Canadian Real Estate Myths Debunked: What’s True and What Really Matters

Buying a home is a big decision, and for many people, it’s also filled with assumptions that feel like facts. Some of these ideas come from advice passed down over the years, others from headlines, social media, or stories from friends who bought – potentially in a very different market. The problem? A lot of what buyers think they know about Canadian real estate just isn’t true or applicable to their situation… And believing these myths can hold you back from making confident, informed decisions.

Let’s break down some of the most common Canadian real estate myths we hear from clients and talk about the reality behind them. These are the kinds of misunderstandings that can change how you approach buying a home and, in many cases, open doors you didn’t even realize were already unlocked.

Myth #1: You Need a 20% Down Payment to Buy a Home

This is easily one of the most common misconceptions in Canadian real estate – and one of the most discouraging for first-time buyers.

The reality is that a 20% down payment is not required to buy a home in Canada. Buyers can purchase a property with as little as 5% down, depending on the purchase price. Homes under $500,000 require a minimum of 5%, while properties above that threshold follow a tiered structure.

It’s important to note that when you put less than 20% down, mortgage default insurance is required. This insurance protects the lender and is added to your mortgage, which increases your overall loan amount and monthly payments—but it also makes homeownership possible sooner for many buyers.

Waiting years to save 20% can sometimes cost more in the long run if home prices rise faster than your savings. The “right” down payment is the one that fits your financial picture and plans.

Myth #2: Renting Is Always Cheaper Than Buying

Renting can absolutely make sense in certain seasons of life, but it’s not automatically the cheaper or safer option people assume it is.

In many Canadian markets, monthly mortgage payments can be comparable to rent – especially when you factor in that rent typically increases year over year. With homeownership, a portion of your monthly payment goes toward building equity rather than disappearing entirely. Over time, that equity can become a powerful financial tool.

This doesn’t mean buying is always the right move, but the idea that renting is the smarter financial choice simply isn’t true. The right decision depends on your timeline, stability, goals, and comfort level – not just the monthly number.

Myth #3: Homes That Sit on the Market Longer Are Always a Better Deal

It’s easy to assume that a home that’s been on the market for a while must come with a bargain price, but that isn’t always the case. While a longer listing period can sometimes create room for negotiation, it can also signal factors that buyers should look at more closely.

A home may be lingering because it’s priced too high for the current market, has layout or condition issues that limit its appeal, or presents challenges that aren’t immediately obvious from photos. In some cases, sellers may not be motivated to negotiate at all, especially if they’re waiting for the right buyer or testing the market. There can also be practical reasons, such as financing complications, restrictive conditions, or past deals that fell through during inspections.

Rather than focusing on how long a home has been listed, it’s more important to understand why it’s still available. A well-priced home that suits your needs and aligns with current market conditions can be a smart purchase at any stage of its listing. The key is knowing what questions to ask and evaluating the full picture before assuming a longer listing automatically means better value.

Myth #4: You Should Wait for the Market to Crash Before Buying

Trying to time the market is tempting – and, unfortunately, almost always frustrating.

Markets move in cycles, but predicting the exact right moment to buy is incredibly difficult, even for experts! Waiting for a dramatic drop can mean missing years of opportunity, while continuing to pay rent and sitting on the sidelines.

For most buyers, the better approach is to focus on personal timing rather than market timing. Buying when you’re financially prepared, emotionally ready, and planning to stay put for a reasonable period often matters far more than chasing the “perfect” market moment.

Myth #5: Pre-Approval Means You Can Spend That Much Comfortably

Getting pre-approved for a mortgage is a good first step to take in the home-buying process. It shows sellers that you’re serious, helps your offer stand out, and gives you a clearer picture of what a lender is willing to finance – which can be especially helpful when it’s time to negotiate.

That said, a pre-approval reflects what a lender can lend, not what will feel comfortable in your day-to-day life. Monthly mortgage payments are only one part of the equation. Property taxes, utilities, insurance, maintenance, and everyday lifestyle expenses all add up quickly.

Many buyers find they’re far more comfortable purchasing below their maximum approval, leaving room for savings, travel, childcare, and other unexpected costs that seem to pop up at the most unexpected times. The goal isn’t to stretch your budget as far as it will go – it’s to choose a home that supports the life you want to live without constant financial pressure.

Myth #6: You Don’t Need a REALTOR® in Today’s Market

With so much information online, it’s easy to assume you can handle everything yourself. Not sure about something? Head to Google! But the reality is buying a home involves far more than scrolling through listings and watching a few videos online.

A good REALTOR® is here to help you understand pricing, navigate negotiations, identify red flags, interpret contracts, and avoid expensive mistakes. They also act as a buffer in emotional situations, which is important when big decisions are on the line.

Having an experienced professional in your corner to guide you can make the entire process smoother, clearer, and way less stressful.

At the end of the day, real estate decisions are rarely one-size-fits-all. The most important thing you can do as a buyer is separate outdated advice and common myths from what actually applies to your situation today.

Now that we’ve debunked some of the biggest misconceptions, our team is here to help you navigate these – and all the other questions that will come up along the way. Having the right information makes all the difference when it comes to taking this big step!

Ready to get started? Click here for our guide on 7 essential tips first time home buyers need to know.