Fact vs. Fiction: Debunking 7 Common Real Estate Myths in Canada

There are several common misconceptions about the costs and processes involved with homebuying. Here, we debunk those myths.

By Kristin Doucet | 5 minute read

Whether it’s concerning the best time of year to purchase a home or the size of the downpayment required, misconceptions abound in Canadian real estate.

When it comes to Canadian real estate, many prospective buyers lack a clear understanding of the costs and processes involved, making it challenging to navigate the market. Some commonly believed notions can mislead buyers, sellers, or even investors, which can result in poor decisions or missed opportunities. Fortunately, with greater access to data, technology, and digital platforms like Wahi, many of these myths are being dispelled. Below are several of the most common misconceptions about Canadian real estate and the truth behind them.

Myth 1: You need a 20% down payment to buy a home. 

Myth: Unless you have 20% of the home’s purchase price to put down, you can’t buy a house without getting mortgage insurance.

Reality: In Canada, the required down payment is not always 20%. It is, however, required for homes above $1 million. For homes under $500,000, you need a minimum down payment of 5%. For those between $500,000 and $999,999, you need 5% on the first $500,000 and 10% on the portion above that. Larger down payments do reduce mortgage insurance costs and monthly payments, but a 20% down payment is not always mandatory.

Platforms that provide transparent financial information, mortgage‐option comparisons, and local data help buyers understand what they realistically need for the home they want to buy. 

Myth 2: You should use a real estate agent you already know.  

Myth: The best way to find a Realtor is through friends or family, or referrals.

Reality: Referrals are useful, but it doesn’t necessarily mean that the Realtor you’re referred to has expertise in a particular market or local knowledge of the neighbourhood where you want to live, nor does it mean they’re the right fit. Choosing the right Realtor is one of the most important steps in buying or selling a home because the right fit ensures you have someone who has the right expertise or local knowledge, understands your goals, communicates effectively, and advocates for your best interests. A strong match can save you time, money, and stress, while helping you navigate the complexities of the market with confidence. Ultimately, the right Realtor can turn a complicated process into a smoother, more rewarding experience.

Myth 3: Spring is the best time to buy or sell your home.
 

Myth: Because of weather, market cycles, or tradition, spring is the best time when the real estate market is favourable.

Reality: While spring often sees a spike in listings, buyers believe the nicer weather, better curb appeal, etc., mean that’s the best time to buy or sell. Homes sell year‑round, and sometimes listing in off‑peak seasons (i.e., winter) means less competition, more motivated buyers or sellers, and potentially more room to negotiate. 

A Wahi study of Greater Toronto Area home sales in 2024 shows that, while April is often the busiest month overall, the top month for home-selling activity varies widely across neighbourhoods, spanning January through December depending on location. 

Myth 4: Renovations always pay off. 

Myth: If you renovate, you will always increase your home’s value.

Reality: Not all renovations are equal. Some improvements (like kitchen upgrades, bathrooms, or energy-efficient systems) often have good returns. Others, such as custom features or ultra‑luxury finishes, may not recoup their costs depending on your market.

The 2024 Wahi Great Canadian Dream Home Survey highlights what features matter most to homebuyers. The survey shows that renovations are still important, as most buyers prefer move-in ready homes. In fact, 64% of potential homebuyers said they prefer renovated homes rather than fixer-uppers or tear-downs.

“Every home is different. How much more a renovated home sells for depends on myriad variables, including local condition, quality and style of the build, and overall investment, to name a few,” says Anne Alkok, a Calgary-based REALTOR® and Broker of Record at Wahi. “ Sometimes spending less but focusing on good ROI improvements (paint, landscaping, minor repairs) can give you more bang for your buck.” 

Myth 5: Home prices always go up.

Myth: Real estate in Canada is a guarantee: values will keep rising.

Reality: Real estate markets are cyclical and influenced by interest rates, economic conditions, supply and demand, migration, government policy, and more. Prices can stagnate or even decline in certain areas, especially if oversupply, regulatory changes, or rising borrowing costs intervene. Rather than believing that prices always go up, it’s smarter to look at trends, local data, and risk factors, rather than assume perpetual growth.

The RPS-Wahi House Price Index tracks year-over-year changes in home prices over time in 10 key markets across Canada. It offers a more stable and consistent picture of home price trends, so you can see where home prices are rising and falling. 

Major metro areas like Toronto and Vancouver, for example, have seen home price growth dramatically decrease in recent months, largely due to the pace of condo depreciation in those cities. In August, condos saw a -6% year-over-year decline in home price growth, while semi-detached homes saw a -1% decline and detached homes saw a 1% increase. 

Myth 6: You can’t properly assess a home’s value unless you visit in person.

Myth: Without touring a property in person, it’s hard to know if a property is over- or underpriced. 

Reality: In many cases, you can get a lot of useful information without an in‑person visit using digital tools that provide a listing’s history, sold comparables, home value estimates and more.  Wahi’s free app, for instance, gives you access to real‑time market data, real days on market,  insights into sold transaction history, accurate home value estimates, price drop alerts, and more.

While it’s still necessary to visit a property in person, these tools can play a powerful role in reducing uncertainty and helping you make smarter decisions.

Myth 7: The buyer pays the real estate commission.

Myth: When you buy a home in Canada, part of your down payment or closing costs goes toward paying your real estate agent’s commission.

Reality: In most Canadian real estate transactions, it’s the seller who pays the commission. While buyers sometimes feel they’re covering it indirectly—since commission may be factored into the listing price—they generally don’t pay their agent out of pocket. Typically, a total commission (for example, 5%) is shared between the seller’s and buyer’s brokerages. The portion offered to the buyer’s brokerage is set by the seller and can vary depending on the local market and prevailing conditions. Commissions are also negotiable.

Wahi offers a Cashback Program in select markets that offers homebuyers thousands of dollars back after their purchase. When a buyer purchases a home through Wahi’s program, they receive up to 1% of the home’s purchase price back in cash after closing. On a $1,000,000 home, that translates to $10,000 in the buyer’s pocket. 

Wahi’s Cashback Program also extends to those who buy and sell with the company. When you buy and sell with Wahi, you’re eligible for up to 1.5% cashback on the purchase of your new home, which can amount to approximately $15,000 back on a $1 million property.