Ontario buying guide
The Ontario home buying guide
Buying in Ontario follows a predictable path. Here is each step in order, with the questions to ask along the way. Rules and programs change, so confirm current details with your lender, lawyer and the team.
Step 1
Set your budget and get pre-approved
Talk to a mortgage broker or lender before you shop. A pre-approval estimates how much you can borrow and can hold a rate for a period. Federally regulated lenders apply the mortgage stress test, so you must qualify at a rate higher than your actual contract rate. Budget for monthly costs too: property tax, utilities, insurance and any condo fees.
Step 2
Plan your down payment and mortgage insurance
Canada sets minimum down payments based on purchase price, starting at 5% on the first portion of the price. With less than 20% down, the mortgage must be insured (for example through CMHC), and the premium is usually added to the mortgage. Ask your lender how the current rules apply to your price range.
Step 3
Choose your areas and must-haves
Compare commute, schools, amenities and property types across communities. Our area and neighbourhood guides are a good starting point. Separate must-haves from nice-to-haves so you can act quickly when the right home appears.
Step 4
Make an offer with the right conditions
Your offer (Agreement of Purchase and Sale) sets the price, deposit, closing date, inclusions and any conditions, such as financing, home inspection, or status certificate review for condos. Conditions protect you but can make an offer less competitive; we will talk through the trade-offs for each property.
Step 5
Pay your deposit
Once an offer is accepted, the buyer usually delivers a deposit within the timeframe in the agreement, often within 24 hours. It is typically held in trust by the listing brokerage and credited toward your purchase price on closing.
Step 6
Complete the home inspection
A licensed home inspector reviews the structure, roof, systems and visible issues. Attend if you can and ask questions. For condos, your lawyer reviews the status certificate for the building's finances, rules and reserve fund.
Step 7
Hire a real estate lawyer
In Ontario a real estate lawyer handles title searches, title insurance, mortgage documents, adjustments and registering the transfer. Send them your agreement as soon as it is firm so they have time to review everything.
Step 8
Budget for closing costs
Plan for Ontario land transfer tax, plus the Toronto municipal land transfer tax if you buy in Toronto. Eligible first-time buyers may qualify for refunds of some or all of that tax. Also budget for legal fees, title insurance, adjustments and moving. Your lawyer can estimate exact amounts.
Step 9
Closing day
On closing day, your lender sends funds to your lawyer, your lawyer registers the transfer and pays the seller, and keys are released, usually through the listing brokerage or lawyers. Do a final visit beforehand if your agreement allows it.
This guide is general information, not legal, tax or mortgage advice. Rules and programs change; confirm details with your lawyer, accountant or lender.
Frequently asked questions
What is the mortgage stress test in Canada?
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The stress test is a federal rule that requires borrowers at federally regulated lenders to qualify at a rate higher than their actual mortgage rate. It checks that you could still afford payments if rates rose. Your lender or mortgage broker will tell you the current qualifying rate for your situation.
How much down payment do I need to buy a home in Ontario?
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The minimum depends on the purchase price and is set federally, starting at 5% on the first portion of the price, with higher minimums on larger amounts. With less than 20% down, you need mortgage default insurance. Confirm the current rules for your price range with your lender.
Do first-time buyers pay land transfer tax in Ontario?
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Eligible first-time buyers can receive a refund of some or all of the Ontario land transfer tax, and Toronto offers a similar refund on its municipal tax. Eligibility rules apply, such as not having owned a home before. Your real estate lawyer can confirm eligibility and apply the refund on closing.
Should I make an offer conditional on a home inspection?
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An inspection condition gives you time to check the home and walk away or renegotiate if serious issues appear. In competitive situations some buyers inspect before offering instead. The right choice depends on the property and competition, and we will help you weigh the risk each time.
Why do I need a lawyer to buy a home in Ontario?
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A real estate lawyer protects your interests by searching title, arranging title insurance, reviewing the agreement and mortgage, calculating adjustments and land transfer tax, and registering the property in your name. Lenders also require a lawyer to handle mortgage funds on closing.
How long does it take to close on a house in Ontario?
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Closing dates are negotiated in the offer and often fall between 30 and 90 days after an agreement is firm, though shorter or longer closings are possible. Your timing should leave room for financing, legal work and your move. We will help you pick a date that works.
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