This checklist walks you through every step of buying your first home in Canada — organized into phases so you know exactly what to do and when. Check off each item as you complete it.
Phase 1: Financial Preparation (6–24 Months Before Buying)
Build Your Down Payment
- Determine your target purchase price and required down payment
- Open a First Home Savings Account (FHSA) — contribute up to $8,000/year, $40,000 lifetime
- Determine whether FHSA or RRSP Home Buyers’ Plan is better for your situation (or use both)
- Set up automatic contributions to your down payment savings
- Track your savings progress — know your timeline to reach your target
Build Your Credit
- Check your credit score (free through Borrowell or Credit Karma)
- Understand how credit scores work in Canada
- If your score is below 680, take steps to improve it
- Pay all bills on time — payment history is the #1 factor
- Keep credit utilization below 30% on all cards
- Do NOT close old credit accounts (length of history matters)
- Do NOT apply for new credit in the 6 months before applying for a mortgage
Understand Your Affordability
- Use the mortgage affordability calculator with your actual numbers
- Calculate your GDS and TDS ratios
- Understand the stress test and how it reduces your maximum borrowing power
- Factor in closing costs — budget 1.5–4% of the purchase price on top of your down payment
- Review the cost breakdown for your target mortgage amount
Research Programs and Incentives
- Review all first-time home buyer programs
- Check your provincial incentives (Ontario, BC, Alberta, Quebec, etc.)
- Understand the 30-year amortization option now available for first-time buyers
- Research the $1.5M insured mortgage cap if buying in a high-cost market
- Determine if you qualify as a first-time buyer under the federal definition
Phase 2: Pre-Approval (2–4 Months Before Buying)
Gather Your Documents
- Government-issued photo ID (driver’s licence or passport)
- Social Insurance Number (SIN)
- Most recent T4 slips (last 2 years)
- Recent pay stubs (last 2–3 months)
- Employment letter confirming position, salary, and start date
- 90 days of bank statements showing down payment savings
- FHSA and/or RRSP statements (if using for down payment)
- Notice of Assessments (NOAs) from CRA (last 2 years)
- List of all debts with balances and monthly payments
- Gift letter (if receiving help from family — must state no repayment expected)
- Full document checklist for any additional items
Shop for Pre-Approval
- Get quotes from at least 3 sources: a mortgage broker, your bank, and an online lender
- Compare rates, terms, prepayment privileges, and penalties
- Ask all key questions
- Confirm the rate hold period (90 or 120 days)
- Understand fixed vs variable rate options
- Decide on your mortgage term length
- Get your pre-approval letter
Questions to Ask Lenders
- What is your best rate for my situation?
- What are the prepayment privileges? (Lump sum limit + payment increase limit)
- How is the penalty calculated if I break the mortgage?
- Is the mortgage portable?
- Is it a collateral or conventional charge?
- Are there any restrictions or fees I should know about?
Phase 3: House Hunting
Before You Start Looking
- Define your must-haves vs nice-to-haves (bedrooms, location, parking, yard)
- Research neighbourhoods — commute times, schools, amenities, crime rates
- Find a real estate agent (interview 2–3, check references)
- Understand how real estate agent fees work
- Know the difference between condos and houses and what fits your budget
While House Hunting
- Stay within your pre-approved amount — do not let emotions push you higher
- Account for ongoing costs: property tax, utilities, maintenance, condo fees (if applicable)
- Watch for red flags: structural issues, water damage, old roof, aging systems
- If buying a condo, review the status certificate (Ontario) or equivalent
- Understand bidding wars if you are in a competitive market
Phase 4: Making an Offer
Before You Submit
- Review recent comparable sales in the area
- Determine your maximum bid (and stick to it)
- Discuss offer strategy with your agent (conditions, deposit, closing date)
- Understand conditional vs firm offers
Key Offer Components
- Purchase price
- Deposit amount (typically 1–5% of purchase price, held in trust)
- Condition: financing (5–10 business days to confirm mortgage)
- Condition: home inspection
- Condition: review of status certificate (condos)
- Closing date (coordinate with your lender and lawyer)
- Inclusions/exclusions (appliances, fixtures, etc.)
Phase 5: Financing Confirmed (After Accepted Offer)
Finalize Your Mortgage
- Notify your lender/broker immediately that your offer was accepted
- Submit the signed Agreement of Purchase and Sale
- Provide any additional documents the lender requests
- Lender orders property appraisal (if required)
- Review and sign the mortgage commitment letter
- Understand the interest adjustment date
- Confirm your payment frequency (accelerated bi-weekly recommended — see how to pay off faster)
Home Inspection
- Book a home inspection with a certified inspector
- Attend the inspection in person
- Review the report carefully — negotiate repairs or price if major issues found
- Waive the inspection condition only if you are satisfied (or unable to resolve issues, withdraw)
Legal and Insurance
- Hire a real estate lawyer or notary
- Lawyer conducts title search
- Arrange title insurance
- Arrange home insurance (proof required before closing)
- Lawyer prepares statement of adjustments
- Review and sign all closing documents
Phase 6: Closing Day
Before Closing Day
- Confirm all conditions have been waived
- Arrange certified cheque or wire transfer for the closing amount (down payment minus deposit, plus closing costs)
- Confirm closing time and location with your lawyer
- Schedule a final walkthrough of the property
- Set up utilities transfer (hydro, gas, water, internet)
- Arrange moving logistics
On Closing Day
- Lawyer registers the mortgage and transfers title
- Funds are transferred to the seller
- You receive the keys
- Celebrate — you are a homeowner
Closing Day Costs to Have Ready
| Cost | Estimated Amount |
|---|---|
| Down payment (minus deposit already paid) | Varies |
| Land transfer tax | 0.5–2.5% of purchase price |
| Legal fees | $1,000–$2,500 |
| Title insurance | $300–$500 |
| Property tax adjustment | Varies |
| Home inspection (if not already paid) | $400–$600 |
| Moving costs | $500–$3,000+ |
Phase 7: After You Move In
First Month
- Confirm your first mortgage payment date and amount
- Set up automatic mortgage payments
- File for any applicable first-time buyer tax credits
- Begin RRSP HBP repayment plan (first repayment due in 2nd year after withdrawal)
- Change your address with CRA, banks, insurance, employer, etc.
- Review your home insurance coverage
Ongoing
- Track your mortgage balance and equity growth
- Use prepayment privileges when possible — even small extra payments save thousands
- Build an emergency fund (3–6 months of housing costs)
- Keep records of all home improvements (for future capital gains exemption documentation)
- Set a reminder 120 days before mortgage maturity to start shopping for renewal
Related Resources
- Complete Guide to Buying Your First Home — Detailed first-time buyer guide
- Mortgage Affordability Calculator — How much can you afford
- Mortgage Comparison Worksheet — Compare lender offers side by side
- Ultimate Mortgage Guide — Everything about mortgages in Canada
- Mortgage Glossary — Every mortgage term defined