Ontario Home Buying Process 2026 | Step-by-Step Guide

Getting Pre-Approved for a Mortgage

Before you start looking at homes, get pre-approved for a mortgage. This tells you how much you can afford and shows sellers you're a serious buyer.

Documents Needed

ID (passport or driver's license)
Proof of income (pay stubs, T4s, NOAs)
Employment letter
Bank statements (3 months)
Down payment verification
List of assets and liabilities

What Lenders Assess

Credit score (minimum 600-680)
Debt service ratios (GDS/TDS)
Employment stability
Down payment amount
Property type

Pre-Approval vs. Pre-Qualification

Pre-qualification is an estimate based on stated info. Pre-approval involves actual document review and gives you a rate hold (usually 90-120 days). Always get pre-approved, not just pre-qualified.

Assembling Your Team

Buying a home requires a team of professionals. Building relationships early ensures a smooth process.

Real Estate Agent (REALTOR®)

Your agent represents your interests, searches for properties, arranges viewings, prepares offers, negotiates on your behalf, and guides you through the process. In Ontario, buyer agents are typically paid by the seller.

Mortgage Broker or Bank

Arranges your financing. Brokers shop multiple lenders for best rates; banks offer only their own products. Either can work - choose based on your situation and relationship.

Real Estate Lawyer

Required in Ontario. Handles title search, document review, mortgage registration, funds transfer, and closing. Budget $1,500-$2,500. Get a recommendation from your agent.

Home Inspector

Examines the property for defects and issues. Critical for resale homes. Budget $400-$600. Always attend the inspection if possible.

The Home Search

With pre-approval in hand and your agent by your side, it's time to find your home. This phase can take anywhere from a few weeks to several months depending on the market and your criteria.

Define Your Criteria

Prioritize your must-haves vs. nice-to-haves:

Location / neighbourhood
Property type
Size (bedrooms, bathrooms)
Outdoor space
Parking
Transit access
Schools
Condition (move-in ready vs. reno)

Viewing Properties

Visit properties at different times of day. Pay attention to natural light, noise levels, storage, and overall condition. Take photos and notes. Don't fall in love too fast - view multiple options before deciding.

Explore Toronto neighbourhoods to find the area that best fits your lifestyle and budget.

Making an Offer

When you find the right property, your agent will prepare an Agreement of Purchase and Sale (APS). This is a legally binding document, so understand every term before signing.

Key Term	Description
Purchase Price	Your offered price. Research comparable sales to determine fair value.
Deposit	Typically 5% of purchase price. Shows good faith. Held in trust.
Irrevocability	How long your offer stays open. Usually 24-48 hours.
Closing Date	When you take possession. Typically 30-90 days from acceptance.
Conditions	Requirements that must be met: financing, inspection, status certificate.
Inclusions/Exclusions	What's included (appliances, fixtures) and excluded from sale.

Common Conditions

Financing: Gives you time to finalize mortgage (usually 5-7 days)
Home Inspection: Professional inspection to uncover issues (5-7 days)
Status Certificate: For condos - review of condo corporation health (5-7 days)
Sale of Buyer's Property: If you need to sell first (can weaken your offer)

Satisfying Conditions

Once your offer is accepted, the clock starts on your conditions. This is a critical period - missing condition dates can void your offer or force you to waive protection.

Financing Condition

Submit the accepted offer to your lender immediately. They'll order an appraisal and finalize your approval. Once approved, sign a waiver to remove the condition. If not approved, you can walk away.

Home Inspection

Book an inspector immediately - they're often busy. Attend the inspection (2-3 hours). Review the report with your agent. You can: accept as-is, negotiate repairs/credits, or walk away if serious issues found.

Status Certificate (Condos)

Your lawyer reviews the condo corporation's financial health, rules, and any issues. Red flags include low reserve funds, pending lawsuits, or planned special assessments.

Important: Once you waive all conditions, the deal is "firm" and legally binding. You cannot back out without losing your deposit and potentially facing legal action.

Preparing for Closing

Between waiving conditions and closing, several things need to happen. Stay in close contact with your lawyer and lender.

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Get Home Insurance

Required by lenders. Get quotes early and have policy effective on closing date.

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Final Mortgage Approval

Lender sends mortgage instructions to your lawyer. Sign documents with your lender.

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Meet with Lawyer

Review all documents, sign paperwork, provide ID, and arrange funds transfer.

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Arrange Utilities

Set up hydro, gas, water, internet in your name for closing date.

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Final Walk-Through

24-48 hours before closing. Verify condition and that inclusions are present.

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Transfer Closing Funds

Wire funds to your lawyer 1-2 days before closing. Personal cheques not accepted.

Closing Day

Closing day is when ownership officially transfers. Your lawyer handles the heavy lifting, but here's what happens:

Morning

Lawyers exchange documents and funds
Mortgage funds released
Title registered in your name

Afternoon

Your lawyer confirms completion
Pick up keys from your agent
You officially own your home!

Key Pickup Timing

Keys are typically available by 4-6 PM on closing day. Don't schedule movers for the morning - closings can be delayed. Late closings do happen, so have a backup plan if needed.

8. Closing Costs Breakdown

Budget 1.5-4% of purchase price for closing costs. Here's a detailed breakdown for a $800,000 home purchase in Toronto:

Expense	Amount	Notes
Ontario Land Transfer Tax	$12,475	First-time buyers: rebate up to $4,000
Toronto Land Transfer Tax	$12,200	First-time buyers: rebate up to $4,475
Legal Fees	$1,800	Includes disbursements
Title Insurance	$400	Protects against title defects
Home Inspection	$500	Paid during conditional period
Property Tax Adjustment	~$1,000	Reimburse seller for prepaid taxes
Moving Costs	$500-$2,000	Varies by distance and amount
Total Estimated	$28,875 - $30,375	~3.7% of purchase price
First-Time Buyer Rebates	-$8,475	If eligible for both LTT rebates

9. Frequently Asked Questions

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

From accepted offer to closing, typically 30-90 days depending on conditions and financing. Add 1-6 months for searching and making offers. The entire process usually takes 3-6 months from start to keys in hand.

How much are closing costs in Ontario?

Budget 1.5-4% of purchase price. Main costs include: land transfer tax (1.5-2.5% in Toronto), legal fees ($1,500-$2,500), home inspection ($400-$600), title insurance ($300-$500), and moving costs. First-time buyers get land transfer tax rebates.

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

Yes, Ontario requires a lawyer (or licensed notary for simple transactions) to complete real estate purchases. They handle title search, document review, funds transfer, registration, and protecting your interests.

What is the deposit and when do I pay it?

Deposits are typically 5% of purchase price, paid within 24 hours of accepted offer. It's held in trust by the listing brokerage and applied to your purchase on closing. Deposits are forfeitable if you fail to close without valid reason.

Can I back out after my offer is accepted in Ontario?

Only if you have unfulfilled conditions (financing, inspection) or the seller fails to meet their obligations. Once conditions are waived, backing out means losing your deposit and potentially being sued for damages.

What's the difference between a firm offer and a conditional offer?

A conditional offer includes conditions that must be satisfied (financing, inspection) before the deal is firm. A firm offer has no conditions and is legally binding immediately. Firm offers are stronger in competitive situations but riskier for buyers.

Typical Timeline Overview