A first-time buyer's guide to buying a home in Canada

Step 1: Know your budget

Start with what you can comfortably pay each month, not the maximum a lender might approve. Include property taxes, insurance, utilities, condo fees if any, and maintenance. Then look at your savings for a down payment and closing costs.

Step 2: Check your credit

Your credit score affects which lenders and rates you can get. Check your report from both Canadian credit bureaus, fix any errors, and keep paying everything on time. Read how to improve your credit score.

Step 3: Save your down payment

The minimum down payment in Canada starts at 5%. With less than 20% down, you'll also need mortgage default insurance. See how much down payment you need.

Programs that help first-time buyers

• First Home Savings Account (FHSA): contributions are tax-deductible, and withdrawals for a qualifying first home are tax-free.
• RRSP Home Buyers' Plan (HBP): lets you withdraw from your RRSP to buy a first home, then repay it over time.
• First-Time Home Buyers' Tax Credit: a federal tax credit you can claim the year you buy.
• Land transfer tax rebates: some provinces and cities reduce or refund land transfer tax for first-time buyers.
• Longer amortization: first-time buyers may qualify for a 30-year amortization on an insured mortgage, which lowers the monthly payment.

Limits and rules for these programs change. Check the current details on the Government of Canada and your province's websites, or ask your broker.

Step 4: Get pre-approved

A pre-approval tells you how much a lender will likely lend you, and often holds a rate for a few months. It also shows sellers you're serious. Read pre-approval vs. pre-qualification.

Step 5: Shop, offer and close

Once your offer is accepted, your broker finalizes the mortgage, a lawyer or notary handles the legal side, and you get the keys on closing day. Plan for closing costs so there are no surprises.