as you can and buy only what you can afford. A Real Estate Agent and an independent mortgage broker will help you discover what's feasible within your budget.
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Mortgage Features: More than the Best Rate
Incentives for First-Time Buyers