For first-time homebuyers in Canada, there are countless step-by-step guides available. But do you want me to tell you how I personally bought my first Canadian property many years ago?
No — let’s do it the right way first. In this article, I’ll explain the proper approach, and in the next one, I’ll share how I went about it myself and what came out of it.
I want to start by being honest: the process of buying a property should not begin with the exciting search for houses or evaluating listings. It starts with the much less glamorous task of assessing your financial situation, checking (and potentially improving) your credit score, and getting a clear understanding of how much you could realistically borrow from a bank to buy a home. In professional terms, this is called a mortgage pre-approval, and a good mortgage broker will help you through this. Requirements for applicants shift slightly over time, but even today, a degree of subjectivity exists. In other words, depending on how you appeal to the decision-maker—essentially “do I trust this person can pay?” — the outcome might tilt slightly one way or another.
A mortgage pre-approval — basically a promise from the bank—doesn’t guarantee anything. But it’s a solid starting point: sellers see you as a serious buyer. The final decision on your mortgage will only be made when the bank can see the specific property and its price. Until that point, everything is tentative — but that’s completely normal.
Don’t forget: you need a down payment. Part of it can come from borrowed funds, but a minimum portion must always be your own savings. This is another important topic to discuss with your mortgage broker.
Once you know the approximate amount you could potentially borrow, it’s a good idea to pause and have an honest, realistic conversation with yourself — without wishful thinking — about how much you can actually afford to pay each month. Will this payment throw your finances off balance? What if someone in your household loses a job — would that trigger a financial crisis? How much more will you be paying compared to what you’re paying now? I consider this step of honest self-reflection the most important part of the process.
At the same time, it’s worth clarifying the benefits of the Home Buyers’ Plan (HBP). It’s definitely worth considering: it allows you to legally optimize taxes by directing them toward your down payment. A full explanation is beyond the scope of this post, but call me — I’ll happily explain. Just remember, it’s a useful tool.
Now we get to the fun part: searching for properties. This can be stressful during a seller’s market, when there’s a line for every listing, or reasonably calm, as has been the case in recent years. Here’s a little secret: even in today’s buyer’s market, truly excellent opportunities appear sometimes, and other buyers will be interested too. So don’t expect a leisurely, relaxed search — you may need to act quickly and decisively.
Before you start seriously looking, it’s crucial to understand the pros and cons of different property types. For instance, today the cheapest option might be a condo, but in the long term, condos tend to appreciate the least. It’s important to weigh the pros and cons and determine whether today’s price is the main factor, or if other considerations also matter. Don’t chase properties simply because their price dropped the most during a market decline: if you buy extremely cheaply, selling later may also require a low price. Your realtor should explain the pricing logic behind each property.
Once you’ve found a property that seems right, examined it, and confirmed it meets your key (or all) criteria, the next step is to submit an offer. This includes your terms, which typically require bank approval for the mortgage and a satisfactory home inspection report. You can also propose your own price if you want to negotiate. Submitting an offer usually involves a deposit (usually around 5% of the offer), which will either be applied toward the purchase or, if the deal falls through (for example, if you can’t agree on price or the inspection reveals issues), returned to you in full.
If everyone is satisfied — the price works for both you and the seller, the inspection report is acceptable, and the bank confirms your mortgage — you remove all conditions and begin preparing for the official closing and the most enjoyable part: moving into your new home. The closing and move-in date will be specified in your offer.
At the final stage, you’ll need a real estate lawyer to legally transfer the property into your name and register your ownership appropriately. It’s not difficult or scary, but keep in mind that all documents and approvals must be submitted on time, not delayed until the last week.
So, what’s the takeaway?
From the beginning, you should assemble your team of professionals: a mortgage broker, a realtor, a home inspector, and a real estate lawyer. Ideally, they can coordinate and handle most issues among themselves without bothering you with every minor detail. This greatly simplifies and speeds up the process. My team works together seamlessly, and we’re happy to help make your purchase or sale simple and stress-free.
I intentionally didn’t mention movers, not because I forgot, but because we provide moving services to our clients free of charge. This is included in our service package—no extra fees. Trained professionals will arrive at the agreed time with a truck, carefully pack and load your belongings, and transport them to your new home. If necessary, they will do multiple trips. No need to thank us—the fact that your purchase and move go smoothly is our job.
If you have any questions, give us a call. We’ll go over everything and make sure everything is clear.
Serge Skyba
Realtor® at Realty 7 Ltd, Brokerage
416-305-6525
serge@agent1.ca
