Complete Checklist for Buying Property in Canada (2025)

The timeline? When you’re buying a house in Canada, expect anywhere from a few weeks to several months depending on your situation and the current market. Foreign buyers face additional restrictions and documentation requirements. First-time buyers can access several programs that reduce upfront costs. This guide walks through each step with the practical details that actually matter when you’re ready to buy.

TL;DR:

• This checklist for buying property in Canada covers nine essential steps from pre-approval through closing
• The timeline varies from weeks to months based on market conditions
• Foreign buyer restrictions apply to certain residential properties
• First-time buyer programs available in Ontario and federally

Who Can Buy Property in Canada? Eligibility and Rules for All Buyers

Understanding the rules for buying property in Canada starts with eligibility. Canadians, permanent residents, and foreigners can all buy property in Canada. No citizenship requirement exists for ownership, though financial requirements and tax implications differ significantly depending on your status.

The federal government has extended its ban on certain residential property purchases by foreigners until 2027.[1] This restriction applies to properties with three dwelling units or less in designated census metropolitan areas and agglomerations. Larger multi-unit buildings fall outside this ban. Whether you’re an American buying property in Canada, a U.S. citizen buying property in Canada, or any other foreign national, these restrictions shape what you can purchase. The rules affect buying property in Canada for foreigners and buying property in Canada for non-residents differently based on specific exemption criteria.

Ontario adds another layer for foreign buyers through its Non-Resident Speculation Tax, which now applies province-wide rather than just in the Greater Golden Horseshoe region. When even one buyer in a transaction qualifies as a foreign national, the entire property value becomes subject to this tax. The tax on foreigners buying property in Canada hits harder than most buyers anticipate—many don’t discover the full cost until closing documents arrive. Anyone buying property in Ontario, Canada, should factor this provincial tax into their budget calculations.

Several exemptions exist under the rules for buying property in Canada. Work permit holders with sufficient validity remaining, international students enrolled full-time, and refugee claimants can purchase property. Buying with a Canadian spouse or common-law partner also creates an exemption pathway. When buying property in Canada as a foreigner, understanding which exemptions apply to your situation determines whether you can proceed with a purchase. The rules for foreigners buying property in Canada differ significantly from domestic buyer requirements. Non-residents buying rental property in Canada should note that properties with four or more units aren’t subject to the same residential restrictions.

Americans represent the most common foreign buyers in the Canadian market. When buying property in Canada as a US citizen, the same federal and provincial rules apply, with additional documentation requirements and tax filing obligations. For those researching buying property in Canada as an American in 2025, understand that the federal ban on foreign buyers remains extended through 2027, though exemptions still apply for work permit holders and those with Canadian spouses.

US citizens buying property in Canada must navigate the foreign buyer ban restrictions and speculation taxes just like other foreign nationals. For American citizens buying property in Canada, currency exchange timing becomes another consideration that affects the final cost. The process for buying property in Canada as an American mirrors the steps outlined in this checklist, though closing timelines may extend to accommodate cross-border documentation.

Tip: New immigrants face unique challenges with credit history and income verification. Resources like “Tips for New Immigrants Buying Their First Home in Canada” address these specific situations.

Your 9-Step Checklist for Buying Property in Canada

This checklist for buying property in Canada breaks the property buying process into nine manageable steps. Whether you’re navigating the steps to buying a home in Canada for the first time or you’re a returning buyer, these considerations apply to foreign buyers, newcomers, and first-time purchasers alike. Now, if your top Google search has been “first-time home buyer’s checklist Canada” for a while, just follow these steps and you’ll be good to go.

Step 1: Obtain Mortgage Pre-Approval

Contact lenders for mortgage pre-approval. The checklist includes identification, proof of income and employment, credit check authorization, and documentation of your down payment source. When seeking mortgage pre-approval in Canada, foreign buyers should expect additional documentation requirements beyond what Canadian citizens provide. Pre-approval remains valid for several months and establishes realistic budget parameters before you start searching.

Step 2: Calculate Your Complete Budget and Down Payment

Budget planning is where your checklist for buying property in Canada gets real. Down payment requirements in Canada vary based on purchase price tiers—properties under a certain threshold need a smaller percentage, while expensive properties demand larger down payments. Foreign buyers need to factor in the speculation tax on top of these requirements. Budget for closing costs as a percentage of your purchase price (legal fees, inspections, insurance, and government charges). First-time buyer programs can offset some costs. Include moving expenses, immediate repairs, and an emergency fund buffer in your calculations.

Step 3: Build Your Property Buying Team

Assemble your core team early in the process. A real estate agent who understands your buyer type makes a significant difference—Nave Real Estate specializes in supporting diverse buyers, including newcomers and foreign investors navigating the steps to buying a home in Canada. You’ll also need a real estate lawyer to handle the legal requirements, a mortgage broker or bank representative for financing, a certified home inspector for property assessment, and an insurance broker to secure required coverage.

Step 4: Search for the Right Property

When considering what to look for when buying a house in Canada, prioritize location relative to work and schools, commute times, neighbourhood development plans, and future resale potential. Research comparable sales in target neighbourhoods to understand pricing. Foreign buyers often rely on virtual tours combined with trusted agent representation. The GTA market moves quickly, so having clear criteria speeds up decision-making. Investment property buyers should evaluate rental demand and potential cash flow separately from personal preferences.

Step 5: Make Your Offer and Negotiate

Include standard conditions in your offer: financing approval, satisfactory home inspection, and ability to secure insurance. Expect to provide a deposit, typically a percentage of the offer price. Negotiation timeframes run tight—often just days from offer to acceptance or counteroffer. Foreign buyers should establish clear communication channels with their agent since time zone differences can complicate rapid back-and-forth negotiations. Multiple offer situations remain common in competitive GTA markets, requiring strategic positioning with your agent’s guidance.

Step 6: Complete Professional Home Inspection

Hire a certified inspector—this cost pays for itself many times over. Following a thorough home inspection checklist, Canada-based inspectors cover all major systems: electrical, plumbing, roof condition, foundation integrity, and HVAC functionality. Inspectors identify both immediate repair needs and longer-term maintenance concerns that affect property value. The inspection report creates negotiation opportunities based on discovered issues. This step becomes critical for rental properties and investment purchases where you won’t be living on-site to monitor problems. Don’t waive the inspection condition even in competitive markets unless you’re prepared for expensive surprises.

Step 7: Finalize Mortgage and Secure Insurance

Submit your final mortgage application with updated financial documents. Lenders verify employment and income again at this stage. Secure the home insurance policy your lender requires before closing—you can’t complete the purchase without it. Interest rate holds from your pre-approval protect you if rates increase, though some lenders offer rate drops if market rates fall during your hold period. Foreign buyers should allow extra processing time since lenders conduct additional verification for non-resident applicants. Review all mortgage terms carefully before signing. Resources like “How to Get a Mortgage in Canada: Step-by-Step Guide” explain the detailed requirements.

Step 8: Complete Legal Review with Your Lawyer

Your real estate lawyer conducts a title search to confirm ownership and identify any liens or encumbrances. Review the Statement of Adjustments showing how property taxes, utilities, and condo fees are prorated between buyer and seller. Confirm utility account transfer arrangements for closing day. Understanding Canada’s closing costs becomes critical for foreign buyers—expect legal fees, land transfer taxes, title insurance, various registration charges, plus additional tax documentation and filing requirements. Your lawyer collects and distributes all funds on closing day.

Step 9: Closing Day and Taking Possession

Sign final documents at your lawyer’s office on closing day. Transfer your down payment plus closing costs through your lawyer’s trust account. Once the seller’s lawyer confirms receipt of funds and document registration completes, you receive the keys. Ownership registration happens electronically in most provinces. Confirm utility accounts transferred to your name and home insurance activated before taking possession. Buy a house in Canada and this process becomes your reality—preparation makes it manageable.

First-Time Home Buyer Programs and Incentives in Ontario

First-time home buyer Ontario programs significantly reduce upfront costs for eligible purchasers. The Ontario Land Transfer Tax rebate covers a portion or all of the provincial tax on qualifying purchases. Toronto adds its own Municipal Land Transfer Tax rebate on top of the provincial program, creating substantial savings for first-time buyers in the city.

The First Home Savings Account (FHSA) lets you save tax-free specifically for your first home purchase, combining benefits from both RRSPs and TFSAs. The Home Buyers’ Plan allows you to withdraw funds from your RRSP tax-free for a down payment, with structured repayment over 15 years. The federal Home Buyers’ Amount provides a tax credit that helps offset closing costs.

New construction purchasers may qualify for GST/HST rebates that reduce the tax burden on newly built homes. Program eligibility typically requires that you haven’t owned a home in the past four years and that the property becomes your primary residence within a specified timeframe. Strategic buyers combine multiple programs—FHSA savings, HBP withdrawals, and land transfer tax rebates—to maximize their purchasing power. [2]

Common Mistakes When Buying Property in Canada

Even with a complete checklist for buying property in Canada, buyers repeatedly make these errors that cost time and money:

• Skipping pre-approval and searching outside affordable price ranges
• Underestimating closing costs, especially foreign buyers who forget the speculation tax
• For Canadians buying property in another province in Canada, failing to research different provincial land transfer taxes and legal requirements
• Waiving inspection conditions in competitive markets, then discovering expensive repairs
• Failing to research neighbourhood development plans that affect future property values
• Missing first-time buyer incentive programs that reduce costs significantly
• Purchasing inadequate insurance coverage to save premium dollars
• Poor currency exchange timing for foreign buyers that increases effective purchase price
• Ignoring property tax obligations and municipal fee increases

Conclusion

Following this “buying a house in Canada” checklist becomes manageable when you approach it systematically. Canadian citizens, Americans, foreign nationals, and first-time buyers all navigate the same nine core steps, with specific variations based on residency status and buyer type. The key difference lies in understanding which additional requirements apply to your situation.

Building an experienced team makes the difference between smooth transactions and costly mistakes. After 30-plus years navigating GTA purchases, we’ve seen how proper preparation separates successful buyers from frustrated ones. Your property ownership journey in Canada starts with step one—mortgage pre-approval gives you the foundation everything else builds on.

FAQ

References:

[1] Government of Canada – Prohibition on the Purchase of Residential Property by Non-Canadians Act

[2] Ontario Ministry of Finance – Land Transfer Tax Refunds for First-Time Homebuyers

[3] Canada Mortgage and Housing Corporation—Mortgage Loan Insurance Requirements