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Any real estate decision is a big move, one which requires a decent amount of market savvy and a sound financial acumen. When buying, access to liquid funds is essential to cover the down payment, deposit, and closing costs; plus, you’ll need a good credit rating to qualify for financing.

Anyone considering a move should also understand the various rules, from real estate appraisals and home inspections to financing arrangements and legal requirements.. (If all of this is as clear as mud, a good real estate agent can help you make sense of everything and empower you to make an informed decision.)

When selling, it helps to have an innate understanding of who your buyer may be and what they are looking for. Perhaps most importantly, you’ll want to know who can buy a house in Canada – because not everyone can, for various reasons. We’ll talk about what you need to know about buyers, whether you are the buyer or you’re searching for a buyer.

Do you want an accurate estimate of your home in today’s market? Book your complimentary home evaluation with us right here.

Who Can’t Buy a House in Canada?

Let’s start with who we can reasonably say the buyer won’t be. In 2023, the federal government introduced legislation that barred foreigners (with some exceptions) from purchasing Canadian real estate.

This was supposed to be a temporary measure to free up housing for local residents, but has been extended until at least 2026. At approximately the same time, provincial and federal governments enacted new laws, not to forbid – but to strongly discourage investors from scooping up properties. These include an anti-flipping tax and a vacant unit tax in some Canadian cities where homes are in short supply, such as Vancouver and Toronto.

Even with these rules, the list of people who can officially buy a house is long, and includes Canadian citizens, permanent residents, new immigrants, refugees, and non-Canadians who are buying with a Canadian spouse or common-law partner.

Should you set your sights on Thornbury for your next move? The posts below can help you decide:

Who Could Buy a House?

Many people can legally buy on paper, but they simply don’t have the resources available to make a purchase. A buyer needs access to a significant amount of cash upfront even if they qualify for financing. Think of the down payment alone.

  • 5% on the first $500,000
  • 10% on the amount from $500,000 to $1.5 million
  • 20% on any amounts from $1.5 million and above

Imagine a buyer who found and fell in love with a house for $1 million. They would need $75,000 just as a down payment ($25,000 on the first $500,000, plus $50,000 on the remainder).

Next, they’d have to cover the land transfer taxes in cash as this particular closing cost cannot be included in the mortgage. That’s not even including the cost of any necessary upgrades or moving expenses.

The financial requirements alone have pushed many people out of the market, particularly first-time home buyers. If you plan to sell your house, it’s critical to have a presentation and marketing strategy to attract a buyer with both the resources and the desire to purchase.

Different Properties Have Different Buyers

It makes sense that a small bungalow or condo will attract a different buyer profile than a large, multi-million dollar estate on the waterfront. That’s why a one-size-fits-all approach to marketing and selling a home is not usually effective.

It’s important to work with an experienced real estate agent to engage the right person; otherwise, you might end up with an exhausting amount of showings but no actual offers.

Think of what the various buyers for different types of properties might be looking for.

  • A first-time home buyer is likely price conscious, but cheaper isn’t necessarily the answer. A limited budget means they’re not in a position to make extensive upgrades after they move in. As a result, they typically want a home that is well-maintained and move-in ready. As a seller, focusing on quality upgrades can have a positive impact, whereas fancy finishings could scare these younger buyers off.
  • A luxury buyer generally has the funds and ability to buy their dream home. At the same time, they’re still serious about getting value for their money. Meticulous presentation is imperative, but this demographic will not be impressed with surface-level cosmetic upgrades. They will almost always look deeper at the bones and structure of the home. All renovations and upgrades should be of impeccable quality.

Are you looking for more advice to make the most of your home sale? The posts below will give you some inspiration:

Real Estate Is Always Nuanced

Of course, the majority of buyers fall in between these categories. For example, a retiree might be open to a property that needs some care as they often have the budget, skills, and time to mould the home to their specifications. Alternatively, they may want a fully upgraded home with nothing to do but move in.

In addition, you never want to pre-judge any demographic, and there are always exceptions to every rule.

  • Not every first-time buyer is strapped for cash. They may have help from family members and could very well be looking for a high-quality home for the long term.
  • Not every affluent buyer is looking for luxury. Some live modestly to free up their funds to invest elsewhere.

When you think about all of the different scenarios you may encounter, it’s easy to see why a nuanced and well-informed approach is so important. By understanding who your buyer might be — or what’s required to buy — you become more empowered to achieve your goals when buying or selling. With the expertise of a top local real estate team, you can also experience a straightforward, successful transaction with minimal stress.

Do you have more questions about buying or selling a home? Our top Thornbury real estate agents are happy to help! Reach out to 705.888.2888 or email Mike@TheKearnsGroup.ca to take the first step.