Step-by-Step Guide
The Canadian home buying guide
Everything you need to know about buying a home in Canada in 2026 -- from saving your down payment to getting your keys. Clear, actionable, and up to date.
Want this guide as a PDF?
Download the complete checklist with bonus tips and a savings tracker.
Assess Your Finances
Before you start looking at homes, get a clear picture of your financial health. Review your gross household income, outstanding debts (car loans, student loans, credit cards), credit score, and savings. Canadian lenders use two key ratios: your Gross Debt Service (GDS) ratio should be under 39% of gross income, and your Total Debt Service (TDS) ratio should be under 44%. These ratios determine how much you can borrow. Pull your free credit report from Equifax or TransUnion to check for errors.
Pro Tips
- Check your credit score 6 months before buying
- Pay down high-interest debt first
- Aim for a GDS under 32% for the best rates
Save Your Down Payment
In Canada, the minimum down payment is 5% for homes up to $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% for properties over $1.5 million. Use tax-advantaged accounts to save faster: the First Home Savings Account (FHSA) allows $8,000 per year (up to $40,000 lifetime) with tax-deductible contributions and tax-free withdrawals. The RRSP Home Buyers' Plan (HBP) lets you withdraw up to $60,000 tax-free. Together, a couple could access over $200,000 in tax-advantaged savings.
Pro Tips
- Open your FHSA immediately -- even $1 starts the clock
- Maximize employer RRSP matching
- Set up automatic transfers to a dedicated savings account
Get Pre-Approved
A mortgage pre-approval tells you exactly how much you can afford, locks in an interest rate for 90 to 120 days, and signals to sellers that you are a serious, qualified buyer. I handle the pre-approval process: I compare options across 30+ lenders, find the best rate for your situation, and provide a written commitment you can rely on. Pre-approval typically takes 24 to 48 hours once documents are submitted.
Pro Tips
- Pre-approval is free and does not commit you to a lender
- Rate holds protect you from increases while you shop
- Multiple pre-approvals within 14 days count as one credit check
Find a Real Estate Agent
Work with a licensed real estate agent who knows your target neighbourhoods and market conditions. A good agent handles property searches, schedules viewings, negotiates offers, and manages the paperwork. Their commission is typically paid through the transaction, not directly by the buyer. Ask for referrals from friends, family, or your mortgage advisor -- I work with excellent agents across multiple provinces.
Pro Tips
- Interview at least 2-3 agents before choosing
- Ask about their experience in your specific neighbourhood
- Request references from recent buyers
Search and Make an Offer
With pre-approval and your agent, start viewing properties within your budget. When you find the right home, your agent prepares a competitive offer. Most offers include conditions: financing (I handle this), home inspection, and sometimes status certificate review for condos. Your deposit (typically 5% of the purchase price) is due within 24 hours of acceptance and held in trust until closing.
Pro Tips
- Stay within your pre-approved amount
- Do not skip the home inspection
- Consider future resale value and neighbourhood growth
Fulfill Conditions
Once your offer is accepted conditionally, the clock starts. For financing, I submit your full application to the lender with property details and all supporting documents. This typically takes 3 to 5 business days. Simultaneously, schedule your home inspection ($400 to $600) to identify any major issues. If everything checks out, you waive conditions and the deal becomes firm.
Pro Tips
- Respond to lender document requests within 24 hours
- Attend the home inspection in person
- Do not make major purchases or change jobs before closing
Budget for Closing Costs
Budget 1.5% to 4% of the purchase price for closing costs beyond your down payment. Major costs include: land transfer tax (varies by province; Ontario first-time buyers get a rebate up to $4,000), legal fees ($1,500 to $2,500), title insurance ($300 to $500), home inspection, appraisal if required, and property tax or utility adjustments. Your real estate lawyer provides a detailed statement of adjustments before closing.
Pro Tips
- Set aside at least 3% of purchase price for closing costs
- First-time buyers may qualify for land transfer tax rebates
- Get your lawyer's fee quote in writing before hiring
Closing Day
Your lawyer handles the transfer of funds, registration of the mortgage, and transfer of title. You review and sign your mortgage documents, pay remaining closing costs, and receive your keys. After closing, I remain available for questions about your mortgage, and I will proactively reach out before your renewal date to ensure you always have the best rate and terms.
Pro Tips
- Do a final walkthrough the day before closing
- Keep your moving receipts for potential tax deductions
- Set up property tax and insurance payments immediately
More Resources
Continue your research
Ready to start your home buying journey?
Book a free consultation and I will guide you through every step with personalized advice and support.