Buying a HOME - Some Major Myths!
If you are renting and dreaming of a place of your own, a few common myths might be the only thing standing between you and your first set of keys. With so much information out there, much of it from the United States, it is easy to get the wrong idea about buying a home in Ontario. Let's clear up five of the biggest misconceptions.
The short answer: You do not need 20% down, you do not need perfect credit and you should not start by browsing listings. Get pre-approved first, buy when you are financially ready rather than waiting for spring and work with an agent who represents you.
Myth 1: You Need a 20% Down Payment
The truth: In Canada, you can buy with much less. The minimum down payment is:
- 5% on a home priced up to $500,000
- 5% on the first $500,000 and 10% on the rest for homes above $500,000
- 20% on homes priced at $1.5 million or more, since mortgage default insurance is not available at that price
If you put down less than 20%, your mortgage will need default insurance, which adds a cost. A First Home Savings Account (FHSA) can help you save faster, with up to $8,000 a year in tax-deductible contributions.
Myth 2: You Need Perfect Credit
The truth: A higher credit score can help you get a better rate, but it does not have to be perfect. For an insured mortgage through CMHC, at least one borrower needs a credit score of 600 or higher.
Paying bills on time and keeping credit card balances low are two simple ways to strengthen your score before you apply. A mortgage professional can tell you where you stand.
Myth 3: Step One Is Looking at Homes
The truth: Browsing is fun, but your real first step is a mortgage pre-approval. It tells you how much you can afford, so you focus on the right homes and can move quickly when you find the one.
Falling for a home you cannot finance is a hard way to start. Pre-approval saves you that heartbreak.
Myth 4: You Should Wait Until Spring
The truth: Spring is traditionally a busy season, with more listings and more buyers competing for them. Quieter months can mean fewer bidding wars and more room to negotiate.
The best time to buy is when you are financially ready and find a home that fits your needs, whatever the season.
Myth 5: You Don't Need an Agent
The truth: A home is likely the biggest purchase you will ever make, and the process has a lot of moving parts. In Ontario, the Trust in Real Estate Services Act (TRESA) sets out how agents represent buyers, so you know what your agent will do for you.
A good buyer's agent brings:
- Local market and neighbourhood knowledge
- Pricing guidance and negotiation skills
- Help with conditions, deadlines and paperwork
- A network of trusted lenders, lawyers and home inspectors
Ready to Take the First Step?
- Check your credit and pay down high-interest debt.
- Open an FHSA and start saving.
- Get pre-approved so you know your budget.
- Talk to a buyer's agent about the neighbourhoods that fit your life.
Want everything in one place? Download my Free Buyer's Guide or visit my First-Time Home Buyers page.
Have Questions? I'm Just a Message Away
Whether you are months away or ready to start now, I am happy to walk you through your options and help you plan your path from renting to owning.
Book a Free Buyer ConsultationTarlika Sehgal, REALTOR®, SRS®, ABR® | eXp Realty Of Canada, Inc., Brokerage
Sources
- LegalLine: Mortgage insurance for down payments less than 20%
- Spring Financial: Minimum credit score for mortgage approvals in Canada
- Wealthsimple: First Home Savings Account FAQs
- RECO: TRESA FAQs
This article is general information, not financial or legal advice. Lending rules and programs change. Please confirm your situation with a mortgage professional. Information is current as of October 2026.
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