Complete Property Buying Guide — Canada

Understanding the Canada Property Market

The property market in Canada offers diverse opportunities across its key markets. Toronto, Vancouver, Montreal, Calgary, Ottawa, and Edmonton represent the main buying hotspots, with prices and demand varying significantly between regions.

The Bank of Canada sets the benchmark interest rate, which influences mortgage pricing across all lenders. Use our mortgage calculator to estimate repayments based on current rates.

Property Prices and Key Markets

Typical prices in Canada range from $300,000 in mid-tier cities to $1,000,000+ in Toronto and Vancouver.

Canada’s mortgage system is unique in that most mortgages have terms of only 5 years (the amortisation period is 25-30 years, but the rate is renegotiated every 5 years). The federal government also requires mortgage stress testing — buyers must qualify at the contract rate plus 2% or the Bank of Canada’s qualifying rate, whichever is higher

Setting Your Budget

Beyond the purchase price, you need to budget for transaction costs that typically add 3-5% including land transfer tax, legal fees, title insurance, and home inspection to the total. Your deposit requirement is 5-20%, though this varies by lender and your buyer profile.

Land transfer tax varies by province — Ontario charges 0.5-2.5% on a sliding scale, British Columbia charges 1-5%, while Alberta has no land transfer tax. Toronto adds an additional municipal land transfer tax

Read our buying costs guide for a detailed breakdown of all purchase-related expenses.

Getting Finance Approved

Mortgage terms in Canada extend up to Amortisation up to 25 years (30 years with 20%+ deposit). Mortgage terms typically 1-5 years, with 5-year fixed being most popular. Lenders typically offer up to 95% with CMHC mortgage insurance (mandatory for LTV over 80%). Properties over $1 million require minimum 20% deposit loan-to-value, meaning you need at least the remainder as a deposit.

Compare rates across major lenders including RBC, TD Bank, Scotiabank, BMO, CIBC, National Bank, plus credit unions and monoline lenders like First National and MCAP. Our mortgage types guide explains the differences between available loan products.

Finding and Securing Property

Working with a qualified real estate agent or REALTOR® is the standard approach in Canada. Research local areas thoroughly, attend viewings, and consider factors like transport links, amenities, and future development plans.

Legal Process and Due Diligence

Property transfers in Canada require a qualified real estate lawyer or notary (in Quebec and BC) to handle the legal process. The buyer makes an offer through their agent, which becomes binding once accepted. A deposit (typically 5%) is held in trust. The lawyer handles title searches, mortgage registration, and closing. Most provinces allow a condition period for financing and inspection.

Professional home inspections are standard and highly recommended. Most offers include an inspection condition, though competitive markets have seen buyers waiving inspections — a risky practice

See our property inspection checklist for what to check before committing.

Government Support for Buyers

The First Home Savings Account (FHSA) allows tax-deductible contributions up to $40,000 for a first home deposit. The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP tax-free for a first home. First-time buyers also receive a land transfer tax rebate in Ontario and BC, and may access the First-Time Home Buyer Incentive for shared equity support

Check our government grants guide for the latest programmes and eligibility criteria.

Next Steps

Use our mortgage calculator to model different scenarios, browse Canada FAQs for quick answers, or read our complete mortgage guide for detailed information on rates and lenders.