Question 1

Do I need a lawyer to buy a home in Canada?

Accepted Answer

Yes. A real estate lawyer (or notary in Quebec) is required in every Canadian province to complete the title transfer. Your lawyer conducts the title search, handles the mortgage, calculates property tax adjustments, registers the transfer, and ensures you receive clean title. Budget $1,000–$2,500 for legal fees.

Question 2

How much is land transfer tax in Canada?

Accepted Answer

It varies significantly by province. Alberta and Saskatchewan have no land transfer tax (only a small registration fee). Ontario charges a tiered tax starting at 0.5% up to $55,000, rising to 2% above $400,000 for most buyers — plus an additional municipal land transfer tax in Toronto. BC charges PTT at 1% on the first $200,000, 2% up to $3 million, and 3–5% above that. First-time buyers may qualify for full or partial rebates in Ontario, BC, and PEI.

Question 3

What is the First Home Savings Account (FHSA)?

Accepted Answer

The FHSA is a registered account introduced in 2023 for first-time home buyers. You can contribute up to $8,000 per year ($40,000 lifetime limit) and withdraw it tax-free for a qualifying home purchase. Unlike the Home Buyers' Plan (HBP), FHSA withdrawals do not need to be repaid. You can use both the FHSA and HBP together on the same purchase.

Question 4

What is a conditional offer and can I waive conditions?

Accepted Answer

A conditional offer is an offer to purchase that only becomes firm if certain conditions are met — typically a satisfactory home inspection, mortgage financing approval, and review of any strata/condo documents. You can waive conditions to make your offer more competitive, but doing so transfers significant risk to you. Waiving the inspection condition means you accept the home as-is; waiving the financing condition means you must close even if your mortgage falls through.

Question 5

What is title insurance and do I need it?

Accepted Answer

Title insurance protects against losses from defects in title that were unknown at the time of purchase — such as fraud, encroachments, zoning violations, or errors in previous title transfers. It is a one-time premium of $200–$400 and is strongly recommended. Most mortgage lenders require it. It does not replace a lawyer's title search but provides coverage for issues the search might miss.

Cost	Typical Range	Notes
Land Transfer Tax	0–5% of price	Higher rates apply on portions above $3M in BC; additional taxes may apply for non-Canadian buyers. AB and SK have no LTT
Legal Fees	$1,000–$2,500	Required in all provinces
Title Insurance	$200–$400	One-time; strongly recommended
Home Inspection	$350–$700	Not legally required but essential
Property Tax Adjustment	Varies	Reimburse seller for prepaid taxes
Mortgage Setup	$0–$500	Some lenders charge appraisal or setup fees

Buying a Home in Canada

The buying process — step by step

Closing costs to budget for

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