Home Buyer's Guide
Everything you need to buy your first home in Canada.
A step-by-step guide through the entire process — from getting pre-approved to picking up your keys, backed by a Sutton advisor at every stage.
Step 01
Getting Started
Make sure you're ready, know your budget, and build the right team.
Are you ready to buy?
- Stable income and employment history (2+ years preferred)
- Good credit score (680+ for the best mortgage rates)
- Down payment saved (minimum 5% of purchase price)
- Emergency fund for unexpected costs
- Planning to stay in the area for at least 5 years
What you can afford
A good rule: housing costs shouldn't exceed 32% of gross monthly income. Budget for:
- Mortgage payments (principal + interest)
- Property taxes
- Home insurance
- Condo fees (if applicable)
- Utilities and maintenance
Build your home-buying team
Real Estate Agent
Helps you find properties, negotiate offers, and navigate the process.
Mortgage Broker
Compares rates from multiple lenders to find you the best mortgage.
Real Estate Lawyer
Reviews contracts, handles title transfer, and protects your interests.
Home Inspector
Identifies potential issues with the property before you finalize.
Typical timeline
Get Pre-Approved
Meet with lenders and get your pre-approval.
House Hunting
View properties and narrow down your choices.
Make an Offer
Submit your offer and negotiate terms.
Complete Conditions
Home inspection, finalize financing, review documents.
Closing
Final walkthrough, sign papers, get your keys!
Step 02
Financial Preparation
Down payments, credit, closing costs, and first-time buyer programs.
Down payment requirements
Purchase price under $500,000
Minimum 5% down payment required.
$500,000 – $999,999
5% on the first $500K + 10% on the remainder.
$1,000,000+
Minimum 20% down payment required.
Recommended: 20% down to avoid CMHC mortgage insurance.
Credit score matters
Improve your score:
- Pay bills on time
- Keep credit utilization below 30%
- Don't apply for new credit before buying
- Check for errors on your credit report
Closing costs breakdown
Budget an additional 2–4% of the purchase price for closing costs.
Land Transfer Tax
0.5% – 2% of purchase price (varies by province).
Legal Fees
$1,000 – $2,500 for lawyer services.
Home Inspection
$400 – $700 depending on property size.
Title Insurance
$200 – $400 one-time fee.
Appraisal Fee
$300 – $500 if required by lender.
Property Insurance
First-year premium (varies by property).
First-time buyer programs
RRSP Home Buyers' Plan
Withdraw up to $35,000 from your RRSP tax-free for a down payment.
Must be repaid over 15 years.
First-Time Home Buyer Incentive
Shared-equity mortgage with the Government of Canada (5–10% of price).
Income restrictions apply.
GST/HST New Housing Rebate
Partial rebate on GST/HST for new or substantially renovated homes.
Up to $30,000 rebate available.
Provincial Programs
Many provinces offer additional rebates and incentives for first-time buyers.
Varies by province.
Step 03
Finding Your Home
Where to look, what to consider, and what to watch out for.
Where to search
MLS Listings
The primary database of homes for sale across Canada.
Work With an Agent
Agents access MLS and set up automatic alerts for your criteria.
New Developments
Contact developers directly for pre-construction or new builds.
Private Sales
Some sellers market homes privately, off MLS.
Property types to consider
Detached House
Most privacy, highest cost, full maintenance responsibility.
Semi-Detached / Townhouse
Shared walls, moderate cost, shared maintenance.
Condo / Apartment
Lower cost, condo fees, less maintenance, shared amenities.
Multi-Unit
Duplex, triplex, fourplex — potential rental income.
Viewing checklist
Exterior
- Roof condition
- Foundation cracks
- Siding / brick condition
- Driveway and walkways
- Landscaping and drainage
Interior
- Wall and ceiling condition
- Flooring condition
- Windows and doors
- Basement moisture
- Storage space
Systems / Mechanical
- HVAC system age
- Water heater condition
- Electrical panel
- Plumbing fixtures
- Insulation quality
Red flags to watch for
Foundation Issues
Large cracks, water damage, or uneven floors.
Mold or Mildew
Musty odors, visible mold, or water stains.
Outdated Systems
Very old HVAC, electrical, or plumbing systems.
Poor Maintenance
Deferred repairs and neglected upkeep.
Step 04
Making an Offer
Craft a strong offer and negotiate with confidence.
Key components of an offer
Purchase Price
The amount you're offering to pay for the property.
Deposit Amount
Typically 5% of offer price — shows you're serious.
Conditions
Financing approval, home inspection, etc.
Closing Date
When ownership transfers and you get the keys.
Chattels & Fixtures
What stays with the house (appliances, coverings, etc.).
Types of offers
Firm Offer
No conditions — strongest offer, but riskier for buyers.
Conditional Offer
Includes conditions (financing, inspection). Protects buyers.
Bully Offer
Submitted before the offer date to pre-empt others. Requires strategy.
Negotiation tips
Know the Market Conditions
Understand if it's a buyer's or seller's market.
Don't Lowball in Hot Markets
Unrealistic offers can offend sellers and hurt you.
Be Prepared to Walk Away
Don't get emotionally attached — there are other homes.
Use Your Agent's Expertise
Trust their knowledge of comparables and tactics.
Step 05
The Inspection
Know what's checked and what to do with the results.
What inspectors check
Structural Integrity
Foundation, framing, walls, and floors.
Roof and Foundation
Condition, age, and potential issues.
HVAC Systems
Heating, ventilation, and air conditioning.
Electrical & Plumbing
Safety, code compliance, and condition.
Water Damage & Mold
Signs of leaks, moisture, and mold.
Pests & Insects
Evidence of termites, rodents, or other pests.
After the inspection
Review With Your Agent
Understand major vs. minor issues together.
Decide on Next Steps
Renegotiate, request repairs, or walk away.
Get Repair Estimates
For major issues, get contractor quotes.
Use as a Negotiating Tool
Findings can justify price reductions or credits.
Typical cost: $400 – $700 depending on property size and age. A professional inspection can uncover issues that cost tens of thousands to repair — giving you leverage to negotiate or the knowledge to walk away.
Step 06
Closing
The final steps before the home is officially yours.
Final steps before closing
Final Walkthrough
Visit 24–48h before closing to confirm condition.
Finalize Mortgage
Complete final paperwork and confirm funding.
Get Home Insurance
Required before closing — your lender needs proof.
Transfer Utilities
Electricity, gas, water, internet into your name.
Prepare Certified Cheque
Your lawyer confirms the exact amount needed.
Book Movers
Reserve a moving company or truck in advance.
Closing day
Meet With Your Lawyer
Review and sign all closing documents.
Review Carefully
Don't rush — understand everything you sign.
Transfer Funds
Pay closing costs and down payment by certified cheque.
Receive Your Keys
Once registered, you officially own your home!
Documents you'll receive
Deed / Title
Proof of ownership registered in your name.
Mortgage Documents
Terms, payment schedule, and agreement details.
Insurance Policy
Coverage details and proof of insurance.
Tax Statements
Property tax information and schedule.
Utility Information
Account details for transferred services.
Warranties
For appliances, HVAC, roof, and other systems.
Step 07
Moving In
Settle into your new home with confidence.
Moving day checklist
- Final walkthrough before accepting keys
- Check heating, cooling, plumbing, and electrical
- Test all appliances
- Locate water, gas, and electrical shut-offs
- Rekey or replace all exterior locks
- Document condition with photos
First week tasks
- Update your address (bank, employer, licence, health card, CRA)
- Register with the municipality for tax and utilities
- Meet your neighbours
- Locate local amenities (stores, pharmacy, hospital)
- Set up mail forwarding
Moving costs to budget
Professional Movers
$500 – $3,000+ depending on distance and volume.
Truck Rental
$100 – $300 per day if doing it yourself.
Packing Supplies
$100 – $300 for boxes, tape, and materials.
Storage (if needed)
$50 – $300+ per month depending on size.
Step 08
Homeownership 101
Protect your investment and build long-term wealth.
Your responsibilities
Property Taxes
Annual tax based on assessed value, paid to the municipality.
Home Insurance
Required by lender — protects against damage and liability.
Utilities
Electricity, gas, water, internet — your responsibility.
HOA / Condo Fees
Monthly fees for shared amenities and maintenance.
Repairs & Maintenance
All upkeep is your responsibility.
Building equity
Principal Payments
Each mortgage payment builds equity in your home.
Home Appreciation
Property values typically increase over time.
Renovations Add Value
Strategic improvements can increase worth.
Pay Down Faster
Extra payments accelerate equity building.
Budget tip: set aside 1–3% of your home's value each year for maintenance.
Keep an emergency fund
Maintain 3–6 months of living expenses, plus a dedicated home-repair fund. Common surprise costs:
Own your home with confidence.
Sutton Wealth helps you track your home's value and manage your most important asset — long after you get the keys.
FAQ
Frequently asked questions
How much down payment do I need?
The minimum depends on price. Under $500,000 you need 5%. Between $500,000 and $999,999 you need 5% on the first $500,000 and 10% on the remainder. Over $1 million you need at least 20%. Putting down 20%+ lets you avoid CMHC mortgage insurance, saving thousands.
Should I get pre-approved for a mortgage?
Yes. Pre-approval gives you a clear budget, shows sellers you're serious, and locks an interest rate for 90–120 days. It also speeds up the process once you find the right home.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate based on self-reported info. Pre-approval is a formal process where a lender verifies your income, credit, and debts and commits to a specific amount — much stronger when making an offer.
Do I need a real estate agent to buy a home?
It's not legally required, but a buyer's agent provides expert guidance, MLS access, negotiation skills, and local knowledge — usually at no direct cost to you, since the seller typically pays the commission.
Ready to start your home-buying journey?
A Sutton advisor will guide you through every step of the process.