6 Must-Do Steps Before Making an Offer
on a Home in Ontario

Making an offer on a home in Ontario might seem like a single moment, but the foundation for that moment is built long before you sign the Agreement of Purchase and Sale. After guiding hundreds of buyers through the GTA market, I can tell you that preparation—or the lack of it—is often the deciding factor between landing your dream home and watching it go to someone else.

This guide covers the six non-negotiable steps every Ontario buyer should complete before submitting an offer.

Step 1: Get a Written Mortgage Pre-Approval

There’s an important distinction between mortgage pre-qualification and mortgage pre-approval. A pre-qualification is a rough estimate based on self-reported information. A pre-approval requires you to submit verified financial documents—pay stubs, T4s, bank statements, employment letters—and results in a written commitment letter from a lender.

Why does this matter? In a competitive offer situation, a buyer with a pre-approval letter signals to the seller that financing is not a significant risk. It also protects you from overbidding beyond what you can actually borrow.

• Pre-approvals are typically valid for 90–120 days
• Shop 2–3 lenders or use a mortgage broker to compare rates
• Your pre-approval amount is not your spending limit—budget conservatively
• New Canadians may need additional documentation; start 2–3 months early

Step 2: Retain a Real Estate Lawyer

Many buyers wait until after an offer is accepted to find a lawyer—a mistake that creates unnecessary stress. Your lawyer conducts a title search, reviews the Agreement of Purchase and Sale, ensures no liens or encumbrances exist on the property, and handles the transfer of funds on closing day.

Identify your lawyer before you start seriously making offers. Confirm their availability, fee structure (typically $1,200–$2,500 + HST plus disbursements), and that they specialize in residential real estate transactions. The moment an offer is accepted, you’ll need to contact your lawyer immediately—having that relationship established in advance saves critical time.

Step 3: Line Up a Qualified Home Inspector

Ontario is one of the few Canadian provinces without mandatory licensing for home inspectors. Anyone can call themselves a home inspector. This makes pre-vetting your inspector more critical here than almost anywhere else in Canada.

Look for inspectors credentialed by the Ontario Association of Home Inspectors (OAHI) or the Canadian Association of Home and Property Inspectors (CAHPI). A standard inspection costs $400–$600 and takes 2–3 hours. Critically, inspection conditions in Ontario typically allow only 3–5 business days—if your inspector can’t accommodate short-notice bookings, you may be forced to waive your inspection condition.

1. 1
   Find OAHI-certified inspectors at oahi.com
2. 2
   Confirm they can do same-day or next-day bookings
3. 3
   Verify the report format includes photos and written findings
4. 4
   Save their contact info — call them immediately when an offer is accepted

Step 4: Prepare Your Deposit Funds

In Ontario, the deposit (not to be confused with the down payment) is typically due within 24 hours of an offer being accepted. It’s usually 5% of the purchase price, payable by bank draft or certified cheque—not a personal cheque or e-transfer in most cases.

This means your deposit money needs to be sitting in a Canadian bank account, accessible immediately. If your funds are tied up in GICs, investments, or overseas accounts, you could default on the deposit condition—a serious legal and financial risk.

Step 5: Do Your Property Research

Submitting an offer without researching the property is like negotiating without knowing the other side’s position. Before you decide on a price, gather:

• Comparable sold prices: Similar homes sold within 3–6 months in the same neighbourhood
• Days on Market (DOM): How long has this listing been active? Any price reductions?
• MPAC assessment: The municipal property assessment vs. list price gap
• Permit history: Any additions, renovations, or work done without permits?
• Neighbourhood context: Inventory levels, recent price trends, planned developments nearby

A buyer’s agent should provide a Comparative Market Analysis (CMA) before you finalize your offer price. This is one of the key services a buyer’s agent provides at no cost to you under the standard commission structure.

Step 6: Set a Hard Maximum Price—and Stick to It

Before entering any negotiation or offer situation, have a private conversation with everyone involved in the purchase decision—spouse, parents, business partners—and agree on a hard maximum price. Not the bank’s pre-approval limit. The maximum you would feel comfortable paying for this specific property, where even if you lose it at that price, you can walk away without regret.

This ceiling is especially critical in multiple-offer situations, where the competitive atmosphere can cloud judgment. Buyers who haven’t set this number in advance consistently overbid in the heat of the moment—then spend months feeling buyer’s remorse.

Frequently Asked Questions

Q: Can I make an offer without a pre-approval?

Technically yes, but it’s a significant risk. You don’t know your actual borrowing limit, which could lead to overcommitting. Sellers and their agents also view offers without pre-approval less favorably. Always secure written pre-approval before making serious offers.

Q: Is a home inspection always worth it in 2026?

Absolutely. The 2026 GTA market gives buyers more negotiating leverage than in previous years, according to TRREB’s Market Outlook. With fewer competing offers, including an inspection condition is more feasible and highly advisable. A $500 inspection can reveal thousands in needed repairs.

Q: How soon after offer acceptance must the deposit be paid?

Usually within 24 hours of acceptance, unless a different timeframe is negotiated in the agreement. Failure to deliver the deposit on time can put the deal at risk and expose the buyer to legal liability.

Q: Do I need a buyer’s agent to make an offer in Ontario?

Not legally required, but strongly recommended. A buyer’s agent provides market analysis, negotiates on your behalf, guides you through conditions and clauses, and is typically compensated by the seller—meaning their services cost you nothing directly in most transactions.