How to enter the Canadian Housing Market in 2022

Canada’s real estate market is red hot, causing many first-time homebuyers and new immigrants to struggle to enter the market. Based on the market statistics for January 2022, there are no signs that the market plans to cool anytime soon.

Canada’s real estate market is red hot, causing many first-time homebuyers and new immigrants to struggle to enter the market. Based on the market statistics for January 2022, there are no signs that the market plans to cool anytime soon. 

If you are feeling that there is little hope to enter the housing market right now, don’t give up, taking the following will get you closer to the goal of being a Canadian homeowner.

Get a mortgage pre-approval:

Within the Canadian market, competition is tough, and there are bidding wars for most properties. Having a mortgage pre-approval can give you an advantage on your bid. In multiple offer situations, any conditions can make your offer less appealing, with a pre-approval most buyers can remove their financing conditions with the offer.  Ensure you have this in place now, it can help you have a stronger position with sellers. Especially with mortgage rates being at a record low, it is in your best interest to secure a pre-approval now

Be realistic:

The trend in the Canadian housing market is that houses are being sold for $100k - 200k over asking. Keep this in mind when you are choosing the houses you want to view and bid on. Keep your affordability top of mind when you consider your pre-approved mortgage and your down payment amount. If you bid on and win a property that is out of your affordability the risks are: 

You may lose your deposit and the house. This means you will need to save more to secure your next home or

You may be required to take out a second mortgage to secure the property. The risk with this is, the rates for second mortgages range from 4% - 13%, which will cause your monthly liability to be higher than you forecasted

Use a mortgage calculator to help you understand the mortgage you can afford and work with your bank or a broker you trust to validate your budget.  Once you know what you can afford, this will help you focus your search with your realtor. 

Don’t chase rate:

Rates are the lowest they have been in decades, you have options, so do not fall for those ads that promote that they can secure you the lowest rate. Secure a lender that has the right terms to fit your financial position and that is likely to accept you based on your income, affordability and financial position. can provide you this information by answering a few quick questions with no impact to your credit score.  

Most banks approve 4 out of 10 mortgage applications, therefore it is always important to secure the best mortgage with the lender that fits your needs. Try not to fall in the assumption you will be approved right away, especially if it is a bank your friend or family member was approved through.  Not all customers are the same, some are self-employed, others are married, etc.  All of these attributes can provide different outcomes for different lenders.

Where should I secure a mortgage:

Good credit rating and hold a healthy down payment

Sit down with your existing bank and talk through your profile and lending needs. They are normally able to provide the best mortgage offer. The application process is quick and smooth, they already know much of your financial and personal information.

Damaged credit profile 

Your existing bank is a good option as they know your financial situation and may already have a solution for you. However, talking to a trusted Broker to scope out your choices is always a sensible option to see which lenders you can approach. Another option is to utilize online platforms such as, that will take all your information and quickly show you who is likely to accept you for free online, within minutes, and with no impact to your credit score. This is a great option for those who are serious about securing a mortgage now. Their services put you in the driver seat, you get to choose the lender you want to bank with, and not have to guess who will accept you.

Building your credit profile or new to Canada

For Canadian residents that fit this profile, we encourage you to use Their services can quickly tell you the lenders who are likely to accept you based on your profile.  You can take your time to see which lender’s services, product offerings, and brand values fit your needs. If you are looking for advice or want to directly apply through our service, the choice is yours. There is no impact to your credit score, and your information is not shared to any of those lenders outside of what you have selected, which means no one will be chasing you to close with them. You have the breathing space to make choices on your terms,when you are ready.

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