Updated: May 2026
By Françoise Pollard, Realtor®, and Keith Goldson, Broker, Keith & Françoise Real Estate Team, eXp Realty Brokerage. We represent buyers across the GTA and Niagara Region, including Mississauga, Brampton, Milton, Burlington, Oakville, Hamilton, Etobicoke, Toronto, St. Catharines, Niagara Falls, Welland, and Thorold.
Buying a home in Ontario is a legal and financial process with more layers than most buyers anticipate. The most expensive mistakes happen before you ever step into a showing: wrong financing structure, missing a program, or misunderstanding what the Agreement of Purchase and Sale actually commits you to. This guide covers the full process for every Ontario buyer type: the legal sequence from offer to closing, down payment rules, closing costs, market conditions in 2026, and the signals that mean you should wait. Strategy differs by buyer type. The fundamentals are the same for all of them.
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WHAT TYPE OF BUYER ARE YOU?
Your next step depends on your situation. Start with the path that fits, or read the full guide from top to bottom.
First-Time Buyer
You have access to programs that will not apply again. The FHSA, HBP, LTT rebates, and HST new build programs all require timing decisions that cannot be reversed. Start with the dedicated guide.
Returning to the Market
You have owned before. First-time programs no longer apply, but the December 2024 CMHC and amortization changes affect what you can access now.
Selling and Buying at the Same Time
The order matters more than buyers expect. Selling first gives you certainty. Buying first gives you flexibility. Bridge financing needs to be arranged before both deals firm up.
Buying in the Niagara Region
Niagara is a different market from the GTA. Price, competition, and housing stock all work differently. The GTA-to-Niagara buyer needs both views before making a decision.
Buying a Condo
Condos require their own due diligence. Status certificates, reserve funds, and elevated 2026 condo supply all change how to search and how to write a winning offer.
Buying After Divorce
Separation purchases carry specific legal and financial layers that a standard buyer’s guide does not cover. Start here before you speak to a lender or make an offer.
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How to Use This Guide
Buying a home in Ontario is a legal and financial process with more moving parts than most buyers expect, and the sequence in which you do things matters more than the property you eventually buy. The buyers who come out ahead are not the ones with the biggest budgets. They are the ones who confirmed their financing before they fell in love with a listing, understood what the Agreement of Purchase and Sale was committing them to before they signed it, and knew which programs applied to their situation before they needed the money at closing.
This guide covers the full buying process for every Ontario buyer type: the legal sequence, financing rules, down payment requirements, closing costs, offer strategy, the 2026 market, and the signals that tell you to wait. Strategy shifts depending on where you are in life. The fundamentals are the same for all of them.
The Home Buying Process in Ontario, Step by Step
Every Ontario home purchase follows the same legal sequence. Each step depends on the one before it. Skipping or rushing any of them is how buyers end up overpaying, taking on hidden risk, or losing a property they had the financing to win.
Step 1: Confirm financing before you search
A written pre-approval from a mortgage professional, not an online calculator or a bank branch conversation, is the foundation of a credible offer. It sets your ceiling, confirms your rate hold, and signals to sellers that your offer is real. It also tells you where you stand on debt service ratios before you start touring. Everything after this step depends on knowing that number. For a full breakdown of how pre-approval works, what lenders are looking for, and how the stress test applies, see our guide to mortgage financing for Ontario buyers.
Step 2: Build a complete budget, not just a down payment
Your down payment is one number. Your closing costs are a completely separate set of numbers, all due on the same day. Land transfer tax, legal fees, title insurance, the CMHC PST if your down payment is under 20%, property tax adjustments, and home inspection fees are all real cash obligations that do not appear in the purchase price. Budget for every line before you start touring. Buyers who treat down payment and total purchase cost as the same number routinely arrive at closing short.
Step 3: Search with a defined strategy
Community, commute, property type, and long-term value matter more than any individual listing. A home that is priced right but in the wrong location for your life is still the wrong purchase. Decide on your non-negotiables before your first showing, and keep those decisions out of the showing room where emotion makes them harder to hold. For help comparing markets and evaluating communities, see our guides to GTA vs. Niagara home search tips and finding your neighbourhood in the GTA.
Step 4: Submit a written offer with the right conditions
The Agreement of Purchase and Sale is the legally binding contract between you and the seller. It covers price, deposit, closing date, inclusions, and conditions. Once both parties have signed, you are committed to the terms. Conditions are your exit ramp if due diligence surfaces a problem. The offer is where the legal and financial decisions you made in steps one through three either protect you or expose you.
Step 5: Satisfy conditions, then go firm
The conditional period gives you a defined window to complete due diligence: confirm your mortgage commitment on the specific property, complete the home inspection, and, for condo purchases, have your lawyer review the status certificate. Once you waive conditions and the deal goes firm, you are legally obligated to close. There is no exit without forfeiting your deposit and potentially facing further legal exposure. Complete due diligence carefully. Do not waive conditions you have not actually finished.
Step 6: Your lawyer closes the transaction
Once your deal is firm, the transaction moves to your real estate lawyer. They order the title search and off-title searches, confirm the mortgage registration, review the Statement of Adjustments, and coordinate the transfer of funds on closing day. Keys are released after title registration is confirmed, typically in the afternoon. For the complete picture of what happens in those final weeks, see our guide to closing day in the GTA and our guide to title search in Ontario.
The Legal Sequence: APS, Deposits, and Going Firm
Understanding what each step in the legal sequence commits you to is the foundation of buying a home in Ontario without regret. Most buyers understand the outcome they want. Fewer understand the obligations they take on at each stage of getting there.
The Agreement of Purchase and Sale
The Agreement of Purchase and Sale is the binding legal contract that governs every Ontario residential purchase. Every line in it is enforceable. Inclusions, fixtures, rental items (water heaters, furnaces, alarm systems), and any representations made by the seller all need to be captured in the APS to be legally binding. The time to understand what is in it is before you sign, not after the seller accepts. Your real estate lawyer can review it. Your agent advises on strategy. Both roles matter.
Price, deposit amount and due date, closing date, conditions, and inclusions are all negotiated here. If something is not written in, it is not part of the deal. The verbal assurances sellers give during showings are not binding. If it matters to you, it needs to be in the agreement.
Deposits: amounts, timing, and what happens if you walk
The deposit is paid after acceptance and held in trust by the listing brokerage. It is not the down payment, though it becomes part of it at closing. In the GTA, deposits are typically due within 24 hours of acceptance by bank draft or certified cheque. Deposits commonly run from $20,000 to $50,000 or more on GTA properties. Niagara transactions generally involve lower deposit amounts but the same timing structure.
If you walk away from a firm deal without a legal basis to do so, you lose the deposit at minimum. The seller can also pursue a lawsuit for any damages beyond the deposit, including the difference if the property later sells for less. The right conditions protect you before the deal goes firm. After it goes firm, your only protection is completing the purchase.
What going firm means
A deal goes firm when all conditions have been waived or fulfilled and both parties have confirmed in writing. From that moment, the transaction is unconditional. Neither party can exit without legal consequences. This is the point of no return, and it should be treated as one. Do not waive conditions you have not completed. If you need more time to satisfy a condition, request an extension before the deadline, not after it expires.
Financing and the Mortgage Stress Test
Financing first, property search second. Reversing this order is one of the most common and costly mistakes Ontario buyers make. Touring homes before you have a confirmed pre-approval means you fall in love with properties at price points you cannot actually reach, your offer structure looks weak to sellers who prefer buyers with confirmed financing, and your conditional period becomes a race against a lender who needs more time than you gave them.
What the stress test actually does
Every mortgage applicant in Ontario must qualify at the higher of their contract rate plus 2%, or a floor rate of 5.25%, whichever is greater. This applies regardless of whether you are putting 5% down or 35% down. The stress test has not changed as of January 2026. One meaningful exception: buyers who are switching lenders at renewal, without increasing their loan amount or changing their amortization term, are no longer subject to the stress test. That change took effect November 21, 2024, and applies to both insured and uninsured borrowers.
Between pre-approval and closing: treat your finances as frozen
A pre-approval is not a green light to carry on with life as normal. Final mortgage approval depends on the specific property passing a lender appraisal and your financial position remaining stable until closing. Taking on new debt between pre-approval and closing is the most common way transactions collapse. A car loan, a new line of credit, a large credit card purchase, or a job change can all change your debt service ratios enough for a lender to pull approval. If anything in your financial situation changes between pre-approval and closing day, call your mortgage broker that same day.
We’ve Seen This Play Out
We had a buyer in Hamilton who was fully pre-approved and on track to close. We walked through exactly what not to do: no large purchases, no new credit, nothing that could change her debt service ratios before the lender ran final checks. A few days before closing, her bank ran a credit check and found she had financed a car. Everything unravelled almost immediately. The only reason that deal closed was because our mortgage broker stepped in and restructured the financing.
We have also seen a buyer change jobs a month before closing without telling anyone. When the lender called to verify employment, they were told the buyer was on probation at a new company. The rule is simple: from pre-approval to closing, your financial profile is frozen. If something changes, your mortgage broker needs to know the same day.
Where to go for detailed mortgage guidance
For a full breakdown of mortgage types, lender options, variable vs. fixed rate strategy, and how self-employed buyers qualify, see our guide to mortgage financing for Ontario buyers. CMHC’s home buying resources also provide independent guidance on mortgage eligibility and insurance requirements.
Down Payments and CMHC Insurance
Down payment requirements when buying a home in Ontario depend on the purchase price and whether the property will be owner-occupied or used as an investment. The minimums are set federally and apply across Ontario.
Minimum down payment by purchase price
The minimum down payment is 5% on the first $500,000 of the purchase price, 10% on the portion from $500,001 to $1,500,000, and a full 20% on any purchase above $1,500,000. Investment properties always require a minimum of 20% regardless of purchase price. CMHC insurance is not available for investment property purchases under any circumstances.
CMHC mortgage default insurance
When your down payment is under 20%, your mortgage must be insured through CMHC or a comparable insurer. As of December 15, 2024, the insured mortgage ceiling rose from $1 million to $1.5 million, opening insured financing to more GTA buyers who previously needed a full 20% down. The insurance premium is added to your mortgage amount at closing. Ontario applies 8% PST to the premium, and that PST must be paid in cash on closing day. It cannot be added to the mortgage and cannot be deferred.
Current CMHC premium tiers are 4.00% of the mortgage amount for buyers with a 5% to 9.99% down payment, 3.10% for buyers with 10% to 14.99% down, and 2.80% for buyers with 15% to 19.99% down. On a $700,000 purchase with a 5% down payment, the premium is approximately $26,600 added to the mortgage, plus $2,128 in Ontario PST due in cash at closing. That PST figure catches buyers who budgeted only for the down payment.
Amortization: what changed in December 2024
As of December 15, 2024, first-time buyers and all buyers purchasing new builds can access a 30-year amortization on insured mortgages. Repeat buyers purchasing resale properties remain limited to 25 years. The 30-year option reduces monthly payments but increases total interest paid over the life of the mortgage. For first-time buyer specifics on this change and how it affects qualifying amounts, see our first-time home buyer guide for Ontario.
Buyer Programs: Who Qualifies for What
Ontario and the federal government offer meaningful financial support for buyers, but the programs available to you depend entirely on your buyer type. Using programs you do not qualify for creates legal and tax risk. Missing programs you do qualify for leaves real money on the table.
First-time buyers
First-time buyers in Ontario have access to several financial programs, including the First Home Savings Account, the RRSP Home Buyers’ Plan, land transfer tax rebates, and HST rebates for new builds. These programs can significantly reduce the cost of buying, but they come with eligibility rules and timing requirements that need to be handled correctly. Rather than summarizing them here, we cover each program in full, including how to combine them properly, in our dedicated First-Time Home Buyer Guide for Ontario.
Returning buyers
Buyers who have owned before do not qualify for first-time buyer programs. However, the December 2024 changes to insured mortgage limits and amortization terms affect all buyer types. Returning buyers also have access to programs that apply to specific situations: the downsizing market, move-up purchases, and investment property financing all have different structures and considerations. Our guide to Ontario home buyer programs for returning buyers covers what applies if you have owned before.
Foreign buyers
Most foreign nationals cannot currently purchase residential property in Canada. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act has been extended to January 1, 2027. Narrow exemptions apply for work permit holders with at least 183 days of validity remaining, international students meeting specific conditions, spouses of Canadian citizens or permanent residents, and a small number of other categories.
Foreign buyers who qualify under an exemption face Ontario’s Non-Resident Speculation Tax of 25% on the purchase price, applied on top of standard land transfer tax. Purchases within the City of Toronto also trigger a Municipal Non-Resident Speculation Tax of 10% effective January 1, 2025, bringing the combined speculation tax on Toronto purchases to 35%. Certain rebates apply if the buyer later obtains permanent residence status, subject to strict timing rules. Confirm your eligibility under both the federal ban and the provincial NRST with a real estate lawyer before submitting any offer.
Not Sure Which Programs Apply to You?
We work through program eligibility with buyers before they start searching, so the right accounts are open and the right funds are accessible when an offer comes together. A short conversation saves a lot of scrambling later.
Talk to the TeamClosing Costs: The Full Picture
Most buyers focus on the purchase price and the down payment. Closing costs are a separate set of real cash obligations due on the same day as the down payment. In Ontario, closing costs outside the down payment typically run from 1.5% to 4% of the purchase price, with Toronto buyers at the higher end because of the municipal land transfer tax. Budget for every line before you start touring.
Ontario land transfer tax
Ontario charges a provincial land transfer tax on every residential purchase. The tax is calculated on a graduated scale based on purchase price. First-time buyers receive a provincial rebate of up to $4,000, which fully eliminates the tax on purchases up to $368,333. Above that threshold, the rebate applies and the buyer pays the balance. Repeat buyers pay the full provincial LTT with no rebate. Confirm your eligibility with your lawyer at the start of the transaction, not on closing day.
Toronto municipal land transfer tax
Buyers purchasing within the City of Toronto pay a second, municipal land transfer tax in addition to the provincial one. The rates mirror the provincial structure. First-time buyers purchasing in Toronto receive a separate municipal rebate of up to $4,475, covering the full municipal LTT on purchases up to $400,000. Above that, the rebate applies and the buyer pays the balance of the municipal portion. As of April 1, 2026, Toronto introduced graduated luxury MLTT tiers for purchases above $3 million, with rates rising to 8.6% on homes priced over $20 million.
Legal fees, title insurance, and other closing line items
Every Ontario purchase requires a real estate lawyer. Legal fees typically run from $1,500 to $2,500 plus disbursements, which vary by transaction complexity. Title insurance is arranged through your lawyer and typically adds $200 to $400. A home inspection, when included as a condition, runs $400 to $600 in the GTA. Property tax adjustments on closing day can add or reduce several thousand dollars depending on whether the seller has prepaid taxes past your closing date. Ask your lawyer for a projected Statement of Adjustments at least two weeks before closing so the final cash requirement is not a surprise.
Closing cost summary
| Cost item | Typical range | Notes |
|---|---|---|
| Provincial land transfer tax | Varies by price | First-time rebate up to $4,000 |
| Toronto municipal LTT | Varies by price | Toronto only; first-time rebate up to $4,475 |
| Legal fees and disbursements | $1,500 to $2,500+ | Varies by complexity |
| Title insurance | $200 to $400 | Arranged through your lawyer |
| Home inspection | $400 to $600 | Paid before or at closing |
| CMHC PST (insured mortgages only) | 8% of the premium | Cash only; cannot be added to mortgage |
| Property tax adjustment | Varies | Depends on closing date and prepaid taxes |
Offers and Conditions That Protect You
Conditions in an Agreement of Purchase and Sale are not signs of weakness. They are the legal mechanism that allows you to exit a deal if something material fails during due diligence. In most Ontario markets in 2026, buyers have enough time and enough leverage to include conditions without losing the property. Waiving conditions to appear competitive is a deliberate risk, not a default approach.
The three conditions most Ontario buyers need
A financing condition gives you a defined window, typically five to ten business days, to obtain a confirmed mortgage commitment on the specific property after acceptance. A home inspection condition gives a qualified inspector access to the structure, roof, electrical, plumbing, HVAC, and major systems, and gives you the right to exit if the findings are serious enough. For condo purchases, a status certificate condition gives your lawyer at least three business days to review the condo corporation’s financials, reserve fund, meeting minutes, by-laws, and any outstanding litigation. The status certificate review is the condo equivalent of an inspection, and it surfaces problems no showing will ever reveal.
When waiving conditions makes strategic sense
Waiving a condition is a deliberate decision made with full information, not a reflex to a competing offer. If you waive a financing condition and the lender declines, you are still legally obligated to close. If you waive an inspection and the roof fails that first winter, that cost is yours with no recourse. In a multiple offer situation, our guide to winning offers in the GTA covers when the strategy makes sense and what alternatives exist that protect you without walking away from the deal.
For condo-specific due diligence, including what to look for in a status certificate and how to evaluate a reserve fund, see our guide to buying a condo in the GTA.
Buyer Representation Under TRESA
Ontario’s Trust in Real Estate Services Act Phase 2 took effect December 1, 2023. Under TRESA, written representation agreements are now mandatory before any registered agent can provide real estate advice or advocacy to a buyer. This is not paperwork to rush through. It is the legal document that determines whether the person helping you is working for you or simply providing information.
What a Buyer Representation Agreement covers
A Buyer Representation Agreement formalizes the working relationship between you and the brokerage. It sets out the services provided, the area and property type covered, the term of the agreement, and the commission structure. Signing it creates fiduciary duties: the brokerage must act in your best interest, maintain confidentiality about your financial position and motivations, and disclose any conflict of interest.
What self-representation means in practice
Buyers who choose not to sign become self-represented parties. They receive information but not advice or advocacy. The agent assisting them has no legal obligation to protect their interests, recommend conditions, or advise on price. In a complex transaction, that is a meaningful difference with real financial consequences. The Real Estate Council of Ontario (RECO) publishes plain-language guidance on what representation means and what to expect from a registered brokerage.
Move-Up Buyers: Selling and Buying at the Same Time
Move-up buyers face a coordination challenge that first-time buyers do not: you are typically selling one property while buying another, and the timing between the two carries real financial exposure on both sides. Getting the sequence right matters more than getting either deal individually right.
Sell first or buy first?
There is no universal answer, but the risks on each side are real and different. Buying before your current home is sold can leave you carrying two mortgages if your existing property sits longer than expected. Selling before you have a purchase in place puts you under time pressure to buy something quickly, which rarely produces the best decision. The approach we most often recommend: list your current home first, get it under agreement, and then run a focused search during the period between acceptance and closing. Knowing your exact net proceeds and your firm closing date gives you the clarity to make a strong offer on the right property at the right price. For the full sale-side picture including pricing strategy and market timing, see our guide to selling a home in Ontario.
Bridge financing
Bridge financing is a short-term loan that covers the gap when your purchase closes before your sale does. It is not universally available, it carries fees and interest, and it must be arranged in advance through your mortgage professional. Ask about bridge financing before both transactions are firm, not after. Also budget for the carrying cost of overlap: two sets of legal fees, overlapping property taxes and utilities, and moving costs all land in the same window.
We’ve Seen This Play Out
In 2025, Keith and I sold our home in Vaughan and bought in St. Catharines. We had more than 30 years of combined experience between us, and we still found the simultaneous coordination of two transactions across two markets more demanding than most of our individual client files. The closing dates, the bridge financing window, the moving logistics, and the condition timelines all had to be sequenced carefully. We got it right, but the margin for error was smaller than either of us expected going in.
That experience now shapes how we guide clients through the same transition. We have been on both sides of the GTA-to-Niagara corridor. We understand what you gain and what you give up, and we help buyers make that decision with accurate information, not wishful math.
What to budget for when transactions overlap
Two closings in close succession carry costs that buyers often underestimate. Budget for two sets of legal fees, overlapping property taxes and utility bills during any gap between closings, bridge financing fees and interest if the purchase closes before the sale, and moving costs that may not land on the same day as either closing. Ask your lawyer for a projected Statement of Adjustments on both files well before closing day so the cash requirement is clear.
Selling and Buying at the Same Time?
We have helped clients coordinate this transition across the GTA and Niagara Region, including our own move from Vaughan to St. Catharines. Timing, pricing, and financing have to align. Let’s map it out before you commit to either side of the transaction.
Start the ConversationInvestment Property Purchases in Ontario
Investment property purchases follow the same legal sequence as any other purchase in Ontario. The financial analysis, lender requirements, and risk profile are different enough that buyers entering this market for the first time need to understand these distinctions before submitting an offer, not after.
Down payment and financing for investment properties
A minimum 20% down payment is required for all investment properties in Ontario. CMHC mortgage insurance is not available for non-owner-occupied purchases under any circumstances. Lenders qualify buyers on a combination of personal income and projected rental income, with a conservative discount typically applied to rental figures. The stress test applies the same as it does for any other purchase. A buyer who qualifies for a $700,000 owner-occupied purchase may find their ceiling drops meaningfully when the property is an investment, depending on existing debt load and the lender’s rental income treatment.
The Residential Tenancies Act: know it before you buy
Ontario’s Residential Tenancies Act is among the most tenant-protective legislation in Canada. Before purchasing a tenanted property, you need to understand your rights as a new owner, how vacant possession works in practice, and what the legal process looks like if a tenant does not voluntarily vacate. A purchase that looks attractive on paper can become complicated quickly if the path to vacant possession is longer than expected, which is one of the more costly surprises investment buyers encounter in this province.
Evaluate the neighbourhood’s long-term trajectory, the age of major systems, and the realistic carrying cost if the property sits vacant between tenants. The investment that works is the one you can hold comfortably through vacancies, rate changes, and repairs. For a deeper analysis of how to evaluate opportunities across the GTA and Niagara Region, see our guide to income properties in Ontario.
The Ontario Market in 2026: What Buyers Need to Know
The GTA market in 2026 is meaningfully different from the one that defined the 2021 and 2022 period. TRREB’s market outlook forecasts 60,000 to 70,000 sales across the GTA in 2026, broadly flat year over year, with the HPI benchmark price expected in the $1.0 million to $1.03 million range. Buyers have more time, more inventory, and more negotiating room than at any point since that peak. Most are not fully using that advantage.
What is sitting on the market and why
Condos are sitting the longest, particularly in Toronto and Mississauga, where investor supply built up during the high-demand years and is now coming onto the market in elevated volumes. Buyers competing for condo product in 2026 have real room to negotiate on price, conditions, and closing dates. That is a material shift from the market of three years ago.
Well-located freehold detached and semi-detached homes in communities with strong school catchments and transit access still attract meaningful competition. The spread between what moves quickly and what sits for 60 days is wider than it has been in years. Knowing which category a property falls into before you write an offer matters more in this environment than it did in a market where everything moved regardless.
The most common buyer mistake in 2026
The buyers making the most costly decisions right now are treating this market with the same urgency habits they built watching the 2021 period. Waiving inspections on properties that have been sitting for 45 days. Skipping conditions in markets where there is no competing offer. A calmer market gives you due diligence time. That time has value. Use it.
The second most common mistake: waiting indefinitely for prices to drop further. Rate uncertainty keeps some buyers on the sidelines through markets where well-located properties are available at reasonable values. Buyers who understand the process and go in with a clear strategy tend to make better decisions than buyers trying to time the bottom precisely. For help deciding between markets and understanding which communities offer long-term value, see our guide to GTA vs. Niagara home search tips.
GTA vs. Niagara: a side-by-side snapshot
| GTA | Niagara Region | |
|---|---|---|
| Detached price range | $900K to $1.5M+ | $500K to $800K |
| Competition level | Moderate to high in desirable areas | Low to moderate; conditions standard |
| Days on market | Longer than 2022; varies by area | Generally longer; more negotiation room |
| Condo supply | Elevated; buyer-favourable | Limited inventory |
| Key trade-off | Higher price; more property types | More purchasing power; commute factor |
When Not to Buy a Home in Ontario
Most buying guides tell you how to buy. This section tells you when not to. These are conversations we have had with clients, and they are the right conversations to have before someone commits to a purchase they are not ready for.
Financial signals that mean wait
Your financing is not confirmed in writing. A pre-approval conversation with a bank is not a mortgage commitment. Going firm on a purchase without a written pre-approval from a mortgage professional who has reviewed your actual financial file is one of the highest-risk positions a buyer can be in. If the lender declines after you go firm, you are still legally obligated to close.
Your numbers only work in a best-case scenario. If your carrying cost depends on a tenant who stays, rates that hold, and no major repairs in the first few years, the purchase is not as solid as it looks. Before you commit to any property, stress-test the carrying cost against a vacancy, a rate change, and a furnace or roof replacement. If any one of those scenarios breaks the math, the timing is probably not right.
Situational signals that mean wait
You are buying to escape a situation rather than to solve one. Buyers going through a divorce, a job change, or an unstable housing situation sometimes make purchasing decisions driven by urgency. That urgency rarely produces a good long-term outcome. The right property at the right price is almost always worth the extra time it takes to find it.
Your savings cover the down payment but nothing else. All of the closing costs above are due in certified funds on the same day as the down payment. None of them can be financed, deferred, or added to the mortgage. If your plan requires every dollar of savings for the down payment, you are not financially ready to close.
Waiting is not a failure in real estate. Buying before you are ready is. If you want an honest read on whether now is the right time for your specific situation, reach out to our team and we will walk through the numbers with you, with no obligation.
Related Articles in This Guide
First-time buyers: Start with our first-time home buyer guide for Ontario for the FHSA, HBP, LTT rebates, and HST new build programs. Use the Ontario first-time home buyer checklist to track every stage. For incentive program detail, see our guide to Ontario home buyer incentives.
Returning buyers: See our guide to Ontario home buyer programs for returning buyers for what applies when first-time programs are no longer available to you.
Financing: Our guide to mortgage financing for Ontario buyers covers mortgage types, lender options, variable vs. fixed rate strategy, and self-employed qualification in full.
Searching: Our guide to GTA vs. Niagara home search tips covers both markets side by side. Our guide to finding your neighbourhood in the GTA goes deep on community research and long-term value. Considering a condo? Read buying a condo in the GTA before you write an offer.
Offers and competitive situations: See our guide to winning offers in the GTA before you compete in a multiple offer situation.
Closing: Review title search in Ontario and our guide to closing day in the GTA well before possession day.
Life-transition purchases: Going through a divorce? See buying a home after divorce in Ontario. Also selling? Our guide to selling a home in Ontario covers the full sale-side process.
Buying a Home in Ontario: Your Questions Answered
What is the minimum down payment to buy a home in Ontario?
The minimum down payment is 5% on the first $500,000 of the purchase price, 10% on the portion from $500,001 to $1,500,000, and 20% on any purchase above $1,500,000. Investment properties always require at least 20% regardless of price. These minimums are set federally and apply across all of Ontario.
Do I need a real estate lawyer to buy a home in Ontario?
Yes. A real estate lawyer is legally required to complete a residential purchase in Ontario. Your lawyer handles the title search, off-title searches, mortgage registration, and the transfer of funds on closing day. Budget for legal fees as a line item in your closing cost estimate, separate from your down payment.
What is the mortgage stress test and does it apply in 2026?
The stress test requires all mortgage applicants to qualify at the higher of their contract rate plus 2%, or a floor of 5.25%, whichever is greater. It continues to apply in 2026 for all new mortgages. The one exception: buyers switching lenders at renewal without increasing their loan amount or changing their amortization are now exempt, following changes effective November 21, 2024.
What is CMHC insurance and when is it required?
CMHC mortgage default insurance is required when your down payment is less than 20%. The premium is added to your mortgage amount. Ontario applies 8% PST to the premium, and that PST is due in cash on closing day and cannot be added to the mortgage. As of December 15, 2024, insured mortgages are available on purchases up to $1.5 million, raised from the previous $1 million ceiling.
What is a Buyer Representation Agreement and is it required in Ontario?
A Buyer Representation Agreement is a written contract between you and a real estate brokerage that formalizes the brokerage’s obligation to act in your interest. Under TRESA Phase 2, effective December 1, 2023, this agreement is mandatory before any agent can provide advice or advocacy. Buyers who do not sign become self-represented parties and receive information only, not representation.
What closing costs should I budget for beyond the down payment?
Budget 1.5% to 4% of the purchase price for closing costs, with Toronto buyers at the higher end due to the municipal land transfer tax. The main items are provincial and municipal land transfer tax, legal fees and disbursements, title insurance, home inspection, property tax adjustments, and the CMHC PST if your down payment is under 20%. All of these are due in certified funds on closing day.
How long does a conditional period last in Ontario?
Conditional periods are negotiated in the Agreement of Purchase and Sale. Most commonly they run five to ten business days for financing and home inspection conditions. The length is not fixed by law. Too short a window leaves buyers without enough time to complete proper due diligence, particularly on complex properties or in situations where lender turnaround is slow.
Do foreign buyers pay extra tax when purchasing in Ontario?
Most foreign nationals cannot currently purchase residential property in Canada under the federal foreign buyer ban, extended to January 1, 2027. Foreign buyers who qualify under a narrow exemption pay Ontario’s Non-Resident Speculation Tax of 25% in addition to standard land transfer tax. Toronto purchases also trigger a Municipal NRST of 10% effective January 1, 2025, bringing the combined rate to 35% in the city. Confirm your eligibility with a real estate lawyer before submitting any offer.
Does HST apply to buying a resale home in Ontario?
No. HST does not apply to resale homes. It applies to newly built homes and substantially renovated properties. Two separate rebate programs now apply to new builds: the Ontario Enhanced HST Rebate of up to $130,000 and the Federal First-Time Home Buyers’ GST/HST Rebate of up to $50,000. These do not combine. If you qualify for both, you receive the greater of the two. See our guide to Ontario home buyer incentives for full eligibility detail.
Should I sell my home before buying another one?
For most move-up buyers, selling first is the lower-risk path. It confirms your net proceeds, eliminates the risk of carrying two mortgages, and gives you a firm closing date to work from when writing an offer on your next property. Buying first gives you more time to find the right property but introduces financial exposure if your current home takes longer to sell than expected. Bridge financing can cover a short gap between closings, but it needs to be arranged before both deals are firm.
What programs are available for first-time home buyers in Ontario?
First-time buyers in Ontario have access to the First Home Savings Account, the RRSP Home Buyers’ Plan, provincial and Toronto land transfer tax rebates, the First-Time Home Buyer Tax Credit, and HST rebates on qualifying new builds. These programs interact in ways that reward early preparation and careful sequencing. All of them are covered in full in our first-time home buyer guide for Ontario.
Keith & Françoise Real Estate Team
eXp Realty Brokerage · GTA & Niagara Region
We are Françoise Pollard, Realtor®, and Keith Goldson, Broker, with eXp Realty Brokerage. Together we have more than 30 years of combined experience representing buyers across the GTA and Niagara Region, from first-time purchases to investment properties and life-transition moves. In 2025 we made the move ourselves, selling in Vaughan and buying in St. Catharines. We understand what buyers in both markets are navigating because we have navigated it ourselves.
Market conditions, pricing, and buyer competition vary by location, property type, and timing. This article reflects our experience working with buyers across Ontario, particularly in the GTA and Niagara Region. For advice specific to your situation, speak with a qualified real estate professional before making decisions.