Buying a home

Before calculating your borrowing capacity, make a detailed list of your income and expenses. Use our online budgeting tool, Your budget, to make sure you don't forget anything.

Then, estimate how much you can afford to pay for a home. We recommend that you:

• Don't put more than 32%1 of your gross household income toward housing expenses.
• Keep your total debt payments under 40%1 of your gross household income.

Remember that these are just estimates and your caisse will take more information into consideration when you apply.

Do you use AccèsD? Log in to AccèsD and go to Home to calculate your borrowing capacity.

This is the sum of money that you pay when you buy a property. You could build your down payment with your personal savings, your RRSP, an inheritance or cash gifts2. A bigger down payment means you take out a smaller mortgage and you'll pay less interest.

• For a property of $500,000 or less, your down payment should be at least 5% of the purchase price.
• For a property from $500,000 to $999,999, your down payment should be at least 5% of the first $500,000 and 10% of the rest.
• For a property of $1 million or more, your down payment should be at least 20% of the purchase price.

In some cases, a larger down payment may be required.3 It may also be based on the determined value4 of the property.

If your down payment is less than 20%, your loan has to be insured by the Canada Mortgage and Housing Corporation (CMHC) External link or Sagen External link. You pay a premium based on your down payment amount and a 9% tax on this premium. The premium itself can be paid in full or built into your mortgage payments.

As for the tax, your caisse will deduct the amount from your account at the time of disbursement to the notary (during the purchase transaction). 

• Start saving early and consistently. Make it simple by setting up automatic transfers with our AccèsD online and mobile services.
• Save your money in a tax-sheltered plan, like a first home savings account (FHSA) or an RRSP.
• Take advantage of government incentives to boost your down payment.

This program allows you to withdraw from your RRSPs tax-free to buy or build a home.

• Available to first-time buyers who don't own a primary residence in the year of the withdrawal or haven't in the 4 previous years.
• You can withdraw up to $60,000 per person and up to $120,000 per couple.
• You have to start repaying your money 2 years after your withdrawal, except for withdrawals made between January 1, 2022, and December 31, 2025. In that case, you can start repayments 5 years after your withdrawal.
• You have 15 years to repay the full amount you withdrew under the HBP, interest-free.

This new registered account lets you save for your first home tax-free.

• Available to Canadian residents who are at least 18 years of age
• Available to people who don't own a primary residence in the year they open the account or haven't in the 4 previous years
• Annual contributions up to $8,000, to an account maximum of $40,000

You can either combine the FHSA and the HBP for your first down payment or select the one that works best for you.

These fees5 might include inspection or appraisal fees, land transfer tax (or "Welcome" tax), professional fees and moving costs. To cover them, plan for at least 3% of the purchase price of your future home, on top of your down payment.

Fill out the form to see the closing costs when buying a home (PDF, 1.2 MB)

You could get cash back6—up to $10,000 or 5.5% of your mortgage—to cover a portion of your closing costs. When you take out your mortgage, your rate will be increased to reflect the cash back.

When you get pre-approved, you find out how much you can afford to spend when buying a home. A pre-approval also locks in your rate for a limited time.

Even though getting pre-approved is an important part of the process, there's no obligation on your part.

• Established neighbour­hood
• Landscaped yard
• Extra features like an in-ground pool, finished basement, etc.
• GST might apply for some major renovations

• Option to improve or select the exterior siding, flooring, plumbing and electrical accessories
• Built according to recent construction standards
• Comes with contractor’s or builder’s warranty
• GST and QST apply

• Option to buy a new or existing condo
• Some spaces are shared among owners
• Condo fees required to manage the building

• You need to own or buy land
• For individual properties occupied as principal residences
• Large-scale projects that require time, organization, knowledge and liquid cash
• Financing done through progressive disbursements as the project advances

If you have another type of home in mind, schedule a call with a mortgage advisor. They are the most qualified to fill you in on the financials of various home options.

A purchase offer, also known as a promise to purchase, is a contract that legally binds you to buy the property from the seller, under certain conditions.

• Address and lot number
• Deposit amount
• Possession date
• Tax adjustment
• Length of time the offer is valid (usually between 24 and 48 hours)
• What’s included in or excluded from the selling price (e.g., curtains, household appliances)
• Approval of mortgage (condition on the purchase)
• Satisfactory inspection of the premises by an expert (condition on the purchase)
• Sale of your current house (if you’re already a homeowner)
• Any other condition(s) deemed appropriate7
  

The seller accepts or rejects the offer.

• If the offer is accepted, it's legally binding and neither the buyer nor the seller can back out. A broken agreement could lead to the seller or buyer being sued for damages. The buyer could even lose their deposit.
• If the offer is rejected, the seller can make a counter offer (on the price, closing date and so on). You can either accept it or turn it down. If you reject it, you can make another counter offer.

The inspection is a visual examination of the property to identify defects before the purchase is complete. Once your offer is accepted, you arrange for an inspection by a building inspector who then gives you an inspection report. The report describes things like the condition of the foundation, roof, structure, windows, insulation, plumbing and electrical system.

If your offer is conditional on the inspection and the report reveals some problems, you could negotiate the price or even cancel the purchase offer.

This is a document prepared by a land surveyor. It describes the lot and building, identifies any irregularities and lists any easements or specific bylaws or regulations that may restrict a property owner’s rights.

Most mortgage lenders require a certificate of location.

The conditions in the purchase offer determine who should provide the certificate, but it's usually the seller's responsibility.

A mortgage is a loan used to finance the purchase of a home. Mortgages are either open or closed. Their rates may be fixed, variable or annually adjustable.

The Versatile Line of Credit is a home equity line of credit (HELOC). You can use it to finance your home or access your home equity to pay for other things.

With the Versatile Line of Credit, you can personalize your mortgage and tie several loans to it. Each loan has its own interest rate, term and payment frequency.

The mortgage rate is used to calculate the cost of your loan, that is, the interest you'll pay the financial institution for your mortgage. It may be fixed, variable or annually adjustable.

Loan Insurance provides 2 types of coverage:

• Life insurance pays the balance of your loan in the event of death and protects your loved ones from the financial stress of taking over your debts
• Disability insurance, which will make the payments on your loan in the event of accident or illness

Home insurance8 protects your property and belongings from common risks. It's available for houses, condos and cottages.

All-risk coverage includes basic protection. It covers you for accidental events such as fire, theft or vandalism. You can add optional coverage for your specific needs, such as insurance for your pool.

It's a legal document that details the transfer of a property from the seller to a buyer. It is signed at the notary's office with the seller.

• Make sure the notary received all necessary documents, including the certificate of location.
• Review the adjustment statement that details the amount that has to be paid to the seller to conclude the sale.
• Send your down payment to the notary.
• Provide proof of home insurance for an adequate amount.

The seller has to provide the title and also guarantee that the property is free of any major defects that would make it unsuitable for its intended use.

Your notary takes care of the legal aspects involved in transferring property titles, checks all the documents and provides you with the ones you need.

Once the deed of sale is signed, you're a homeowner!