First time home buyer's guide

Ramanjeet Patti
Nov 17
2 min read

How to Buy Your First Home in Canada: A Step-by-Step Guide

Buying your first home is exciting—but it can also feel overwhelming. From mortgages to inspections, there’s a lot to consider. If you’re a first-time homebuyer in Canada, this guide will walk you through the process step by step, helping you make confident decisions along the way.

1. Determine Your Budget

Before you start browsing listings, it’s important to know how much you can afford.

Calculate your savings for a down payment (typically 5–20% of the home price).
Consider closing costs such as legal fees, home inspection.
Use a mortgage calculator to estimate monthly payments, including interest, taxes, and insurance.

Knowing your budget helps narrow your search and ensures you don’t overextend financially.

2. Get Pre-Approved for a Mortgage

A mortgage pre-approval gives you a clear idea of how much a bank is willing to lend and shows sellers that you are a serious buyer.

Shop around for competitive rates from banks, credit unions, or mortgage brokers.

3. Decide on Your Must-Haves

Make a list of what’s most important in a home. Consider:

Location: proximity to work, schools, amenities
Type of property: condo, townhouse, detached home
Size: number of bedrooms, bathrooms, and living space
Features: yard, garage, renovations

Knowing your priorities will make your home search more efficient.

4. Find a Real Estate Agent

A local real estate agent is invaluable for first-time buyers:

They know the market and neighborhoods.
Can negotiate on your behalf.
Help with paperwork, inspections, and legal requirements.

Look for an agent who is experienced, communicative, and understands your needs.

5. Start House Hunting

Use your list of priorities to guide your search. Attend open houses, schedule private showings, and explore different neighborhoods.

Take notes and photos to compare homes.
Don’t rush—sometimes the perfect home takes time to find.

6. Make an Offer

Once you find a home you love:

Your agent will help you draft an offer.
Include conditions such as home inspection or financing approval.

7. Get a Home Inspection

A professional home inspection is crucial to uncover potential issues before closing.

Inspectors check the structure, roof, plumbing, electrical, and more.
If issues are found, you may negotiate repairs or adjust the offer price.
Waive any conditions in your offer (like financing or inspection) once you are satisfied with the results.

8. Close the Deal

Once your offer is accepted:

Your lawyer or notary finalizes the paperwork.
Arrange home insurance.
Transfer funds for your down payment and closing costs.
Receive the keys and celebrate!

9. Move In and Enjoy Your New Home

Moving into your first home is a big milestone. Take time to personalize your space and settle into your neighborhood.

Tips for First-Time Homebuyers in Canada

Check for government incentives: Programs like the First-Time Home Buyer Incentive or RRSP Home Buyers’ Plan can help.
Don’t skip the pre-approval: Knowing your budget prevents disappointment.
Plan for ongoing costs: Utilities, maintenance, and property taxes are recurring expenses.