Buying your first home is exciting—but it can also feel overwhelming. From saving for a down payment to getting approved for a mortgage, there are a lot of moving parts.
This guide will walk you through everything you need to know as a first-time home buyer in Canada, so you can make confident and informed decisions.
How much do I need for a down payment?
You typically need a minimum of:
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5% for homes up to $500,000
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10% for the portion between $500,000–$999,999
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20% for homes $1M+
Keep in mind you’ll also need extra for closing costs.
What are closing costs?
Closing costs are additional expenses when buying a home. These usually include:
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Legal fees
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Land transfer tax
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Home inspection
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Appraisal fees
💡 Expect around 1.5%–4% of the purchase price.
What credit score do I need to buy a home?
Most lenders prefer:
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650+ = acceptable
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700+ = better interest rates
A higher score helps you get approved faster and saves money long-term.
What is mortgage pre-approval?
Pre-approval is when a lender reviews your finances and tells you how much you can borrow.
✔ Helps you shop confidently
✔ Locks your interest rate (for a limited time)
✔ Makes your offer stronger
Should I buy or continue renting?
Buying helps you build equity over time, while renting offers flexibility.
👉 If you plan to stay in one place for a few years, buying is usually a better long-term investment.
How long does the home buying process take?
Typically:
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Pre-approval: 1–3 days
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House hunting: 1–8 weeks
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Closing: 30–90 days