How to Buy a House in Canada (2025 Guide)

ByLuke Wile

Thinking about buying a home in 2025? Maybe you’ve hit your limit with renting, or your one-bedroom condo just isn’t cutting it anymore. Whatever the reason, buying a home is a major move—not just financially, but emotionally too. And let’s be honest, the process can be a bit of a maze.

I’ve guided countless clients through this, and here’s what I’ve learned: knowing what’s ahead gives you a serious edge. This guide is what I’d share with you over coffee—straightforward, practical, and no nonsense. The steps, the real numbers, and the insider insights I wish more folks knew going in.

Step 1: Should You Buy or Keep Renting?

Renting Pros:

  • Easy to move
  • Lower upfront costs
  • No unexpected repair bills

Owning Pros:

  • Build equity over time
  • Stable monthly payments
  • Make your space your own

2025 Average Home Prices:

  • Toronto: $1,050,000
  • Vancouver: $1,150,000
  • Calgary: $575,000
  • Halifax: $490,000

Who Buys What:

  • Single and career-focused? A downtown condo might be your best bet.
  • Starting a family? A detached home in the suburbs offers space to grow.
  • Working remotely? A peaceful small-town home could be the dream.

Step 2: Know the True Cost of Buying

Down Payment Basics:

  • Under $500K: 5%
  • $500K–$1,499,999: 5% of the first $500K, then 10% of the rest
  • $1.5M or more: 20% minimum

Land Transfer Tax (LTT):

  • Ontario: Up to 2.5%, plus municipal (rebate up to $4,000, more in Toronto)
  • BC: 1%–3% (up to $8,000 rebate)
  • Alberta: No land transfer tax

Other One-Time Costs:

  • Legal fees: $1,500–$2,500
  • Title insurance: $250–$500
  • Home inspection: $400–$700
  • Appraisal: $300–$500

Step 3: Get Your Credit & Budget in Shape

What Lenders Look At:

  • GDS (Gross Debt Service): Below 39%
  • TDS (Total Debt Service): Below 44%

To-Do List:

  • Pull your credit report (Equifax or TransUnion)
  • Do a budget to find your comfort zone
  • Check your income, savings, and existing debts

Step 4: Explore Mortgage Options & Get Pre-Approved

Know Your Mortgage Types:

  • Fixed vs. Variable
  • Open vs. Closed

👉🏻Want to dig deeper? Check out our complete mortgage guide.

Why Pre-Approval Helps:

  • Locks in your rate for up to 120 days
  • Sets your budget
  • Makes your offer more competitive

🛠️Use our Mortgage Rate Tool to compare your options.

Step 5: Tap Into Government Incentives

Available Programs:

  • First Home Savings Account (FHSA)
  • Home Buyers’ Plan (HBP)
  • CMHC First-Time Buyer Incentive
  • GST/HST New Housing Rebate

🎯Need the FHSA breakdown? Learn more here.

Step 6: Pick Your Location Wisely

Beyond the Price Tag: Think about groceries, commuting, childcare—daily costs can vary wildly.

Top Spots in 2025:

  • Affordable: Moncton, Regina, Winnipeg
  • Hot Markets: Ottawa, Kelowna, Kitchener

Smart Research Tips:

  • Join local Facebook or Reddit groups
  • Look up school ratings, crime stats, and transit routes

Step 7: Hire a Realtor—or Go Solo

Why Use a Realtor?

  • Their commission comes from the seller
  • They’ll help with showings, negotiations, and paperwork

Ask Them:

  • How well do you know this neighbourhood?
  • What’s your strategy for competitive offers?

Step 8: Start House Hunting

What to Look At:

  • Roof condition, plumbing, windows, electrical
  • Visit at different times to get the full picture

Types of Showings:

  • Open house: A casual browse
  • Private showing: More personal, less pressure

New Build or Resale?

  • New: Customize finishes, but wait longer to move in
  • Resale: Move in quicker, established neighbourhood

Step 9: Make an Offer & Negotiate

What’s in the Offer:

  • Conditions: Financing, inspection, legal review
  • Deposit: Usually 1%–5% of the purchase price

Pro Tips:

  • Stick to what you’re pre-approved for
  • Always get an inspection—even in a hot market

Legal Help by Province:

  • BC: Lawyer or notary
  • QC: Notary only
  • ON: Lawyer required

Step 10: Closing Day

Your Team:

  • Lawyer/Notary: Handles legal side
  • Insurance Broker: Gets you covered
  • Mortgage Broker: Finalizes the loan

Final Steps:

  • One last walkthrough
  • Set up utilities
  • Pack and get ready to move!

Frequently Asked Questions

Q: What’s the minimum down payment?
A: 5% if under $500K. See how it works.

Q: Can I buy with poor credit?
A: Yes—look into B-lenders or alternative options. Learn more about.

Q: Condo vs. house—what’s better?
A: Depends on your lifestyle. Condos cost less upfront but come with
monthly fees. Explore the ins and outs.

Q: Do I need a lawyer?
A: Yes—rules vary by province, but you’ll need legal help.

Q: What incentives can I get?
A: Download our First-Time Buyer’s Guide for all the details.

Ready to Get Moving?

Buying your first place in Canada? Big milestone. But you don’t have to do it solo. Whether you’re preapproved or just curious, we’ve got your back.

📞Contact us to speak with a mortgage expert. Or try our mortgage tools to explore your options.

💡Want more insights? Visit our blog for helpful guides and tips.