Spring Market Timeline
| Month | Market Activity | What to Do |
|---|---|---|
| January | Pre-season; low inventory | Get mortgage pre-approved, organize finances |
| February | Early listings start | Begin searching, attend open houses |
| March | Inventory increases rapidly | Active searching, start making offers |
| April | Peak activity begins | Highest competition — be prepared to act fast |
| May | Peak month for sales | Most listings and most buyers |
| June | Market remains strong | Still active, some fatigue among buyers |
| July-August | Slight slowdown | Families busy, some deals available |
Financial Preparation Checklist
| ☐ | Task | Timeline |
|---|---|---|
| ☐ | Check credit score (Credit Karma, Borrowell) | 3-6 months before |
| ☐ | Pay down revolving debt | 3-6 months before |
| ☐ | Save for down payment | Ongoing |
| ☐ | Maximize FHSA contributions ($8,000/year) | ASAP — can use for down payment |
| ☐ | Get mortgage pre-approval | January-February |
| ☐ | Save for closing costs (1.5-4% of price) | Ongoing |
| ☐ | Organize proof of income, tax returns | January |
| ☐ | Research neighbourhoods | January-February |
| ☐ | Interview real estate agents | January-February |
Down Payment Requirements
| Purchase Price | Minimum Down Payment | Amount | CMHC Premium |
|---|---|---|---|
| $400,000 | 5% | $20,000 | $16,000 (4%) |
| $500,000 | 5% | $25,000 | $20,000 (4%) |
| $600,000 | 5% on $500K + 10% on $100K | $35,000 | ~$20,000 (3.5%) |
| $800,000 | 5% on $500K + 10% on $300K | $55,000 | ~$26,000 (3.5%) |
| $1,000,000 | 5% on $500K + 10% on $500K | $75,000 | ~$32,000 (3.5%) |
| $1,500,000+ | 20% (mandatory) | $300,000+ | $0 (no insurance needed) |
Down Payment Sources
| Source | Details | Tax Impact |
|---|---|---|
| FHSA | $40,000 lifetime, tax-deductible, tax-free withdrawal | Best account for first-timers |
| RRSP (HBP) | Borrow up to $60,000 from RRSP | Must repay over 15 years |
| TFSA | Withdraw any amount tax-free | No repayment required |
| Savings | Personal savings | No tax impact |
| Gift from family | Lender will require a gift letter | No tax (no gift tax in Canada) |
| FHSA + HBP combined | Up to $100,000 tax-advantaged | Maximum benefit |
Closing Costs
| Cost | Amount | Notes |
|---|---|---|
| Land transfer tax | 0.5-2% of purchase price | Varies by province; Ontario first-time rebate up to $4,000 |
| Toronto land transfer tax | Additional 0.5-2.5% | Toronto charges both municipal + provincial |
| Legal fees | $1,000-$2,500 | Lawyer or notary |
| Home inspection | $400-$600 | Strongly recommended |
| Appraisal | $300-$500 | Lender may require |
| Title insurance | $200-$500 | Usually required by lender |
| Moving costs | $500-$3,000 | DIY to full-service movers |
| Utility hookups | $100-$300 | Deposits for new accounts |
| Total closing costs | 1.5-4% of purchase price | Budget $10,000-$25,000 |
Land Transfer Tax by Province
| Province | Rate | First-Time Buyer Rebate |
|---|---|---|
| Ontario | 0.5-2.5% (graduated) | Up to $4,000 (on first $368,000) |
| British Columbia | 1-5% (graduated) | Up to $8,000 (on first $500,000) |
| Quebec | Welcome tax: 0.5-2.5% | None |
| Alberta | No LTT (just registration fee ~$300) | N/A |
| Saskatchewan | No LTT (just registration fee ~$300) | N/A |
| Manitoba | 0.5-2% (graduated) | None |
| Nova Scotia | 1.5% flat | None |
Mortgage Pre-Approval
| Factor | Details |
|---|---|
| What it does | Confirms how much you can borrow; locks in a rate |
| Rate hold | 90-120 days |
| Documents needed | T4s/NOAs (2 years), pay stubs, bank statements, ID |
| Credit score needed | 680+ for best rates; 600+ minimum |
| Self-employed | 2 years of T1 Generals + NOAs |
| Does it affect credit? | Soft pull initially; hard pull at formal application |
Stress Test Rules (2026)
| Scenario | Qualifying Rate |
|---|---|
| Your offered rate | e.g., 4.50% |
| Stress test rate | Higher of 5.25% or your rate + 2% |
| You must qualify at | 6.50% (in this example) |
| Effect | Reduces your maximum mortgage by ~20% |
Making an Offer in a Competitive Spring Market
| Strategy | Details |
|---|---|
| Pre-approval letter | Include with every offer |
| Offer price | Based on comparables (your agent’s CMA) |
| Deposit | 5% of offer price is standard (shows seriousness) |
| Conditions | Financing, inspection are standard; waiving conditions is risky |
| Closing date | Flexible closing helps (20-60 days typical) |
| Escalation clause | “Will pay $X above highest offer up to $Y” |
| Personal letter | Rarely helps in competitive markets (fair housing concerns) |
First-Time Buyer Government Programs
| Program | Benefit |
|---|---|
| FHSA | $40,000 tax-deductible savings for home purchase |
| RRSP Home Buyers’ Plan | Borrow up to $60,000 from RRSP interest-free |
| First-Time Home Buyer Tax Credit | $10,000 credit ($1,500 tax savings) |
| GST/HST New Housing Rebate | Up to $6,300 rebate on new construction |
| Land Transfer Tax Rebate | Up to $4,000 (ON), $8,000 (BC) |
| Municipality incentives | Some cities offer additional grants/rebates |
Home Inspection Checklist
| Area | What Inspector Checks |
|---|---|
| Foundation | Cracks, water damage, structural integrity |
| Roof | Age, condition, estimated remaining life |
| Plumbing | Leaks, water pressure, pipe material |
| Electrical | Panel capacity, wiring age, code compliance |
| HVAC | Furnace/AC age, efficiency, maintenance |
| Insulation | Attic, walls, energy efficiency |
| Windows/doors | Seals, age, drafts |
| Basement | Moisture, mould, water intrusion |
| Exterior | Grading, drainage, siding condition |
Spring 2026 Market Considerations
| Factor | Impact |
|---|---|
| Interest rates | Bank of Canada rate cuts easing mortgage rates |
| Housing supply | New construction increasing in some markets |
| Population growth | Immigration driving demand in major cities |
| Affordability | Still stretched in Toronto/Vancouver; improving elsewhere |
| Condo market | Softening in some cities (new supply) |
| Suburban/rural | Strong demand from remote workers |