Everything you need to know about buying your first home in Canada. From understanding the process to navigating government programs, we've got you covered.
✅ Updated for 2026 - Includes new 30-year amortization rules, current stress test rates, and all federal/provincial programs
Follow these 11 essential steps to successfully purchase your first home in Canada
Review your credit score, calculate your budget, and understand how much you can afford. Aim for a credit score of 680+ for best rates.
In Canada, you need at least 5% down for homes under $500k. Aim for 20% to avoid CMHC insurance fees.
As of 2026, first-time buyers can now access 30-year amortizations on ANY home price (not just under $1M). This significantly lowers your monthly payments!
Get pre-approved BEFORE house hunting. This shows sellers you're serious and helps you know your budget.
Apply for Pre-ApprovalWork with an experienced agent who knows the local market. As a buyer, their services are typically free!
Visit open houses, attend showings, and make a list of must-haves vs. nice-to-haves for your ideal home.
Pro Tip: Don't fall in love with the first house. View at least 5-10 properties to understand the market.
Work with your agent to craft a competitive offer. Include conditions like financing approval and home inspection.
Hire a licensed home inspector to identify potential issues. Budget $400-600 for a thorough inspection.
Submit all required documents to your mortgage broker/lender and get your final mortgage approval.
Your lawyer will review contracts, conduct title searches, and handle the legal transfer of property. Budget $1,500-2,500.
On closing day, your lawyer transfers funds, you sign final documents, and you receive the keys to your new home! 🎉
Congratulations - You're officially a homeowner!
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Learn from others' experiences and avoid these costly mistakes that trip up many first-time home buyers
Many buyers start house hunting without pre-approval, wasting time on homes they can't afford.
Solution: Get pre-approved BEFORE viewing homes to know your exact budget.
Buyers often forget about legal fees, land transfer tax, home inspection, and moving costs.
Solution: Budget 1.5-4% of purchase price for closing costs.
Getting emotionally attached to the first house leads to overpaying or ignoring red flags.
Solution: View at least 5-10 homes before making any offers.
Waiving inspection to make offer more attractive can lead to expensive surprises after purchase.
Solution: ALWAYS get a home inspection. $500 now can save $50,000 later.
Buying the most expensive home you qualify for leaves no room for emergencies or life changes.
Solution: Aim for 25-30% below your max approval for financial flexibility.
Buying furniture, cars, or taking on new debt before closing can kill your mortgage approval.
Solution: Wait until AFTER closing to make any major purchases.
Focusing only on the house and ignoring location, schools, commute, and future development plans.
Solution: Visit at different times. Research schools, crime rates, future development.
Going with the first lender without comparing can cost thousands in extra interest over the years.
Solution: Work with a mortgage broker who shops 50+ lenders for you.
Feeling pressured by market conditions leads to hasty decisions and buyer's remorse.
Solution: Take time to research. The right home is worth waiting for.
Work with an experienced mortgage broker who will guide you through every step and help you avoid costly errors.
Take advantage of these Canadian government programs designed to help first-time home buyers
Save up to $40,000 tax-free
Launched in 2023, the FHSA lets you save up to $8,000/year (lifetime max $40,000) for your first home. Contributions are tax-deductible AND withdrawals are tax-free!
Withdraw from your RRSP
Withdraw up to $60,000 from your RRSP to buy or build your first home. The withdrawal is tax-free if you repay it over 15 years.
Get $1,500 back at tax time
Claim up to $10,000 on your tax return for a non-refundable tax credit of $1,500 (15% of $10,000). Available to first-time buyers or those who haven't owned a home in the past 4 years.
For newly built homes
If you're buying a newly constructed home or substantially renovating a property, you may be eligible for a GST/HST rebate of up to $130,000 (varies by province and includes both federal and provincial rebates).
Provincial rebate program
Ontario first-time buyers can receive a full or partial refund of Land Transfer Tax (LTT). Maximum refund is $4,000 provincial, plus up to $4,475 in Toronto (municipal LTT).
Understanding government programs can be confusing. I'll help you determine which programs you qualify for and maximize your savings.
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