Newsletter Subscribe
Enter your email address below and subscribe to our newsletter
5 Things to Keep in Mind When Buying a Home This Summer
Share your love
Thinking of buying a home this summer? You’re not alone — warmer weather, school holidays, and new listings make summer one of the most popular seasons for homebuyers across Canada. But in 2025, the real estate landscape looks a bit different than it did a few years ago.
From rising interest rates to tighter budgets and fierce competition, navigating the market this summer means more than just browsing listings on your lunch break. In this guide, we’ll walk you through five essential things to keep in mind before you jump into a home purchase this season — so you’re not just ready, but confident.
1. Rising Interest Rates Mean Higher Mortgage Payments
Let’s start with the big one: interest rates are still climbing. The Bank of Canada has made several adjustments since 2022 to fight inflation, and while the hikes are slowing down, the reality is this: your mortgage will likely cost more than it would have a few years ago.
Even a 1% difference in your mortgage rate could mean hundreds more each month — and tens of thousands over the life of your loan. So while prices in some areas may be dipping, your borrowing power might be stretched.
🧠 Tip: Use a mortgage affordability calculator with current rates to set a realistic price ceiling — not just a wishlist.
📉 How Interest Rate Changes Affect Monthly Mortgage Payments
This table shows the monthly payment impact of rising interest rates on three common mortgage amounts in Canada. Rates are based on a 25-year amortization period.
| Interest Rate | $300,000 Mortgage | $500,000 Mortgage | $750,000 Mortgage |
|---|---|---|---|
| 3.00% | $1,419 | $2,365 | $3,547 |
| 4.00% | $1,578 | $2,631 | $3,947 |
| 5.00% | $1,745 | $2,908 | $4,362 |
| 6.00% | $1,929 | $3,215 | $4,822 |
| 7.00% | $2,130 | $3,551 | $5,326 |
🧮 These numbers are based on a 25-year amortization and assume fixed-rate mortgages. Actual results may vary depending on lender terms and credit score.
2. Summer Is Competitive — Get Pre-Approved and Be Ready to Move Fast
Summer may be sunny, but it’s also hot competition season in real estate. Families prefer to move while school’s out, and the weather makes open houses easier to attend — so bidding wars are common in popular neighbourhoods.
That’s why getting pre-approved for your mortgage is a non-negotiable step. Sellers want serious buyers — and a pre-approval letter gives you the edge. It also helps you know your true budget, so you’re not wasting time looking at homes you can’t finance.
And when you do find the right place? Be ready to act. Waiting “just one more day” could mean missing out.
🧠 Pro tip: Ask your mortgage expert for a rate hold — some lenders will lock your rate for 90–120 days, giving you peace of mind if rates rise while you shop.
3. Don’t Forget About Closing Costs and Moving Expenses
When people think about buying a home, they often zero in on the down payment and monthly mortgage. But there’s a lot more to account for.
Let’s talk closing costs. In Canada, they usually range from 2% to 5% of the home’s purchase price. That includes:
- Land transfer tax
- Legal fees
- Title insurance
- Property appraisal
- Home inspection
- GST/HST (on new builds)
So if you’re buying a $600,000 home, expect anywhere from $12,000 to $30,000 in added expenses — and that’s before you call the moving truck.
Speaking of which: moving isn’t cheap either. Whether you’re doing it yourself or hiring professionals, budget at least a few thousand rupees (and a lot of patience).
💸 Closing Costs Checklist – Budget Beyond Your Down Payment
Buying a home in Canada comes with extra costs at closing. Here’s what you should be budgeting for — aside from your down payment.
- ✅ Land Transfer Tax (LTT): Based on your purchase price & province. First-time buyers may qualify for rebates.
- ✅ Legal Fees: Expect $1,000–$2,000 for title searches, registrations, and disbursements.
- ✅ Title Insurance: One-time cost (~$250–$400) to protect your ownership rights.
- ✅ Home Inspection: Optional but smart – usually $400–$700.
- ✅ Appraisal Fee: Required by lenders (~$300–$500).
- ✅ CMHC Insurance Premium: Applies to mortgages with <20% down; often added to loan but still affects affordability.
- ✅ Adjustment Costs: Cover prepaid taxes, utilities, and condo fees by the seller.
- ✅ Moving Costs: Local moves typically cost $1,000–$2,000 depending on size and distance.
- ✅ Property Tax Holdback: Some lenders require you to prepay a portion of property taxes.
💡 Tip: Budget an extra 3–5% of your home price to comfortably cover closing costs.
4. Be Flexible, But Stay Grounded in Your Priorities
It’s a seller’s market in many cities — and that means buyers are often pressured to compromise or overbid just to win a deal.
Our advice? Know what you can bend on… and what you can’t. Maybe you’re okay giving up a backyard, but won’t budge on a home office. Or perhaps you’d stretch your budget for a finished basement, but not for an extra bedroom you don’t need.
It’s easy to get swept up in the rush — especially when someone else wants the same house as you. But remember, this isn’t a race. It’s your home.
🧠 Ask yourself: “Will this home still make sense for me five years from now?”
5. Remember Why You’re Buying in the First Place
Last but definitely not least: come back to your “why.” Why are you buying this home?
- Is it your first step toward building wealth?
- Are you growing your family?
- Looking for more stability?
- Trying to get out of the rental cycle?
When listings blur together and decisions feel overwhelming, your “why” is your compass. It keeps you from overpaying just because you’re tired of searching. It stops you from settling for a house that doesn’t feel right. And it reminds you that this move is part of a bigger vision — your life, not just your mortgage.
🧠 Your Homebuying “Why” – Clarify Your Needs & Goals
Before you jump into mortgage calculators or house listings, take a step back and ask: Why do I really want to buy a home? This reflective checklist can help you get clear on your goals, priorities, and timing.
- 🏡 Are you buying to live in or invest? (Primary home, rental, vacation?)
- 📅 Is your timeline urgent or flexible? (Next 3 months, 1 year, or longer?)
- 👨👩👧 Who will live in the home? (Solo, partner, kids, parents?)
- 📍 Where do you ideally want to live? (Commute, school zone, neighbourhood vibe?)
- 📦 How much space do you actually need? (Bedrooms, yard, storage?)
- 💸 What monthly payment feels comfortable? (Not just what you qualify for)
- 📈 Do you want long-term stability or future flexibility? (Fixed vs variable plans, resale value)
- 🏗️ Are you okay with a fixer-upper or do you want move-in ready?
- 🚗 How important is location vs size vs budget? (Rank these 1–3)
- 🔒 Are you financially and emotionally ready to commit? (Job security, savings, confidence?)
✍️ Write down your top 3 non-negotiables and your biggest fear. This will guide every decision from here on.
Final Thoughts: Summer 2025 Is All About Being Prepared
Buying a home this summer won’t be the same as last year — and that’s okay. Higher interest rates, tight competition, and rising living costs can make the process feel daunting, but the opportunity is still there for smart, prepared buyers.
If you:
- Know your numbers
- Get pre-approved
- Account for full costs
- Stay focused on your must-haves
- Remember your deeper motivation
…you’ll be in great shape.
Need Help Navigating Summer Mortgages?
At Mortgage.Expert, we’re here to help you understand your options — not pressure you into a deal. Our advisors work with you to find the best rate, explain every step, and help you feel confident walking into any open house.
