Buying your first property is an exciting, yet responsible, step. This is especially true if you are doing it in Canada, where the process may differ from what you are used to. This step-by-step guide will help you understand how to buy a house in Canada and make the process as transparent and clear as possible.

💰 Step 1: Assess Your Financial Readiness

Before you start your search, it is important to have a clear understanding of your financial situation.

• Evaluate your income and savings: Determine how much you can afford to spend each month on a mortgage and related expenses (utilities, property taxes, and insurance).
• Prepare your down payment: In Canada, the minimum down payment is 5% of the home's value. However, if your down payment is less than 20%, you will have to get mandatory mortgage insurance (CMHC insurance), which will increase your total loan amount.
• Consider additional costs: Besides the down payment, you will need to pay for legal services, property appraisal, inspection, land transfer tax, and other fees. These costs can amount to 1.5% to 4% of the property's value.

✅ Step 2: Get a Mortgage Pre-approval

This is one of the most important steps. A pre-approval is a document that confirms a bank is willing to give you a mortgage for a certain amount.

• Why you need it: A pre-approval gives you a precise idea of your budget, makes you a reliable buyer in the eyes of sellers and real estate agents, and locks in an interest rate for a certain period (usually 90-120 days), protecting you from an increase.
• How to get it: Contact a mortgage broker or a bank directly. You will need documents proving your income, credit history, and savings information.

🗺️ Step 3: Search for a Property

Once you know your budget, you can move on to the most exciting part—the search.

• Define your priorities: Decide what is most important to you: the neighborhood, the number of rooms, the proximity to work or school, or the type of housing (apartment, townhouse, detached house).
• Hire a realtor: An experienced realtor has access to professional databases (MLS) and knows the specifics of the local market. Their services are usually paid for by the seller, so they are free for you. A realtor will help you find the right option and represent your interests at every stage.

✍️ Step 4: Submit an Offer

When you find the perfect property, your realtor will help you draft an official offer.

• Offer contents: It includes the proposed price, the down payment amount, the closing date, and "conditions."
• The most common conditions:
  • Financing condition: Protects you if the bank refuses to provide a mortgage.
  • Inspection condition: Allows you to hire a professional inspector to check the home's condition. This will help you find hidden problems.
  • Appraisal condition: Protects you if the bank appraises the property for less than its purchase price.

🤝 Step 5: Close the Deal

If the offer is accepted and all conditions are met, you can move on to the final stage.

• Hire a lawyer: Hire a lawyer who specializes in real estate. They will review all the documents, process the transfer of ownership, and transfer the money to the seller.
• Inspection: Be sure to have an inspection to ensure there are no serious defects.
• Final walkthrough: Usually, a few days before closing, you can conduct a final walkthrough of the property to ensure everything is in line with the terms of the contract.

🔑 Step 6: Transfer of Ownership

On the specified day, your lawyer transfers the funds to the seller, and you get the keys to your new home. Congratulations! You are now the full owner of your first property in Canada.

Tips for a Beginner

• Don't rush: Don't be afraid to walk away from a deal if something seems wrong. It's better to wait and find the perfect option.
• Consult with experts: A realtor, mortgage broker, and lawyer are your main helpers. Don't hesitate to ask them questions.
• Study the market: Keep an eye on prices and trends in your region. This will help you make informed decisions.

Buying real estate in Canada may seem complicated, but with the right approach and the support of experts, you will successfully navigate this journey.