Complete Home Buyer's Guide for Canada
Your comprehensive resource to navigate the Canadian home buying process and achieve your homeownership dreams
Getting Started
Before starting your home search, assess your readiness:
- Stable income and employment history (2+ years preferred)
- Good credit score (680+ for 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
Understanding your budget is crucial:
Consider These Costs:
- Mortgage payments (principal + interest)
- Property taxes
- Home insurance
- Condo fees (if applicable)
- Utilities and maintenance
Real Estate Agent
Helps you find properties, negotiate offers, and navigate the buying 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 legal interests
Home Inspector
Identifies potential issues with the property before you finalize the purchase
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!
Financial Preparation
Purchase Price Under $500,000
Minimum 5% down payment required
Purchase Price $500,000 - $999,999
5% on first $500K + 10% on remainder
Purchase Price $1,000,000+
Minimum 20% down payment required
Your credit score significantly impacts your mortgage rate:
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
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)
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 Government of Canada (5-10% of purchase price)
Income restrictions apply
GST/HST New Housing Rebate
Partial rebate on GST/HST for new construction or substantially renovated homes
Up to $30,000 rebate available
Provincial Programs
Many provinces offer additional rebates and incentives for first-time buyers
Finding Your Home
MLS Listings
The Multiple Listing Service is the primary database of homes for sale in Canada
Work with a Real Estate Agent
Agents have access to MLS and can set up automatic alerts for properties matching your criteria
New Developments
Contact developers directly for pre-construction or new-build homes
Private Sales
Some sellers market homes privately without listing on MLS
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 Properties
Duplex, triplex, fourplex - potential rental income
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
Making an Offer
Every purchase offer includes:
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 and Fixtures
What stays with the house (appliances, window coverings, etc.)
Firm Offer
No conditions - you're committed to buying if seller accepts. Strongest type of offer but riskier for buyers.
Conditional Offer
Includes conditions that must be met (financing, inspection). Protects buyers but may be less competitive.
Bully Offer
Submitted before scheduled offer date to pre-empt other buyers. Can work in hot markets but requires strategy.
Know the Market Conditions
Understand if it's a buyer's or seller's market to guide your strategy
Don't Lowball in Hot Markets
Unrealistic offers may offend sellers and hurt your chances
Be Prepared to Walk Away
Don't get emotionally attached - there will be other properties
Use Your Agent's Expertise
Trust their knowledge of comparable sales and negotiation tactics
The Inspection
A professional home inspection covers:
Structural Integrity
Foundation, framing, walls, and floors
Roof and Foundation
Condition, age, and potential issues
HVAC Systems
Heating, ventilation, and air conditioning functionality
Electrical and Plumbing
Safety, code compliance, and condition
Water Damage and Mold
Signs of leaks, moisture, and mold growth
Pests and Insects
Evidence of termites, rodents, or other pests
Once you receive the inspection report:
Review with Your Agent
Go through the report together to understand major vs. minor issues
Decide on Next Steps
Options include: renegotiating price, requesting repairs, or walking away
Get Repair Estimates
For major issues, get contractor quotes to understand true costs
Use as Negotiating Tool
Significant findings can justify price reductions or seller credits
Typical Cost: $400-$700 depending on property size and age
While it may seem expensive, a professional inspection is worth every penny. It can uncover issues that could cost tens of thousands to repair, giving you leverage to negotiate or the knowledge to walk away from a bad investment.
Closing Process
In the weeks leading up to closing day:
Final Walkthrough
Visit the property 24-48 hours before closing to ensure agreed-upon repairs are complete and condition hasn't changed
Finalize Mortgage Details
Complete final paperwork with your lender and confirm funding
Get Home Insurance
Must be in place before closing - your lender will require proof
Transfer Utilities
Arrange for electricity, gas, water, internet, etc. to be in your name
Prepare Certified Cheque
Your lawyer will tell you the exact amount needed for closing
Book Movers
Reserve moving company or truck rental well in advance
What happens on closing day:
Meet with Your Lawyer
Review and sign all closing documents
Review Documents Carefully
Don't rush - understand everything you're signing
Transfer Funds
Pay closing costs and down payment with certified cheque
Receive Your Keys
Once everything is registered, you officially own your new home!
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 payment schedule
Utility Information
Account details for transferred services
Warranties
For appliances, HVAC, roof, and other systems
Moving In
Final Walkthrough
Verify property condition before accepting keys
Check All Systems
Test heating, cooling, plumbing, and electrical
Test All Appliances
Ensure everything works as expected
Locate Shut-Offs
Know where water, gas, and electrical panels are
Change Locks
For security, rekey or replace all exterior locks
Document Condition
Take photos of everything for your records
Update Your Address
Bank, employer, driver's license, health card, CRA
Register with Municipality
Set up property tax and utility accounts
Meet Your Neighbors
Build relationships in your new community
Locate Local Amenities
Find nearest stores, pharmacy, hospital, etc.
Set Up Mail Forwarding
Ensure you don't miss important correspondence
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
Homeownership 101
Keep your home in top condition with regular maintenance:
Seasonal Tasks
- Clean gutters (spring and fall)
- Service HVAC systems (twice yearly)
- Check roof and siding condition
- Test smoke and CO detectors
Regular Inspections
- Check for leaks and water damage
- Inspect foundation for cracks
- Monitor for pest issues
Property Taxes
Annual tax based on assessed value - paid to 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 (if applicable)
Repairs and Maintenance
All repairs and upkeep are your responsibility
Grow your wealth through homeownership:
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 home worth
Pay Down Faster
Extra payments accelerate equity building
Always be prepared for unexpected expenses:
Home Repair Fund
Keep a separate fund specifically for home repairs and maintenance
Major systems like HVAC, water heaters, and roofs can fail unexpectedly
Common Emergency Costs
- Furnace replacement: $3,000-$7,000
- Roof repair: $500-$5,000+
- Plumbing emergency: $200-$2,000
- Foundation repair: $2,000-$10,000+
Frequently Asked Questions
Ready to Start Your Home Buying Journey?
Our experienced real estate agents are here to guide you through every step of the process.