You made the decision to move to Canada, and now you’re ready to reach another milestone in your new country: buying your first home. Maybe you’ve already found a property you want to buy. But before you buy, you should know about a key step in the Canadian home-buying process: getting a home inspection. This is a detailed assessment of a property’s condition—including its structure, windows, insulation, electrical and plumbing systems, and much more—conducted by a certified home inspector.
Maybe home inspections aren’t common practice where you lived before. In Canada, home inspections aren’t mandatory, but they’re highly recommended. Looks can be deceiving—or at least not very forthcoming. A home inspection will reveal invisible and not-so-obvious things about a property, such as the condition of the roof and chimney, whether the wiring system complies with current building codes, the presence of mould behind drywall, the remaining lifespan of a furnace, and more.
A home inspection costs typically $500 to $600, but it could save you much more money in the long run. Repairs and replacements can be expensive. For example, replacing a furnace could cost between $5,000 and $7,000. A home inspection can change your mind about buying a certain property, or help you negotiate a lower price or conditions to have issues fixed or updated. If not, at least you’re buying with your eyes wide open.
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What does a home inspection include?
With the exception of a couple of provinces, there are no rules on what’s included in a home inspection. Generally, the list can be split into two parts: the exterior and interior of a home. An inspection covers non-destructive and non-invasive testing and inspection (meaning visual inspection—no hacking into walls, for example).
British Columbia and Alberta regulate home inspections, specifying who can do them and what they must include. In Nova Scotia, home inspections are strongly recommended, and in Newfoundland and Labrador, they are “encouraged.” Ontario is in the process of regulating home inspectors with the Home Inspection Act, 2017.
Innovation, Science and Economic Development Canada (ISDE) suggests that prospective home buyers check the following aspects of a property:
- Site: Driveway, fence, deck, lot
- Structure: Foundation, walls, roof
- Envelope: Windows, insulation
- Plumbing: Water heaters, fixtures, water pressure
- Interior finishes: Floors, cabinets, trim
- Heating, ventilation and cooling: HVAC systems and furnace
- Life safety systems and fire separation: Smoke detectors, carbon monoxide detectors, fire egress
- Electrical systems: Junction boxes, distribution panel, light fixtures
Some home inspection companies offer specialized services, such as checking for asbestos, mould and pests, for an added fee. However, since a home inspection is usually non-invasive, you would need to get permission from the home owner. Tip: Ask the property’s listing agent if a home inspection has already been done. If it has, they can provide the report. If you want a second opinion, you can hire an inspector.
Home inspection contracts
Before you hire an inspector, the ISDE recommends that you “Ask for a written contract outlining the items you need to have inspected, the home inspection report deadline and the total cost before the work gets started.”
The ISDE also suggests asking the inspector if they will use the CSA A770 Home Inspections standard, developed by the Canadian Standards Association (also known as CSA Group). You can view it online for free—registration is required. The standard spells out what should and shouldn’t be included in an inspection, what should be in the inspection agreement and more. If the inspector isn’t using the standard, ask how their method compares.
Note that a home inspection report does not include estimates for repairs or replacements. Even if a home inspector estimates prices, it’s best to consult a contractor to assess the extent and cost of repairs.
Keep in mind that a home inspection doesn’t guarantee every issue will be caught. It can cover only what the home inspector has access to and can visually inspect. If the home owner does not provide access to parts of the property, this should be noted in the inspection report. If the inspection takes place in the winter and the property is covered in snow, the inspector may not be able to properly inspect the roof and other elements. And in the case of condos, the common areas are not the sole responsibility of the home owner. Ask the property board for a report on the conditions of these areas.
Note that a home inspection is not the same as a home appraisal. A home inspection will check defects or conditions of important areas or parts of the home. A home appraisal assesses the fair market value of the property based on its size, condition, age and location, as well as the selling prices for comparable homes in the area.
When to get a home inspection
If a home buyer plans to get a home inspection, this is usually made into a condition in the Agreement of Purchase and Sale. The inspection is done within a few days of the seller accepting the buyer’s offer.
However, when the market is hot, buyers might skip the home inspection, especially if there’s a lot of interest in the property. It’s a risk, but some buyers are willing to take it, because home sellers may favour bidders who don’t ask for conditions. No inspection can mean a faster sale.
An in-between solution is to hire an inspector to attend home viewings with you. Their “inspection” will only be a quick assessment, but they may highlight issues or defects that you would overlook.
How much does a home inspection cost?
These are the main factors that determine the cost of an inspection:
- Size of the property: A 4,000-square-foot home will take longer to inspect than a 750-square-foot condominium unit, for example.
- Deadline: Requiring the inspection to be done as soon as possible could be more expensive.
- Location: Prices may depend partly on the cost of living in the home’s area.
- Extent of inspection: You can get a basic inspection or a specialized inspection, which looks for things like asbestos and pests.
- Age of the property: The older the building, the more difficult it could be to inspect. The inspector may have to bring in sophisticated tools or equipment to perform the inspection.
A home inspection can run a few hundred dollars, usually $500 to $600. You could contact a few different inspection companies for quotes.
The buyer pays for the cost of home inspection, so it’s recommended that you and your real estate agent be present. Even if repairs cannot be addressed before you take possession of the property, at least you are aware of the extent of repairs.
How long does a home inspection take?
The length of time it takes to do a home inspection depends on the size of the property. A large home may take a few hours to inspect.
One way to avoid a rush during the buying process is to research home inspectors and find one in advance of choosing a home to buy.
Do you need a home inspection for insurance or a mortgage?
No, a home inspection is not necessary to get home insurance or a mortgage. But an insurance provider might ask for a home inspection depending on the age of the property. That said, the insurer may only be interested in certain details, like whether electrical and plumbing systems are up to code. The presence of fire-prone appliances, such as a wood stove or fireplace, may also trigger an inspection request from your insurance provider.
How to choose a home inspector
Because home inspection is not mandatory and hardly regulated across Canada, choosing a home inspector is like buying home appliances—there are many variables to consider for a small variation in price points.
It’s best to do your research early, before you need an inspector’s services. Ask for referrals, compare services and read online reviews. However, be wary of sponsored and fake reviews (see tips from Canada’s Competition Bureau). Also, consider seeking referrals from someone other than a realtor (even your own), as they may have a conflict of interest.
The resources below can help you pick a home inspector.
Is a home inspector certified?
Home inspectors have industry associations. The Canadian Association of Home & Property Inspectors (CAHPI) is a national non-profit that calls itself the voice of the industry. It is a self-regulated professional body whose members follow the organization’s Standards of Practice or the CSA A770 Home Inspection Standard.
The Canadian National Association of Certified Home Inspectors (CanNACHI) promotes “national uniform standards of competency for home inspectors across Canada,” something which it says the Canada Mortgage and Housing Corporation (CMHC) supports. CanNACHI has its own Standards of Practice (SOP) for residential and commercial practice.
Both CAHPI and CanNACHI have online tools to help you find certified inspectors.
Then, each province or territory in Canada has its own industry association.
Are home inspectors regulated?
Currently, only B.C. and Alberta regulate home inspectors.
- Consumer Protection B.C. has online tools for finding licenced home inspectors (business or individual) and checking an inspector’s licence status. It also posts enforcement actions, such as licence suspensions or administrative penalties, taken inspectors who don’t meet requirements.
- Service Alberta has information about home inspection requirements, and you can search for inspectors using the Alberta Professional Home Inspectors website.
Ontario and Quebec don’t regulate inspectors, but there are professional associations.
- Quebec Association of Building Inspectors / Association des inspecteurs en bâtiments du Québec (AIBQ) admits individuals who have completed their training to become a home inspector. It has an online directory of inspectors.
- Ontario Association of Home Inspectors (OAHI) requires its members to follow approved standards of practice. It also has an online directory.
ISDE also advises buyers to check if an inspector is accredited with the Better Business Bureau.
How to check the credentials of a home inspector
Home inspectors can have different types of designations aside from academic training. Inspectors can be registered, licenced or certified, depending on the professional body. For example, CanNACHI grants the Certified Master Home Inspector designation, while CAHPI grants the National Certificate Holder designation. Either one can help a home inspector in Alberta get a licence.
In B.C., home inspectors must complete 150 hours of education in accredited schools as a first step in getting a licence.
A certified home inspector also has liability insurance, which protects buyers from malpractice.
Buying a house after the home inspection
If an inspection turns up minor defects, you could ask the seller to make repairs before you submit an offer, or you could fix them after you move in. If the defects are more substantial, you could try to negotiate a lower price, or pass on the property.
Or you might decide the extra cost and hassle are worth it, because the home otherwise checks all the boxes on your wish list (nearby amenities, good schools, short commute, etc.).
A home inspection is an important part of buying a home, but it shouldn’t be the only factor in your decision-making.
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This is a paid post that is informative but also may feature a client’s product or service. These posts are written, edited and produced by MoneySense with assigned freelancers and approved by the client.
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- Renting vs. owning: Can you be financially secure without buying a home?
- How much you need to earn to afford a home in Toronto and the GTA
- How the Bank of Canada’s benchmark rate impacts your finances
- Find the best mortgage rates in Canada
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