Buying a home
Learn about buying a home in Canada, including how to work with a real estate agent, get financing and get mortgage insurance.
On this page
- Preparing to buy a home
- Finding a real estate agent
- Making an offer
- Financing your home
- Making a down payment and mortgage loan insurance
- Getting a home inspection
Preparing to buy a home
Before buying a home, plan ahead for the related costs, including
- heating and cooling
- property taxes
- mortgage payments
- home insurance
- home repairs and maintenance costs
- yard maintenance
- driveway maintenance (like snow removal)
- utilities (like water and electricity)
To help you plan, use these online tools:
Ways to search for a home:
- Visit areas where new homes are being built.
- Read the new homes section in newspapers or real estate magazines.
- Tell friends, family and work colleagues that you’re looking for a home.
- Visit real estate websites for information and photographs on different homes.
- Drive around a neighbourhood that you like and look for “For Sale” signs.
The Canada Mortgage and Housing Corporation has 2 guides to help you buy a home:
Finding a real estate agent
A real estate agent can help you find and buy a home. They will
- listen to your homebuying needs
- arrange for home or property showings
- arrange a professional home inspection
- help you negotiate a good price
To find a real estate agent
- ask your bank or people you know if they can recommend someone
- look for the names of real estate agents on “For Sale” signs in neighbourhoods you like
- search online
Fraud is a small but growing concern for homebuyers in Canada.
Making an offer
Once you find a home that you’re interested in, you can make an offer to purchase. If you’re using a real estate agent, they will help you make the offer.
If your offer of purchase is accepted, you need to hire a lawyer or notary to transfer the home to your name. You can find a lawyer online or ask your real estate agent to recommend one.
Financing your home
Most homebuyers need a mortgage loan to purchase their home. You can get a mortgage loan from
- banks
- other financial institutions:
- credit unions (also called « caisses populaires »)
- insurance companies
You pay back a mortgage through regular payments over a period of time (usually 25 years). Each payment will be split between paying down your loan balance (the principal) and paying the interest you’re charged to borrow the money.
Making a down payment and mortgage loan insurance
Your mortgage is equal to the home’s price minus your down payment. Your down payment is money you pay up front when buying a home. The minimum down payment you need depends on the home’s price.
If your down payment is less than 20% of the home’s total price, you’ll likely need mortgage loan insurance. This insurance
- protects your lender if you can’t pay your mortgage
- lets you make a smaller down payment
- helps you get a lower interest rate
Learn more about mortgage loan insurance.
Credit score and history
Your credit history shows how well you’ve managed your financial accounts, credit cards and other loans in the past. Your credit score is a number value based on your credit history and other factors.
Lenders look at your credit score when deciding whether to give you a mortgage. If you’re new to Canada, banks here may not recognize your credit history from another country. You can start building your credit score in Canada by making regular payments on your credit cards and other accounts.
If you want to buy a home, start building your Canadian credit history as soon as you can. Talk to someone at a bank about how to start.
Learn more about credit reports, history and scores.
Getting a home inspection
If you make an offer on a home, you should make your offer with the condition that the home must pass a professional home inspection. This lets you cancel or change your offer if the inspector finds serious problems with the property.
A home inspector makes detailed inspections of properties for a fee. They’ll give you a report that you and your real estate agent can review. You can decide if the home needs repairs that affect the price you agree to pay.
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