How to Make an Offer on a House in Ontario: Complete Step-by-Step Guide

Making an offer on a home is one of the most important steps in the buying process — and one of the most misunderstood. In Ontario, your offer isn’t just a number on a piece of paper. It’s a legally binding contract called the Agreement of Purchase and Sale (APS), governed by OREA Form 100. Once both parties sign, the deal is done. Here’s exactly how the process works, from preparation to closing.

Step 1: Get Your Finances in Order

Before you write a single word on an offer, make sure these are in place:

• Mortgage pre-approval — A letter from your lender confirming how much you can borrow. Without this, you’re guessing your budget
• Down payment ready — Minimum 5% for homes under $500K, 10% on the portion between $500K and $1M, and 20% for homes over $1M
• Closing costs budgeted — Land transfer tax (Ontario first-time buyers get up to $4,000 rebate; Toronto buyers get an additional $4,475 municipal rebate), legal fees ($1,500–$2,500), title insurance, and moving expenses
• Real estate lawyer selected — You’ll need one for the closing process

Step 2: Analyze the Property

Your buyer agent will research the property and prepare a Comparative Market Analysis (CMA) covering:

• Recent comparable sales within a 3-month window
• Days on market (DOM) — longer DOM usually means more room to negotiate
• The seller’s pricing strategy — under-pricing to attract multiple offers, or market-value pricing
• Whether there’s a scheduled Offer Date
• Property strengths and weaknesses (renovations, lot size, school district, transit access)

Step 3: Choose Your Offer Strategy

In a competitive situation (multiple offers)

• Price above asking — the premium depends on how many competing offers are expected
• Fewer conditions make your offer stronger (but riskier)
• A larger deposit signals serious intent
• A flexible closing date that suits the seller can give you an edge

In a balanced or buyer’s market

• You can offer below asking price and negotiate
• Include protective conditions (financing, inspection)
• Expect 2–3 rounds of back-and-forth

Step 4: The Agreement of Purchase and Sale

Ontario’s standard purchase contract is OREA Form 100. Your agent prepares it, but you should understand its key components:

The Deposit

A standard deposit in the GTA is approximately 5% of the purchase price. On a $1M home, that’s $50,000. The deposit is due within 24 hours of acceptance, paid by certified cheque or bank draft, and held in the listing brokerage’s trust account until closing. It’s applied toward your purchase price — it’s not an additional cost.

1. Financing condition (5–10 business days) — Gives you time to secure formal mortgage approval. If your lender declines, you can walk away with your deposit
2. Home inspection condition (5–7 days) — A licensed inspector examines the property’s structure, roof, plumbing, electrical, HVAC, and foundation. Major issues give you grounds to renegotiate or withdraw
3. Status certificate review (for condos) — Your lawyer reviews the condo corporation’s financial health, reserve fund, bylaws, and any pending litigation
4. Lawyer review — Your lawyer reviews the contract terms

Every offer includes an irrevocable deadline — typically a few hours. During this window, you cannot withdraw your offer. If the seller accepts before the deadline, the contract is binding. If the deadline passes without a response, the offer expires automatically.

Step 5: Submission and Negotiation

Your agent submits the offer to the listing agent. What happens next:

• Acceptance — The seller signs back your offer as-is. Congratulations, you have a deal
• Counter offer — The seller modifies the price, conditions, or closing date. You can accept, counter again, or walk away
• Rejection — The seller declines without a counter. Usually means the gap is too wide
• Multiple offer notification — The seller’s agent informs all buyers that competing offers exist, giving you a chance to improve yours

Negotiations can go several rounds. Each round, either party can adjust price, conditions, closing date, or inclusions. This process can take hours or days.

Step 6: After Your Offer Is Accepted

Once both parties have signed, the APS is legally binding. Here’s your timeline:

1. Within 24 hours — Deliver your deposit to the listing brokerage’s trust account
2. During condition period — Complete your home inspection, secure final mortgage approval, review the status certificate (if applicable)
3. Conditions fulfilled — Sign a waiver to remove conditions. The deal is now firm
4. Engage your lawyer — Title search, closing documents, and fund transfers begin
5. Arrange home insurance — Required before closing day

Yes, if you exit during the condition period for a valid reason (condition not satisfied). No, if you back out after conditions are waived — the seller typically keeps the deposit and may sue for additional losses.

Not during the irrevocable period. After it expires, if the seller hasn’t responded, the offer is void automatically.

Highly recommended. The APS is a complex legal document with significant financial implications. A professional agent negotiates on your behalf, ensures proper use of OREA standard forms, and protects your interests throughout the process.

Ready to Make Your Offer? Let’s Talk Strategy.