Homebuying

The 2017 first-time home buyers guide: a look at each province and territory

By: LowestRates.ca Staff on June 19, 2017

Browse by section:

Ontario

Quebec

Saskatchewan Alberta flag

Alberta

British Columbia Manitoba flag

Manitoba

Yukon

Nunavut

Northwest Territories Nova Scotia flag

Nova Scotia Newfoundland and Labrador flag

Newfoundland and Labrador Prince Edward Island flag

Prince Edward Island New Brunswick flag

New Brunswick

This guide is designed to compliment our 2017 first-time home buyers guide for Canadians. If you need more information on home insurance, tax credits and taxes, be sure to check it out.

Buying your first home in Canada can be overwhelming. Making it more complicated, each province and even municipalities can have their own rules for buying and selling your home.

In March, we brought you a comprehensive guide to buying in Canada. Now, we want to add to that guide by providing a breakdown about how buying a home differs by province. Use our map above to select a province, where you'll find everything you need to know about buying a property there.

ONTARIO

Ontario is home to the nation’s capital of Ottawa and it’s largest city, Toronto. Nearly 14 million Canadians call the province home. Ontario is made up in part by the most populated region in the country: the 9.3 million-strong Golden Horseshoe that stretches from Niagara Falls to Oshawa along the northern shore of Lake Ontario. Many first-time homebuyers in this area will be faced with the red-hot housing market of the Greater Toronto and Hamilton Area (GTHA).

Most expensive city: Toronto

Toronto is the capital of Ontario and is also the nation’s most populous city, with a population of nearly three million. Toronto is known as a global hub for business, finance and culture and is often regarded as one of the most multicultural cities in the world. The city has been making a lot of headlines lately as its housing market has become one of the hottest in the country.

Average house price: $916,567

What you need to know about buying a home in Ontario

All home buyers in Ontario will incur a land transfer tax, though as a measure to help first-time homebuyers enter the housing market the provincial government introduced a $4,000 land transfer rebate, effective January 1, 2017. Toronto has a municipal land transfer tax that is applied to purchases on all properties in the City of Toronto, in addition to the province's land transfer tax.

The province has recently proposed a new speculation tax on foreign buyers, charging them 15% on residential real estate purchases if they're not living in the province. There is a rebate for homebuyers who become residents within a certain period of time. The new tax is part of the Ontario government's 16-point plan on housing.

GST/HST New Housing Rebate: This rebate is one of the best ways to reduce the cost of a home purchase. Buyers can claim partial exemption on the federal part of the HST paid on a new or substantially renovated home that is purchased as a primary residence.

Home Buyers' Tax Credit (HBTC): This one is easy to confuse with the First-Time Home Buyers tax credit. Like it, you can be eligible for a $750 tax credit, provided you bought a qualifying home after January 27, 2009.

The First-Time Home Buyer tax credit: This tax credit helps homeowners recover closing costs such as legal expenses and inspections. Buyers can claim up to $750 on their personal tax return for the year of their home purchase. Criteria that must be met include the home being within Canada and the buyer occupying the home within one year of its purchase. Finally, neither the buyer nor their spouse can have owned a home in the last four years.

QUEBEC

Quebec is the country’s second most populous province, and is the only one that’s home to a predominantly French-speaking population. The economy is second only to Ontario in terms of output, thanks largely to its substantial natural resources including gold, iron, and copper. The largest city in Quebec is Montreal, and it’s capital is Quebec City.

Most expensive city: Montreal

With a February 2017 average house price of $348,635, Montreal is easily the most expensive housing market in the province, despite being still well below the national average of $519,521; thus making homes in Montreal relatively affordable for first-time homebuyers.

Average house price: $348,635

What you need to know about buying a home in Quebec

Homebuyers in Quebec should be aware of the land transfer tax, which applies to all home purchases in the province. The tax is calculated as a percentage of the purchase price, and is slightly higher in the Greater Montreal Area than it is in the rest of the province.

The First-Time Home Buyer tax credit: this tax credit helps homeowners recover closing costs such as legal expenses and inspections. Buyers can claim up to $750 on their personal tax return for the year of their home purchase. Criteria that must be met include the home being within Canada and the buyer occupying the home within one year of its purchase. Finally, neither the buyer nor their spouse can have owned a home in the last four years.

SASKATCHEWAN

Saskatchewan is the heart of the Canadian prairies. Its rich fields provide a large amount of the livestock and crops that the country then exports. Mining and oil also play important parts in the Saskatchewan economy. In 2015, the oil price crisis severely impacted the local economy, leaving many people unemployed and stunting house price growth. Since then, the housing market has recovered, but the province remains one of the most affordable places in the country to live.

Most expensive city: Regina

Regina is the capital of Saskatchewan and its largest city, making it a hub for the arts in the province. While the city was affected by the oil price crash experts are generally optimistic of the city’s economic future.

Average house price: $495,170

What you need to know about buying a home in Saskatchewan

Saskatchewan has no land transfer tax, unlike the majority of provinces, which cuts some of the fees out of a home transaction.

ALBERTA

Alberta is well known for its beautiful landscape. From its great golden plains, to the soaring peaks of the Rocky Mountains, there’s a little something for everyone, and a wealth of activities for outdoorsy types. Not too long ago, the provincial economy was booming thanks to its large deposits of oil. Unfortunately, when oil prices began falling worldwide in 2014, the local economy took a dive.

Alberta has also had to weather some of the biggest natural disasters in Canadian history with the Fort McMurray wildfire and 2013 Calgary floods. Both disasters caused billions of dollars in property damage and displaced thousands, making home insurance one of the most essential considerations one must have when buying a home in Alberta.

Most expensive city: Calgary

Calgary is a common destination for travelling Americans who are drawn to the city for the annual Stampede, and is also the province's business center, with a number of energy and financial firms headquartered in the city.

Average house price: $675,876

What you need to know about buying a home in Alberta

Alberta has no land transfer tax. That helps keep homes slightly more affordable, although there are some fees one needs to be aware of.

Property registration fee: $50 + $1 for every $5,000 of property value

Mortgage registration fee: $50 + $1 for every $5,000 of mortgage amount

So for a $450,000 property with a 15% down payment you would pay: $267

Property registration fee: $50 + ($450,000 / $5,000) = $140

Mortgage registration fee: $50 + ($382,500 / $5,000) = $127 (rounded)

BRITISH COLUMBIA

British Columbia is home to Rocky Mountains and attracts visitors from all over the world, thanks to its picturesque landscapes and mild weather. It is, however, one of the more expensive parts of Canada to buy a home, particularly because of Vancouver. Home prices in the city have broken records and continue to remain the highest in the country.

Once considered to be an attractive place for foreign investors to spend millions on high-priced homes and condos, Vancouver implemented a tax on foreign home buyers in 2016 that cooled foreign demand in the city.

Most expensive city: Vancouver

Vancouver is the least affordable city to buy a home in Canada and one of the most expensive places to live in the world. It is, however, consistently ranked as one of the top cities in the world for quality of life.

Average house price: $1,764,019

What you need to know about buying a home in British Columbia:

First time home buyers in British Columbia can take advantage of the First Time Home Buyers’ Program as long as they are:

a citizen
permanent resident
have lived in B.C. for a minimum of 12 months or filed at least two income tax returns as a B.C. resident in last 6 years
have never owned any stake of any primary residence in the world prior

The program reduces or eliminates the property transfer tax you would otherwise have to pay when purchasing your home. If you are buying the home with someone who does not qualify for the program, your share of the tax will still be eligible for the exemption.

MANITOBA

The Manitoba housing market is steady, but residents argue it’s not hot enough to justify the federal government’s nation-wide change to mortgage rules. Manitobans hoping to enter the market for the first time are suddenly faced with higher stress test barriers that were introduced, primarily, to place downward pressure on red-hot regions elsewhere in Canada.

So while Manitoba’s average home prices remain affordable — between $277,100 and $281,500 according to CMHC projections — potential buyers have to readjust. A neighbourhood that may have been affordable prior to the mortgage changes may be thousands of dollars out of reach now. Someone who may have been able to buy earlier last year, may be totally priced out this year.

Most expensive city: Winnipeg

With an average home price of $288,097 in February 2017 (up 3.6% from last year), Winnipeg is Manitoba’s priciest city for home buying.

What you need to know about buying a home in Manitoba

As of May 2017, a new growth fee (also called impact fee) will be applied to all new home and building developments in Winnipeg. (A growth fee is implemented to help offset the costs of the new infrastructure required for new developments.)

According to CBC News, “[the fees] will add about $500 to the cost of 100 square feet of new residential space in selected neighbourhoods.” This fee will not be passed directly to homebuyers, but it may force new home developments down and increase the demand for resale homes.

NOVA SCOTIA

Dubbed “the ocean’s playground” Nova Scotia is not only home to some of the best seafood in the country, but some of its most affordable houses as well. The MLS home price index for April was $241,474, well below the national HPI of $559,317 but still growing at a solid pace of 8.3% up from 2016.

Most expensive city: Halifax

Halifax is Nova Scotia’s most populous city, as well as its capital. With a population of more than 400,000, it is by far the largest population centre in the Maritime provinces and as such, plays a big part in the region’s economy. CMHC reported an average home price of $304,585 in April 2017, making prices high compared to the provincial average, but very affordable among the major cities of Canada.

What you need to know about buying a home in Nova Scotia:

Downpayment Assistance Program: The DAP is available for Nova Scotians with low incomes by providing an interest-free loan of up to 5% of a home’s purchase price, as long as the following conditions are met:

The applicant’s total household income must be less than $75,000
The property must be in Nova Scotia
The purchase price of the home cannot exceed $150,000, except in Halifax where the limit is $280,000
The applicant must be buying a home for the first time
The applicant must have resided in Nova Scotia for at least 12 months
The applicant must have good credit and pre-approval for an insured mortgage by a recognized financial institution

To make repayment easier, participants can waive payments in their first year, however the loan must be paid back over 10 years.

NEWFOUNDLAND AND LABRADOR

With an MLS average home price index of $254,131, Newfoundland and Labrador is downright affordable by Canadin standards. The province consists of the island of Newfoundland, which is the easternmost point in Canada, and Labrador on the mainland. More than than 90% of the population lives on the island and about half of them are in the capital city of St. John's.

Most expensive city: St. John's

With a population of 205,944, Newfoundland's capital city is the second largest metropolitan area in the maritime provinces. The average HPI is $274,906. One of the oldest communities in the country, downtown St John's stands out thanks to its colourful row houses.

What you need to know about buying a home in Newfoundland and Labrador:

Down Payment Assistance Program: The DAP is available for first-time home buyers with low incomes by providing an interest-free loan of up to 5% of a home’s purchase price, as long as the following conditions are met:

The applicant’s total household income must be less than $65,000 to qualify for the full loan. Incomes up to $75,000 are eligible based on a sliding scale from $12,000 to $3,750
The property must be in Newfoundland and Labrador
The purchase price of the home cannot exceed $250,000 in St. John’s and Labrador; $200,000 in regional centres and their surrounding communities; $175,000 everywhere else in the province
The applicant must be buying a home for the first time
The applicant must have good credit and meet the same criteria for approval from a typical financial institution

PRINCE EDWARD ISLAND

Canada's smallest province is well known for its beaches and potatoes, but it's also one of the most affordable places in the country to own a home. The average home costs just $184,838 according to the MLS home price index. It’s no wonder the province has one of the highest rates of homeownership in Canada — 73.4%

Most expensive city: Charlottetown

Charlottetown is the largest city in PEI, although it is comparatively a small population centre. CMHC reports the average detached home costs $345,628.

What you need to know about buying a home in PEI:

Land Transfer Tax exemption: First time home buyers in PEI can recover up to $2,000 to cover their property transfer tax on properties that cost less than $200,000 with the the exception of homes purchased for $30,000 or less, in which case there is no property tax at all.

Eligibility requirements:

Applicants must be 18 years old
Applicants must be a Canadian citizen or permanent resident
Applicants must have lived in PEI for six consecutive months or have filed two income tax returns in PEI in the past six years
Applicants cannot have owned a home before or claimed an exemption before

NEW BRUNSWICK

New Brunswick has one of the most stable housing markets in the country. The average home price for the province is growing slowly and steadily. In April 2017, the average price was $173,410, an increase of 2.8% from a year before. While Canada’s major markets face issues with demand outpacing supply and prices growing at unsustainable paces, New Brunswick enjoys a housing market with plenty of listings to choose from and low, stable prices.

Most expensive city: Fredericton

Fredericton is New Brunswick’s capital and third most populous city. At $190,314, the average price is 9.7% higher than the provincial average, but still very affordable for the average resident. Only 11.8% of the people in New Brunswick spent more than 30% of their income on shelter costs according to the 2011 National Housing Survey.

What you need to know about buying a home in New Brunswick:

New Brunswick is already an affordable place to buy a home, but first-time home buyers can still take advantage of a few programs to reduce costs or make an unaffordable dream possible.

Home Ownership Program: The Home Ownership Program provides zero to low interest rate mortgages to lower-income buyers who need a bit of help covering the purchase of a first home. They will provide up to 40% of an existing home’s purchase price and up to 50% of a new build. The loan’s interest rate is based on income. For households with income under $30,000, the interest rate is 0%. For every $1,000 above that, the interest rate will be 0.5% higher until it equals the provincial borrowing rate.

NB HST Tax Credit: The government of New Brunswick will automatically receive a partial rebate on the provincial portion of HST on home purchases based on a sliding income/family size scale.

YUKON

Yukon is the smallest of Canada’s three territories, and it’s been promised the smallest portion of the federal budget’s pledged $300 million for Northern housing. Of that amount, Yukon is expected to get $24 million.

Most expensive city: Whitehorse

The Whitehorse housing market is the busiest and most expensive. In the fourth quarter of 2016, the average price for a Whitehorse home was $420,300 and the city accounted for $48.8 million in housing sales compared to the rest of the territory’s $12.6 million.

Government assistance: The provincial government has three programs in place to help first-time buyers in Yukon.

First mortgage program: in an effort to help families enter the Yukon market, this program offers eligible residents a maximum mortgage loan of $360,000 and only requires a 2.5% minimum down payment.
Down payment assistance program: if a Yukoner contributes at least 2.5% to the down payment of a home (price must not exceed $365,000), this program will offer eligible residents a low-interest loan to make up the rest of the payment.
Owner build program: if you’re eligible, this programs provides mortgage financing to help you construct your own home from scratch.

NUNAVUT

Affordable housing is a major social issue in Nunavut and the problem has only been getting worse. At the moment, 50% of Nunavut homes are provided via social housing; about 250 families are hoping to get social housing; and private home prices are too high, averaging $500,000 to $900,000. The 2017 federal budget promises to invest $240 million to address this crisis — ten times the amount slated for Yukon — but residents await details.

Most expensive city: Iqaluit

According to the CMHC’s latest data (2015), the average price of a home in Iqaluit is $493,281.

Public Housing: The Nunavut Housing Corporation (NHC), in partnership with the Local Housing Organizations (LHO) “provides subsidized housing to tenants based on their income and ability to pay rent.”

Homeownership Assistance Program: The NHC offers financial assistance to Nunavut residents who can buy a home, but need support. Assistance comes in the form of forgivable loans for down payments, grants for emergency repairs, and more.

NORTHWEST TERRITORIES

Northwest Territories residents continue to cope with a public housing shortage. At the moment, many families are forced to wait at least two years before they can get affordable housing. Meanwhile, the NWT Housing Corporation is working to get rid of 101 public housing units, buildings that are in dire straits and need to be replaced. The federal budget has pledged $36 million to the Northwest Territories housing crisis, and hopefully this money can address the territory’s increasing demand for affordable homes.

Most expensive city: Yellowknife

Northwest Territories’ capital, Yellowknife, is the most expensive city for housing. The CMHC reports an average home price of approximately $385,000 in 2016 — the average price for the territory was $348,997 according to the CREA.

Affordable housing programs:

Providing Assistance for Territorial Homeownership (PATH): offers eligible residents a forgivable loan to help them finance the purchase of an existing home or the construction of a new one. Loan amounts range from 5% to 55% of the purchase price or construction cost.
Homeownership Entry Level Program (HELP) : designed to prepare potential first-time buyers and ease them into the homeownership experience. Through the HELP program, eligible residents receive subsidized rent, pay utilities, and are then offered incentives to buy the unit.

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