How to Buy a Home in Canada
Your comprehensive step-by-step guide to navigating the home buying process. From mortgage pre-approval to getting your keys.
The Home Buying Process
Assess Your Financial Readiness
Review your credit score, savings, and budget to understand your buying power.
- Check your credit score (aim for 680+)
- Calculate your debt-to-income ratio
- Save for down payment (minimum 5% in Canada)
- Budget for closing costs (1.5-4% of purchase price)
Get Mortgage Pre-Approval
Work with a lender to determine how much you can borrow.
- Compare rates from multiple lenders
- Gather required documents (income, assets, debts)
- Understand fixed vs variable rates
- Get a pre-approval letter valid for 90-120 days
Find a Real Estate Agent
Partner with a licensed agent who knows your target market.
- Look for local market expertise
- Check reviews and references
- Understand buyer representation
- Discuss communication preferences
Search for Properties
Define your criteria and start viewing homes that match.
- Create a list of must-haves vs nice-to-haves
- Research neighborhoods and schools
- Attend open houses and private showings
- Take notes and photos of each property
Make an Offer
Submit a competitive offer with appropriate conditions.
- Research comparable sales
- Include subject clauses (financing, inspection)
- Provide deposit (typically 5% of offer price)
- Be prepared for counter-offers
Home Inspection & Due Diligence
Hire professionals to inspect the property thoroughly.
- Book a certified home inspector
- Review strata documents (for condos)
- Check for major issues (foundation, roof, systems)
- Negotiate repairs or price adjustments if needed
Finalize Your Mortgage
Complete your mortgage application and secure financing.
- Submit final documentation to lender
- Complete property appraisal
- Review and sign mortgage commitment
- Arrange mortgage default insurance if needed
Close the Deal
Sign the final paperwork and receive your keys.
- Review closing documents with your lawyer
- Arrange title insurance
- Complete final walkthrough
- Transfer funds and receive keys
Ready to Start Your Search?
Browse thousands of listings across Canada. Our powerful search tools help you find the perfect home.
Frequently Asked Questions
How much down payment do I need to buy a home in Canada?
In Canada, the minimum down payment is 5% for homes up to $500,000. For homes between $500,000 and $1 million, you need 5% on the first $500,000 and 10% on the remainder. Homes over $1 million require 20% down. A larger down payment means lower mortgage payments and no mortgage default insurance requirement.
What is mortgage pre-approval and why is it important?
Mortgage pre-approval is when a lender reviews your financial situation and commits to lending you a specific amount. It shows sellers you're a serious buyer, helps you understand your budget, and locks in an interest rate for 90-120 days. It's different from pre-qualification, which is a less formal estimate.
What are the closing costs when buying a home?
Closing costs in Canada typically range from 1.5% to 4% of the purchase price. They include land transfer tax, legal fees, title insurance, home inspection, appraisal fees, and adjustments for property taxes and utilities. First-time buyers may qualify for land transfer tax rebates in some provinces.
Should I buy or rent in the current market?
The buy vs rent decision depends on your financial situation, how long you plan to stay, and local market conditions. Generally, buying makes more sense if you plan to stay 5+ years, have stable income, and can afford the down payment and carrying costs. Use a rent vs buy calculator to compare your specific situation.
What is a home inspection and is it necessary?
A home inspection is a thorough examination of a property's condition by a certified inspector. While not legally required, it's highly recommended. It can reveal hidden issues like structural problems, outdated wiring, plumbing issues, or roof damage that could cost thousands to repair. The cost is typically $300-$500.
How do I choose the right neighborhood?
Consider factors like commute time, schools, safety, amenities, future development plans, and property values. Visit at different times of day, talk to residents, check crime statistics, and research zoning plans. Your real estate agent can provide insights on neighborhood trends and values.