Top 10 Questions First-Time Home Buyers Ask a Real Estate Agent in Canada

Buying your first home in Canada is one of the most significant financial decisions you will ever make - and it is entirely normal to have a long list of questions before you even step into an open house. As a first-time buyer, knowing what to ask a realtor when buying your first home can mean the difference between a smooth purchase and a costly surprise. Fardad Farhanian, Broker at RE/MAX REALTRON REALTY INC., Brokerage, has guided hundreds of first-time buyers through the Canadian home buying process over 25+ years and $750M+ in successful transactions. Below, he answers the ten most important questions first-time home buyers ask a realtor in Canada - clearly, honestly, and without jargon.

Why First-Time Buyers Need a Dedicated Real Estate Agent

Before diving into the questions themselves, it is worth understanding why working with an experienced buyer’s agent matters so much in Canada’s competitive real estate market. As of 2026, home prices across the Greater Toronto Area, Metro Vancouver, and other major markets remain elevated relative to historical averages, and inventory levels fluctuate significantly by neighbourhood and property type. A qualified broker interprets this data for you, negotiates on your behalf, and coordinates every professional involved in your transaction - from the home inspector to your real estate lawyer. Explore available residential properties across Canada to get a feel for what your budget can achieve before your first broker consultation.

The Top 10 Questions First-Time Home Buyers Ask a Realtor in Canada

1. How Does Buying a Home Actually Work in Canada?

The Canadian home buying process follows a defined sequence: get pre-approved for a mortgage, define your search criteria with your agent, view properties, submit an offer, conduct due diligence (home inspection, title search), satisfy conditions, and close on the agreed date. The full timeline from pre-approval to closing typically runs between 60 and 90 days, though it can be shorter in competitive situations. Each province has specific rules - for example, Ontario buyers must work with a real estate lawyer to complete the closing. Your agent coordinates the moving parts so nothing falls through the cracks.

2. How Much Do I Really Need for a Down Payment?

In Canada, the minimum down payment is 5% on the first $500,000 of the purchase price, with 10% required on the portion between $500,000 and $999,999. Homes priced at $1 million or more require a minimum of 20% down. Any down payment below 20% requires CMHC mortgage default insurance, which adds a premium to your mortgage balance. As of 2026, the federal government’s First Home Savings Account (FHSA) allows eligible first-time buyers to contribute up to $40,000 tax-free toward a down payment, making it an important planning tool to discuss with a mortgage broker before you begin your search. Use the RealtyMan mortgage calculator to estimate how different down payment amounts affect your monthly payments.

3. Should I Get Pre-Approved Before Looking at Homes?

Yes - without exception. Mortgage pre-approval tells you precisely how much a lender is willing to offer based on your income, credit history, and existing debts. It also locks in an interest rate for a defined period (typically 90 to 120 days), protecting you if rates rise while you search. More practically, sellers and listing agents in competitive markets like Thornhill, Markham, and Richmond Hill take offers from pre-approved buyers far more seriously than those who are simply pre-qualified. Your real estate agent can refer you to a trusted mortgage broker who specializes in first-time buyer scenarios.

4. What Are Closing Costs and How Much Should I Budget?

Closing costs in Ontario typically range from 1.5% to 4% of the purchase price beyond your down payment. They include land transfer tax (both provincial and municipal if you are buying in Toronto), legal fees, title insurance, home inspection fees, and adjustments for prepaid utilities or property taxes. First-time buyers in Ontario may qualify for the Ontario Land Transfer Tax Rebate of up to $4,000. Budgeting accurately for these costs upfront prevents unpleasant surprises on closing day. Your real estate agent and lawyer will provide a detailed statement of adjustments before closing so you know exactly what is owing.

5. What Should I Look for During a Home Showing?

Beyond the obvious appeal of a kitchen or backyard, first-time buyers should pay close attention to the condition of the roof, windows, HVAC system, electrical panel, and foundation during any showing. Your agent can help you identify red flags that photographs often hide - unusual wall cracks, evidence of water intrusion, outdated knob-and-tube wiring, or a basement that has been recently painted to conceal moisture damage. A professional home inspection is still strongly recommended even after a thorough showing, as a licensed inspector has access to areas and tools that are not available during a standard viewing.

6. How Do I Know if the Asking Price Is Fair?

A comparative market analysis (CMA) is the standard tool real estate agents use to evaluate whether a listing is priced fairly relative to recent sales of comparable properties in the same area. Your agent will pull data on homes with similar square footage, lot size, age, condition, and location that sold within the past 90 days. In a balanced market, this analysis gives you a reliable pricing benchmark. In a hot market, where properties routinely sell over asking, your agent’s local knowledge of bidding patterns becomes equally important. Browse recently sold properties to start understanding price benchmarks in your target area.

7. What Is the Difference Between a Condition and a Firm Offer?

A conditional offer includes one or more conditions - typically financing, home inspection, or the sale of the buyer’s existing property - that must be satisfied before the deal becomes firm. If a condition is not met within the agreed timeframe, the buyer can walk away without penalty. A firm offer, by contrast, is binding from the moment both parties sign. In competitive markets, sellers often prefer firm offers, but waiving conditions carries real risk for a first-time buyer. Your real estate agent will advise you on when conditions are non-negotiable for your protection and when market conditions might require a different strategy.

8. Do I Need a Real Estate Lawyer, and When Do I Hire One?

In Ontario, a real estate lawyer is not optional - they are legally required to complete the closing of a property transaction. Your lawyer reviews the Agreement of Purchase and Sale, conducts a title search, coordinates with your mortgage lender, registers the title in your name, and handles the financial transactions on closing day. You should engage a real estate lawyer early in the process - ideally before you submit your first offer - so they are available to review documents quickly. Always consult your own qualified legal professional for any legal questions related to your transaction; a real estate agent does not provide legal advice.

9. How Do I Choose the Right Neighbourhood for My Budget?

Choosing a neighbourhood involves balancing affordability, commute times, school catchment areas, access to amenities, and long-term community development plans. As of 2026, buyers with budgets under $900,000 in the Greater Toronto Area are increasingly exploring communities such as Barrie, Kingston, and parts of Brampton and Mississauga, while those with larger budgets are drawn to Thornhill, Vaughan, and Aurora. Fardad Farhanian serves buyers across a wide range of Canadian markets - from the GTA to Kelowna, Moncton, and Edmonton - and can provide neighbourhood-specific insights that online data alone cannot capture. Review the full list of service areas and locations to find expert coverage in your target city.

10. How Do Real Estate Agent Fees Work for Buyers in Canada?

Historically in Canada, the seller paid the total commission, which was then split between the listing agent and the buyer’s agent. As of 2026, real estate commission structures are evolving following regulatory changes and increased transparency requirements. In practice, it is important to discuss compensation with your buyer’s agent before beginning your search so you understand any potential costs. Fardad Farhanian provides transparent communication about how compensation works and ensures every client fully understands the financial structure of their transaction before signing any agreements. There are no hidden fees and no surprises - just clear, professional representation from start to close.

Bonus: What to Ask Your Realtor at Your First Meeting

Beyond the ten questions above, first-time buyers often benefit from asking their agent a few personal questions at the initial consultation: How many first-time buyers have you represented in the past year? What markets do you specialize in? How quickly do you typically respond to client inquiries? These questions help you assess whether the agent’s communication style, local expertise, and availability align with your needs. The right agent is not just a transaction coordinator - they are your advocate, advisor, and guide through one of life’s most meaningful milestones. Visit the About Fardad Farhanian page to learn more about his credentials, awards, and client-first approach.

Frequently Asked Questions About Buying Your First Home in Canada

What is the most important question to ask a realtor when buying your first home in Canada?

The single most important question is: “What is a fair price for this property, and what data supports that number?” Understanding value before you make an offer protects you from overpaying and ensures your purchase decision is grounded in verified market data rather than emotion. Your agent should provide a written comparative market analysis to support their pricing recommendation.

Do first-time home buyers in Canada need a buyer’s agent?

While it is technically possible to purchase a home without buyer representation, it is rarely advisable for a first-time buyer. A buyer’s agent advocates exclusively for your interests, identifies potential issues with properties, negotiates price and conditions, and guides you through complex paperwork. In Ontario, the listing agent represents the seller - not you - so independent representation is strongly recommended.

How long does the home buying process take for a first-time buyer in Canada?

From the time a first-time buyer begins serious searching with a pre-approved mortgage, the full process typically takes between 60 and 120 days depending on market competitiveness, the buyer’s criteria, and the closing date negotiated in the accepted offer. Pre-approval itself can be completed in as little as a few business days with proper documentation in place.

What programs are available to first-time home buyers in Canada in 2026?

As of 2026, first-time buyers in Canada can access several government programs: the First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP) allowing RRSP withdrawals of up to $35,000, the First-Time Home Buyers’ Tax Credit, and provincial programs such as the Ontario Land Transfer Tax Rebate. Eligibility conditions apply to each program. Always consult a qualified mortgage broker or financial advisor for personalized guidance.

How do I get started with Fardad Farhanian as my buyer’s agent?

Fardad Farhanian, Broker at RE/MAX REALTRON REALTY INC., Brokerage, is available by appointment at 7646 Yonge Street, Thornhill, ON L4J 1V9, and serves buyers across Canada. You can reach him directly at +1 416-707-1031 or by email at info@realtyman.ca. Visit the RealtyMan contact page to schedule your free first-time buyer consultation today.

Ready to Start Your Home Buying Journey?

Every successful home purchase begins with the right questions - and the right advisor to answer them. Fardad Farhanian has helped first-time buyers navigate the Canadian real estate market for over 25 years, representing clients from Thornhill and North York to Kelowna and Moncton. Whether you are just beginning to explore your options or ready to submit your first offer, personalized guidance makes the process faster, safer, and less stressful. Visit the RealtyMan homepage to explore current listings, market resources, and expert advice tailored to first-time buyers across Canada.