Country guide

Buying a home in Canada

The stress test decides what you can borrow, and it is calculated at a rate higher than the one you will pay.

An offer with conditions, a deposit paid on acceptance, mortgage default insurance below twenty per cent down, and a land transfer tax that varies sharply by province and city.

Below: the steps in order, then every document you need to get hold of before you are committed - who has it, what it costs, and the things it turns up, with what each one costs and how long it holds you up if you find it late.

Checked August 2026. Thresholds, grants and taxes change with budgets - the sources at the end are the ones to trust over this page.

The essentials

Down payment: 5% on the first portion of the price, more above it; Below 20% you must carry CMHC or private mortgage default insurance
Paid on acceptance: Deposit, commonly around 5%; Held in the brokerage's trust account and credited at closing
Government charge: Land transfer tax by province, plus a municipal one in Toronto; First-time buyer rebates exist in several provinces
Who does the legal work: A real estate lawyer; a notary in Quebec and often in BC
Binding at: Acceptance, subject to conditions
Closing: Commonly 30 to 90 days

The steps, in order

1Get pre-approved and pass the stress testFederally regulated lenders qualify you at a rate above your contract rate, so your approval is smaller than your payment would suggest.
2Make an offer with conditionsFinancing, home inspection, and for a condominium a review of the status certificate. In hot markets buyers drop these, which is exactly when they matter.
3InspectA home inspection is not mandatory and not regulated everywhere. Choose the inspector yourself rather than the one the agent suggests.
4Review the status certificate if it is a condoReserve fund, special assessments, rules, litigation and the corporation's finances. Your lawyer reads it, and there is a deadline.
5Waive conditions and firm upOnce conditions are waived the deal is firm and the deposit is at risk if you cannot complete.
6Close through your lawyerTitle search, title insurance, land transfer tax, adjustments and registration all happen here.

The stress test

Federally regulated lenders must qualify borrowers at the higher of a benchmark rate or the contract rate plus two percentage points. It applies to insured and uninsured mortgages and is the single biggest constraint on what most buyers can borrow.

Mortgage default insurance

With less than twenty per cent down you must carry insurance from CMHC, Sagen or Canada Guaranty. It protects the lender, not you, and the premium is usually added to the loan. There are limits on the price of a home that can be insured at all.

Condominiums and the status certificate

The status certificate is the condo equivalent of a health check: reserve fund balance, planned major work, any special assessment, the declaration and rules, and whether the corporation is in litigation. An underfunded reserve is a special assessment waiting to arrive.

Land transfer tax and what else closing costs

Ontario, British Columbia and most provinces levy a land transfer tax on the buyer, and Toronto adds a municipal one on top. Alberta and Saskatchewan charge smaller registration fees instead. Add legal fees, title insurance, adjustments and, on a new build, GST or HST.

Foreign buyers and additional taxes

A federal prohibition on residential purchases by non-Canadians has been in force with exemptions, and British Columbia and Ontario levy additional taxes on foreign buyers. Check what applies to your situation before you offer.

The documents to get, and what they catch

5 documents to get hold of before you are committed, and 8 of the things they turn up - each with what it costs and what it does to your timetable if it is found late. Costs are indicative and move with the market.

1
Agreement of purchase and sale, with conditions
Do not skip
Financing, inspection and status certificate conditions are your exits.
Where:
Your agent; reviewed by your lawyer
When:
At the offer
Cost:
Free; lawyer review $500-$1,000
Waiving the financing condition on a pre-approval that was based on a different property
Cost: The deposit, commonly 5% - $30,000 on a $600,000 home - plus damages if the seller resells for lessDelay: Immediate: the deal is firm and you must close
What a close read catches: Conditions and their waiver dates are extracted and dated, so what has actually been given up is visible.
A new build where GST or HST is not included in the advertised price
Cost: 5-13% of the price, less any rebate - $30,000-$70,000
What a close read catches: Tax clauses are read against the price stated on the front page.
2
Status certificate (condominium)
Do not skip
Reserve fund, special assessments, rules, budget and litigation.
Where:
The condo corporation
When:
Within the condition period, usually ten days
Cost:
$100 in Ontario, capped by statute
The reserve fund study recommends contributions far above what the corporation collects
Cost: $10,000-$60,000 per unit as a special assessmentDelay: Typically within one to three years
What a close read catches: The study is read against the budget, so the shortfall is reported as a levy in preparation.
Litigation involving the corporation, disclosed in a schedule nobody reads
Cost: Legal costs funded by common expenses, and a resale discount while it runs
What a close read catches: Schedules and attachments are read rather than counted.
3
Home inspection
Do not skip
Nothing else looks at the building on your behalf.
Where:
An inspector you choose; the trade is unregulated in several provinces
When:
Within the inspection condition
Cost:
$400-$700
Kitec plumbing, aluminium wiring or knob-and-tube, each of which insurers treat as a refusal or a loading
Cost: $6,000-$15,000 to replace Kitec; $8,000-$15,000 to remediate aluminium wiringDelay: Can prevent binding insurance, which prevents closing
What a close read catches: Findings that affect insurability are separated out, because they threaten the mortgage rather than just the budget.
An underground oil tank, current or decommissioned without documentation
Cost: $5,000-$50,000 for removal and soil remediationDelay: Weeks, and it can make the property uninsurable meanwhile
What a close read catches: The report is read against the property's age and heating history rather than in isolation.
4
Title search and title insurance
Do not skip
Registered interests, liens and work orders that survive the sale.
Where:
Your lawyer or notary
When:
Before closing
Cost:
Search included in fees; title insurance $250-$700 one-off
An outstanding work order or an unregistered easement found days before closing
Cost: The cost of compliance, plus interest and per-diem penalties if closing is lateDelay: One to four weeks, with a per-diem cost on the delay
What a close read catches: Registered instruments are read individually rather than listed.
5
Mortgage commitment and the stress test result
Do not skip
Approval is calculated at a higher rate than you will pay, so it is smaller than it looks.
Where:
Your lender
When:
Before waiving the financing condition
Cost:
Free; appraisal $300-$500 if required
The appraisal comes in below the purchase price, so the lender funds the lower figure
Cost: The shortfall, in cash, commonly $20,000-$60,000Delay: Days, against a firm closing date
What a close read catches: The commitment's conditions are extracted, including the ones that only bite after an appraisal.

TrueBuy’s document review covers Australian property today. The reading itself is not country-specific - it works through every page, quotes what it finds, and prices what can be priced - and the checklist above is what that reading looks for in Canada. If you are buying there and want to be told when we cover it, the support chat is the place to say so.

What to watch for

The things that cost Canadian buyers money, in the order they tend to be discovered too late.

Waiving the financing condition when your approval is based on a different property
A condo reserve fund study that recommends far more than the corporation is collecting
Buying a new build with GST or HST not included in the advertised price
Kitec plumbing, aluminium wiring, knob-and-tube, and underground oil tanks - each an insurance problem
Assuming the home inspector is licensed; in several provinces the trade is not regulated

Where these figures come from

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Information, not legal advice. Rules differ by state, province and territory, and change. Confirm with a qualified professional in Canada before acting. TrueBuy’s document review and price estimates currently cover Australian property only.