How Long Does it Take to Buy a Home?

The longest part of the homebuying process is undoubtedly saving for the down payment. When buying a home, even if you plan to finance the purchase with a mortgage, you will likely need to save up enough money for the down payment. As homes are expensive, so too are down payments. Plus, there are several down payment requirements in Canada. Depending on the purchase price of the home and the type of home you purchase (pre-construction or resale), you might be required to make a 5%, 10%, or 20% down payment. Alternatively, if you choose to buy land and build your own home, the down payments are usually a minimum of 20%. 

If you’re trying to save time when house hunting, be sure to get pre-approved for a mortgage, consider buying a home with cash, make sure to pay closing costs on time, and follow the additional tips below. 

Narrow down your search according to location and budget

Streamline the house-hunting process by narrowing down your search according to location and budget. Assuming you got pre-approved for a mortgage, you should have a good idea of how much of a price you can afford. Use this information to instantly narrow down your search, and remember to avoid maxing out your budget. Next, think carefully about your preferred location — not just the city but the specific neighbourhood. If you’re having trouble deciding on a location, check out this list of cheap places to buy houses in Ontario.  

Make a list of deal breakers

The next step that will almost certainly shave time off the house-hunting process is to make a list of deal breakers. In essence, this is your list of “must-haves.” You can also include a supplementary list of “nice-to-haves” if necessary. “Must haves,” as the name suggests, are things you cannot live without. For example, if you’re a family of four, a must-have might be three bedrooms. Other examples of must-haves could be a finished basement, spacious backyard, or open-concept floor plan. Compare every home you visit against your list of deal breakers to help you decide if it’s the right fit.  

Ascertain the seller’s motivations

The final tip for saving time when house hunting is to ascertain the seller’s motivations. Some sellers are extremely motivated to sell their homes as quickly as possible. If speed is a top priority for you, it’s important to determine which sellers fall into the “motivated” category. A REALTOR® can help you do this. For example, if the seller is urgently relocating or a family emergency is what precipitated the home sale, they might be more likely to agree to a fast closing date or more responsive to initial offers. On the other hand, if the seller isn’t in a rush (perhaps they are downsizing after decades of living in the same home), then they might prioritize the “right” seller over the first seller. Not only can ascertaining the seller’s motivations help you devise the best possible offer, but it can also help speed up the homebuying process if you find a seller who is motivated.

To avoid delays when buying a house, make sure to get pre-approved for a mortgage. Mortgage pre-approval forces the buyer to gather all the necessary documents in advance, which will only serve to speed up the formal mortgage approval process when it comes time to apply for real. Documents and information vary by lender but homebuyers should be prepared to provide proof of income/employment, personal identification, proof of all major assets (for example, cars, cottages, boats), and information on any loans or outstanding debt. 

Another way to avoid delays when buying a house is to pay all closing costs on time. If you’ve gotten pre-approved for a mortgage, then you should have no trouble securing the necessary financing. This can help you pay out-of-pocket expenses, like closing costs and property taxes. Whatever you do, especially if you want the homebuying process to go as quickly as possible, do not miss the close date. Doing so can put the entire transaction in jeopardy and may come with serious financial ramifications. 

Lastly, avoid delays when buying a house by purchasing a home with cash. Cash purchases are usually simpler and have much shorter closing periods. In addition, if speed is a priority, we recommend against purchasing a pre-construction home, building your own home, buying a fixer-upper, or buying a house from a deceased estate. All of these options tend to significantly extend the homebuying process by anywhere from a few months to a year or more. 

You can get pre-approved for a mortgage faster by gathering the necessary documents in advance (we recommend starting the homebuying process with this step, even before hiring a REALTOR® or visiting homes). The necessary documents for mortgage pre-approval are as follows: 

• • Proof of income/employment (for example, a pay stub that shows your current salary or hourly rate, a letter from your employer detailing your position at the company, your salary, and how long you’ve worked for them, or a recent notice of assessment from the Canada Revenue Agency (CRA), if you are self-employed). 

  • Proof of other major assets, such as a car, boat, or seasonal property like a cottage.

  • Personal identification in the form of a valid, government-issued ID, such as a driver’s licence or Canadian passport.

  • Information about any outstanding debt, loans, or other financial obligations, such as student or car loans, credit card balances, lines of credit, or child/spousal support.

  • Proof you can afford a down payment on a home and the closing costs, as well as monthly mortgage payments (proof could be bank statements or investment statements showing how much money you have in savings).

Further, if you don’t have the time to shop around for mortgages and compare rates, you may wish to work with a mortgage broker. Doing so might speed up the pre-approval process as they can contact mortgage lenders and obtain and compare quotes on your behalf.

Another way to avoid delays when buying a house is to pay all closing costs on time. If you’ve gotten pre-approved for a mortgage, then you should have no trouble securing the necessary financing. This can help you pay out-of-pocket expenses, like closing costs and property taxes. Whatever you do, especially if you want the homebuying process to go as quickly as possible, do not miss the close date. Doing so can put the entire transaction in jeopardy and may come with serious financial ramifications.

Lastly, avoid delays when buying a house by purchasing a home with cash. Cash purchases are usually simpler and have much shorter closing periods. In addition, if speed is a priority, we recommend against purchasing a pre-construction home, building your own home, buying a fixer-upper, or buying a house from a deceased estate. All of these options tend to significantly extend the homebuying process by anywhere from a few months to a year or more.

On average, mortgage approval in Canada takes anywhere from two to 10 business days. However, it can take longer in certain instances, such as if you have bad credit. For this reason, you might wish to make your purchase agreement conditional on receiving the necessary financing.