Home Buyer's Guide

12-Step Guide to Buying Your Home

1. Make sure you're ready to buy. Owning the roof over your head brings pride and stability - but also responsibility, ongoing costs, and the occasional sacrifice. Look honestly at three things: your personal readiness, your finances, and current market conditions.
2. Figure out how much you can afford. Total cost includes one-time expenses (down payment, legal fees, inspections, taxes) and monthly obligations (mortgage, utilities, maintenance, insurance, property tax). Lenders use two ratios: Gross Debt Service (housing under 32% of gross monthly income) and Total Debt Service (all debt under 40%).
3. Decide what you want to buy. Choose your area type - urban, suburban, small-town, or rural - and your home type - detached, semi, duplex, townhouse, or condo. Decide on new vs. resale. Separate true needs from nice-to-haves before you start touring.
4. Find a REALTOR® who's right for you. Licensed Canadian REALTORs® belong to local boards, provincial associations, and CREA - they're held to a specific code of ethics. There are three agency relationships: seller agency, buyer agency (representing you), and dual agency (representing both parties with disclosure). Interview a few and choose the agent whose expertise matches your situation.
5. See what's out there. Start with mls.ca, attend open houses, and visit neighbourhoods at different times of day. Use your REALTOR®'s MLS® access for listings before they hit the public site. Build a short list using your Dream Home Checklist - and stay objective when a hot tub or kitchen tries to charm you.
6. Sell your current home (if applicable). Coordinate timing carefully. Buyer's vs. seller's market conditions affect both sides of the transaction. Many people line up matching closing dates, or write conditional offers contingent on the sale of their existing home.
7. Add a lawyer to your team. A real-estate lawyer handles title transfer, flags fraud risks, addresses zoning issues, and ensures clean ownership. Ask friends, colleagues, or your REALTOR® for a referral and confirm fees up front.
8. Make an offer. Your REALTOR® drafts the offer: price, deposit, included chattels and excluded fixtures, conditions (inspection, financing, status certificate for a condo), and closing date. You can submit a firm offer (no conditions), conditional offer, or accept a counter - sometimes through several rounds.
9. Arrange a mortgage. Compare rates from banks, credit unions, and independent mortgage brokers. Consider whether assuming the seller's mortgage might make sense. Understand the basics: term, amortization, rate type. Budget for application fees, appraisal, broker fees, survey, inspection, insurance, title insurance, legal fees, property tax, and HST on new builds.
10. Hire a home inspector. Use a provincially-certified inspector to assess plumbing, electrical, roofing, insulation, foundation - and flag issues like asbestos, mould, or knob-and-tube wiring. Attend the inspection in person and request a written report with repair estimates.
11. Close the deal. Satisfy outstanding conditions, initiate title search, arrange home insurance, finalize mortgage paperwork, transfer utilities, and book movers. A day or two before closing, sign with your lawyer and bring certified cheques for the amounts they specify.
12. Move in. Most closings happen 30–60 days after the offer is firm. Hire an established, insured mover, pack early, and label boxes by room. Use the move as a chance to declutter - donate rather than haul. After moving in, give yourself time to settle before launching renovations or major furniture spends.

Land Transfer Tax Details

Land Transfer Tax (LTT) is a one-time tax paid to the province when property changes hands. The buyer pays - it's due in full at closing and cannot be added to the mortgage. Your real-estate lawyer or notary handles the actual payment and registration.

Ontario LTT rates

• 0.5% on the first $55,000
• 1.0% on $55,001 – $250,000
• 1.5% on $250,001 – $400,000
• 2.0% on $400,001 – $2,000,000
• 2.5% on amounts above $2,000,000 (single-family residential)

Hamilton, Burlington, Grimsby, Stoney Creek, Ancaster, and the rest of our service area only pay the provincial portion - Toronto adds a separate Municipal LTT, but it doesn't apply outside the City of Toronto.

First-time buyer rebate

Eligible first-time buyers receive up to $4,000 back on the provincial LTT bill. Practically, that means no LTT on the first $368,000 of a qualifying home's value, and a maximum $4,000 rebate beyond that. Eligibility:

• You're at least 18
• You occupy the home as your principal residence within 9 months of closing
• You've never owned an eligible home anywhere in the world

The application deadline is 18 months after the conveyance is registered. Your lawyer usually applies for it automatically at closing.

Want a quick estimate? Use our Land Transfer Tax calculator.

Government Programs for Home Buyers

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP, tax-free, to put toward a first home. Couples can each withdraw $60,000 for a combined $120,000. Eligibility:

• Canadian resident
• First-time home buyer (no ownership in current year or past four years)
• A written agreement to purchase or build a qualifying home
• You plan to occupy as principal residence within one year

Repayment kicks in the second year after withdrawal and is spread over 15 years. Repaid amounts go back into your RRSP tax-free.

First Home Savings Account (FHSA)

A registered account that combines RRSP and TFSA benefits - contributions are tax-deductible and withdrawals (for a first home) are tax-free. Up to $8,000 per year, $40,000 lifetime. Available to Canadian residents 18–71 who haven't owned a home in the year of opening or the previous four years. Tip: open it early in the calendar year to give your money the most time to grow.

5% Down Payment Program

Mortgage default insurance lets qualified buyers put as little as 5% down. Down payment tiers:

• Homes ≤ $500,000: 5% minimum
• Homes $500,001 – $1,000,000: 5% on the first $500K + 10% on the remainder
• Homes > $1,000,000: ineligible (must put 20% down)

You also need to demonstrate at least 1.5% of the purchase price in closing costs. Gifted down payments need to be in your account 15 days before the offer. Maximum amortization is 25 years. Premiums:

• Personal sources: 2.75% of the mortgage
• Other sources (gifts, lender incentives, sweat equity): 2.90%

CMHC Purchase Plus Improvements

Roll the cost of immediate major renovations into the original mortgage instead of taking a second loan after closing. Lending value is the lower of (a) purchase price plus actual improvement costs, or (b) the "as-improved" market value once renovations are complete. Same down-payment tiers as the 5% Down Payment Program.

HST/GST New Housing Rebate

On new or substantially renovated homes you'll occupy as your primary residence:

• Federal portion: 36% of GST paid (max $6,300) for homes ≤ $350,000
• Ontario HST portion: 75% of the provincial part (max $24,000)
• Reduced proportionally between $350,001–$450,000
• No rebate at $450,000 or above (federal portion only)

In the GTA, builders typically absorb the net HST cost into the listed price.

Land Transfer Tax (LTT) Rebate

Same as covered above - up to $4,000 off the Ontario LTT for eligible first-time buyers.

Home Buyers' Amount (Tax Credit)

A non-refundable federal income-tax credit worth up to $1,500 in tax relief (a $10,000 claim at the lowest federal tax rate). Available to first-time buyers who acquired a qualifying Canadian home - claim it on the tax return for the year of purchase.

Dream Home Checklist

Print this - or rebuild it in a notes app - and run through it before you start touring. We send a longer version to clients on request.

Budget & lifestyle

Finances

• Are you pre-approved for a mortgage?
• What's your price range - comfortably, not maximum?
• How much do you have saved for a down payment?
• Do the estimated monthly payments fit your budget without stress?
• Have you budgeted closing costs (1.5–4% of purchase price)?
• Do you have an emergency fund in place after closing?

Lifestyle

• Do you need space for a future nursery or home office?
• Garage required, or is street parking workable?
• Pet considerations (fenced yard, off-leash parks nearby)?
• How long do you plan to stay in this home?
• Wheelchair access or limited stairs important?

Home features - exterior

Needs

• Detached / semi / townhome / condo
• Number of storeys
• Driveway and number of garage spaces
• Fenced backyard
• Low-maintenance landscaping

Wants

• Larger lot, mature trees
• Swimming pool
• Enclosed front porch
• Deck or patio

Home features - interior

Needs

• Number of bedrooms and bathrooms
• Kitchen appliances included
• In-unit laundry
• Central HVAC
• Adequate closets and storage
• Indoor garage access

Wants

• Island kitchen
• Den or home office
• Pantry or generous cupboards
• Hardwood floors
• Wood-burning fireplace
• Smart-home features (thermostat, lighting)

Location essentials

• Nearby facilities (schools, community centre, places of worship)
• Parks, shopping, and dining within range
• Commute and highway access
• Distance to work
• Neighbourhood crime data
• Police and fire response

Title Insurance Details

Title insurance protects you against financial losses from defects in the legal ownership of the property - things like a forged signature in the chain of title, unpaid prior liens, undisclosed easements, survey irregularities, or work orders the seller didn't disclose.

Before closing, public records are searched to verify ownership history. But some defects only emerge after closing - for example, an unauthorized addition the previous owner built - and can hurt marketability or hit you with surprise costs. Title insurance covers most of these post-closing surprises.

Required when financing

When you take out a mortgage, the lender requires a lender's title insurance policy equal to the loan amount. The premium is a single payment at closing, and the coverage runs for the life of the loan. You should also buy the owner's policy - typically $200–$500 - which protects your equity stake.

Common covered risks

• Survey irregularities
• Forced removal of a structure built without permits
• Fraud and forgery in the chain of title
• Unregistered easements
• Access disputes
• Outstanding work orders
• Zoning non-compliance

What it doesn't cover

Risks created after the policy date, native land claims, and environmental hazards are typically excluded. Title insurance is also not a replacement for a home inspection - physical defects in the building are covered by your inspection contingency, not by title insurance. Talk specific coverage details through with your lawyer at signing.

House-Hunting Checklist

Before you start looking

• Pre-approval letter in hand
• Price range, down-payment savings, closing-cost budget
• Emergency fund still intact after closing
• Priorities ranked: bedrooms/bathrooms, lot size, commute, schools, layout, age

Interior

Doors and windows

• Single pane vs. thermopane
• All locks and latches operate
• General window condition (good / moderate / poor)

Kitchen

• Layout, finishes, lighting
• Island or prep space
• Countertop material and condition
• Pantry or storage
• Appliances included or not

Living and family rooms

• Fireplace functional
• Separate dining room
• Floor type and condition
• Wall and ceiling condition (cracks, water stains)

Bedrooms and bathrooms

• Counts and configuration
• Closet space adequate
• Bathroom ventilation (fan or window)
• Signs of moisture or damage

Exterior

Lot

• Size, shape, orientation
• Landscaping condition
• Driveway: private or shared
• Walkway condition and safety

Structure

• Number of storeys, type of home
• Siding and paint condition
• Parking - uncovered, garage, dedicated spaces
• Patio / deck condition
• Foundation: well above grade vs. visible cracks
• Pool type and condition (if any)
• Roof condition and approximate age
• Eaves troughs and downspouts
• Fenced front and/or back yard

Home systems

Electrical

• Panel size (100A or 200A) and breaker condition
• Outlets adequate per room
• Aluminum or copper wiring (avoid Federal Pioneer Stab-Lok)

Water service

• City water or well
• Pump age (if well)
• Water-quality testing for potability
• Existing water agreements

Sewage / septic

• City sewage or septic
• Where the field is located
• Recent inspection of holding tank and field

Heating and AC

• Heating type: gas / electric / oil / heat pump / combination
• AC type: window units, central
• Approximate age of furnace, AC, and water heater

Neighbourhood

• Nearby facilities: schools, hospital, fire/police
• Parks, shopping, restaurants, theatres, library
• Commute and highway access
• Public transit options
• Crime data and street character
• Possible problems: rail tracks, busy roads, congestion
• Street lighting, sidewalk presence, off-street parking rules

What to Expect From Your REALTOR®

A buyer's agent owes you eight specific things on every file:

1. A clear process explanation

A walkthrough of every stage - pre-approval, offer, conditions, closing - so you're never surprised by what comes next.

2. A real needs assessment

Honest conversations about why you're moving, your timeline, your finances, and your future plans. The goal is a complete picture of your wants and needs, not a quick signature on a buyer agreement.

3. Dream-home strategy

Your agent helps shape what you're looking for - features, neighbourhood, architectural style - then maps that against the live market and your budget. The point is to save you time, not extend the search.

4. MLS® property access

Direct, current MLS® access including listings before they hit the public site, full property history, and sold comparables.

5. House viewings and assessment

At every showing, your agent gives you the read on neighbourhood quality, utility costs, and visible home condition - and tells you when a property isn't a fit.

6. Negotiation

Experienced agents arrange fair deals, mediate offers and counters, and translate the outcome into a legally binding agreement.

7. Professional standards

Members of the Ontario Real Estate Association are bound by provincial law and a Code of Ethics. That's your guarantee of service, honesty, and integrity.

8. Legal and document expertise

A good agent recognizes problems early - title issues, financing risk, conditional-clause traps - and finds solutions before they kill the deal.

The REALTOR® Commitment

You're trusting a REALTOR® with your most valuable asset. Every licensed REALTOR® in Canada makes the same seven commitments, backed by CREA, your provincial association, and provincial regulators.

1. Highly trained professionals

REALTOR® training is rigorous - candidates regularly fail the pre-registration coursework. Those who pass have studied subjects ranging from housing construction to family law.

2. Continuous education

Every licensed REALTOR® must complete continuing education to keep current on legal, financial, and technology changes that affect transactions.

3. Regulatory compliance

REALTORs® are registered under provincial laws that govern exactly how real estate can and cannot be traded. Those regulations are your legal guarantee of professional behaviour.

4. Ethical standards

Adherence to the CREA Code of Ethics, plus any provincial-level codes, is mandatory. Your interests come before the agent's.

5. Consumer protection insurance

Provincial regulators sponsor consumer-protection programs that may require Errors & Omissions Insurance and deposit protection - additional safety nets while your transaction is in flight.

6. Recourse mechanisms

Provincial regulators and local boards investigate complaints about professional conduct promptly and seriously.

7. MLS® access

The MLS® system is the single most powerful information and marketing tool in Canadian real estate. It's a cooperative network operated by REALTORs® and only accessible through them.

Helpful Links

Mortgage and financial

• Canada Mortgage and Housing Corporation (CMHC)
• Bank of Canada - current rate environment and policy direction
• Major lenders: BMO, Scotiabank, TD, Royal Bank, plus credit unions and independent mortgage brokers we can refer.

Real estate boards and associations

• Canadian Real Estate Association (CREA)
• Ontario Real Estate Association (OREA)
• Real Estate Council of Ontario (RECO) - Ontario's licensing regulator
• REALTORS® Association of Hamilton-Burlington (RAHB)

Schools and community

• Hamilton-Wentworth District School Board
• Hamilton-Wentworth Catholic District School Board
• Ontario Ministry of Education

Credit history

• TransUnion Canada
• Equifax Canada

City and utilities

• City of Hamilton
• Alectra Utilities (Hamilton electricity)
• Enbridge Gas
• Canada Post (mail forwarding at closing)

Looking for a Hamilton-area mortgage broker, lawyer, inspector, or mover? Reach out - we keep a current short list and don't take referral fees from any of them.