Process Of Buying A Home In Canada

Buying A Home In Canada is a gradual process. Before shopping for a home, you’ll need to plan ahead for the costs of owning a home. Such costs will include:

  • Heating
  • Property taxes
  • Home repairs

To search for a home to buy:

  • Visit areas where new homes are being built
  • Read the new homes section in newspapers or real estate magazines
  • Inform you friends, family and work colleagues that you’re looking for a house
  • Visit real estate websites for information and photographs on different homes
  • Drive around a neighbourhood that you like and look for “For Sale” signs

A real estate agent can help you find and buy a home. They will:

  • Pay attention to your needs
  • Organise for home visits
  • Arrange a professional home inspection
  • Assist you in getting a good price

To find a real estate agent:

  • Ask your bank, people you know and people around you if they know a real estate agent
  • Look for the names of real estate agents on “For Sale” signs in your preferred neighbourhoods.

Making an offer

Once you’ve found a home of your choice, it’s time to make an “offer to purchase.” If you’re using a real estate agent, they will assist you in making the offer.

If your offer of purchase is accepted, there comes the need to hire a lawyer or notary to transfer your home to your name. You can find one online or ask your real estate agent.

Financing your home

Most homebuyers need a mortgage loan to purchase their home. You can get such loan from:

  • Banks
  • Other financial institutions, like:
    • credit unions
    • caisses populaire
    • insurance companies

Mortgage is usually paid back through regular payments over a period of time. It is usually up to 25 years. You’ll be charged interest to borrow this money.

Down payment and mortgage loan insurance

The amount of your mortgage is the price of the home minus the amount of your down payment. If the down payment is less than 20 per cent of the price of your new home, you may need mortgage loan insurance.

Mortgage loan insurance is created to protect the bank or financial institution in case you are unable to pay back the mortgage. It also lets you get a mortgage for a lower down payment and a lower interest rate.

Ask your bank or financial institution about mortgage loan insurance.

Credit score and history

It is very important to have a good credit history in case you want to get a mortgage in future. If you are new in Canada, your credit history may not be recognized by Canadian banks.

If you want to buy a home, you should start getting a new credit history as early as possible. Speak with your banker about making a plan to start a credit history.

Home inspection

If you make an offer on a house, your offer should be made with the condition that a professional home inspector must inspect the home. With this, you are allowed to cancel or change your offer if the inspector finds serious problems with the house.

A home inspector makes detailed inspections of properties (for a fee). They’ll provide you with a report that you and your real estate agent can review. You can decide if the home needs repairs that affect the price you agree to pay.

Other forms of housing

Government-assisted housing

Governments can help if you have low incomes that make it hard to afford the cost of a home.

New immigrants or refugees can move into subsidized homes, but your name will be added on a waiting list. You can’t add your name to a waiting list when you are not yet in Canada.

When you arrive in Canada, ask an immigrant-serving organization in your city or town about local subsidized housing.

Co-op housing

Co-op housing is a group of apartments or houses that:

  • often have lower than average rent costs
  • expect you to help manage and maintain the co-op
  • are owned and managed by the members who live in them

Post-secondary student housing

Most universities and colleges can give you information about on-campus and off-campus housing. Contact the housing department of the university or college you plan to attend.

Emergency housing

Emergency housing (sometimes called “shelters”) is a short-term place for people who are homeless or in crisis. It’s a safe place where you can get basic necessities such as:

  • food
  • money
  • showers

Emergency housing is helpful if you:

  • get evicted from your home
  • are without a place to sleep
  • are at risk of being abused if you stay in your home

Staff and volunteers at shelters can help you get:

  • support and information
  • legal advice
  • financial help
  • a new place to live

In case you didn’t have time to pack, they also have:

  • food
  • clothing
  • diapers
  • toys

If you’re being abused, the shelter staff won’t tell the person who abused you where you are.

Telephone numbers for shelters can be found in the first pages of the telephone book with other emergency numbers.

You can also call a shelter for advice without having to tell them your name. Some staff members communicate in different languages or can use the help of an interpreter.

Housing for seniors

There are assisted housing options for seniors in Canada. These include government-funded and private residences for seniors.

You can also see how to make a career as an estate agent.