When does the spring housing market start in Canada?

The spring market typically begins in mid-February to early March and peaks in April-May. New listings surge in March, and buyer competition is highest from April through June. Starting your search in February gives you the best early advantage.

How much do I need for a down payment on a house in Canada in 2026?

The minimum is 5% for homes under $500,000, 10% on the portion between $500,000-$1,499,999, and 20% for homes $1.5M+. For a $600,000 home, the minimum is $35,000. However, 20% ($120,000) avoids mortgage insurance (CMHC premium of $16,200-$24,000).

Should I get pre-approved for a mortgage before looking at homes?

Yes, absolutely. Pre-approval locks in a rate for 90-120 days, tells you your budget, and shows sellers you are a serious buyer. In competitive spring markets, offers without pre-approval are often rejected. Get pre-approved in January-February before the spring rush.

Is spring a good time to buy a house in Canada?

Spring has the most inventory (good for buyers) but also the most competition (bad for buyers). Prices tend to peak in April-June. If you want less competition, consider late fall or winter purchases. If you want maximum selection, spring is ideal.

Spring Home Buying Guide Canada 2026

If you’re planning to buy a home in spring 2026, your preparation should start in January — not March. The biggest mistake first-time buyers make is scrambling for a pre-approval in April when competition is fiercest and rates are already locked by more organized buyers. Getting your FHSA contributions maximized, your credit score cleaned up, and a mortgage pre-approval secured by February puts you 8–10 weeks ahead of most of the competition.

Spring Market Timeline

Month	Market Activity	What to Do
January	Pre-season; low inventory	Get mortgage pre-approved, organize finances
February	Early listings start	Begin searching, attend open houses
March	Inventory increases rapidly	Active searching, start making offers
April	Peak activity begins	Highest competition — be prepared to act fast
May	Peak month for sales	Most listings and most buyers
June	Market remains strong	Still active, some fatigue among buyers
July-August	Slight slowdown	Families busy, some deals available

Financial Preparation Checklist

☐	Task	Timeline
☐	Check credit score (Credit Karma, Borrowell)	3-6 months before
☐	Pay down revolving debt	3-6 months before
☐	Save for down payment	Ongoing
☐	Maximize FHSA contributions ($8,000/year)	ASAP — can use for down payment
☐	Get mortgage pre-approval	January-February
☐	Save for closing costs (1.5-4% of price)	Ongoing
☐	Organize proof of income, tax returns	January
☐	Research neighbourhoods	January-February
☐	Interview real estate agents	January-February

Down Payment Requirements

Purchase Price	Minimum Down Payment	Amount	CMHC Premium
$400,000	5%	$20,000	$16,000 (4%)
$500,000	5%	$25,000	$20,000 (4%)
$600,000	5% on $500K + 10% on $100K	$35,000	~$20,000 (3.5%)
$800,000	5% on $500K + 10% on $300K	$55,000	~$26,000 (3.5%)
$1,000,000	5% on $500K + 10% on $500K	$75,000	~$32,000 (3.5%)
$1,500,000+	20% (mandatory)	$300,000+	$0 (no insurance needed)

Down Payment Sources

First-time buyers in 2026 have more tax-advantaged options than ever. The FHSA alone lets you save $40,000 with a full tax deduction on contributions, and withdrawals for a home purchase are completely tax-free — that’s a better deal than either the RRSP or TFSA for down payment savings. Combined with the RRSP Home Buyers’ Plan ($60,000), a couple could pull up to $200,000 from registered accounts. If you’re years away from buying, open an FHSA immediately — each year of unused contribution room carries forward.

Source	Details	Tax Impact
FHSA	$40,000 lifetime, tax-deductible, tax-free withdrawal	Best account for first-timers
RRSP (HBP)	Borrow up to $60,000 from RRSP	Must repay over 15 years
TFSA	Withdraw any amount tax-free	No repayment required
Savings	Personal savings	No tax impact
Gift from family	Lender will require a gift letter	No tax (no gift tax in Canada)
FHSA + HBP combined	Up to $100,000 tax-advantaged	Maximum benefit

Closing Costs

Cost	Amount	Notes
Land transfer tax	0.5-2% of purchase price	Varies by province; Ontario first-time rebate up to $4,000
Toronto land transfer tax	Additional 0.5-2.5%	Toronto charges both municipal + provincial
Legal fees	$1,000-$2,500	Lawyer or notary
Home inspection	$400-$600	Strongly recommended
Appraisal	$300-$500	Lender may require
Title insurance	$200-$500	Usually required by lender
Moving costs	$500-$3,000	DIY to full-service movers
Utility hookups	$100-$300	Deposits for new accounts
Total closing costs	1.5-4% of purchase price	Budget $10,000-$25,000

Land Transfer Tax by Province

Province	Rate	First-Time Buyer Rebate
Ontario	0.5-2.5% (graduated)	Up to $4,000 (on first $368,000)
British Columbia	1-5% (graduated)	Up to $8,000 (on first $500,000)
Quebec	Welcome tax: 0.5-2.5%	None
Alberta	No LTT (just registration fee ~$300)	N/A
Saskatchewan	No LTT (just registration fee ~$300)	N/A
Manitoba	0.5-2% (graduated)	None
Nova Scotia	1.5% flat	None

Mortgage Pre-Approval

Factor	Details
What it does	Confirms how much you can borrow; locks in a rate
Rate hold	90-120 days
Documents needed	T4s/NOAs (2 years), pay stubs, bank statements, ID
Credit score needed	680+ for best rates; 600+ minimum
Self-employed	2 years of T1 Generals + NOAs
Does it affect credit?	Soft pull initially; hard pull at formal application

Stress Test Rules (2026)

The stress test remains the biggest gap between what buyers expect to afford and what they actually qualify for. Even with rates declining in 2026, you must qualify at the higher of 5.25% or your contract rate plus 2%, which typically reduces your maximum purchase price by about 20% compared to qualifying at the actual rate. If your pre-approval comes back lower than expected, increasing your down payment or adding a co-borrower are the most effective ways to bridge the gap.

Scenario	Qualifying Rate
Your offered rate	e.g., 4.50%
Stress test rate	Higher of 5.25% or your rate + 2%
You must qualify at	6.50% (in this example)
Effect	Reduces your maximum mortgage by ~20%

Making an Offer in a Competitive Spring Market

Strategy	Details
Pre-approval letter	Include with every offer
Offer price	Based on comparables (your agent’s CMA)
Deposit	5% of offer price is standard (shows seriousness)
Conditions	Financing, inspection are standard; waiving conditions is risky
Closing date	Flexible closing helps (20-60 days typical)
Escalation clause	“Will pay $X above highest offer up to $Y”
Personal letter	Rarely helps in competitive markets (fair housing concerns)

First-Time Buyer Government Programs

Program	Benefit
FHSA	$40,000 tax-deductible savings for home purchase
RRSP Home Buyers’ Plan	Borrow up to $60,000 from RRSP interest-free
First-Time Home Buyer Tax Credit	$10,000 credit ($1,500 tax savings)
GST/HST New Housing Rebate	Up to $6,300 rebate on new construction
Land Transfer Tax Rebate	Up to $4,000 (ON), $8,000 (BC)
Municipality incentives	Some cities offer additional grants/rebates

Home Inspection Checklist

Area	What Inspector Checks
Foundation	Cracks, water damage, structural integrity
Roof	Age, condition, estimated remaining life
Plumbing	Leaks, water pressure, pipe material
Electrical	Panel capacity, wiring age, code compliance
HVAC	Furnace/AC age, efficiency, maintenance
Insulation	Attic, walls, energy efficiency
Windows/doors	Seals, age, drafts
Basement	Moisture, mould, water intrusion
Exterior	Grading, drainage, siding condition

The Bottom Line

Start preparing in January, get pre-approved by February, and be ready to move fast by March. Maximize your FHSA and HBP, budget 1.5–4% for closing costs on top of your down payment, and never waive a home inspection to win a bidding war. The best spring buyers are the ones who did their homework in winter.

Spring 2026 Market Considerations

Factor	Impact
Interest rates	Bank of Canada rate cuts easing mortgage rates
Housing supply	New construction increasing in some markets
Population growth	Immigration driving demand in major cities
Affordability	Still stretched in Toronto/Vancouver; improving elsewhere
Condo market	Softening in some cities (new supply)
Suburban/rural	Strong demand from remote workers

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