5 Crucial Things to Know Before Buying a Home This Summer in Canada

Summer is one of the busiest seasons for real estate in Canada—and for good reason. Warmer weather, school breaks, and longer days make it a popular time for open houses, bidding wars, and moving trucks. But if you’re planning to buy a home this summer, whether it’s your very first or your next step up the property ladder, there are a few important realities you should be prepared for—especially in the current economic climate.

Interest rates are still relatively high, home prices are adjusting in many markets, and the competition among buyers is as intense as ever. So before you dive into viewings and mortgage pre-approvals, let’s walk through five key things you need to keep in mind to make sure your summer home purchase is a smart, stress-free move.

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1. Interest Rates Are Still Elevated—And That Affects What You Can Afford

First things first: borrowing money is not as cheap as it used to be. The Bank of Canada has raised interest rates several times over the past couple of years in response to persistent inflation, and even with some recent cuts, mortgage rates remain higher than what buyers were used to in the 2010s.

What does this mean for you as a buyer this summer? It means your monthly mortgage payments could be significantly higher than expected—even if home prices seem more affordable now than they were during the pandemic boom. For example, the same $600,000 mortgage that once cost around $2,200/month at a 2% rate might now cost closer to $3,200/month at 5%.

This is why it’s crucial to revisit your budget and get a clear sense of what you can actually afford at today’s rates. Your dream home should bring comfort, not financial strain. When calculating affordability, be sure to factor in property taxes, insurance, utilities, and maintenance costs—not just the mortgage itself.

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2. Summer Brings Serious Competition—So Be Ready to Act Fast

If you’ve already started browsing listings, you’ve probably noticed that properties in hot markets don’t sit around for long. Summer is peak home-buying season across most of Canada, especially in cities like Toronto, Vancouver, Ottawa, and Montreal. Families want to move before the new school year, and sellers know this is their best window to list.

So what does that mean for you? You need to be prepared, proactive, and pre-approved.

Getting pre-qualified is no longer just a smart move—it’s a necessity. Sellers and real estate agents want to know you’re serious, and having a pre-approval letter from your lender gives you an edge over casual browsers. It also helps you understand exactly what your borrowing power is, so you don’t waste time falling in love with homes that are out of reach.

And once you do find a home that checks all your boxes, don’t sleep on it. In this market, hesitation can cost you. That doesn’t mean rushing into a decision, but it does mean having your financing, lawyer, and real estate agent lined up so you can make a strong offer quickly when the time is right.

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3. Don’t Forget About the Hidden Costs of Closing and Moving

When most people budget for a new home, they focus on the big-ticket items: the down payment, the mortgage, and maybe new furniture. But closing costs—those sneaky, less-talked-about fees—can add up quickly and catch you off guard if you’re not prepared.

In Canada, closing costs typically range from 2% to 5% of the purchase price. That means for a $500,000 home, you could be looking at anywhere from $10,000 to $25,000 in additional expenses. These include things like land transfer taxes, legal fees, home inspections, and title insurance. And if you’re in a city like Toronto, be prepared for municipal land transfer taxes on top of provincial ones.

Then there’s the cost of actually moving. Hiring a professional moving company, buying boxes and packing supplies, renting a truck, paying for elevator bookings—these can all chip away at your savings fast. If you’re relocating to another city or province, you might also face higher transportation costs or the need for temporary housing.

The takeaway? Budget for more than just the listing price. Create a cushion in your budget for all the little (and not-so-little) costs that come with closing the deal and getting settled.

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4. Flexibility Is Your Best Friend

In a competitive market, being too rigid with your expectations can lead to disappointment—or missed opportunities. That’s why one of the best things you can bring to your summer home-buying journey is a flexible mindset.

You might need to adjust your budget slightly if interest rates shift or your mortgage pre-approval doesn’t stretch as far as you hoped. You might have to consider different neighbourhoods, slightly older homes, or fewer amenities than you initially wanted.

And when you do find a home that fits your needs and budget, be prepared to act decisively. In today’s market, hesitation can mean losing out. That doesn’t mean you should skip inspections or due diligence, but it does mean being organized, confident, and clear on your financial limits.

If you’re working with a real estate agent, communicate openly and make sure they know your must-haves versus your nice-to-haves. Having clarity will help you move quickly without compromising your priorities.

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5. Don’t Lose Sight of Why You’re Buying in the First Place

In the whirlwind of listings, bidding wars, mortgage calculators, and closing costs, it’s easy to lose sight of the bigger picture: why you’re buying this home in the first place.

Are you a first-time buyer looking to finally break free from renting? A growing family in need of more space? Someone relocating for work or looking for a lifestyle change? Whatever your reason, keep that purpose front and centre.

It can be tempting to settle for something “just okay” when the market is tight or move too fast because of FOMO. But buying a home is a big deal. It’s a major financial investment, yes—but it’s also where your life will happen. The home you choose should reflect your values, your lifestyle, and your long-term goals.

So even while you stay flexible and move quickly, don’t forget your “why.” It will guide your decisions and help you stay grounded during what can be an emotionally intense process.

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Final Thoughts: Make This Summer’s Move Count

Buying a home in the summer can be exciting—but it also comes with its own set of challenges. Between high competition, rising interest rates, and the added costs of closing and moving, it’s important to go in informed and financially prepared.

But it’s not all bad news. In fact, for many Canadians, the summer of 2025 may be a more affordable time to buy than recent years. Home prices in several markets have stabilized or even come down slightly, and with the right plan, you can still find great value.

The key? Start early, build a strong financial foundation, work with experienced professionals, and trust your instincts. If you’re ready to explore your mortgage options or get pre-approved ahead of the summer rush, now is the time to connect with a trusted expert.

Your perfect home could be just around the corner. Let’s make sure you’re ready for it.