Financial preparation and mortgage pre-approval

Everything else depends on this step. Before looking at a single property, you need to know your real purchase ceiling — not an estimate, but a verified number.

Key actions:

• Engage a mortgage broker and provide income verification (T4s, NOAs, bank statements, credit authorization)
• Obtain a genuine pre-approval letter with a rate hold (typically 90–120 days)
• Understand your stress-tested limit — the amount you actually qualify for, not the contract rate equivalent
• Confirm your FHSA balance (up to $40,000 available tax-free) and HBP eligibility (up to $60,000 per person from RRSP)
• Calculate total available funds: down payment + FHSA + HBP − closing cost reserve (1–1.5% of purchase price)

Timeline: 1–2 weeks

Select a buyer’s agent and sign the BRA

Under TRESA 2023, an agent must have a signed Buyer Representation Agreement (BRA) before showing you any property. This is a legal requirement in Ontario, not a formality.

The BRA specifies: which agent represents you, in what geographic area, for what property type, over what time period, and what compensation arrangement applies. It creates a formal fiduciary relationship — the agent is legally obligated to act in your interest, not the seller’s.

Before signing, do an initial consultation. Ask about their track record in your target area, their communication process, and how they approach offer strategy. This conversation is your interview — choose deliberately rather than defaulting to whoever you met at an open house.

Timeline: 1–2 weeks (ideally overlapping with Stage 1)

Property search and evaluation

With your budget defined and agent engaged, your search begins in earnest. Your agent sets up automated MLS alerts for properties matching your criteria so you hear about new listings immediately — days on market matter in any competitive segment.

What to assess at each showing:

• Structural indicators: roof age, foundation condition, electrical panel type, HVAC age
• Location fundamentals: transit access, school catchment zone, walkability, nearby development
• Layout practicality: bedroom sizes, natural light, storage, parking
• For condos: maintenance fee level and what it covers, reserve fund status, building age and management quality
• Market data: prior sale history, days on market, original vs. current list price

Timeline: weeks to months depending on criteria and market activity

Making an offer and negotiating

Once you’ve identified your target property, your agent prepares a Comparative Market Analysis (CMA) — an analysis of comparable recent sales to establish a defensible offer price range.

Key offer terms to understand:

• Purchase price: informed by CMA and current market negotiating room
• Deposit: typically 5% of purchase price, due within 24 hours of acceptance to the seller’s brokerage trust account
• Closing date: typically 30–90 days, negotiated based on both parties’ needs
• Financing condition: typically 5 business days to confirm formal mortgage approval
• Home inspection condition: typically 5 business days to complete inspection
• Status certificate condition (condos): lawyer review of condo corporation financials and rules
• Chattels and fixtures list: explicitly states what stays with the property

In 2026’s buyer’s market, conditional offers are much more widely accepted than in the 2021–22 peak. In the vast majority of situations, include financing and inspection conditions. The risk of waiving them has not meaningfully decreased — the market pressure justifying it has.

Timeline: 1–3 days for negotiation

Conditions period: inspection and financing confirmation

After your offer is conditionally accepted, the conditions clock starts. During this window:

• Home inspection: engage a licensed home inspector. Cost: $400–$600. The report covers roof, structure, electrical, plumbing, HVAC, insulation, and more. If significant issues emerge, the report becomes the basis for price renegotiation or a repair request — or, in serious cases, grounds to walk away
• Formal mortgage approval: submit the accepted offer and property details to your lender for a formal mortgage commitment letter. This confirms the lender’s approval of both you and the specific property
• Status certificate review (condos only): your lawyer reviews the condo corporation’s financial statements, reserve fund study, meeting minutes, and rules. This is where red flags like underfunded reserves or pending special assessments surface

Once all conditions are satisfied, both parties sign a waiver of conditions. The deal is now firm — legally binding on both sides.

Timeline: typically 5–10 business days

Lawyer preparation for closing

From the firm date through to closing day, your real estate lawyer handles:

• Title search: confirms ownership history and that there are no undisclosed liens, encumbrances, or easements on the property
• Title insurance: protects you from title-related risks including fraud, survey errors, and undiscovered claims. Cost: $300–$500
• Mortgage registration: registers the lender’s mortgage against the property title at closing
• Closing adjustments: calculates the per-diem split of property taxes, utilities, and other pre-paid items between buyer and seller as of the closing date

About one week before closing, your lawyer will have you sign closing documents and confirm the exact certified funds amount required on closing day. This figure includes your down payment balance, land transfer tax, and closing cost adjustments, minus your deposit already on trust.

Timeline: from firm date to closing day (typically 30–90 days)

Pre-closing walkthrough

One to two days before closing, you have the right to conduct a final walkthrough of the property. This is a legal right — exercise it without exception.

What to check during the walkthrough:

• All chattels listed in the offer are present and undamaged (appliances, fixtures, window coverings)
• No damage created during the seller’s move-out (walls, floors, doors, trim)
• All mechanical systems operational: furnace, A/C, hot water heater, appliances
• Property left in a reasonably clean condition
• Nothing has been removed that should have stayed per the contract

If issues are found, your agent coordinates with the seller’s agent for resolution before keys change hands — holdbacks, repairs, or compensation adjustments. This is your last point of leverage before you own the property in its current condition.

Closing day: title transfers, funds clear, keys in hand

Closing day is when legal ownership transfers from seller to buyer. Your lawyer handles all the mechanics — title registration, funds disbursement, mortgage registration — and notifies your agent once the transfer is complete.

What you need ready on closing day:

• Certified bank draft or wire transfer for the balance owing (your lawyer confirms the exact amount 1–2 days prior). It must arrive at your lawyer’s trust account by the morning of closing
• Two pieces of government-issued photo ID
• Proof of home insurance effective as of closing day — your lender requires this before releasing funds
• Utilities transfer arrangements made in advance (hydro, gas, water, internet)

Key handover typically happens in the afternoon once the title transfer is registered. Congratulations — you are now an Ontario homeowner.

How long does it take to buy a home in Ontario?

From initial preparation to closing, the full process typically takes 3 to 6 months. Mortgage pre-approval takes 1–2 weeks. The search phase varies widely. Once an offer is accepted, closing is usually 30 to 90 days out by agreement.

Do I need a lawyer to buy a home in Ontario?

Yes. A real estate lawyer is legally required in Ontario for closing. Your lawyer handles title search, mortgage registration, funds transfer, and closing documentation. Legal fees run $1,500–$3,000 plus disbursements. Identify your lawyer before your offer is accepted.

Should I include a home inspection condition in my offer?

In most cases in 2026’s buyer’s market, yes. A home inspection ($400–$600) gives you a professional assessment of the property’s condition and is a legitimate tool for renegotiation if significant issues are found. The market pressure that led buyers to waive inspections in 2021–22 has largely dissipated.

What is a deposit in an Ontario real estate transaction?

A deposit is a good-faith payment — typically 5% of the purchase price — made to the seller’s brokerage trust account within 24 hours of offer acceptance. It applies toward your down payment at closing. If you default without valid legal grounds, the deposit may be forfeited.