50-Step Home Buying Checklist Canada 2025

Phase 1: Financial Preparation

• Check your credit score (Equifax & TransUnion)

  Aim for 720+ for best rates. Free at creditkarma.ca or through your bank.
• Pay down high-interest debt (credit cards, lines of credit)

  Reduce credit utilization to under 30%. This boosts your credit score and your TDS ratio.
• Open a First Home Savings Account (FHSA)

  $8,000/year contribution room, tax-deductible, tax-free withdrawal. Best savings vehicle for first-time buyers.
• Maximize FHSA contributions and invest in HISA or GIC

  EQ Bank offers FHSA with 3.50% HISA and competitive GIC rates.
• Contribute to RRSP for Home Buyers' Plan (HBP)

  Contribute now to get tax deduction; withdraw up to $35,000/person for home purchase.
• Research home prices in your target area

  Use realtor.ca, redfin.ca, or local real estate boards for market data.
• Calculate your target down payment (5%, 10%, or 20%)

  20% avoids CMHC insurance; minimum is 5% for homes under $500K.
• Budget for closing costs (1.5%–4% of purchase price)

  Includes LTT, legal fees, home inspection, title insurance, moving costs.
• Build 3–6 months emergency fund (separate from down payment)

  Keep in a high-interest savings account. Homeownership brings unexpected costs.
• Avoid new credit applications 6 months before applying for mortgage

  New credit inquiries temporarily lower your credit score.

Phase 2: Mortgage Pre-Approval

• Gather financial documents (T4s, NOAs, pay stubs, bank statements)

  Lenders typically want 2 years of income history and 3 months of statements.
• Calculate your GDS and TDS ratios

  GDS ≤39%, TDS ≤44% for most lenders. Use the stress test rate (contract +2%, min 5.25%).
• Contact a mortgage broker (gets you 30+ lender options)

  Brokers are free to borrowers — paid by lenders. Often find better rates than banks.
• Get quotes from at least 2 lenders in addition to broker

  Your current bank may beat other offers — always compare.
• Compare penalty structures (fixed vs variable, big bank vs monoline)

  Big bank fixed-rate IRD penalties can be $20,000+. Monoline penalties are typically 3 months interest.
• Get a mortgage pre-approval with rate hold (90–120 days)

  Locks in a rate while you shop. No cost and no obligation.
• Understand all mortgage terms (prepayment privileges, portability)

  Ask specifically: What is the penalty if I break this mortgage? Is it portable? Can I increase payments?
• Decide on fixed vs variable rate

  Fixed = certainty; variable = historically lower rates with more risk and lower penalties.
• Choose amortization period (25 years recommended; 30 available with 20%+ down)

  Longer = lower payments but more interest. 30-year vs 25-year on $500K ≈ $100K+ more interest.
• Confirm eligibility for First Home Buyer incentives (FHBTC, GST/HST rebate)

  First Home Buyers' Tax Credit = $1,500 federal tax credit. New home GST/HST rebate may apply.

Phase 3: House Hunting

• Define your must-haves vs nice-to-haves list

  Bedrooms, bathrooms, garage, yard, school district, commute time. Be specific.
• Choose and interview a buyer's agent (REALTOR)

  Buyer's agent is typically paid by the seller — free to you. Interview 2–3 agents.
• Research neighbourhoods (schools, transit, walkability, flood zones)

  Check local school rankings, transit maps, and Environment Canada flood maps.
• Visit at least 10 homes before making an offer

  More viewings = better calibration of market value and your preferences.
• Research recent comparable sales (comps) in the area

  Your agent can pull MLS data. Don't rely only on listing prices.
• Check for any easements, rights-of-way, or encumbrances on the property

  Ask for the title search; your lawyer will review this at closing.
• Review strata/condo documents if applicable (minutes, reserve fund, bylaws)

  Special assessments and thin reserve funds are major red flags for condos/townhouses.
• Visit the neighbourhood at different times of day

  Check noise levels, traffic, parking, and neighbourhood character in the evening and weekend.
• Research the local real estate market trend (buyer vs seller's market)

  Days on market, list-to-sale ratio, and inventory levels indicate negotiating leverage.
• Confirm the home's title is clear (no liens, judgments, or encumbrances)

  Your real estate lawyer will perform this search. Title insurance provides additional protection.

Phase 4: Making an Offer

• Determine your maximum offer price before submitting

  Set a hard limit based on your pre-approval, stress test results, and budget — not emotion.
• Include a home inspection condition in your offer

  Never waive a home inspection to win a bidding war. A $500 inspection protects against $50,000+ in hidden problems.
• Include a financing condition (unless fully pre-approved and confirmed)

  Protects you if your final mortgage approval is declined after the offer.
• Negotiate inclusions (appliances, window treatments, light fixtures)

  What stays with the home? Confirm in writing what fixtures and chattels are included.
• Deposit: prepare certified cheque or bank draft (typically 5% of purchase price)

  Deposit is applied to your down payment at closing. It's at risk if you default without conditions.
• Review seller's property disclosure statement (SPDS) carefully

  Look for disclosed defects, past repairs, environmental issues, and insurance claims.
• Complete home inspection and review report with inspector

  Ask the inspector to walk you through findings. Get repair cost estimates for significant issues.
• Confirm firm mortgage approval and lock in rate

  Final approval is different from pre-approval. Lender needs specific property info and appraisal.

Phase 5: Closing and Moving In

• Hire a real estate lawyer (required in most provinces)

  Shop around — fees vary from $1,200 to $3,000+. Your lawyer handles the title search and closing.
• Arrange title insurance through your lawyer

  Typically $200–$400. Protects against title defects, fraud, survey errors, and unknown liens.
• Calculate final Land Transfer Tax amount (see bremo.io LTT calculator)

  Province-specific LTT is due on closing. Budget for this in your closing cost estimate.
• Arrange home insurance before closing (required by lender)

  Get quotes from at least 3 insurers. Insurance must be effective from possession date.
• Arrange the property appraisal (your lender may order this)

  Required by lender for final mortgage approval. Cost is typically $350–$500.
• Do a final walk-through 24–48 hours before closing

  Confirm the property condition, included items, and that nothing has changed since your offer.
• Transfer closing funds to your lawyer (via wire or certified cheque)

  Includes balance of down payment minus deposit, LTT, legal fees, and other adjustments.
• Sign mortgage documents and closing papers with your lawyer

  Bring government-issued ID. Review all documents carefully before signing.
• Get your keys and possession of the property

  Title is registered and funds released. Congratulations — you're a homeowner!
• Update address, utilities, and banking (set up accelerated bi-weekly payments)

  Notify CRA, bank, employer, OHIP/provincial health, subscriptions. Set up your mortgage payments.
• Claim First Home Buyers' Tax Credit on your tax return ($1,500 federal credit)

  Claim on the year you buy. Each owner can claim up to $1,500 each. Some provinces add additional credits.
• Start RRSP HBP repayment schedule (if applicable)

  Repayments start the second calendar year after withdrawal: 1/15 of the total per year for 15 years.

Frequently Asked Questions