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Buying a home is one of the biggest financial moves you'll ever make. The process has more steps than most people expect, and the order you do things in matters. This guide walks you through it from start to finish so nothing catches you off guard.
Write down your non-negotiables before you open a single listing. Number of bedrooms, bathrooms, location relative to work, school, or transit. Keep the list to the things you genuinely cannot compromise on.
The reason this comes first is simple. Once you start browsing properties online, the market starts shaping what you think you want. You'll see a finished basement in one listing, a chef's kitchen in another, and suddenly those become expectations. Define what matters on your own terms before anything else influences you.
Your credit score determines how much you can borrow and at what interest rate. Pull your report before doing anything else. If your score needs work, the fastest improvements come from paying down credit card balances and making every payment on time for at least 90 days consistently.
On the down payment side, here is what the minimums look like in Canada right now:
Under $500,000: minimum 5% down. Between $500,000 and $999,999: 5% on the first $500,000, then 10% on the portion above that. Over $1,000,000: 20% minimum, no exceptions.
If your down payment is under 20%, you will pay CMHC mortgage insurance on top of your mortgage. The premium ranges from 0.6% to 4.5% of your total mortgage amount depending on your down payment percentage. Factor this into your numbers from day one, not after you fall in love with a property.
$500,000 or less | 5% of the purchase price |
$500,000 to $999,999 | 5% of the first $500,000 of the purchase price 10% for the portion of the purchase price above $500,000 |
$1 million or more | 20% of the purchase price |
If your down payment is under 20%, you will pay CMHC mortgage insurance on top of your mortgage. The premium ranges from 0.6% to 4.5% of your total mortgage amount depending on your down payment percentage. Factor this into your numbers from day one, not after you fall in love with a property.
Yes, there is a difference between pre-qualification and pre-approval.
These two things sound similar and they are not. Pre-qualification is a rough estimate based on information you provide yourself. Pre-approval is a verified commitment based on your actual financial documents reviewed by a lender.
Do not submit an offer on a property without pre-approval in hand. Sellers will not take you seriously, and in a competitive market you will lose the home before you even have a real conversation about it.
I work with a trusted mortgage broker who can move quickly and compare rates across multiple lenders. If you want that introduction, reach out and I will set it up.
Do not submit any offers if you’re only pre-qualified. You should start submitting offers only after you’ve been pre-approved. Most sellers will not take your offer seriously without pre-approval, and you might lose a home you really liked.
You can start the pre-approval process at your bank. However, it’s ok to shop around and see if any other lender can offer you better terms. A mortgage broker can help you find the best possible option.
If you want to expedite your pre-approval process, you can ask your preferred real estate agent to help you. Most agents, like myself, have established contact networks with a few mortgage brokers and have our contacts within individual banks.
Remember, even getting pre-approved DOES NOT guarantee you can take out the stated amount. Also, if interest rates change between pre-approval and purchase, you must repeat the process. In this case, your lender will likely adjust your pre-approved amount.
It’s not wise to start looking at homes without getting pre-approved. You risk falling in love with homes that could be out of your reach. It will then become challenging to find a property you’ll love after seeing all those fantastic homes that are out of your budget.
Once you have a pre-approval number, you know your real ceiling. One rule that protects buyers consistently: never buy at the top of your approved amount. Leave room for closing costs, moving expenses, and the things every home needs in the first year even when it looks move-in ready.
Start with properties below your maximum. You will often find more value than you expected, and it gives you negotiating room when the right property comes up.
Set up listing alerts for your target areas the moment you start searching actively. In Vaughan and the surrounding GTA markets, strong properties at the right price point move within days.
You may have heard the terms “buyer’s market” and “seller’s market”. Here’s what they mean, and more importantly, what they mean for you as a buyer:
A buyer’s market is one in which the supply of homes exceeds demand. Since supply is greater than demand, properties stay longer on the market. This will give you enough time to explore a few options, even visit the properties a few times, before finally submitting an offer. A genuine buyer’s market means you can usually negotiate the asking price down, as multiple offers on a property are rare.
A seller’s market is one in which the supply of homes cannot keep up with the demand. This huge demand pushes prices upwards, and you can expect to be caught in bidding wars with other interested buyers. This means that you’ll pay more than the asking price at which the property is listed. You’ll have to decide and submit your offer quickly, as properties stay on the market for just a few days.
Never buy at your approval ceiling. If you are approved for $800,000 that does not mean you should spend $800,000. Leave room for closing costs, immediate repairs, and the adjustments every home needs in the first year. A property that checks all your boxes at $720,000 is a better outcome than stretching to $800,000 and feeling the pressure of it every month.
Include properties below your budget on your viewing list, even ones that seem too far below. You will sometimes find something that works better than expected at a price that gives you breathing room.
No home is ever fully move-in ready. Even properties marketed that way always have something like a room you want to repaint, a fixture you want to replace, a space that needs work before it feels like yours. Budget for it before you close, not after.
Do not limit yourself to neighbourhoods you already know. Some of the best value in the GTA sits in areas buyers overlook simply because they are unfamiliar with them. An agent who works the market actively will know where those pockets are.
When browsing online, look for listings that show rooms from multiple angles. A single staged photo tells you almost nothing about how a space actually flows. If you cannot get a clear sense of the layout from the photos, that is worth noting before you book a showing.
Finally, think about the property ten years from now, not just today. Your life will look different. The home should have room to grow with you or at least not work against where you are headed.
The good news is since you’re a buyer, the agent’s commission is not something you have to worry about. The seller always pays the commission.
You must be wise when choosing the right real estate agent. After all, the real estate agent is not only the person who opens the doors for you at the showing and gives you a tour of the properties you like. Your real estate agent will also write and submit offers for the properties you like. Hence, you need someone experienced who you can trust to do the job diligently.
Here are some guidelines:
Should you hire a real estate agent who is your friend/family?
Even though this may be convenient, and you will feel like you are helping, it can get tricky if you disagree in certain situations. You will also benefit more from someone unbiased and straightforward.
When interviewing agents, test how much they know about the local market
You need someone who knows what’s happening in the local market and how to write competitive offers to get you the home you dream of. And not every agent can deliver this.
Is hiring a well-known and popular agent really the best option?
While it might seem like trusting your home sale process to someone famous and experienced is a good move, it may prove a mistake. How much time can that agent dedicate to finding your dream home if they are in demand?
When it comes to agents, honesty truly is the best policy!
Don’t simply choose the agent who’s promising you everything. Rather go with the realistic agent explaining the situation as it is, without any sugarcoating.
After choosing your real estate agent, it’s time to start looking at homes in person. Here are some tips on what to look out for:
An experienced agent with many showings and open houses under their belt should be pointing out these red flags for you. However, here are some of the most often occurring issues you should watch out for.
The first thing to watch out for is mould and moisture. Especially recently refurbished homes can cover these issues. Look under the kitchen sink and in the back of the cupboards for signs of water and mould.
The roof is also often problematic. Even if the outside is new and looks good, take a sneak peek at the inside and look for issues.
Don’t forget to look up and down to notice potential problems in the flooring and cracks in the ceilings.
When you have found a property that ticks most of your boxes, sit down with your real estate agent and devise a strategy for submitting the offer. This is why it’s essential to have an experienced agent transacting regularly. Such an agent knows what kind of offer will be the winning offer - how much above the asking price properties usually sell for or how much below the asking price you can offer without offending the sellers or simply looking ridiculous.
The real estate agent can also help you decide on any conditions you want to ask for.
The most common conditions are:
Your agent will then present the offer to the seller’s agent. The seller will then either accept your offer or issue a counteroffer. You can then accept or continue to go back and forth until you either reach a deal or call it quits.
You’ll frequently be required to deposit some money with your offer. The deposit amount be deducted from your down payment.
Once your offer is accepted, it’s time to close the deal.
After the seller accepts your offer, you must return to your lender to complete your financing.
Here’s the documentation you usually need to provide to the lender:
Home inspection and appraisal are two different things.
A home inspection assesses the property for quality, safety, and overall condition. A qualified home inspector assesses the property’s heating and cooling systems, plumbing, electrical work, water, sewage, fire and safety issues. The home inspector also looks for insect, water, or fire damage. You can retract your offer if the home inspection reveals severe defects the seller did not disclose. The home inspection has to be paid for by the buyer and costs around $500.
An appraisal is an unbiased professional opinion of a home’s value order by your mortgage lender. A qualified appraiser does an in-person inspection and combines the findings with current market trends and the home details (size, condition, floor plan, amenities) to estimate the value of your home. The transaction can proceed if the appraisal comes in at the value or above the purchase. However, the transaction can be stopped if the appraisal comes below the purchase price.
Your lender may require Title Insurance to cover any loss caused by property ownership problems.
A clear title establishes the legal property owner. A title check shows whether there are any outstanding financial responsibilities attached to the property. Only if the property has a clear title does the seller has the right to sell the property. Title companies check for claims or liens of any kind. The presence of liens invalidates or impairs the owner’s title to the property. Title issues can arise in situations of separation, divorce, or heirs not being adequately documented.
A home warranty and home insurance differ.
Homeowners’ insurance covers the loss of the home and its contents due to fire or certain other natural disasters. A home warranty covers the cost of maintaining household systems or appliances for a set period. Home warranty coverage can cost between $400 to $800 a year.
Closing day is when you take legal possession of your new home. The final signing is usually at your lawyer or notary’s office.
At this point, your lender will transfer the mortgage money to your lawyer or notary. You will provide the lawyer with the down payment (minus the deposit) and money to cover the closing costs (legal fees, land transfer fees, etc.), typically 1.5% to 4% of the purchase price.
After that, your lawyer or notary will pay the seller, register the home in your name and give you the deed and keys to your new home.