How to Avoid Losing the Home You Want in a Competitive Market (Toronto Buyer's Guide)

In Toronto and the GTA, the window on a great listing can be just a few days. According to the Toronto Regional Real Estate Board (TRREB, May 2026), there were 6,583 GTA home sales that month while new listings fell 18.9% year-over-year — fewer homes to choose from means more competition for the desirable ones. When a well-priced home in a good location hits the market, several buyers are often viewing it at the same time.

I’ve seen too many buyers lose out — not because their price was too low, but because their preparation wasn’t in place and they couldn’t move fast enough. The steps below are about eliminating those controllable mistakes before they cost you a home.

Step 1: Get Pre-Approved Before You Shop, Not After

Mortgage pre-approval is your ticket to compete. It sets out your maximum loan amount and estimated payments, and locks in a rate (a rate hold, typically 90-120 days). Just as important, it signals to sellers that you’re a serious, prepared buyer.

Know the difference: pre-approval is not final loan approval. Once you find a specific home, the lender still issues a formal mortgage commitment for that property at that price. But without pre-approval, you can’t move quickly when competition heats up.

Step 2: Set Up MLS and Listing Alerts

Winning competitive listings is a game of information speed. Have your agent set up automated MLS alerts so that qualifying new listings hit your inbox the moment they go live. Many of the homes that sell instantly are scooped up on listing day — sometimes within hours — by buyers who were ready.

If you rely only on public listing sites, which often run on a delay, you may already be a step behind by the time you see a home.

Step 3: Have Your Deposit Ready as a Certified Cheque

In Ontario, the deposit is typically 5%-10% of the purchase price, delivered by bank draft or certified cheque to the listing brokerage’s trust account — often required within 24 hours of acceptance. In downtown Toronto, the expectation is frequently to submit the deposit cheque with the offer itself.

That means arranging the funds with your bank in advance. Scrambling to get a cheque cut or gather funds at the last minute slows you down and can keep your offer from being taken seriously. A ready deposit at a meaningful amount is a strong signal of your financial readiness and commitment.

Step 4: Understand Offer Dates and Bully (Pre-emptive) Offers

Many sellers set a single offer date. But in Ontario, a buyer can submit a pre-emptive offer (commonly called a bully offer) before that date. The seller’s agent must generally present that offer to the seller — unless the seller has directed otherwise.

Under TRESA (Phase 2, in force December 1, 2023), if a seller moves up or changes the offer date, the seller’s brokerage must notify buyers who have expressed interest. In other words, a bully offer cuts both ways: you can use it to lock in a home before others, and others can use it to beat you to it. Deciding when to go pre-emptive — and at what price — is a key tactic to work out with your agent.

Step 5: Work With a Responsive Agent and Shorten Your Decision Chain

Competitive homes often close within hours. You need an agent who picks up the phone, can book a same-day showing, and can draft an offer fast. If your agent takes a day to respond, even a perfect strategy falls apart.

Equally important is your own decision speed. Agree in advance with your family or co-buyers on what kind of home is worth pursuing, your target price, and your absolute ceiling. Settle that ahead of time so you don’t hesitate at the moment that counts.

Step 6: Know Which Conditions Weaken Your Offer

In a multiple-offer situation, the more conditions you attach, the weaker your offer is relative to others. Common weakeners include a financing condition (typically 5-7 business days to obtain a formal mortgage commitment), a home inspection condition, and a condition on the sale of your existing home.

Some buyers waive conditions to win, but this sharply increases risk — if financing falls through or the home has hidden defects, you could lose your deposit or face a breach of contract. Waiving conditions should never be done blindly; ideally you already hold a mortgage commitment and have completed a pre-listing inspection before deciding.

Waiving a financing or inspection condition transfers the market risk entirely onto you. If the lender ultimately declines to finance that specific home, you could lose your 5%-10% deposit and be exposed to breach-of-contract liability. Any decision to waive should be made only after you fully understand the consequences — and ideally with a mortgage commitment already in hand. This is not a step to decide on impulse.

According to RECO, under TRESA the seller chooses whether to run an open or closed offer process. As a buyer who has submitted a written offer, you are entitled to know the number of competing offers — but not necessarily the content or price of other offers. The seller decides how much, if any, offer content to share, and personal or identifying information in offers cannot be disclosed. Understanding these rules helps you build a rational bidding strategy instead of guessing about your competition.

Q: What's the difference between pre-approval and a mortgage commitment?

Pre-approval is the lender’s estimate of how much you can borrow based on your overall finances, with a rate hold (usually 90-120 days), used to show you’re a serious buyer. A mortgage commitment is the lender’s formal approval of a specific home at a specific price, issued after you’ve chosen a property. Pre-approval lets you act fast, but actual funding depends on the commitment — they are not the same thing.

Q: How much deposit do I need in Toronto, and when is it due?

In Ontario the deposit is typically 5%-10% of the purchase price, delivered by certified cheque or bank draft to the listing brokerage’s trust account, often required within 24 hours of acceptance. In downtown Toronto, you’re frequently expected to submit the deposit cheque with the offer itself, so arrange the funds with your bank in advance.

Q: What is a bully offer, and can I use one?

A bully offer is a pre-emptive offer submitted before the seller’s set offer date. It’s permitted in Ontario, and the seller’s agent must generally present it unless the seller directed otherwise. It can help you lock in a home before other buyers — but others can use the same tactic to beat you, so timing and price should be worked out carefully with your agent.

Q: In a multiple-offer situation, can I find out how many competing offers there are?

Yes. According to RECO under TRESA, a buyer who has submitted a written offer is entitled to know the number of competing offers. However, you’re not necessarily entitled to the content or price of other offers — whether to share offer content is the seller’s decision, and any personal or identifying information cannot be shared.

Q: Should I waive financing and inspection conditions to win the home?

Be very cautious. Waiving conditions makes your offer more competitive but shifts all the risk onto you — if financing falls through or the home has hidden problems, you could lose your deposit or breach the contract. Ideally you’d already hold a mortgage commitment and have completed an inspection, and only waive after fully understanding the consequences — never on impulse.