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Steps for Buying House: STEP 1: Have a Down Payment Amount The minimum down payment in Canada for properties under $500K is 5% and 10% for any amount over $500K. STEP 2: Don't Forget Closing Cost Remember, you will need budget for closing cost. This includes lawyer fee $1K to $1.5K and land transfer tax. Also, consider cost for hiring mover, home insurance, utility bills and property tax. STEP 3: Check Your Credit Score A credit score is a rating (between 300 and 900) used by lenders to assess the amount of risk they face in extending credit to you. STEP 4: Get Mortgage Pre-approval Finding the lowest mortgage rate could save you thousands. A mortgage broker will have you fill out one application, then shop it around to several different lenders, returning with only the best offer and the lowest rate for you.
STEP 5: Research Houses on Sale Do research to before you dive into looking for houses. Once you know your budget, check out neighbourhoods and what size of home works for your budget. STEP 6: Hire a Real Estate Agent With your mortgage pre-approval in hand, your house price in mind, and a required down payment, you’re ready to contact a real estate agent and begin your house hunt. This is fun part, can be exhausting and stressful. STEP 7: Make an offer When you find the house you want, you’ll submit an offer to purchase. Once your offer is accepted, you’ll pay a deposit to the buyer (which is applied against the purchase price of the home). For infographic, click here

Before you start shopping for a new house, first step is to save up money for a down payment. A “down payment” is the amount of money that you put towards the purchase of a home. Generally, the larger your down payment, the easier it is to obtain a mortgage.


For example, if you are buying house for $500,000 then you will need $25,000 for 5% down payment, $50,000 for 10% and $100,000 for 20%.
Remember, if your down payment is less than 20% of total house price than you will have to pay mortgage insurance to the Canada Mortgage and Housing Corporation (CMHC).
First-time home buyer is eligible for $35,000 from your RRSP, tax-free as part of the home buyer's plan.

Saving for a down payment covered in step 1 should be a top priority, don't forget to keep aside money for closing cost generally 1.5 to 4% of the home purchase price.

Land Transfer Tax: Varies by province and municipality. Cost is 0.5% to 2% of home price.
To calculate land transfer tax for property you buying, click here.

Legal Fees: This is lawyer fee and about $800 - $1500.

Title Insurance: Some lenders requires this insurance to protect themselves in case of an ownership dispute. This is purchased through your lawyer and usually costs up to $300.

Mortgage Default Insurance (CMHC): This is a mandatory insurance policy for those who purchase a house with less than a 20% down payment. CMHC insurance premium is approx. 3% of mortgage amount for 10% down payment.
To calculate for property you buying, click here.

PST: Buyers have to pay sales tax on the CMHC insurance at the time of purchase.

GST/HST: If you’re buying or building a new home or condo, tack GST/HST onto the purchase price.

Mortgage lenders uses the credit score of the house buyers to assess the amount of risk they face in extending credit to you. In general, the lower your score, the less likely you are to be approved for a loan.




After you have worked out your finances, the next step is to figure out how much you can afford. A mortgage calculator is a good place to start, as you can factor in the amount of your down payment, your amortization (repayment) schedule, total selling price, and so forth to come up with a budget.
You can check on the internet or for more official document, you can go to mortgage lender and get pre-approval. Lender will determine how much money they will lend you and at what interest rate.
After you have arraged finanace and got mortgage pre-approval, you can start the exciting part of the home buying process.
Realtor.ca, provides a nationwide compilation of available real estate listings that you can filter any number of ways: by location, size, type, amenities, price, and more. There many such websites that you can use to research and short list houses you like and fits your requirements.


You can hire agent although it is not mandatory but it is advisable especially for the first=time home buyers. Agent will help you to to arrange visit houses that you shortlisted.

When you find the house you want, first step is to submit an offer to purchase. If your housing market is hot, you may not be the only buyer to submit an offer.
Once your offer is accepted, you’ll will have 5-7 days to confirm followings:

The offer might be amended based on the findings of the home inspection. Still, eventually, you’ll secure your financing and, with the help of a real estate lawyer, pay down payment and transfer title to the home into your name. The entire process can take 30-60 days, depending on the terms of the offer to purchase.

Once everything is in place, you’ll receive the keys from your real estate agent, and you’ll officially be the owner of your very own home.