Are you looking to buy a house in Canada? If yes, here are the best steps to buying a house in Canada for the first time as well as experienced buyers.
You’ve been renting for years, dreaming of owning your own home in Canada. After months of saving, cutting back on spending, and planning, you’re finally ready to take the leap into homeownership. But let’s be honest: the process can feel a little overwhelming. From searching for the perfect home to navigating complicated paperwork, it can seem like there’s a lot to handle.
This guide is here to make it easier. We’ll walk you through each step of buying a home, with tips to help you stay on track. We’ll cover everything, from understanding how much you can afford to finding a mortgage, making an offer, and closing the deal.
We’ll also share common mistakes to avoid, how to find the best deal, and real-life examples to guide you along the way. Whether you’re a first-time homebuyer or just need a refresher, we’ve got everything you need to turn your dream of owning a home into a reality. Ready to take the first step? Let’s dive in!
Canada Market Stats 2024
| Region | Average Home Price | Interest Rate | Year-over-Year Change |
| Toronto | $1,100,000 | 5.00% | +3.5% |
| Vancouver | $1,200,000 | 4.85% | +2.8% |
| Montreal | $500,000 | 4.95% | +4.2% |
| Calgary | $600,000 | 5.10% | +6.1% |
Steps to Buying A House in Canada
Ready to turn your dream of homeownership into reality? Discover the essential steps to buying a house in Canada—from budgeting to move-in day, we’ve got you covered!”
Financial Preparation
Preparing to buy a home starts with solid financial preparation. Learn how to budget, save, and get pre-approved to make your homeownership journey seamless
Down Payment
Let’s say you’re eyeing a cozy home in Toronto listed at $600,000. The minimum down payment is 5% for homes under $500,000, but for homes over that price, you’ll pay 5% for the first $500,000 and 10% for the remaining amount. In your case, this means a down payment of $35,000 (5% of $500,000) + $10,000 (10% of $100,000) for a total of $45,000.
Pro Tip: The more you can put down, the less you’ll pay monthly. Plus, a larger down payment helps you avoid paying for mortgage insurance. Consider saving 20% for a bigger advantage.
Mortgage Pre-Approval
You’ve found your dream home, but can you afford it? This is where mortgage pre-approval comes in. Getting pre-approved helps you understand what you can afford and signals to sellers that you’re serious.
Sarah and John, first-time buyers in Vancouver, were pre-approved for $800,000. Knowing their budget upfront helped them focus on homes they could afford and gave them confidence during negotiations.
Pro Tip: Shop around for mortgage rates. Don’t settle for the first offer—different lenders offer different terms, and small differences can add up over time.
Closing Costs
You’ve got your down payment, but don’t forget about closing costs, which can add up to 3-4% of the home’s purchase price. This includes legal fees, property taxes, and land transfer taxes.
Emma in Montreal bought a home for $450,000. She had to pay approximately $15,000 in closing costs—something she hadn’t initially budgeted for, so make sure to prepare for this extra expense.
Pro Tip: Set aside a buffer for unexpected costs. Closing costs can sometimes surprise first-time buyers.
Finding a Real Estate Agent
Choosing the right real estate agent is key to a successful home-buying experience. Learn how to find a trusted expert who understands your needs and the local market.
Choosing an Agent
Your agent is your guide through this entire process. Look for someone with local expertise who understands the market in your area. They should be responsive, knowledgeable, and focused on your needs.
Mike and Lisa in Calgary found an agent who knew the city inside and out. She helped them find a hidden gem in an up-and-coming neighborhood that was perfect for their budget.
Pro Tip: Meet with at least two agents to compare. Find someone you trust who communicates clearly and understands your goals.
Agent’s Role
An agent doesn’t just show homes—they:
Help negotiate the best price.
Provide insights on market trends.
Manage the paperwork for you.
Pro Tip: Don’t hesitate to ask your agent questions at every step. They’re there to make the process easier for you.
Home Search
Your dream home is out there—start your home search with a clear plan. Discover how to find the perfect property that fits your needs and budget.
Defining Needs
Before you even start looking at homes, think about what you need. Is proximity to work important? Are you planning to expand your family? Write down your must-haves and nice-to-haves.
James and Maria in Ottawa needed a home with a large yard for their dog and kids. They prioritized neighborhoods with good schools and parks, which helped narrow their search.
Pro Tip: Don’t get distracted by superficial features. Focus on what matters long-term—location, size, and functionality.
Virtual Tours and In-Person Viewings
In the digital age, virtual tours are a great way to get a feel for a property. But always follow up with an in-person viewing to inspect details you can’t see on a screen.
After virtually touring a home in Edmonton, Katie and Tom were excited. But during their in-person viewing, they discovered the basement was too damp for their liking, which they hadn’t noticed online.
Pro Tip: Always visit the property in person before making an offer, even if you love it online.
Making an Offer
Ready to make your move? Learn the key steps to making a strong and competitive offer on your future home.”
Negotiation
When you’re ready to make an offer, it’s time to negotiate. Your agent can help you understand the market conditions. If it’s a seller’s market (lots of competition), you may need to offer more than the asking price.
Sarah and John made an offer below the asking price for a home in Vancouver. Their agent helped them navigate counteroffers, and after a few rounds, they secured the home for $50,000 less than originally listed.
Pro Tip: Don’t be afraid to negotiate, but be prepared to walk away if the price doesn’t work for you.
Contingencies
Make sure to include contingencies in your offer, such as a home inspection and financing approval.
Pro Tip: These contingencies protect you if the home has hidden issues or if financing falls through.
Home Inspection
Before you commit, ensure your new home is in top condition. Discover what to look for during the process.
Hiring an Inspector
Choose a certified home inspector to evaluate the property’s condition. Look for someone who has experience in the type of home you’re buying (e.g., older homes, condos, etc.).
When Chris and Laura were buying their first home in Toronto, the inspector found water damage in the basement. Thanks to their inspection, they were able to renegotiate the price and get the seller to pay for repairs.
Pro Tip: Attend the inspection if possible so you can ask questions directly.
Reviewing the Report
After the inspection, you’ll get a report outlining the condition of the property. It’s crucial to go through it carefully.
Pro Tip: If there are significant issues, use this information to negotiate for a lower price or ask the seller to fix the problems before closing.
Securing Financing
Securing financing is an important step in buying a home. At AJP Mortgage, we make it easy with residential home loans and help you find the best option for your budget.”
Final Mortgage Approval
Once your offer is accepted, the lender will conduct a final review of your application. This includes checking the appraisal of the home.
Pro Tip: Stay in touch with your lender throughout this process to ensure everything is moving smoothly.
Mortgage Loan Insurance
If your down payment is less than 20%, you’ll need mortgage loan insurance. This protects the lender if you can’t make your mortgage payments.
Pro Tip: The cost of mortgage insurance can be added to your mortgage payments.
Hiring a Lawyer
Protect your investment by hiring a reliable real estate lawyer. Learn how they ensure a smooth and secure home-buying process.
Legal Advice
A real estate lawyer ensures all the paperwork is in order and protects your legal rights during the transaction.
Pro Tip: Choose a lawyer who specializes in real estate, and make sure you understand all the documents you’re signing.
Paperwork
Your lawyer will help you with:
The title search.
Preparing the closing documents.
Finalizing the transfer of ownership.
Home Insurance
Safeguard your new home with the right insurance. Learn how to choose the best coverage for your needs.
Protecting Your Investment
Home insurance is essential for protecting your new home from unforeseen events like fires or floods. It’s also a requirement from most mortgage lenders.
Pro Tip: Shop around for the best coverage and rates. Consider bundling home and auto insurance for savings.
Closing the Deal
You’re almost there! Learn the final steps to closing the deal and officially becoming a homeowner.
Signing Documents
On closing day, you’ll sign all the legal documents, including the mortgage agreement and the deed of sale.
Pro Tip: Don’t rush—carefully review every document before signing.
Transfer of Funds
The final step involves transferring the funds to the seller and officially receiving the keys to your new home.
Pro Tip: Once the deal is done, take a moment to celebrate! You’re now a homeowner!
Common Doubts of Buyers
Buying a home can bring up a lot of questions. From understanding hidden costs to choosing the right mortgage, it’s normal to have doubts. A trusted house mortgage broker can help you navigate these concerns and ensure you make informed decisions every step of the way.
How Long Will It Take to Buy a House in Canada?
Buying a house usually takes 2 to 3 months. Here’s a quick breakdown:
Pre-Approval: 1 week
Home Search: A few weeks
Making an Offer: A few days to a week
Home Inspection: 1-2 weeks
Closing: 3-4 weeks
It can be faster or slower depending on your situation.
What is the Minimum Income to Buy a House in Canada?
To buy a $500,000 home with a 5% down payment ($25,000), you’ll need an income around $70,000 to $80,000 per year. The more you save, the less income you’ll need.
How Much Deposit Do You Need to Buy a House in Canada?
You need at least 5% of the home’s price for the down payment.
For a $600,000 house, the down payment will be:
5% of $500,000 = $25,000
10% of the remaining $100,000 = $10,000
Total = $35,000
Saving more will help you pay less monthly!
How AJP Can Help?
At AJP Mortgage, we make the home-buying process simple and stress-free. As one of the best mortgage lenders in Canada, we offer expert guidance, personalized solutions, and access to competitive rates to help you secure the best deal for your dream home.
Expert Advice
We offer helpful advice to guide you through every decision, making sure you’re informed and confident.
Case Study: Sarah and Tom were new to Toronto’s housing market. AJP helped them understand current trends and find a neighborhood that fit their needs and budget.
Mortgage Help
We help you understand your mortgage options and find the best deal for your budget.
Case Study: Jake and Amanda were unsure about mortgage options. AJP connected them with a great mortgage broker who helped them get pre-approved quickly.
Finding Your Dream Home
We make sure you only see homes that match your needs, saving you time and energy.
Case Study: Mark and Emily had a long list of must-haves. AJP used their local knowledge to find homes that fit perfectly, leading them to their dream home fast.
Negotiating the Best Price
Our expert agents are great at negotiating to get you the best deal.
Case Study: Ben was interested in a home but worried about the price. AJP helped him negotiate $15,000 off, making the deal more affordable.
Taking Care of Paperwork
We handle all the paperwork so you don’t have to worry about missing anything.
Case Study: Lucy and Brian were overwhelmed by the paperwork. AJP handled everything, making the process easy and smooth.
Local Knowledge
Our agents know the local areas well and can help you choose the right place for your lifestyle.
Case Study: Peter and Zoe were new to Calgary. AJP’s local agents helped them find the best neighborhoods for families.
Custom Home Search
We customize the home search to match exactly what you’re looking for.
Case Study: Rachel and Jack had specific home needs. AJP provided them with personalized listings, so they only looked at homes that fit their criteria.
Home Inspections and Repairs
We help you navigate home inspections and ensure any necessary repairs are taken care of.
Case Study: Clara and Sam found their dream home, but the inspection revealed some issues. AJP helped negotiate repairs before they closed.
Access to Off-Market Listings
We give you a chance to see homes before they are listed publicly.
Case Study: James and Nina couldn’t find the right home. AJP gave them exclusive access to an off-market listing, which was perfect for them.
Smooth Closing
We make sure closing goes smoothly so you can enjoy moving into your new home without any worries.
Case Study: Michael and Jessica were excited to close but didn’t know the steps. AJP handled all the details and made the process stress-free.
With AJP, we’ll guide you through every step and make your home-buying experience as easy and enjoyable as possible!
Wrap Up
Buying a home in Canada is a big decision, but it doesn’t have to be stressful. With the right preparation, advice, and patience, you can make smart choices along the way. Start by getting your finances in order, understanding the steps involved, and asking lots of questions.
Take your time, and don’t rush through any part of the process. Whether it’s understanding your mortgage options or finding the right neighborhood, each step matters.
Need support with your home-buying journey?
We’re here to help you every step of the way. From finding the perfect home to securing the right financing, our team can guide you through the process. Let us help make your dream of homeownership a reality.
Contact us today to schedule a consultation and start your home-buying journey with confidence!
