Home Buying Guide (Complete Guide)

Why Buy a Home in Canada?

Canada’s real estate market remains one of the most resilient in the world. Cities like Toronto, Vancouver, and their surrounding regions — including Thornhill, Vaughan, Richmond Hill, Markham, and North York — have demonstrated sustained demand driven by population growth, immigration, and limited housing supply. As of 2026, Canada continues to attract hundreds of thousands of newcomers annually, many of whom enter the real estate market within their first few years of arrival.

Owning a home in Canada provides several tangible benefits beyond simply having a place to live. Property ownership builds equity over time, offers stability against rental market volatility, and can serve as a foundational element of long-term financial planning. Unlike renting, mortgage payments contribute to an asset you own — one that may appreciate over time, though no specific returns can be guaranteed.

For investors, Canada’s residential and commercial property sectors offer diverse opportunities. From single-family homes and purpose-built rentals to commercial and industrial real estate and luxury developments, the Canadian market accommodates a wide range of investment strategies. However, real estate investment carries risk and requires careful due diligence.

The Greater Toronto Area (GTA) — where Fardad Farhanian and RE/MAX REALTRON REALTY INC., Brokerage are based — is one of North America’s fastest-growing urban regions. Communities such as Thornhill, Woodbridge, Maple, and Newmarket offer a blend of affordability (relative to downtown Toronto), strong school catchments, and excellent transit connectivity. Understanding the local market landscape is essential before beginning your property search.

Explore current available properties across Canada to begin forming a picture of what is achievable within your budget and preferred location. You can also view residential property listings to assess current inventory and price ranges in your target communities.

First-Time Home Buyer Programs in Canada

Canada’s federal and provincial governments offer several programs designed to reduce barriers for first-time home buyers. Understanding these tools can meaningfully reduce your upfront costs and improve your borrowing capacity. As of 2026, the following programs are available to eligible buyers:

First Home Savings Account (FHSA)

Introduced in 2023 and widely utilized as of 2026, the First Home Savings Account (FHSA) allows first-time buyers to contribute up to $8,000 per year (lifetime maximum of $40,000) into a registered account. Contributions are tax-deductible, and qualifying withdrawals for a first home purchase are tax-free. The FHSA combines features of both an RRSP and a TFSA, making it one of the most powerful savings vehicles available to prospective homeowners.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows eligible first-time buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) — tax-free — to put toward a qualifying home purchase. Couples purchasing together can each withdraw up to $35,000 for a combined total of $70,000. Withdrawals must be repaid into the RRSP over 15 years beginning the second year after the withdrawal. Consult a financial advisor to assess whether the HBP is appropriate for your circumstances.

Ontario Land Transfer Tax Rebate

In Ontario, first-time home buyers are eligible for a rebate of the provincial land transfer tax up to a maximum of $4,000. In the City of Toronto, an additional municipal land transfer tax rebate of up to $4,475 is available. These rebates apply to purchases of newly constructed or resale homes and are applied at the time of closing.

GST/HST New Housing Rebate

Buyers of newly constructed homes may be eligible for a partial rebate of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) paid on the purchase price, subject to eligibility criteria based on the purchase price and intended use of the property. A qualified real estate lawyer can advise on whether you qualify.

First-Time Home Buyer Tax Credit

The federal First-Time Home Buyers’ Tax Credit (HBTC) provides a non-refundable income tax credit worth up to $1,500 for eligible buyers who acquire a qualifying home. This credit can be split between spouses or common-law partners, provided the combined total does not exceed the maximum allowable amount.

Fardad Farhanian has guided hundreds of first-time buyers through these programs as part of a comprehensive home buying process tailored to each client’s financial profile. Whether you require services in English or Farsi, reach out directly to discuss which incentives may apply to your situation.

Getting a Mortgage Pre-Approval

Securing a mortgage pre-approval is the critical first practical step in the home buying process. A pre-approval is a written commitment from a lender indicating the maximum amount they are willing to lend you, based on a review of your income, assets, liabilities, credit history, and employment status. It is distinct from a pre-qualification, which is typically an informal estimate with less documentation.

Why Pre-Approval Matters

In competitive real estate markets like the GTA, sellers and their agents take pre-approved buyers significantly more seriously than those without financing confirmation. A pre-approval letter demonstrates that you are a credible purchaser, often allowing you to act more quickly and confidently when the right property becomes available. Without pre-approval, you risk losing a desirable property to a better-prepared buyer.

The Mortgage Stress Test

As of 2026, all Canadian mortgage applicants — whether obtaining an insured or uninsured mortgage — must pass the federal mortgage stress test. This test requires applicants to qualify at the higher of:

• The Bank of Canada’s minimum qualifying rate (currently posted by OSFI), or
• Their contracted mortgage rate plus 2.00%

The stress test effectively reduces the maximum purchase price you can qualify for, making it essential to understand your borrowing capacity before beginning your search. Use the RealtyMan mortgage calculator to estimate monthly payments and explore how rate changes affect affordability.

Documents Typically Required for Pre-Approval

• Proof of income (T4 slips, Notice of Assessment, pay stubs)
• Employment confirmation letter
• Bank statements (90 days minimum)
• Proof of down payment sources
• Government-issued identification
• Credit authorization
• Details of existing debts (car loans, student loans, credit cards)

Choosing Between a Mortgage Broker and Your Bank

Buyers in Canada can obtain mortgage financing through chartered banks, credit unions, trust companies, or licensed mortgage brokers. A mortgage broker has access to multiple lenders and can compare products across the market. Your existing bank may offer loyalty discounts or streamlined approval for existing customers. Whichever route you choose, ensure you understand the full cost of the mortgage — including the interest rate, term, amortization period, prepayment privileges, and penalty clauses.

Fardad Farhanian works alongside trusted mortgage professionals in the GTA and can provide referrals to qualified specialists. This is part of the comprehensive support offered through RealtyMan — a full-service real estate practice backed by over 25 years of market expertise.

Understanding Your Down Payment

Your down payment is the upfront amount you contribute toward the purchase price of a home. The remainder is financed through a mortgage. In Canada, the required minimum down payment is determined by the purchase price of the property and whether the mortgage will be insured through the Canada Mortgage and Housing Corporation (CMHC), Sagen (formerly Genworth), or Canada Guaranty.

Minimum Down Payment Requirements in Canada (2026)

• Homes priced up to $500,000: Minimum 5% of the purchase price
• Homes priced $500,000 to $999,999: 5% on the first $500,000 + 10% on the portion above $500,000
• Homes priced $1,000,000 and above: Minimum 20% — mortgage default insurance does not apply

Mortgage Default Insurance (CMHC Premium)

If your down payment is less than 20% of the purchase price, you are required to purchase mortgage default insurance. This protects the lender (not the buyer) in the event of default. The premium is calculated as a percentage of the total mortgage amount and is typically added to the mortgage rather than paid upfront. As of 2026, premiums range from 2.80% to 4.00% of the mortgage amount depending on the loan-to-value ratio.

Sources of Down Payment Funds

Lenders will scrutinize the source of your down payment. Acceptable sources typically include:

• Personal savings (savings accounts, GICs, investments)
• RRSP withdrawals through the Home Buyers’ Plan
• First Home Savings Account withdrawals
• Gifted funds from an immediate family member (with a signed gift letter)
• Proceeds from the sale of another property

Borrowed down payments are generally not permitted for insured mortgages. Ensure your funds are clearly documented and traceable at least 90 days before applying for financing.

Putting Down More Than the Minimum

While the minimum is legally required, putting down more than the minimum has tangible benefits: lower monthly mortgage payments, no mortgage default insurance premium (at 20%+), stronger offer positions in competitive bidding situations, and reduced total interest paid over the life of the mortgage. Fardad Farhanian consistently advises buyers to consider their long-term financial position when determining an appropriate down payment level.

House Hunting: Finding the Right Property

Once your finances are in order and you have a clear sense of your budget, the enjoyable — and sometimes overwhelming — process of house hunting begins. Effective house hunting is not simply about browsing listings; it is a structured, strategic activity that benefits enormously from professional guidance and a clear understanding of your priorities.

Defining Your “Must-Have” vs. “Nice-to-Have” Criteria

Before viewing properties, take time to distinguish between non-negotiable requirements and features that are desirable but flexible. Common criteria include:

• Property type (detached, semi-detached, townhouse, condo)
• Number of bedrooms and bathrooms
• Garage and parking requirements
• School catchment area
• Proximity to transit, employment, or family
• Lot size and outdoor space
• Age and condition of the property
• HOA/condo fee obligations

Having a written list helps you remain objective during viewings, particularly when an emotionally appealing property may not meet practical needs.

Understanding the GTA Real Estate Landscape

The Greater Toronto Area encompasses dozens of distinct communities, each with its own character, price range, and lifestyle profile. Thornhill, where RealtyMan’s Thornhill office is located at 7646 Yonge Street, sits at the border of Vaughan and Markham and offers a well-established suburban community with strong amenities, good transit links, and a diverse, multicultural population. Fardad Farhanian’s deep roots in this community make him an authoritative source for buyers considering the Thornhill, Vaughan, Richmond Hill, and York Region markets.

View all current listings across the GTA, or browse coming soon properties to get ahead of the market before listings go public.

The Role of Your Buyer’s Agent

A buyer’s agent represents your interests exclusively in a transaction. They provide access to the full MLS database, arrange viewings, conduct comparative market analysis, identify potential red flags in listings, and manage negotiations on your behalf. As of 2026, changes to buyer representation agreements in Ontario mean that buyers should understand their agreement with their agent before commencing a formal property search.

With 25+ years in the field and $750M+ in transactions, Fardad Farhanian brings a disciplined, analytical approach to buyer representation — ensuring that every property you consider is evaluated thoroughly before you commit.

New Listings, Pocket Listings, and Pre-Construction

Not all desirable properties appear on public listing platforms immediately. Pre-construction condos and new developments are often sold through builder sales offices before public launches. Pocket listings — properties marketed discreetly before official MLS listing — are accessible through well-connected agents. Working with an experienced broker like Fardad Farhanian gives you access to opportunities beyond standard search portals. Explore all service areas to understand the scope of the market coverage available to you.

Buying a Condo in Canada

Condominiums represent a significant segment of Canada’s real estate market — particularly in urban centres like Toronto, where land scarcity makes vertical development the dominant growth format. As of 2026, condos account for a substantial proportion of new housing supply in the GTA, and they remain a popular entry point for first-time buyers, downsizers, and investors alike.

Resale vs. Pre-Construction Condos

When buying a condo in Canada, you face a fundamental choice between resale (existing units) and pre-construction (units in buildings yet to be completed). Each has distinct advantages and risks:

• Resale condos: Move-in ready, condition visible, strata/condo documentation available, immediate occupancy possible, established condo corporation records reviewable
• Pre-construction condos: Potentially lower entry price at time of signing, longer deposit structure spread over time, potential for price appreciation before occupancy, assignment options, but subject to builder delays, occupancy risks, and market changes

Fardad Farhanian has extensive experience with both resale and pre-construction transactions and can help you evaluate which approach best suits your timeline and financial position.

Understanding Condo Fees and Reserve Funds

All condo owners pay monthly maintenance fees (often called condo fees or strata fees) that cover shared building expenses — including building insurance, common area maintenance, utilities for shared spaces, and contributions to the reserve fund. The reserve fund is set aside for major capital repairs. Before purchasing any condo, review:

• The current monthly condo fee and what it includes
• The reserve fund study and adequacy of current reserves
• The condo corporation’s status certificate (a critical document in Ontario)
• Any pending special assessments
• Rules and restrictions that may affect your use of the unit

The Status Certificate

In Ontario, buyers of resale condominiums have the right to request a Status Certificate from the condo corporation. This document discloses the financial health of the corporation, any outstanding legal actions, special assessments, current rules, and the buyer’s share of common expenses. Your real estate lawyer should review the status certificate carefully before you waive or firm up a conditional offer.

For buyers interested in luxury condominium properties, explore international and luxury property offerings available through RealtyMan, with access to premium developments across Canada and select international markets.

Making an Offer and Negotiating

Once you have identified a property you wish to purchase, the next step is submitting a formal offer — known in Ontario as an Agreement of Purchase and Sale (APS). This is a legally binding contract once accepted, making it essential to approach this stage with care, preparation, and professional guidance.

Components of an Offer

A standard Agreement of Purchase and Sale in Ontario includes the following key elements:

• Purchase price: The amount you are offering for the property
• Deposit: Typically 5% of the purchase price, paid within 24 hours of acceptance and held in trust
• Conditions: Clauses that must be satisfied before the agreement becomes firm (e.g., financing condition, home inspection condition, status certificate review for condos)
• Closing date: The date ownership transfers — typically 30 to 90 days from acceptance
• Inclusions and exclusions: Chattels and fixtures to be included or excluded from the sale (appliances, light fixtures, window coverings)
• Irrevocability period: The window during which the offer remains open for acceptance

Conditional vs. Firm Offers

A conditional offer includes one or more conditions that must be fulfilled before the deal is final. Common conditions include financing approval and home inspection. A firm offer contains no conditions and represents an unconditional commitment to purchase. In competitive markets, sellers may favor firm offers; however, waiving conditions carries risk and should only be done with careful consideration and appropriate due diligence alternatives in place.

Multiple Offer Situations

In high-demand markets like Toronto and the GTA, properties frequently receive multiple competing offers — colloquially known as a “bidding war.” In these situations, buyers should work with an experienced agent who can assess true market value, structure a compelling offer, and advise on appropriate escalation strategies without overpaying. Fardad Farhanian’s 25+ years of experience in GTA negotiations provides buyers with a meaningful edge in competitive situations.

The Home Inspection Process

A professional home inspection is one of the most important steps in the home buying process and should not be skipped without careful consideration. A home inspection provides an independent, objective evaluation of the physical condition of a property before you finalize the purchase.

What a Home Inspector Examines

A qualified home inspector evaluates the visible and accessible components of a property, typically including:

• Structural elements: foundation, framing, load-bearing walls
• Roofing: condition, age, flashing, drainage
• Exterior: cladding, windows, doors, grading, drainage
• Electrical systems: panel, wiring, outlets, GFCI protection
• Plumbing: pipes, water pressure, drainage, fixtures, water heater
• HVAC systems: furnace, air conditioning, ventilation, ductwork
• Insulation and vapour barriers
• Interior: walls, ceilings, floors, stairs, railings
• Attic and crawl space conditions
• Basement and moisture indicators

Choosing a Home Inspector

In Ontario, home inspectors are regulated under the Home Inspection Act, 2017, with full licensing requirements now in effect. Look for an inspector who is licensed by the province, carries errors and omissions insurance, and provides a detailed written report. Avoid inspectors who offer verbal-only reports or who have a financial interest in the transaction.

Interpreting the Inspection Report

No home is perfect. An inspection report will almost always identify items requiring attention — ranging from minor maintenance to significant deficiencies. Work with your agent to distinguish between cosmetic issues, routine maintenance items, and material defects that may warrant renegotiating the purchase price, requesting repairs, or, in serious cases, reconsidering the purchase altogether.

Specialty Inspections

Depending on the property, additional specialty inspections may be warranted:

• Sewer camera scope (older homes)
• Oil tank sweep (properties with potential buried oil tanks)
• Radon testing
• Mould and air quality testing
• WETT inspection (wood-burning fireplaces and stoves)
• Structural engineering assessment (heritage properties or homes with visible foundation concerns)

Fardad Farhanian connects buyers with reputable inspection professionals as part of the comprehensive support provided through his full-service brokerage practice.

Working with a Real Estate Lawyer

In Canada, the involvement of a licensed real estate lawyer is not optional — it is a legal requirement for completing a property purchase. Your lawyer protects your interests by handling the legal and financial mechanics of the transaction that your real estate agent cannot perform.

What Your Real Estate Lawyer Does

• Reviews the Agreement of Purchase and Sale: Before you sign, or after acceptance, to ensure your interests are protected and the terms are enforceable
• Conducts a title search: Confirms the seller has clean, transferable title to the property, free of undisclosed liens, encumbrances, or easements
• Arranges title insurance: Protects against title defects discovered after closing, survey issues, and certain types of fraud
• Reviews the mortgage documents: Ensures loan terms match what was agreed with your lender
• Reviews status certificate (for condos): Evaluates the condo corporation’s financial and legal standing
• Calculates and collects closing costs: Land transfer taxes, adjustments, legal fees, disbursements, and registration fees
• Registers the transfer of ownership: Files documents with the Land Registry Office
• Coordinates funds on closing day: Ensures the purchase price is transferred and mortgage funds are disbursed correctly

Selecting a Real Estate Lawyer

Choose a lawyer who specializes in real estate law and has experience with the property type and jurisdiction relevant to your purchase. Obtain a clear fee quote upfront — legal fees for a standard residential transaction in Ontario typically range from approximately $1,500 to $2,500 plus disbursements and HST, though this varies by transaction complexity and firm. Never use the same lawyer as the seller; independent legal representation is essential.

Fardad Farhanian regularly works alongside experienced real estate lawyers throughout the GTA and can provide guidance on connecting with qualified legal professionals. This network is part of the value delivered through the RealtyMan team.

Understanding Closing Costs

One of the most common surprises for first-time home buyers in Canada is the total cost of closing — the expenses due on or before the closing date, in addition to the down payment. Budgeting for closing costs is essential to ensure you have sufficient funds available when the transaction completes.

Major Closing Costs in Ontario

Land Transfer Tax (LTT)

Ontario charges a provincial land transfer tax on all property purchases, calculated as a percentage of the purchase price on a tiered basis. As of 2026, the rates are:

• 0.5% on the first $55,000
• 1.0% on $55,001 to $250,000
• 1.5% on $250,001 to $400,000
• 2.0% on $400,001 to $2,000,000
• 2.5% on amounts exceeding $2,000,000

Buyers purchasing within the City of Toronto also pay a matching Municipal Land Transfer Tax (MLTT). First-time buyers may be eligible for rebates as described in the First-Time Home Buyer section above.

Legal Fees and Disbursements

As discussed, legal fees for a standard residential purchase typically range from $1,500 to $2,500 plus disbursements (title search, registration fees, photocopies, couriers) and HST.

Title Insurance

Title insurance is a one-time premium typically ranging from $250 to $500 for residential properties. It is strongly recommended and required by most lenders.

Home Inspection Fee

Professional home inspections in Ontario typically cost $400 to $700 for standard residential properties, with higher fees for larger or more complex homes.

Mortgage Default Insurance Premium

If your down payment is less than 20%, the CMHC or equivalent insurance premium (2.80% to 4.00% of the mortgage) is typically added to the mortgage balance.

Property Tax Adjustment

Property taxes are adjusted between the buyer and seller on closing, with the buyer reimbursing the seller for any prepaid taxes beyond the closing date.

Home Insurance

Lenders require proof of active home insurance effective on the closing date. Premiums vary based on location, property type, coverage level, and insurer. Budget a minimum of $1,000 to $2,500 annually for a typical GTA home.

Other Potential Costs

• Moving expenses
• Utility connection and setup fees
• Immediate repairs or upgrades identified during inspection
• HVAC rental buyout (water heaters, furnaces on rental contracts)
• Condo occupancy fees (for pre-construction assignments)

Estimating Total Closing Costs

As a general rule, Canadian buyers should budget between 1.5% and 4% of the purchase price for closing costs, excluding the down payment. On a $900,000 home in Toronto with a 20% down payment, this could represent $13,500 to $36,000 in additional cash required at closing. Always obtain a written estimate from your lawyer well before the closing date.

Essential Home Buyer Tips

Drawing on over 25 years of experience and more than $750 million in transactions completed through RE/MAX REALTRON REALTY INC., Brokerage, Fardad Farhanian has compiled the following practical guidance for Canadian home buyers:

1. Start your financial preparation early.
   Begin building your down payment and improving your credit score at least 12 to 24 months before you intend to purchase. A credit score of 680 or above is generally required for the best mortgage rates.
2. Do not confuse pre-qualification with pre-approval.
   A pre-qualification is an informal estimate. A mortgage pre-approval involves full documentation and a credit check, giving you a realistic picture of your borrowing capacity.
3. Hire your own buyer’s agent.
   In most Canadian provinces, including Ontario, a buyer’s agent represents your interests at no direct cost to you (traditionally compensated through the transaction). Do not rely on the seller’s agent to protect your interests.
4. Never skip the home inspection.
   Even in competitive markets, the risks of purchasing a property without a thorough physical inspection can far outweigh the perceived advantage of a firm offer. Discuss strategies with your agent to manage this appropriately.
5. Understand what you are buying.
   For condos, read the status certificate carefully. For freehold homes, understand the lot, title restrictions, easements, and any heritage designations. For new construction, understand the Tarion Warranty and occupancy versus ownership distinctions.
6. Budget beyond the purchase price.
   Factor in closing costs, immediate repairs, moving costs, and a cash reserve for unexpected expenses. Many buyers exhaust their savings on the down payment and are unprepared for additional costs at closing.
7. Think about resale value from day one.
   Even if you intend to live in a property for many years, purchasing with an eye toward eventual resale keeps your decision-making grounded. Location, school districts, transit access, and lot quality are factors that consistently influence resale desirability.
8. Do not make major financial changes during your purchase.
   Avoid changing jobs, taking on new debt, making large purchases on credit, or moving money between accounts without consulting your mortgage professional between pre-approval and closing. These changes can jeopardize your mortgage approval.
9. Use professional services.
   A real estate broker, mortgage specialist, real estate lawyer, and home inspector each play a distinct, valuable role. Attempting to minimize professional involvement to save costs often creates larger problems downstream.
10. Leverage available data and technology.
    Use tools like the RealtyMan mortgage calculator, review recently sold properties to understand true market values, and track new listings in your target neighbourhoods consistently.

For ongoing insights, market updates, and practical guidance tailored to Canadian buyers and investors, visit the RealtyMan blog — regularly updated with content relevant to GTA buyers, sellers, and investors.

Working with RealtyMan – Fardad Farhanian

Fardad Farhanian is a licensed Real Estate Broker with RE/MAX REALTRON REALTY INC., Brokerage, and the founder of RealtyMan. With a career spanning more than 25 years and over $750 million in completed transactions, Fardad has established himself as one of the GTA’s most experienced and trusted real estate professionals.

His achievements include the RE/MAX 100% Club Award (2010–2016), the RE/MAX Executive Club Award (2011), and the RE/MAX Hall of Fame Award — recognitions that reflect sustained excellence in transaction volume and client service. Fardad provides bilingual real estate services in English and Farsi, making him an especially valuable resource for the GTA’s large Iranian and Persian-speaking communities.

Services Offered

Through RE/MAX REALTRON REALTY INC., Brokerage, Fardad Farhanian and the RealtyMan team provide the following real estate services:

• Residential sales and purchases
• Commercial real estate
• Luxury properties
• Pre-construction condos
• Industrial real estate
• Land and development
• Investment properties
• Leasing (commercial and residential)
• First-time home buyer guidance
• Condo sales
• Home selling and listing services
• Property valuation
• Mortgage guidance and referrals
• Home staging consultation
• Comprehensive market analysis
• Neighbourhood guides and community information

Service Areas

RealtyMan serves buyers, sellers, tenants, and investors across the Greater Toronto Area and beyond. Primary service areas include Thornhill, Vaughan, Richmond Hill, Markham, North York, Toronto, Newmarket, Aurora, King City, Woodbridge, and Maple. Explore the full service area map and location guide to see if your target community falls within our coverage.

For buyers interested in rental properties or investment acquisitions, browse available rental listings or contact us to discuss income property acquisition strategies. If you are interested in the commercial and industrial sectors, explore our commercial and industrial listings in the GTA.

Consulting with Fardad Farhanian

Whether you are six months away from a purchase or ready to act immediately, an initial consultation with Fardad provides clarity on your options, realistic market expectations, and a clear pathway to achieving your real estate goals. Consultations are available in English and Farsi, in person at the Thornhill office (7646 Yonge Street, Thornhill, ON L4J 1V9) or by appointment.

Contact RealtyMan today to schedule a consultation or call directly at +1 416-707-1031.

To learn more about Fardad Farhanian’s background, qualifications, and approach to real estate, visit the About page.

Frequently Asked Questions: Home Buying in Canada

How much down payment do I need to buy a home in Canada?

In Canada, the minimum down payment depends on the purchase price. For homes priced up to $500,000, the minimum is 5%. For homes between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the portion above. For homes priced at $1,000,000 or more, a minimum 20% down payment is required, and mortgage default insurance does not apply. Putting down 20% or more on any purchase eliminates the need for mortgage default insurance altogether.

What are typical closing costs when buying a home in Canada?

Closing costs in Canada typically range from 1.5% to 4% of the purchase price, in addition to the down payment. In Ontario, the most significant closing cost is usually land transfer tax, which applies at both the provincial level and — for purchases within Toronto — the municipal level. Other costs include legal fees, title insurance, home inspection fees, property tax adjustments, and home insurance. First-time buyers in Ontario may be eligible for land transfer tax rebates.

What is the mortgage stress test in Canada?

The Canadian mortgage stress test — governed by the Office of the Superintendent of Financial Institutions (OSFI) — requires all mortgage applicants to qualify at the higher of the Bank of Canada’s minimum qualifying rate or their contracted mortgage rate plus 2.00%, as of 2026. This applies regardless of down payment size or whether the mortgage is insured. The stress test is designed to ensure borrowers can manage payments if rates rise. It effectively reduces the maximum mortgage amount for which buyers can qualify.

What programs are available for first-time home buyers in Canada?

As of 2026, first-time home buyers in Canada may access several programs: the First Home Savings Account (FHSA) — which allows up to $40,000 in tax-deductible contributions with tax-free qualifying withdrawals; the Home Buyers’ Plan (HBP) — which permits RRSP withdrawals of up to $35,000 per person; the First-Time Home Buyers’ Tax Credit (up to $1,500 in federal tax relief); and, in Ontario, a provincial land transfer tax rebate of up to $4,000 (plus up to $4,475 in Toronto). Eligibility criteria apply to all programs.

How long does the home buying process take in Canada?

The complete home buying process in Canada typically takes between 3 and 6 months from initial financial preparation to taking possession. Mortgage pre-approval generally takes 1 to 2 weeks. Active house hunting may take anywhere from a few weeks to several months depending on market conditions and your specific criteria. Once an offer is accepted, the closing period is typically 30 to 90 days, during which legal, financial, and inspection conditions are addressed.

Do I need a real estate lawyer when buying a home in Canada?

Yes, a licensed real estate lawyer is required for all property transactions in Canada. Your lawyer conducts the title search, reviews the Agreement of Purchase and Sale, registers the transfer of ownership, coordinates mortgage funds, calculates land transfer taxes and other closing costs, and ensures the transaction is completed legally and correctly. Legal representation is not optional — it is a fundamental protection for one of the largest financial decisions you will make.

What is the difference between a home inspector and an appraiser?

These are two distinct professionals serving different purposes. A home inspector evaluates the physical condition of a property — examining structure, systems (electrical, plumbing, HVAC), exterior, and interior elements — and provides a written condition report. A real estate appraiser, by contrast, provides an independent opinion of market value for mortgage lending purposes. Both may be required in a standard home purchase, but they serve entirely different functions. An inspector protects you; an appraiser informs the lender.

Should I buy a resale home or a pre-construction condo in Canada?

The appropriate choice depends on your timeline, financial position, and personal goals. Resale homes are move-in ready, have an established and visible condition, and allow for traditional home inspection. Pre-construction condos may offer lower initial entry prices and the ability to spread deposits over time, but they involve waiting periods (often 2 to 5 years), exposure to construction delays, occupancy fees, and market uncertainty between signing and closing. Neither option is universally superior — the right choice is highly individual. A detailed conversation with Fardad Farhanian can help clarify which path is most appropriate for your situation.