Buying a home in Ontario involves more steps than most people realize — and the sequence matters. Whether you’re a first-time buyer or returning to the market after years away, this guide walks you through every stage of the Ontario home buying process, from financial preparation to receiving your keys.
1
Get Your Finances in Order (Before Anything Else)
Start with a mortgage pre-approval — not just a pre-qualification. A pre-approval from a bank or mortgage broker gives you a locked interest rate for 90–120 days and a clear budget ceiling. You’ll also need to confirm your down payment source — in Ontario, the minimum is 5% on homes under $500K, 5% on the first $500K and 10% on the remainder up to $999,999, and 20% for homes $1M+. Gifted down payments from family are acceptable with a gift letter. CMHC mortgage insurance applies when down payment is under 20%.
2
Hire a Buyer’s Agent (It Costs You Nothing)
In Ontario, the buyer’s agent commission is typically paid by the seller — not the buyer. Your agent will set up property alerts, arrange showings, provide market analysis, write and negotiate offers, and guide you through conditions, inspections, and closing. Working without an agent doesn’t save you money; the listing brokerage simply keeps both sides of the commission. Interview agents before committing — you want someone who communicates clearly, knows the local market, and understands your needs.
3
Search, View, and Evaluate Properties
Your agent will set you up on MLS alerts for properties matching your criteria. When viewing homes, look beyond décor — assess structure, mechanical systems (HVAC age), neighbourhood, school zone, and traffic patterns. For condos, request the Status Certificate to review maintenance fees, reserve fund health, and any ongoing litigation. For resale houses, check MPAC property details and the property’s history on Teraview if needed.
4
Make an Offer (APS) and Negotiate
Your agent will draft an Agreement of Purchase and Sale (APS) with your price, deposit amount, closing date, inclusions, and conditions. Standard conditions include
financing and home inspection — both critical protections. In competitive situations, conditions may need to be streamlined or waived. Deposit (typically 5%) is due within 24 hours of acceptance into the selling brokerage’s trust account. Once conditions are satisfied and waived, the deal is “firm” and binding.
5
Pre-Closing Preparation & Closing Day
After going firm: finalize mortgage approval, hire a real estate lawyer, purchase home insurance and
title insurance, set up utilities. Your lawyer will prepare closing documents — sign them a few days before closing day. On closing day, your bank funds the mortgage; lawyers exchange funds and register the title transfer electronically.
Keys are typically available by 2–6 PM. Do a final walkthrough 24–48 hours before closing to confirm the home’s condition.
Land Transfer Tax: ~1.5–2% of purchase price (Toronto buyers pay double) | Legal fees: $1,500–$2,500 | Home inspection: $500–$700 | Title insurance: $300–$500 | Home insurance: $400–$3,000/year | Moving costs: $1,000–$3,000. First-time buyers can claim LTT rebates up to $8,475 in Toronto.
Ontario Home Buying Timeline
Pre-Approval + Hire Agent
↓
Search & View Properties
↓
Submit Offer → Deal Goes Firm
↓
Pre-Closing Prep (Insurance, Lawyer)
↓
Closing Day → Keys!
AZ
Arthur Zhao, Broker
SRS · ABR · MCNE · AZ Real Estate Partners
📞 416-888-6161 · arthurzhao.realtor
Ontario Home Buying
First Time Buyer
Mortgage Pre-Approval
Toronto Real Estate
Buyer’s Agent Ontario
Closing Costs