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Home Purchase (Achat immobilier)
Buy a home in Canada from budget to keys: use the FHSA and Home Buyers' Plan, get pre-approved, make a conditional offer, inspect, finalize the mortgage and close with a lawyer or notary.
- Canada
- ~69 days
- 12 steps
- 4 documents
Curated by Raaya · Last reviewed Oct 2026
Steps
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Set your budget and learn the process
2 daysStart with the full cost, not just the price. The minimum down payment is 5% for a home of $500,000 or less; for $500,000 to $1.5 million it is 5% of the first $500,000 plus 10% of the rest; at $1.5 million or more it is 20%. With less than 20% down you must buy mortgage loan insurance, which costs roughly 0.6% to 4.5% of the mortgage and is usually added to the loan.
On top of the down payment, CMHC suggests budgeting 1.5% to 4% of the purchase price for closing costs such as land transfer tax, legal fees, title insurance, adjustments and moving.
Insured mortgages can have up to 30-year amortization for first-time buyers and buyers of new builds; otherwise it is usually 25 years. Non-Canadians face federal restrictions on buying residential property, currently set to end on January 1, 2027; check the latest rules.
Tip: Use the CMHC and FCAC calculators to test a payment at a higher rate before you fall in love with a listing.
- Online
- cmhc-schl.gc.ca
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Use your FHSA and Home Buyers' Plan (CELIAPP / RAP)
1 dayIf you are a first-time home buyer, two federal programs can fund your down payment. A First Home Savings Account (FHSA) gives $8,000 of contribution room per year, up to $40,000 in total; contributions are deductible and qualifying withdrawals for a first home are tax-free. The Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSPs tax-free, to be repaid over 15 years. You can use both for the same home if you meet each program's conditions.
When you file your taxes for the year you buy, you may also claim the $10,000 home buyers' amount (line 31270). Buyers of a newly built home from a builder may qualify for the GST/HST new housing rebate or the first-time home buyers' GST rebate, and provinces have their own help, such as Ontario's land transfer tax refund of up to $4,000.
Tip: Open an FHSA as early as possible; room only starts to accumulate the year you open the account.
- Online
- canada.ca
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Gather financial documents (Rassembler les documents)
3 daysLenders verify identity, income, debts and the source of your down payment. Collect government photo ID, a recent pay stub and an employment letter stating your position, salary and start date, and your T4 slips and Notices of Assessment for the last two years. Self-employed buyers usually need two years of Notices of Assessment and full tax returns.
For the down payment, lenders typically want at least 90 days of statements for the account holding the funds, so large deposits can be traced. Gifted funds normally require a signed gift letter from an immediate family member confirming the money does not need to be repaid.
Also list your debts: car loans, student loans, credit cards and lines of credit, with balances and monthly payments.
Tip: Avoid moving money between accounts or taking on new credit while you are buying; unexplained transfers and new debt are the most common causes of delays.
Social Insurance NumberT4 slips and Notices of Assessment (last 2 years)Employment letter and recent pay stubDown payment statements (90 days) -
Get a mortgage pre-approval (Pré-approbation)
5 daysA pre-approval tells you how much a lender may lend and can hold an interest rate for a period, often 60 to 130 days depending on the lender. It is not a final approval; the lender will still review the property and your documents later.
Lenders must check that you could afford payments at a higher rate. Federally regulated lenders qualify uninsured borrowers at the greater of 5.25% or your contract rate plus 2%, and they also look at your debt service ratios, credit history and down payment.
Compare offers from banks, credit unions and mortgage brokers on rate, term, prepayment privileges and penalties, not just the rate.
Tip: Note the rate-hold expiry date and plan your search around it; an expired hold means requalifying at the current rate.
- Check your credit reports for free from Equifax Canada and TransUnion Canada and fix errors
- List monthly housing costs (mortgage, property tax, heating, condo fees) and all debt payments
- Confirm your minimum down payment for your target price and whether insurance is required
- Get quotes from at least three lenders or a mortgage broker
- Compare term, fixed or variable rate, prepayment privileges and penalties
- Get the pre-approval in writing with the rate-hold expiry date
T4 slips and Notices of Assessment (last 2 years)Employment letter and recent pay stubDown payment statements (90 days) -
View homes with your agent (Visiter les propriétés)
14 daysShortlist neighbourhoods based on commute, schools and services, then view homes in person. A buyer's agent registered with your provincial real estate regulator can book showings, pull comparable sales and help you write an offer; ask how they are paid before you sign a buyer agreement.
At each viewing, look for signs of water damage, the age of the roof, furnace and windows, electrical panel type, and foundation cracks. For condos, ask about monthly fees, what they cover, the reserve fund and any upcoming special assessments.
Check property taxes with the municipality and estimate utility costs.
Tip: Visit your top choices again at a different time of day to check noise, parking and traffic before you make an offer.
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Make a conditional offer (Faire une offre)
3 daysYour agent prepares a written offer (in Ontario an Agreement of Purchase and Sale; in Quebec a promise to purchase). Price is only one part; conditions protect you. The most important are a financing condition, a home inspection condition and, for condos, review of the condominium documents (status certificate in Ontario, estoppel certificate in Alberta).
The offer also sets the deposit, the closing date, what is included (appliances, fixtures) and the deadline for the seller to respond. Once accepted and conditions are removed, the agreement is legally binding.
Have your lawyer or notary review the offer if anything is unusual, such as a short closing, an unconditional offer or a property sold as-is.
Tip: Do not waive the financing or inspection condition unless your financing is truly confirmed and you have had the home inspected.
- Agree on offer price and deposit amount with your agent
- Include financing and home inspection conditions with clear deadlines
- For a condo, include a condition to review the status or estoppel certificate
- List included items (appliances, light fixtures, window coverings)
- Choose a closing date that fits your rate hold and current lease
- Get the signed, accepted agreement and send it to your lender and lawyer
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Pay the deposit (Dépôt)
1 dayAfter the seller accepts, you usually must deliver the deposit within the time set in the agreement, often within 24 hours. It is paid by bank draft or wire to the listing brokerage or a lawyer's trust account, not to the seller directly, and it is credited toward your down payment at closing.
The amount is negotiated in your offer and is often a few percent of the price, but it varies by market. If you fail to complete the purchase without a valid condition, you can lose the deposit and be sued for the seller's losses.
Get a receipt from the brokerage or lawyer and keep it with your purchase agreement.
Tip: Confirm wire instructions by phone with the brokerage using a number you already know; fake payment instructions sent by email are a known fraud.
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Book the home inspection (Inspection résidentielle)
1 dayBook a qualified home inspector during your inspection condition period. Inspectors must be licensed in some provinces, such as British Columbia and Alberta; elsewhere, look for membership in a recognized association and errors and omissions insurance.
A typical inspection takes two to four hours and covers the structure, roof, foundation, plumbing, electrical, heating and cooling, insulation and drainage. Attend in person, ask questions, and get a written report.
If the report finds major issues, you can ask the seller to repair them, negotiate a lower price or credit, or walk away if your condition allows.
Tip: For older homes ask about specialist checks the general inspection does not cover, such as a sewer line camera, oil tank search or asbestos and knob-and-tube wiring.
- Where
- Certified home inspector · Attend the inspection of the property; bring the listing, your questions and a notebook. Expect two to four hours and a written report afterwards.
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Finalize your mortgage (Approbation finale)
7 daysSend the lender the accepted agreement, the MLS listing, proof of down payment and any updated documents. The lender may order an appraisal and, if your down payment is under 20%, submits the file to a mortgage insurer. You then receive a mortgage commitment letter listing the amount, rate, term, amortization, payment and conditions.
Read the commitment carefully, satisfy its conditions (for example, proof of home insurance and a final employment check) and sign it before your financing condition deadline. Then waive or remove the financing condition in writing through your agent.
Tip: Arrange home insurance now; lenders require proof of coverage effective on closing day before they release funds.
- Online
- canada.ca
Employment letter and recent pay stubDown payment statements (90 days) -
Meet your real estate lawyer or notary (Notaire)
1 dayIn most provinces a real estate lawyer handles the closing; in Quebec a notary does. They search the title for liens and charges, review the agreement and mortgage instructions, arrange title insurance, calculate adjustments for property taxes and utilities, collect your funds and register the transfer and mortgage.
About a week before closing you meet to sign documents and receive a statement of adjustments showing how much you must bring. Bring two pieces of ID, your purchase agreement, mortgage commitment and proof of home insurance.
Tip: Ask for a written fee quote that lists disbursements and title insurance, so the closing bill does not surprise you.
- Where
- Real estate lawyer (notary in Quebec) · Sign the transfer and mortgage documents. Bring two pieces of government ID, the purchase agreement, mortgage commitment, proof of home insurance and banking details for the closing funds.
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Pay down payment and closing costs (Frais de clôture)
1 dayTransfer the balance of your down payment and closing costs to your lawyer or notary's trust account a few days before closing, by wire or certified funds as they instruct.
Land transfer tax is the largest closing cost in most provinces and varies: Ontario charges a provincial land transfer tax with a refund of up to $4,000 for eligible first-time buyers, and Toronto adds a municipal tax; British Columbia charges property transfer tax with a first-time buyer exemption; Quebec charges a transfer duty (welcome tax) set by the municipality; Alberta has no land transfer tax but charges land titles registration fees. Your lawyer will calculate the exact amount.
Tip: Ask your lawyer to apply any first-time buyer refund or exemption at registration rather than applying for it afterwards.
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Prepare for closing day (Jour de clôture)
30 daysClosing usually happens 30 to 90 days after the offer becomes firm. In the weeks before, book movers, transfer or set up utilities, internet and home insurance, and update your address with the CRA, your bank and your provincial driver's licence and health card office.
If your agreement allows, do a final walk-through to confirm included items are there and the home is in the agreed condition. On closing day, the lender sends funds to your lawyer, the transfer is registered and your lawyer releases the keys, usually through the agents in the afternoon.
Keep the final reporting letter, registered deed and mortgage documents in a safe place.
Tip: Avoid booking movers early in the morning on closing day; keys are often not released until the registration is complete.
Documents you'll need
| Social Insurance Number | Lenders may ask for your SIN for the credit check and to report interest on FHSA or RRSP accounts; providing it to a lender is optional for the credit check. |
|---|---|
| T4 slips and Notices of Assessment (last 2 years) | Lenders use them to verify stable income. Download T4s and Notices of Assessment from CRA My Account; self-employed buyers need two years of NOAs. |
| Employment letter and recent pay stub | A letter from your employer on letterhead stating your position, salary, hours and start date, plus a pay stub, usually dated within the last 30 to 60 days. |
| Down payment statements (90 days) | Statements showing the down payment and closing funds for at least the last 90 days, with explanations for large deposits and a signed gift letter for gifted funds. |
Official sources
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General guidance, not legal, tax or immigration advice. Rules change; confirm with the official source before you act.