Buying a home
Buying a home is exciting – but there can be a lot to wrap your head around. We’ve got you covered through your entire home-buying journey.
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What are you hoping to do?
Buy my first home
Buying your first home is a big decision – let’s walk through the steps together.
Move to a new home
Downsizing, upsizing or just moving to a new home? Get helpful tips for making it happen.
Buy a second property
Whether you’re buying a summer cottage or an investment property, we can help you with next steps.
The home-buying process
Plan your budget and explore mortgage options
Decide whether you’re ready to buy and start budgeting with the help of our Mortgage Affordability Calculator.
Once you’ve budgeted, learn the mortgage lingo and find the right mortgage option that fits your needs.
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Get pre-approved
You’ve decided that you’re ready to buy a home and graduated from mortgage options 101. It’s almost time to start looking for a home, but first you should get pre-approved.
A pre-approval lets real estate agents and sellers know you’re serious and tells you how much you can afford (based on the information you provide). Plus, it’s free, there’s no commitment and you can lock in your rates with our 130-day mortgage rate guarantee – the longest of any major bank in Canada.‡
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Find your dream home
Start your house-hunting journey by exploring neighbourhoods that match your lifestyle and budget. Find the right real-estate agent for you and work closely with them navigate market trends, find new listings and guide you through the home-buying process.
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Close the deal on your new home and manage your mortgage
Congratulations, you’re a proud new homeowner! You’ve now sealed the deal on your new home by finalizing the purchase agreement, arranged a home inspection and completed all your legal paperwork.
To stay on top of your mortgage commitments you might want to consider paying your mortgage faster or getting mortgage protection insurance. In the future, you can choose to refinance your mortgage if you want to borrow more money to pay for renovations, repairs, or other expenses.
Resources:
Make an offer and negotiatingWhat is mortgage protection insurance?Pay your mortgage fasterHomeowner ReadiLine®: A mortgage with a line of credit
Helpful mortgage calculators
Crunch some numbers to calculate your budget before you start house-hunting.
Calculate how much you’d spend each month to buy a home or renew or refinance your mortgage.
Think about how much you spend each month, create a budget, and start saving up for your home.
FAQs about buying a home
Buying a home can be a great investment, but it’s not for everyone.
You’ll have to consider your financial situation, how long you want to live in your home and a bunch of other factors to make a decision.
You should get pre-approved before you start looking for a home. A pre-approval will let you know how much home you’ll be able to afford, what your interest rate will be, and it’ll signal to real estate agents (and sellers) that you’re serious.
If you wait until after you have a real estate agent, you might miss out on a home you really want. In a competitive market, houses can move quickly!
You need at least 5%, but if you don’t want to pay for mortgage default insurance (or you’re buying your second property), then you need to make a down payment of at least 20%. So if you decide on a house that’s $300,000, you’ll want a down payment of $60,000 to avoid paying mortgage default insurance.
If you can’t afford a 20% down payment, you’ll have to get mortgage default insurance (it’s legally required) which will add to your monthly mortgage payment.
Make sure you have all your documents ready to go, including a confirmation of income, proof of assets, and a gift letter if your family or friends are helping you with the money (this needs to show that the money is a gift and not a loan).
As a rule of thumb, you should plan for your closing costs to come to 2% to 4% of the total cost of your home (not including your down payment). To get a detailed estimate, talk to your lawyer or real estate agent.
For example: Let’s say you want to buy a $300,000 home. You’ll want to save between $9,000 and $12,000 for your closing costs, plus between $15,000 and $60,000 for your down payment.
No, a mortgage pre-approval is not a guarantee. Your lender will have to review your credit report and other financial information before you’re approved for a mortgage. A pre-approval just lets you know that you will likely be able to qualify for a mortgage for a certain amount at a certain rate (as long as all the information you provide checks out).
So why get pre-approved? A pre-approval still allows you to lock in your rate, know your budget, and shop with confidence.
Helpful resources for your homebuying journey
First time homebuyer programs
As a first-time home buyer, you have access to some great incentives, tax credits and resources to help you turn your home-ownership dream into reality.
Purchasing a newly built property
Get closer to your first home with BMO’s mortgage benefits, including a new 30-year amortization period.
Your guide to an eco-friendly home
A green home is more than just a trendy buzzword. It's a smart investment in a sustainable future.
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