Thinking of
buying a home? Whether you're just starting to browse listings or already deep
into the process, it can feel overwhelming. With questions about financing,
choosing the right property type, and making offers, the home-buying process
can be complex. To help, we've broken down the steps into a simple, 10-step
guide designed to make your journey smoother.
1. Start
Saving and Budgeting for Your Home Purchase
One of the
first steps to buying a home is saving for your down payment. In Canada, the
minimum down payment is 5% of the home's purchase price, but to avoid mortgage
insurance, you’ll need at least 20%. Start saving early and plan for additional
costs such as closing fees, moving expenses, and home inspections. Creating a
budget will help you determine what you can afford while ensuring you’re
financially prepared for homeownership.
2.
Explore Mortgage Options and Get Pre-Approved
Getting
pre-approved for a mortgage not only gives you an estimate of how much you can
borrow but also locks in your interest rate for up to 120 days. Lenders assess
factors such as your credit score, income, and debts, so ensure your finances
are in order. A pre-approval gives you the confidence to shop within your
budget, and if rates drop, your rate should adjust as well. Remember to explore
different types of mortgages to find the best terms for your needs.
3. Find
the Right Real Estate Agent
Choosing the
right real estate agent is crucial to your home-buying success. Look for a
knowledgeable, responsive, and experienced agent who understands your needs and
the local market. Treat the search like an interview process—ask questions,
check reviews, and ensure the agent is someone you can trust to guide you
through negotiations and paperwork. A good agent can help you avoid common
pitfalls and secure the best deal.
4. Start
House Hunting
Once you're
pre-approved and have an agent, it's time to start searching for your dream
home. Consider the location, especially with the flexibility that remote work
offers. You’ll need to decide between condos, townhouses, semi-detached, or
detached homes based on your needs and lifestyle. Make a list of must-haves and
be ready to compromise on less essential features. Your agent can arrange
viewings and provide valuable insight into the current market trends.
5. Make
an Offer
When you’ve
found a home you love, it's time to make an offer. Your agent will guide you on
whether to offer the asking price or adjust based on market conditions. In a
competitive seller’s market, you might need to act quickly and submit a strong,
unconditional offer. In a buyer’s market, you may have more room to negotiate.
Your offer will include terms like the purchase price, closing date, and any
conditions, such as a home inspection or financing approval.
6. Get a
Home Inspection
A home
inspection is one of the most important conditions in your offer. It identifies
any underlying issues with the property, such as electrical, plumbing, roofing,
or foundation problems. This can save you from unexpected repair costs or help
you renegotiate the price. The inspection typically takes about three hours and
costs a few hundred dollars, depending on the size of the home. Never skip this
step, no matter how competitive the market is.
7. Close
the Deal
Once your
offer is accepted, there’s usually a 60-90 day period until closing. During
this time, you’ll need to finalize your financing, complete your home
inspection, and satisfy any other conditions in your offer. Your lender will
need a copy of the Agreement of Purchase and Sale to confirm it matches your
pre-approval amount. Once everything is finalized, your lawyer will process the
legal paperwork, and on the closing date, you'll officially take ownership of
your new home.
8. Update
Utilities, Transfer Services, and Change Your Address
Before
moving, ensure your utilities (water, gas, electricity) and other services
(cable, internet, etc.) are transferred to your new address. Don’t forget to
notify Canada Revenue Agency, your provincial Ministry of Health, and your
driver's license office of your new address. Canada Post offers a mail
forwarding service to ensure you receive important mail during the transition.
9. Pack
and Move
Moving can
be stressful, so plan ahead. If hiring movers, book them well in advance,
especially during the busy summer months. If you’re doing it yourself, rent a
truck and gather packing supplies. To make packing easier, label boxes by room,
wrap breakables in clothing, and take photos of how electronics are connected
to make setting them up easier.
10. Enjoy
Your New Home!
After the
hard work of buying and moving, it’s time to settle into your new home. Connect
with your new community, personalize your space, and enjoy the rewards of
homeownership. Congratulations!
Looking for
more advice? Connect with a RE/MAX
President agent today to start your home search!
