First-Time Home Buyer Guide: 10 Steps to Buying in Canada

Buying your first home is exciting. However, it also brings many decisions. How much should you spend? What down payment will you need? When should you get pre-approved? Which mortgage fits your needs?

This guide walks you through the main steps of buying a home in Canada. In addition, it includes tips for buyers in Regina and across Saskatchewan.

Step 1: Decide What You Can Comfortably Afford

Start by asking a better question. Instead of “How much can I borrow?” ask, “What monthly payment feels manageable?”

Your housing costs may include:

• Mortgage payments
• Property taxes
• Utilities like heat and water
• Home insurance
• Condo fees, if needed
• Repairs and upkeep
• Moving and setup costs

Although lenders may approve a higher amount, that does not mean you should spend it. Therefore, think about your lifestyle. Consider travel, savings, childcare, and debt payments.

When I review applications, I check the numbers. At the same time, I remind buyers to think about real-life comfort.

Step 2: Understand the Minimum Down Payment

Your down payment is the portion you pay upfront. The rest is covered by your mortgage.

For homes under $1.5 million:

• 5% on the first $500,000
• 10% on the amount above $500,000

Homes priced at $1.5 million or more usually require at least 20% down.

A simple example

Let’s say you buy a home for $650,000:

• 5% of $500,000 = $25,000
• 10% of $150,000 = $15,000
• Total = $40,000

Keep in mind, this is only the minimum. You still need to qualify and cover closing costs.

What is mortgage default insurance?

If your down payment is under 20%, you will likely need mortgage insurance. This protects the lender, not you. Usually, the cost is added to your mortgage.

Down payment sources can vary. For example, funds may come from savings, investments, gifts, or registered plans.

Step 3: Explore First-Time Buyer Savings Programs

Several programs can help first-time buyers. However, each one has its own rules. Therefore, always check eligibility.

First Home Savings Account (FHSA)

An FHSA helps you save for your first home.

• Contributions are tax-deductible
• Withdrawals can be tax-free
• Annual limit: $8,000
• Lifetime limit: $40,000

Importantly, contribution room starts only after you open the account.

RRSP Home Buyers’ Plan

This plan lets you withdraw up to $60,000 from your RRSP.

You must repay the amount over time. In many cases, you can combine this with an FHSA withdrawal.

Home buyers’ tax credits

You may qualify for:

• Federal credit up to $1,500
• Saskatchewan credit up to $1,575

These credits reduce taxes owed. However, they may not result in a full refund.

GST rebate for new homes

If you buy or build a new home, you may qualify for a GST rebate.

• Up to $50,000 for homes under $1 million
• Reduced rebate up to $1.5 million

This rebate usually does not apply to resale homes.

Step 4: Get a Mortgage Pre-Approval Before Shopping

A pre-approval helps you plan. For example, it shows:

• Your possible mortgage amount
• A realistic price range
• Estimated payments
• Required documents
• Possible rate holds

Still, a pre-approval is not final approval. The lender must review the property and updated details.

Also, avoid major financial changes during this time. For instance, do not take on new debt or miss payments.

What documents might you need?

Requirements vary, but often include:

• ID
• Pay stubs
• Employment letter
• Bank statements
• Investment records
• Debt details

I always check if income and savings meet lender rules.

Step 5: Understand the Mortgage Stress Test

Most buyers must pass a stress test. This checks if you can afford higher payments.

You must qualify at the higher of:

• Your rate + 2%, or
• 5.25%

Although this sounds strict, it helps protect you from future rate increases.

Step 6: Compare More Than the Interest Rate

A low rate is helpful, but it is not everything.

Also consider:

• Fixed vs. variable rates
• Mortgage term
• Amortization length
• Prepayment options
• Penalties
• Portability

A longer amortization lowers payments. However, it increases total interest.

Some first-time buyers may qualify for a 30-year amortization. This depends on lender and insurance rules.

Step 7: Make a Careful Offer

Once you find a home, your agent will help with the offer.

Offers may include conditions such as:

• Financing approval
• Home inspection
• Sale of another property
• Condo document review

A financing condition gives you time to confirm your mortgage.

Even with a pre-approval, do not rush. Instead, talk to your broker and lawyer before removing conditions.

Step 8: Make Sure the Property Qualifies

Approval depends on both you and the property.

Some properties may raise concerns, such as:

• Rural homes
• Acreages
• Condos
• Homes needing repairs
• Mobile homes

In Saskatchewan, property types vary widely. Therefore, check details early.

Step 9: Prepare for Closing Costs

Your down payment is only part of the cost.

You may also need to pay for:

• Legal fees
• Title registration
• Inspection
• Appraisal
• Insurance
• Moving costs

Costs vary, so ask for estimates early. Also, keep these funds separate.

Step 10: Complete the Final Steps

After your offer is accepted, your broker submits the file for final approval.

You may need updated documents. Meanwhile, your lawyer prepares the paperwork.

Until closing, keep your finances stable. Continue making payments on time.

A First Home Is a Big Step, but You Are Not Alone

Buying your first home involves many moving parts. Your income, savings, credit, and the property all matter.

As a mortgage broker, I can help you compare options and understand the process. If you are buying in Regina or Saskatchewan, reach out for guidance before you start.

Frequently Asked Questions

How much down payment do I need?

Usually 5% for homes under $500,000. Above that, 10% applies to the extra amount.

Can I buy with 5% down in Saskatchewan?

Yes, if you qualify and the home meets requirements.

Does pre-approval guarantee financing?

No. Final approval depends on the property and updated details.

Can family help with my down payment?

Yes, in many cases. However, rules vary by lender.

Should I use all my savings?

Not always. You should keep funds for closing costs and emergencies.

Suggested Internal Links

• Mortgage pre-approval services
• Down payment guide
• Fixed vs. variable mortgages
• Buying rural property in Saskatchewan

Sources

• Financial Consumer Agency of Canada
• Office of the Superintendent of Financial Institutions
• Canada Mortgage and Housing Corporation
• Canada Revenue Agency
• Government of Saskatchewan

Information last reviewed: July 2026

Disclaimer

This article is for general information only. It is not a mortgage approval or guarantee.

Mortgage rules and rates can change. Therefore, always review your situation with a qualified professional.

Tax programs also have detailed rules. For advice, speak with a tax expert or the Canada Revenue Agency.