1. Check your credit and finances
Before you start shopping for a home, review your credit report, pay down high-interest debt where possible, and get a clear picture of your monthly income and expenses. Lenders will look at your credit score, debt-to-income ratio, and employment history.
2. Get pre-approved
A mortgage pre-approval tells you your maximum purchase price, estimates your monthly payment, and locks in a rate for 90-120 days. It also signals to sellers and realtors that you're a serious, qualified buyer.
3. Save for your down payment and closing costs
Minimum down payments in Canada start at 5% for homes under $500,000, with tiered requirements above that. Beyond the down payment, budget roughly 1.5-4% of the purchase price for closing costs like land transfer tax, legal fees, and inspections.
4. Understand default insurance
If you put down less than 20%, your mortgage requires default insurance from CMHC, Sagen, or Canada Guaranty. This protects the lender, not you, but it also allows you to buy with a smaller down payment.
5. Choose your mortgage term and rate type
Decide between a fixed or variable rate, and choose a term length (commonly 1-5 years) that matches your plans. We'll help you weigh the trade-offs based on your risk tolerance and timeline.
6. Shop the lender market, not just your bank
Your bank will only offer you their own rates and products. As a broker with access to 239 lender partners, I compare the market so you're matched with the lender and structure that best fits your goals.
7. Finalize your offer and close
Once your offer is accepted, your lender finalizes the mortgage approval, a lawyer handles the closing paperwork, and you get the keys to your new home in Ottawa, Perth, or Lanark County.