Buying a home is exciting—and a little nerve-wracking. Whether you’re looking for your first place or your next one, it helps to know what’s involved so you can make smart choices and feel good about your decision.
Read our Buying a Home money milestone
Most people choose to work with a licensed real estate agent when buying a home. Agents help you find properties, schedule viewings, make offers, and handle paperwork. They also know the local market and can help you spot good value—or avoid a bad deal. As the buyer, you don’t pay the agent’s commission fee. The commission fee is deducted from the proceeds the seller receives, which is typically 5–6 per cent of the sale price and split between the buyer’s and seller’s agents.
Find out more about working with a real estate agent
If you’re buying privately, you’ll be working directly with the seller or their representative. You’ll need to manage the search, negotiations, and legal details yourself or hire professionals to help with specific parts of the process.
Learn more about private sales
The housing market changes all the time. Sometimes there are lots of homes for sale and fewer buyers—that’s a buyers’ market, and it can mean lower prices and more choice. Other times, homes sell quickly and prices go up—that’s a sellers’ market, and you may have fewer options.
Your budget, timeline, and goals should guide your decision. If you’re flexible, watching the market for a few months can help you understand pricing trends in your area.
Before you start looking, think about what matters most:
Do you want to be close to work, school, transit or community services (like fire and police departments)?
How many bedrooms and bathrooms do you need?
Are you looking for a big yard, a quiet street, or a walkable neighborhood?
What’s your budget—and how much wiggle room do you have?
What are the property taxes for the area?
Your agent can help you narrow things down. If you’re buying privately, make a list of must-haves and nice-to-haves to guide your search.
Before you start shopping for a home, think about more than just what fits your budget today. Your financial situation might change over time, so it’s smart to plan ahead. Owning a home comes with more than just a mortgage payment, you’ll also need to cover property taxes, home insurance, utilities, and regular maintenance. These costs can add up, so it’s important to build them into your budget.
Most banks and financial experts suggest keeping your monthly housing costs—mortgage, property taxes, and insurance—under 25 per cent of your take-home income. To check, add up your monthly income, then add up your estimated housing costs.
When you buy a home, there are multiple fees you’ll have to factor in, like:
Down payment (minimum of 5 per cent of the purchase price)
Home inspection
Appraisal fees
Title insurance
Water testing
Legal fees and disbursements
Land transfer tax
Property tax or utility bill adjustments (the buyer is typically responsible to repay to the seller any amounts the seller has prepaid)
Mortgage insurance, if applicable (If your down payment is less than 20 per cent of the purchase price, you will have to purchase mortgage insurance)
Tax on purchase price (for new constructions)
Property survey
Upgrades (for new construction)
Property insurance
If you’re not sure where to start, talk to a mortgage broker or lender. They can help you figure out what you can afford and walk you through your options.
Most people don’t have the full cost of a home saved up—and that’s where a mortgage comes in. A mortgage is a loan that helps you buy a home, and you’ll pay it back over time, usually with interest.
Getting pre-approved for a mortgage is a smart first step. It gives you a clear idea of what you can afford.
Found the right home in the right location—and it fits your budget? You’re pre-approved, and you’ve saved for the closing costs? Then you may be ready to make an offer.
An offer is a legal contract. Once you sign it, you’re committing to buy the home if the seller accepts and the conditions of the agreement are met. So take your time, ask questions, and make sure you’re comfortable with the details.
If you’re working with an agent, they’ll help you decide:
How much to offer
What conditions to include (like a home inspection or financing approval)
What closing date works for you
The seller can accept your offer, reject it, or come back with changes. You can negotiate until you both agree. Once the offer is accepted, you may need to pay a deposit. This is held in trust and goes toward the purchase price when the sale closes.
It’s important to understand the conditions in your offer—especially what happens to the deposit if the sale doesn’t go ahead. If you’re unsure, ask your agent or lawyer to walk you through it.
Once your offer is accepted, things start moving quickly. Your agent and lawyer will work with the seller’s team to finalize the paperwork and transfer ownership.
Before or on closing day, your salesperson may take you on a final walk-through of the property to make sure everything is as expected. Then, once the financing is complete and the legal work is done, you’ll get the keys—and the home is officially yours.