12 Commonly Googled Real Estate Questions, Answered by REALTORS

1. How Much Do I Need for a Down Payment in Canada?

This is one of the top home buying questions searched across the country — and for good reason.

In Canada, the minimum down payment depends on the purchase price of the home:

• Homes under $500,000 — you need at least 5% down
• Homes between $500,000 and $999,999 — you need 5% on the first $500K and 10% on the remaining amount
• Homes $1 million or more — the minimum is 20%

If your down payment is less than 20%, you’ll also need to pay for CMHC mortgage insurance, which protects the lender (not you) in case you default on the loan. This cost gets added to your mortgage.

A good starting point? Talk to a mortgage broker before you start looking at homes. Knowing your real budget makes the whole process less stressful

You Should Also Read it : How to Navigate a Competitive Real Estate Market

2. What Is Mortgage Pre-Approval and Do I Actually Need It?

Yes — and REALTORS® across Canada will tell you this is not optional if you’re serious about buying.

A mortgage pre-approval is a letter from a lender that confirms how much money they are willing to lend you, based on your income, credit score, and financial situation. It locks in an interest rate for a set period (usually 90 to 120 days).

Here’s why it matters:

• It shows sellers you are a serious buyer
• It helps you shop within your real budget
• In competitive markets like Calgary or Ottawa, many sellers won’t even look at an offer without one

Getting pre-approved doesn’t mean you have to buy. But it gives you a clear picture of where you stand before you fall in love with a home you can’t afford.

3. What Is the Stress Test and How Does It Affect Me?

The Canadian mortgage stress test is a rule set by the federal government that requires lenders to check whether you could still afford your mortgage payments if interest rates went up.

Even if your lender offers you a rate of, say, 5%, they have to test whether you could handle payments at the higher of 5.25% or your contract rate plus 2%.

In simple terms: the stress test reduces the maximum amount you can borrow. Many first-time buyers in Canada are surprised when their pre-approval comes back lower than expected — the stress test is usually why.

This applies to most federally regulated lenders in Canada, including major banks.

4. Should I Use a REALTOR® or Buy on My Own?

Most Canadians work with a REALTOR® — and there’s a practical reason for that.

In Canada, the buyer’s agent commission is typically paid by the seller through the listing agreement. That means, in many transactions, working with a REALTOR® costs you nothing directly as a buyer.

Beyond the cost, a licensed REALTOR® brings:

• Access to MLS listings, including homes not yet widely marketed
• Knowledge of neighbourhood pricing and market trends
• Help negotiating offers and understanding conditions
• Guidance through legal paperwork and closing requirements

Going it alone is possible, but for most people — especially first-time buyers — having a professional in your corner is worth it.

5. What Are Closing Costs and How Much Should I Expect?

This is one of the most overlooked home buying questions, and it catches many buyers off guard.

Closing costs are the extra fees you pay on top of your down payment when you finalize the purchase. In Canada, you should budget for roughly 1.5% to 4% of the purchase price in closing costs.

Common closing costs include:

• Land transfer tax — this varies by province; Ontario and BC have some of the highest. First-time buyers in certain provinces qualify for rebates
• Legal fees — typically $1,500 to $2,500 for a real estate lawyer
• Home inspection — usually $400 to $700
• Title insurance — around $150 to $400
• Adjustments — for property taxes or utilities already paid by the seller

If you’re buying in Toronto, there’s both a provincial and a municipal land transfer tax — which adds up quickly on a higher-priced home.

6. What Is a Home Inspection and Can I Skip It?

A home inspection is a professional review of the home’s structure and major systems — roof, foundation, plumbing, electrical, HVAC, and more. It’s done before you finalize the purchase, usually as a condition of the offer.

Can you skip it? Technically, yes. Should you? Almost never.

In hot markets during recent years, some buyers waived inspections to make their offers more competitive. That’s a risk. Without an inspection, you don’t know if the furnace is about to fail, if there’s water damage behind the walls, or if the roof needs replacing in two years.

A few hundred dollars for an inspection can save you from a five-figure surprise after move-in.

7. What Is the Difference Between a Conditional and Firm Offer?

When you submit an offer on a home in Canada, it can be either conditional or firm.

A conditional offer means the deal will only go through if certain conditions are met — like getting financing approved, completing a home inspection, or selling your current home. If a condition isn’t met within the agreed timeframe, you can walk away without losing your deposit.

A firm offer has no conditions. Once accepted, both parties are committed.

In competitive markets, some buyers make firm offers to stand out. This is a big decision and one worth discussing with your REALTOR® before going that route.

8. How Long Does the Home Buying Process Take in Canada?

From starting your search to getting the keys, the process typically takes anywhere from a few weeks to a few months — depending on the market and your situation.

Here’s a rough breakdown:

• Getting pre-approved: a few days to a week
• House hunting: this varies widely — some people find a home in a weekend, others search for months
• Offer accepted to closing: usually 30 to 90 days, though this is negotiated between buyer and seller

If you’re in a slower market, you have more time. In fast-moving cities, you may need to move quickly once you find the right property.

9. What Is Title Insurance and Do I Need It?

Title insurance protects you (and your lender) against problems with the legal ownership of a property. These could include things like unpaid liens, survey errors, fraud, or issues with the previous owner’s title.

In Canada, most lawyers recommend title insurance as a standard part of the closing process. It’s a one-time premium — usually a few hundred dollars — and it can protect you from problems that may not come up until years after you move in.

Your real estate lawyer will typically walk you through this at closing.

10. First-Time Home Buyer — What Programs Are Available in Canada?

Canada has several programs designed to help first-time buyers get into the market. These change over time, so it’s worth checking current federal and provincial details, but here are the main ones to know:

• First Home Savings Account (FHSA) — a registered savings account that lets you save up to $40,000 tax-free for your first home purchase
• Home Buyers’ Plan (HBP) — lets you withdraw up to $35,000 from your RRSP to put toward a first home
• First-Time Home Buyers’ Tax Credit — a federal non-refundable tax credit worth up to $1,500
• GST/HST New Housing Rebate — if you’re buying a new build, you may qualify for a rebate on part of the GST/HST paid

Some provinces also have their own programs. Ontario and BC, for example, offer land transfer tax rebates for first-time buyers.

11. Should I Buy a New Build or a Resale Home?

Both have advantages, and the right choice depends on your priorities.

New builds offer modern layouts, newer systems, builder warranties, and sometimes the ability to customize finishes. The downside is the wait — you may be closing a year or two down the road — and prices can increase between signing and closing.

Resale homes are often available faster, and you can see exactly what you’re getting. They’re usually in established neighbourhoods with mature trees, schools, and infrastructure already in place. But they may come with older systems that need updating.

Talk to your REALTOR® about the local new build vs. resale market in your area. In some cities, new builds command a premium. In others, resale is better value.

12. What Questions Should I Ask When Buying a Home?

This is one of the most searched questions — and it’s a smart one to ask early.

Here are the questions experienced Canadian REALTORS® say every buyer should be asking:

• How long has this property been on the market, and has the price changed?
• Why is the seller moving?
• What are the average monthly utility costs?
• Have there been any major repairs or renovations — and were permits pulled?
• What is included in the sale (appliances, fixtures, etc.)?
• Are there any known issues with the property — roof, foundation, water?
• What are the neighbours like, and what is the neighbourhood’s noise level?
• What is the condo fee (for condos), and what does it cover?
• Are there any special assessments coming up?
• What is the closing date, and is there flexibility?

Don’t feel shy about asking. A good REALTOR® will find out the answers for you, and you deserve to know everything before you sign on the dotted line.

Final Thoughts

Buying a home in Canada is one of the biggest financial decisions you’ll make. The good news is that you don’t have to figure it out alone. Whether you’re in a big city or a smaller community, a local REALTOR® can walk you through every step — from your first home buying questions to handing over the keys.

The best buyers are informed buyers. Ask questions, know your budget, and take the time to understand the process. The right home is out there — and with the right guidance, you’ll get there.