Buying your first home is one of the most significant financial decisions you'll make. The process has more steps than most people expect, and missing one can be costly. This checklist walks through every phase — from financial preparation to closing day — so you go in with confidence.
Phase 1: Financial preparation
- Check your credit report. Pull your credit report from Equifax or TransUnion before approaching any lender. Review it for errors. Most lenders want to see a score of 680 or higher for the best rates.
- Get pre-approved — not just pre-qualified. A pre-qualification is a rough estimate based on what you tell a lender. A pre-approval involves the lender reviewing your actual income documents, pulling your credit, and issuing a conditional commitment for a specific amount with a rate hold (typically 90–120 days). Pre-approval is what carries weight on offer night.
- Understand the stress test. Canadian lenders must qualify you at your contract rate plus 2%, or 5.25% — whichever is higher. This determines your maximum purchase price.
- Budget for all costs beyond the purchase price. Down payment is just the start. Set aside funds for: land transfer tax (provincial, and Toronto municipal if buying in the city), legal fees, home inspection, title insurance, moving costs, and an immediate-move-in reserve. See our closing costs breakdown and use our land transfer tax calculator to estimate.
- Open a First Home Savings Account (FHSA) if you haven't. Contributions are tax-deductible and qualifying withdrawals are tax-free. See our FHSA explainer for details.
- Consider the RRSP Home Buyers' Plan. First-time buyers can withdraw up to $35,000 from their RRSP toward a home purchase (repayable over 15 years).
Phase 2: Define what you're looking for
- Write a clear list of must-haves vs. nice-to-haves. Separate them honestly.
- Research neighbourhoods: commute time, school catchments, transit access, walkability, future development in the area.
- Decide on property type: detached, semi-detached, townhouse, condo. Each has different cost structures and lifestyle tradeoffs.
- Set a realistic price range anchored to your pre-approval, not your ideal.
Phase 3: The search
- Work with a buyer's agent who provides real-time MLS access. Public listing apps are often delayed by hours — in fast markets, that matters.
- Tour homes systematically. Take notes and photos. Impressions blur after several viewings.
- Don't wait for perfect. The right home rarely checks every box. Know your non-negotiables and be flexible on the rest.
- Review comparable sales for any home you get serious about — not just list prices.
Phase 4: Making an offer
- Have your deposit ready (typically 5% of purchase price, certified, due within 24 hours of acceptance).
- Understand the conditions you are including and what each one protects you from: financing condition, home inspection condition, status certificate condition (for condos).
- In competitive situations, discuss with your agent what conditions are standard vs. which you might consider waiving — and fully understand the risks before doing so.
- Be prepared for a sign-back (counter-offer). Know your maximum before you go in.
Phase 5: After acceptance — the conditional period
- Book your home inspection immediately. You typically have 3–5 business days. Use an inspector your agent recommends or one you've researched independently.
- Confirm financing with your lender. Even with a pre-approval, the lender must approve the specific property. Get this moving on day one.
- If buying a condo: your lawyer must review the status certificate within 10 days. This document reveals the financial health of the condo corporation, reserve fund, rules, and any pending litigation.
- Only waive conditions once you are genuinely satisfied with everything you've reviewed.
Phase 6: Closing
- Retain a real estate lawyer. They handle the title transfer, mortgage registration, and coordinate all funds.
- Purchase title insurance (your lawyer will arrange this). It protects against title defects and fraud — the cost is small relative to the protection.
- Do a final walkthrough on or before closing day to confirm the home is in the condition agreed upon.
- On closing day, your lawyer will confirm when the transaction is registered and keys can be released. This typically happens in the afternoon.
- Update your address with Canada Post, CRA, your bank, and your employer.
First-time buying is a process best navigated with an experienced team. If you have questions about any of these steps, reach out to us — we've guided hundreds of first-time buyers through exactly this process.
