Your Complete Guide

Buying a Home
in Canada
Done Right.

From your first pre-approval to the day you get the keys — a trusted expert by your side at every step. Navigate stress tests, CMHC, closing costs, and negotiations with confidence.

See the Process
Global Estate Corps
Global Estate Corps
Licensed Real Estate Broker
Your Expert Buyer's Agent — At No Cost to You
As a buyer, you pay nothing for representation. Your agent's commission is paid by the seller. There is no financial reason to navigate one of the biggest purchases of your life alone.
500+
Deals Closed
4.9★
Client Rating
(905) 334-3560
Step-by-Step

The Canadian
Home Buying Process

Ten steps from financial readiness to keys in hand — each one explained clearly so you know exactly what to expect, when, and why it matters.

Check Your Qualification → Calculate Affordability → Plan Your Down Payment →
01
Know Your Budget & Get Pre-Approved

Before you look at a single home, understand exactly what you can afford. This means getting a formal mortgage pre-approval — not just a pre-qualification estimate. A pre-approval locks your rate for 90–120 days and tells sellers you're a serious buyer.

Your lender will stress-test your application at the higher of your contract rate + 2% or 5.25%, and verify income through T4s, pay stubs, and your Notice of Assessment. Know your GDS and TDS ratios before you start shopping.

Stress test applies
02
Save & Confirm Your Down Payment

In Canada, minimum down payments are: 5% on homes under $500K; 5–10% on $500K–$1.5M; 20% on $1.5M+. Anything under 20% requires CMHC mortgage default insurance, which costs 2.80–4.00% of your mortgage and is added to your loan.

As of August 2024, the HBP limit is $60,000/person ($120K/couple) from your RRSP. FHSA allows $40,000 tax-free with no repayment required — the most powerful first-time buyer tool available.

FHSA + HBP available
03
Choose the Right Realtor

Your buyer's agent is your advocate, negotiator, and market expert — and as a buyer, their commission is paid by the seller. There's no cost to you for professional representation. Choose someone with deep local market knowledge, a track record of competitive-offer success, and who communicates clearly.

Avoid using the listing agent as your buyer's agent — a dual-agency situation creates a conflict of interest that can cost you leverage in negotiations.

No cost to buyer
04
Search Properties & Understand the Market

In competitive Canadian markets like Toronto, Vancouver, and Calgary, homes often sell in multiple-offer situations — sometimes within days. Understand the difference between asking price and market value. Review comparables (comps) for every property before making an offer.

Look beyond the listing: review the property's history, status certificate (condos), neighbourhood trends, school ratings, transit access, and future development plans. Your agent should provide a full market analysis for every serious contender.

Neighbourhood intel matters
05
Make a Strategic Offer

An offer isn't just a price — it's a strategy. Key terms include: price, deposit (typically 5% of purchase price, due within 24 hours of acceptance), closing date, and conditions (financing, home inspection, status certificate).

In a seller's market, conditions can be waived to strengthen your offer — but never waive a home inspection without understanding what you're taking on. Your agent will advise based on current conditions and the specific property.

Deposit: 5% of purchase price
06
Home Inspection & Due Diligence

If your offer includes a home inspection condition, hire a CAHPI-certified inspector to assess the property's structural, mechanical, electrical, and environmental condition. A typical inspection costs $400–$700 and can reveal issues that either kill the deal or become negotiating leverage.

For condos: request and review the status certificate — it reveals the condo corporation's financial health, any pending special assessments, reserve fund balance, and key rules.

$400–$700 / CAHPI certified
07
Secure Your Mortgage

Once your offer is accepted, submit a full mortgage application. Your lender will order a property appraisal (typically $350–$500) to confirm the home's market value. If the appraisal comes in lower than the purchase price, you'll need to cover the gap in cash.

Choose between fixed (predictable payments, penalty risk if you break early) and variable (moves with prime rate, typically lower penalties). A mortgage broker can access 40+ lenders and may find better rates than your bank's posted rate.

Fixed vs. variable decision
08
Hire a Real Estate Lawyer

A real estate lawyer is mandatory in Canada. Your lawyer reviews the Agreement of Purchase and Sale, conducts a title search, registers the title in your name, handles the mortgage funds, and disburses proceeds on closing day.

Budget $1,200–$2,000 in legal fees plus disbursements (title insurance ~$300–$400, registration fees vary by province). Engage your lawyer as soon as your offer is accepted.

Mandatory in Canada
09
Budget for Closing Costs

Beyond your down payment, budget an additional 1.5–4% of the purchase price for closing costs. The biggest is Land Transfer Tax — Ontario charges up to 2.5% (Toronto buyers pay double with the municipal tax). First-time buyers get a federal and provincial rebate.

Other costs: home inspection ($400–$700), lawyer fees ($1,500–$2,500), title insurance ($300–$400), moving costs ($1,000–$5,000), and immediate repairs. Always keep a cash buffer — do not use your last dollar for closing.

Budget 1.5–4% extra
10
Close & Receive Your Keys

On closing day, your lawyer receives mortgage funds from your lender, pays the seller, registers the property in your name, and hands you the keys. You'll typically do a final walkthrough 24 hours before closing to confirm the property is in the condition agreed upon.

After closing: update your address, set up utilities, purchase home insurance (required before your lender releases funds), and explore the First-Time Home Buyers' Tax Credit ($1,500) and any available federal or provincial rebates.

Keys are yours
Know Before You Sign

Every Cost You
Need to Budget For

Closing costs catch many first-time buyers off guard. Here's every cost you need to plan for — beyond the purchase price and down payment.

Land Transfer Tax
0.5% – 2.5% of purchase price
Every province charges LTT. Ontario buyers pay provincial (up to 2.5%) + Toronto municipal (up to 2.5% additional). First-time buyers receive provincial rebates up to $4,000 in Ontario.
Calculate Your LTT
CMHC Insurance
2.80% – 4.00% of mortgage
Required when down payment is under 20%. The premium is added to your mortgage — you don't pay it upfront in cash but you pay interest on it over the life of your loan. CMHC is not available on homes over $1.5M.
Calculate CMHC
Legal Fees
$1,200 – $2,500
Real estate lawyers are mandatory in Canada. Fees cover document review, title search, mortgage registration, title insurance, and disbursements. Engage your lawyer early — before your condition period expires if possible.
Full closing estimate
Home Inspection
$400 – $700
A CAHPI-certified inspector assesses structural, electrical, plumbing, HVAC, and roofing. Even in competitive markets, an inspection protects you from hidden defects. The cost is minor relative to what it can reveal.
Learn more in FAQ
Title Insurance
$200 – $400
Title insurance protects you against title fraud, unknown liens, encroachments, and survey errors. It's a one-time cost for lifetime coverage and is almost universally required by lenders in Canada.
See all closing costs
Moving & Setup
$1,500 – $8,000+
Moving costs depend on volume, distance, and season. Book movers 4–6 weeks in advance for peak summer dates. Budget for utility hookups, new furniture for larger spaces, and any immediate repairs — always maintain a cash buffer after closing.
Talk to an advisor
What Canadians Need to Know

Canadian Rules That
Affect Your Purchase

Canadian mortgage rules are meaningfully different from the US. These are the key policies that affect how much you can borrow and what it costs.

The Mortgage Stress Test (OSFI B-20)
You must qualify at max(your rate + 2%, 5.25%) — even if your actual rate is lower
Reduces your purchase power by 15–20% compared to qualifying at your contract rate
Applies to all federally regulated lenders (major banks). Credit unions are exempt
As of 2024: switching lenders at renewal without increasing loan or amortization is now exempt
GDS must be ≤ 39% and TDS must be ≤ 44% at the qualifying rate
Minimum Down Payment Rules (Dec 2024)
5% on the first $500,000 of the purchase price
10% on the portion between $500,000 and $1,500,000
20% required on homes priced $1,500,000 and above — no CMHC available
The $1.5M insurable cap increased from $1M effective December 15, 2024
Amortization Rules (2024 Update)
Insured mortgages (under 20% down): maximum 25 years
Exception: First-time buyers and new construction purchases now eligible for 30-year insured amortizations (effective Dec 15, 2024)
Uninsured mortgages (20%+ down): lenders set their own max, typically 25–30 years
Longer amortization = lower payment but significantly more interest over the life of the loan
First-Time Buyer Incentives
FHSA: $8,000/yr, $40,000 lifetime — tax-deductible contributions, tax-free withdrawals, no repayment
RRSP Home Buyers' Plan (HBP): $60,000/person ($120K/couple), 15-year repayment, 90-day seasoning rule applies
First-Time Home Buyers' Tax Credit: $1,500 tax credit (15% × $10,000) on your federal return
LTT rebates: Ontario refunds up to $4,000; Toronto up to $4,475 (municipal) for first-time buyers
Run the Numbers

Planning Tools

Know your numbers before you step into a showing. Our Canadian-specific calculators cover every cost and scenario.

Client Stories

What Our Buyers Say

"We were first-time buyers completely overwhelmed by the stress test, CMHC, and the bidding war culture. Our agent explained every step clearly and we got our home $15K under asking in a quiet negotiation — no drama."
JM
Jamie & Mark T.
First-time buyers · Mississauga, ON
"Moving from out of province, we didn't know the GTA market at all. The neighbourhood guides, virtual tours, and the calculators on this site helped us understand what we could afford before we even arrived for showings."
SR
Sofía R.
Relocation buyer · Toronto, ON
"We used the FHSA + HBP strategy our agent recommended and saved nearly $7,000 in taxes on our down payment alone. The level of financial literacy they brought to the process was unlike any other agent we'd interviewed."
KD
Kevin & Diana L.
First-time buyers · Oakville, ON
Common Questions

Buyer FAQs

The most common questions we hear from Canadian home buyers — answered clearly and honestly.

The stress test requires you to qualify at max(your rate + 2%, 5.25%). If your lender offers 5.24%, you must prove you can afford payments at 7.24%. This typically reduces your maximum purchase price by 15–20% compared to qualifying at your actual rate. It doesn't change your actual payments — it just ensures you could still afford the home if rates rise.

Both have merit. A mortgage broker accesses 40+ lenders and is paid by the lender — no cost to you. They often find better rates and more flexible products than a single bank's posted rates. Going directly to your bank is simpler if you have a strong existing relationship. For most buyers — especially first-timers or self-employed — a broker adds real value. We can refer you to trusted brokers we've worked with for years.

Yes — with context. In a hot market, some buyers waive inspections to compete. But a $500 inspection that reveals $50,000 in hidden issues is invaluable. Alternatives: pre-offer inspections or a CAHPI inspector doing a quick walk-through before offer night. Never waive an inspection on an older home, a home with obvious deferred maintenance, or a property where you're stretching your budget.

The FHSA (First Home Savings Account) is newer (2023) and generally superior: contributions are tax-deductible, withdrawals are tax-free, up to $8,000/year and $40,000 lifetime, and there's no repayment required. The RRSP HBP allows $60,000/person but must be repaid over 15 years. Ideal strategy: maximize FHSA first, then use HBP as a secondary source.

As a buyer in Canada, you pay nothing directly for buyer agent representation. The seller's listing agreement typically includes compensation for the buyer's agent, paid from the seller's proceeds. There is no financial reason to navigate the purchase of your largest asset alone. Our job is to protect your interests, negotiate on your behalf, and ensure you don't overpay.

Fixed rate: predictable payments for your full term, protection from rate increases, but penalties for breaking early are often severe. Best for buyers who value certainty and plan to stay for the full term. Variable rate: moves with the Bank of Canada prime rate, historically lower on average, and penalties are typically only 3 months' interest. Best for buyers who can handle payment fluctuation and may sell or refinance before term end.

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Global Estate Corps
Global Estate Corps
Licensed Real Estate Broker · Toronto
500+ deals closed · 4.9★ rating · 12 years experience
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