Planning to buy a home

Plan ahead in 6 steps

  1. Decide how much you can afford.
  2. Plan how you’ll save for your down payment.
  3. Protect your credit score by paying all bills and debts in full and on time.
  4. Set up a loan to pay for your home even before you start to look. This is called a pre-approved mortgage.
  5. Check interest rates. But remember — interest rates go up and down. Rates may also vary depending on the type of mortgage (fixed or variable), term and features you choose.
  6. Know all the costs. Examples: appraisal, legal, home inspection and real estate fees.

Learn more about mortgage options and features.

Find out how much you can borrow

Your lender looks at:

  • how much you make each month and how much you can spend on mortgage payments,
  • how much the house is worth and how much you can pay in cash (your down payment), and
  • what it will cost to run your home – including taxes, heating and insurance.

Don’t forget the HST

If you’re buying a new home that costs more than $400,000, you’ll have to pay HST in Ontario. Learn more about the HST and new homes.

You won’t pay HST on resale homes. But it will apply to monthly maintenance fees for condos, as well as to legal advice, moving services, and home inspection and professional real estateEstate The total sum of money and property you leave behind when you die.+ read full definition services.

Get advice

Talk to your lawyer, a real estate agent or a mortgageMortgage A loan that you get to pay for a home or other property. Often the loan is for 20 years or more. You make a set number of payments for a set amount each year.+ read full definition brokerBroker A registered person who brings together someone who wants to buy investments with someone who wants to sell. Brokers often charge a fee or commission for buying and selling investments for you.+ read full definition. They can advise you on all aspects of buying a home, including all of the costs.

6 quick steps to get started

  1. Decide on how much you can afford
  2. Create a savings plan
  3. Protect your credit score
  4. Set up a pre-approved mortgage
  5. Watch interest rates
  6. Know all the costs
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