Buying a Home in Canada

1. 2

   Is this guide for you?

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   You are purchasing a residential property (house, condo, or co-op) in Canada

   •

   You are buying for personal use, not a commercial development project

   •

   You are working with a mortgage lender or purchasing with cash

   Non-Canadian buyers: the federal prohibition on residential purchases by non-Canadians (extended through 2027) may apply. Consult a lawyer before making an offer.

   Not legal or financial advice

   This guide is for general information. Engage a real estate lawyer or notary before closing on any property.

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2. 3

   The buying process: step by step

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   Mortgage Pre-Approval

   Know your budget before you start. Locks in your rate for 90–120 days and signals seriousness to sellers.

   Property Search

   MLS listings, private sales, and new developments. Guidepost focuses on private home purchases.

   Conditional Offer

   Subject to financing, home inspection, and review of documents. Never waive conditions blindly.

   Home Inspection

   Hire a qualified inspector. $400–$700 for potential to discover thousands in issues.

   Lawyer / Notary

   Required in every province to complete title transfer. Budget $1,000–$2,500 depending on province.

   Close & Take Possession

   Sign documents, transfer funds via lawyer, and receive keys on closing day.

   Home Buyer's Plan (HBP): First-Time Buyers

   First-time buyers can withdraw up to $60,000 from their RRSPs tax-free to put toward a home purchase (Budget 2024 update). The withdrawal must be repaid to your RRSP over 15 years. To qualify, you must not have owned a principal residence in the past 4 calendar years. Ask your financial institution about Form T1036.

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3. 4

   Closing costs to budget for

   Beyond the purchase price, buyers typically spend an additional 1.5–4% on closing costs depending on province and property type.Open this section ↓Close ↑

   Beyond the purchase price, buyers typically spend an additional 1.5–4% on closing costs depending on province and property type.

   Cost	Typical Range	Notes
   Land Transfer Tax	Varies by province	Higher rates apply on portions above $3M in BC; additional taxes may apply for non-Canadian buyers. Check your province's land transfer tax or land titles fee
   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

   Non-Canadian buyersThe federal Prohibition on the Purchase of Residential Property by Non-Canadians Act (extended through 2027) restricts most non-Canadians from purchasing residential property in Canada. Certain exemptions apply. If you are not a Canadian citizen or permanent resident, consult a real estate lawyer before making an offer.

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4. 1

   Your province

   Land transfer tax, local legal requirements, and common pitfalls differ significantly by province.Open this section ↓Close ↑

   Land transfer tax, local legal requirements, and common pitfalls differ significantly by province.

   OntarioON

   Ontario charges Land Transfer Tax (LTT) on a sliding scale: 0.5% up to…

   AlbertaAB

   Alberta has no provincial Land Transfer Tax. Instead, Land Titles char…

   British ColumbiaBC

   BC Property Transfer Tax (PTT): 1% on first $200k, 2% on $200k–$2M, 3%…

   QuebecQC

   Quebec's "Welcome Tax" (Droits de mutation immobilière). The provincia…

   ManitobaMB

   Manitoba Land Transfer Tax: 0% on first $30k, 0.5% on $30k–$90k, 1% on…

   SaskatchewanSK

   Saskatchewan has no Land Transfer Tax. A Land Title registration fee a…

   Nova ScotiaNS

   Nova Scotia has a municipal Deed Transfer Tax set by each municipality…

   New BrunswickNB

   New Brunswick charges a Real Property Transfer Tax of 1% of the proper…

   Prince Edward IslandPE

   PEI Real Property Transfer Tax: 1% of the greater of purchase price or…

   Newfoundland & LabradorNL

   Newfoundland & Labrador has no Land Transfer Tax. A Registry of Deeds …

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5. 5

   After you close

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   Arrange home insurance

   Your lender requires proof of insurance before funds are released. Contact your insurer before possession day.

   Partner · Guidepost earns a commission

   Square One quotes home and condo insurance online in BC, Alberta, Saskatchewan and Ontario; your lender needs the policy number before funds are released.

   Update your address

   Notify CRA, your provincial health card office, employer, financial institutions, and Canada Post.

   Set up utilities

   Transfer electricity, gas, and water accounts to your name starting from possession day.

   File HBP or FHSA forms

   If you used the Home Buyers' Plan (T1036) or FHSA, file the required CRA forms with your next tax return.

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6. 6

   Money left in your FHSA at closing

   These are the CRA’s published deadlines, so you know which clock you are on.Open this section ↓Close ↑

   These are the CRA’s published deadlines, so you know which clock you are on. What to do with the money is a conversation for your bank or an accountant, not for a guide.

   I just closed on my home and still have money in my FHSA. Is it too late for a tax-free withdrawal?

   Not automatically. The CRA’s rule is that you must not have acquired the qualifying home more than 30 days before making the withdrawal, so a qualifying withdrawal is still possible in the days right after you take ownership. A qualifying withdrawal also requires that you occupy or intend to occupy the qualifying home as your principal place of residence within one year after buying or building it, and it is requested on Form RC725, which goes to your FHSA issuer. Check the CRA page for the full conditions, and talk to your bank or an accountant about your own account.

   What happens to money left in my FHSA after that?

   Your maximum participation period begins when you open your first FHSA and ends on December 31 of the year in which the earliest of these happens: the 15th anniversary of opening your first FHSA, you turn 71 years of age, or the year following your first qualifying withdrawal from your FHSA. Before that end date, unused funds can be directly transferred on a tax-deferred basis into an RRSP or a RRIF, or withdrawn as taxable income. Which of those suits you is a question for your bank or an accountant.

   What if I miss the deadline to close the account?

   The accounts lose their status as FHSAs, and the CRA treats the balance as income: the fair market value of the property in your FHSAs at the end of December 31 of that year goes on your income tax and benefit return for that year, and your issuer gives you a T4FHSA slip. The CRA page on closing an FHSA sets out the details.

   CRA: withdrawing money from your FHSA →CRA: closing your FHSA →

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Facts checked September 2026 · Sources: Ontario.ca Land Transfer Tax, BC Ministry of Finance PTT, CRA Home Buyers Plan (canada.ca), CMHC.