No, 5% is the absolute minimum down payment for homes under $500,000 in Canada. For homes between $500K and $999,999, you need 5% on the first $500K and 10% on the remainder. For homes at $1M or above, the minimum is 20%. There are no zero-down mortgage programs in Canada.

However, programs like the Home Buyers' Plan (HBP) and the First Home Savings Account (FHSA) can help you save for your down payment faster with tax advantages.

The stress test requires you to qualify at the higher of your contracted mortgage rate plus 2%, or the benchmark rate of 5.25%. For example, if your lender offers 4.5%, you must prove you can afford payments at 6.5%.

To estimate if you will pass: your total monthly housing costs at the stress test rate (mortgage + taxes + heat + 50% of condo fees) should not exceed 39% of your gross monthly income (GDS ratio). Your total debt payments should not exceed 44% (TDS ratio). Use the Affordability Calculator in this guide for a detailed estimate.

Budget 1.5% to 4% of the purchase price for closing costs. For a $600K home, that is $9,000 to $24,000. Major costs include:

• Land transfer tax (provincial and municipal in Toronto)
• Legal fees ($1,500 to $2,500)
• Title insurance ($200 to $500)
• Home inspection ($400 to $600)
• Appraisal ($300 to $500 if required)
• Property tax and utility adjustments
• Moving costs

First-time buyers can save up to $8,475 through land transfer tax rebates (provincial $4,000 + Toronto $4,475). Use the Closing Costs calculator in this guide for a personalized breakdown.

Fixed rates provide payment certainty and protection from rate increases. Variable rates have historically saved borrowers money over time but come with the risk of rising payments.

Consider fixed if: you have a tight budget and cannot absorb payment increases, you prefer predictability, or rates are near historic lows. Consider variable if: you can handle some payment fluctuation, the Bank of Canada is cutting rates, or the spread between fixed and variable is large (1%+).

As of early 2026, with the BoC at 2.25% and potential further cuts, variable rates may offer savings. However, this depends on future rate decisions. Talk to a mortgage broker to compare both options.

If your offer is rejected (not accepted or countered), your deposit is returned in full and you have no obligations. You are free to submit offers on other properties immediately.

The seller may also counter your offer with different terms. You can then accept the counter, reject it, or counter again. This back-and-forth continues until both parties agree or someone walks away. In competitive situations with multiple offers, sellers often choose the strongest offer without countering.

Yes, in Ontario a licensed lawyer is required to handle the legal aspects of buying a home. Paralegals cannot do real estate closings. Your lawyer will:

• Review and explain the Agreement of Purchase and Sale
• Conduct a title search to ensure clean ownership
• Arrange title insurance
• Handle the transfer of funds and mortgage registration
• Register the deed in your name
• Adjust property taxes and other prepaid items

Legal fees typically range from $1,500 to $2,500. Get quotes from 2 to 3 lawyers before choosing. Your real estate agent or mortgage broker can provide referrals.

A home inspection is a thorough examination of a property's major systems and structural components by a qualified inspector. They check the foundation, roof, plumbing, electrical, HVAC, insulation, windows, and more.

It is absolutely worth it. An inspection can reveal hidden issues that could cost thousands to repair, such as a failing roof ($10K to $25K), foundation cracks ($5K to $50K), or outdated electrical panels ($3K to $8K). Even if you waive the inspection condition in a competitive offer, consider getting a pre-offer inspection.

Cost: $400 to $600. Duration: 2 to 4 hours. Attend the inspection in person to ask questions and learn about your new home.

Typically 3 to 6 months from pre-approval to closing. Here is a rough timeline:

• Pre-approval: 1 to 2 weeks
• House hunting: 1 to 3 months (or longer)
• Making an offer and negotiating: 1 to 7 days
• Conditions period (inspection, financing): 5 to 10 business days
• Closing period: 30 to 90 days from offer acceptance

The biggest variable is how long it takes to find the right property. In a balanced market, buyers typically view 10 to 15 homes before making an offer.

Yes, but with restrictions. The Prohibition on the Purchase of Residential Property by Non-Canadians Act (effective January 2023, extended to January 2027) restricts non-Canadians from purchasing residential property in metropolitan areas and census agglomerations.

Exceptions include: work permit holders who have filed tax returns for 3 of the last 4 years, international students meeting specific criteria, and refugee claimants. Properties in rural areas outside census metropolitan areas and census agglomerations are also exempt.

If you are eligible, lenders may require a larger down payment (typically 35%) and charge higher interest rates for non-residents.

CMHC (mortgage default) insurance is required whenever your down payment is less than 20% of the purchase price. It protects the lender, not you, in case you default on your mortgage.

Premium rates based on LTV: 5% down = 4.00% of mortgage, 10% down = 3.10%, 15% down = 2.80%. For a $500K home with 5% ($25K) down, the insurance premium is $19,000, added to your mortgage balance.

Important: Insured mortgages are capped at homes under $1.5M (increased from $1M on December 15, 2024). Amortization is limited to 25 years, or 30 years for all first-time home buyers (expanded from new builds only, effective December 15, 2024). On the upside, insured mortgages often qualify for lower interest rates than uninsured ones.

Property taxes are assessed by MPAC (Municipal Property Assessment Corporation) and collected by your municipality. The amount is calculated by multiplying your property's assessed value by the municipal tax rate.

Tax rates vary significantly by municipality. For example, Oshawa's residential rate is approximately 1.3% of assessed value, while Toronto's is around 0.65%. However, Toronto homes generally have higher assessed values, so the actual dollar amount may be comparable.

Taxes are typically paid in installments (monthly, quarterly, or biannually). Many homeowners include property taxes in their mortgage payments for convenience. New homeowners may receive a supplementary tax bill if the property was recently built or renovated.

Benefits of buying: Building equity with each mortgage payment, stability and control over your living space, potential property appreciation, tax-free capital gains on your principal residence, and no landlord restrictions.

Benefits of renting: Lower upfront costs, flexibility to move, no maintenance responsibilities, no risk of property value decline, and the ability to invest the difference.

The right choice depends on your timeline (buying favors 5+ years), local market conditions, and personal financial situation. Use a rent-vs-buy calculator to compare total costs over your expected time horizon.

Yes, through the Home Buyers' Plan (HBP), you can withdraw up to $60,000 per person ($120,000 per couple) from your RRSP tax-free for your first home's down payment. The funds must have been in your RRSP for at least 90 days before withdrawal.

You must repay the amount over 15 years starting the second year after withdrawal (or the fifth year if using the extended repayment). If you miss a repayment, that year's required amount is added to your taxable income.

You can also use the First Home Savings Account (FHSA), which combines RRSP and TFSA benefits: contributions are tax-deductible (like an RRSP) and withdrawals for a home purchase are tax-free (like a TFSA). The lifetime contribution limit is $40,000.

A status certificate is a legally required document when buying a condominium. It provides a snapshot of the condo corporation's financial and legal health, including:

• Reserve fund balance and most recent reserve fund study
• Monthly common expense fees and any upcoming increases
• Any planned or pending special assessments
• Outstanding lawsuits against the corporation
• Condo rules, declarations, and bylaws
• Insurance details

Your lawyer should review it thoroughly. Red flags include a low reserve fund, large special assessments, multiple lawsuits, or rapidly increasing condo fees. The condo corporation must provide it within 10 days of request, at a cost of $100.

In a seller's market, a property may attract multiple competing offers. Here is how it typically works:

• The seller's agent sets an offer presentation date (e.g., "offers reviewed Tuesday at 7 PM")
• All interested buyers submit their best offers by that date
• The seller reviews all offers and can accept one, counter one or more, or reject all
• Buyers do not see other offers (this is not an auction)

Strategies for competing: get pre-approved for above your target, include a larger deposit, limit or remove conditions (cautiously), write a personal letter, offer flexible closing dates, and set a firm maximum you will not exceed regardless of emotion.

Title insurance is a one-time policy purchased at closing that protects you against title-related problems that may surface after you buy the property, including:

• Title fraud (someone forging documents to steal ownership)
• Existing liens or debts attached to the property
• Errors in public records
• Zoning or bylaw violations by previous owners
• Boundary disputes and encroachments
• Unpermitted structures or renovations

Cost: $200 to $500 as a one-time premium. Most lenders require it, and it is strongly recommended even when not required. It can also substitute for an up-to-date survey, saving you that additional cost.

It depends on whether the offer is conditional or firm:

Conditional offer: If your conditions (financing, inspection, etc.) are not met within the specified timeframe, you can walk away and your deposit is returned in full.

Firm offer (or after conditions are waived): Backing out can have serious financial and legal consequences. The seller can sue for damages, keep your deposit, and potentially pursue the difference if they sell for less than your agreed price.

During the irrevocable period, you cannot withdraw your offer unless it has been rejected. After the irrevocable period, an unaccepted offer expires automatically.

For ongoing maintenance, budget 1% to 3% of your home's value annually. For a $600K home, that is $6,000 to $18,000 per year set aside for repairs and maintenance.

Common first-year costs for resale homes include:

• Painting: $3,000 to $8,000 (whole house)
• Appliance upgrades: $2,000 to $10,000
• Flooring: $5,000 to $15,000
• Kitchen renovation: $15,000 to $50,000+
• Bathroom renovation: $10,000 to $25,000
• Furnace/AC replacement: $5,000 to $12,000
• Roof replacement: $10,000 to $25,000

Before purchasing, factor anticipated renovation costs into your total budget. Have a home inspector identify items that will need attention in the near term.