Buying a Home in Ontario: A Complete Guide
Updated: April 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 where the most expensive mistakes happen before you even start searching. Most buyers overpay or take on hidden risk. Many miss thousands of dollars in available programs because they do not understand how the process works. This guide covers every stage from pre-approval to closing day and what changed for buyers between 2021 and 2026. Whether you are buying for the first time, returning after years away, or purchasing investment property, the fundamentals are the same. Strategy shifts depending on where you are in life.
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Buying a home in Ontario is one of the most consequential financial decisions most people will make, and the process has more legal, financial, and strategic layers than most buyers anticipate. The buyers who do it well are not the ones with the biggest budgets. They are the ones who understand the sequence before they start, confirm their financing before they fall in love with a property, and make decisions based on verified numbers rather than market pressure or emotion.
What this guide covers
This guide covers every major stage: financing, down payments, programs, closing costs, offers, and the 2026 market. We cover all buyer types: first-timers, repeat buyers returning after years away, move-up buyers juggling a simultaneous sale, and those considering investment property. The legal sequence is the same for all of them. Strategy differs depending on where you are in life and what you are trying to accomplish.
For first-time buyer specifics including the FHSA, RRSP Home Buyers’ Plan, and land transfer tax rebates, our First-Time Home Buyer Guide Ontario goes deeper on those programs. This guide covers the full picture for every Ontario buyer.
The buyers who succeed in Ontario are not the ones who move fastest. They are the ones who understand the process well enough to know when to slow down.
Start Here: Which Home Buyer in Ontario Are You?
This guide is built for multiple buyer types. Before you read further, find the one that fits your situation. Each one requires a slightly different approach to buying a home in Ontario, and knowing where you stand changes what you should prioritize first.
First-time buyer: Start with the financing and down payment sections, then move to programs and incentives. You likely have access to the FHSA, RRSP Home Buyers’ Plan, and land transfer tax rebates that reduce your net cost significantly. Read those sections before you speak to a lender.
Returning buyer: You have owned before, so some first-time programs no longer apply. Your focus should be the 2026 market section, the stress test update, and the CMHC insurance changes that affect what you can now buy with less than 20% down.
Move-up buyer: You are selling and buying at the same time. Your biggest risks are timing and bridge financing. Go directly to the move-up section before anything else.
Investment buyer: Down payment rules, lender qualification, and the Residential Tenancies Act all work differently for you. The investment section covers what changes and what the real risks are before you submit an offer.
Life-transition buyer (divorce, relocation, downsizing): You face the same legal and financial process as everyone else, but you are managing more at once. This guide applies fully. Our guides to buying after divorce in Ontario and GTA vs. Niagara home search tips cover the specific layers those situations add.
How Buying a Home in Ontario Works: The Legal Sequence
The Ontario home buying process follows a defined legal sequence. Understanding what each step commits you to is the foundation of buying well. The sequence runs like this: establish your financing ceiling, find properties that fit, submit a written offer, satisfy any conditions, go firm, and close through your lawyer.
The Agreement of Purchase and Sale
The Agreement of Purchase and Sale is the binding legal contract between buyer and seller in Ontario. Once both parties have signed, you are legally committed to the terms unless a condition allows you to exit. It sets out the purchase price, deposit amount and due date, closing date, inclusions, and any conditions. Your real estate lawyer reviews it on your behalf. The time to understand what is in it is before the offer goes in, not after.
Never treat it as a formality. Every line is enforceable. Inclusions, fixtures, rental items, and representations made by the seller are all captured here or they are not binding.
Deposits: amounts, timing, and consequences
The deposit is paid after acceptance and held in trust by the listing brokerage. It is not the down payment. It becomes part of your down payment at closing, but it is paid much earlier. In the GTA, payment is typically due within 24 hours of acceptance. Deposits commonly run from $20,000 to $50,000 or more. Niagara amounts are generally lower but still meaningful.
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 sue for damages. Structure your offer correctly from the start, with the right conditions and enough time to complete them.
What happens after you go firm
Once conditions are waived and the deal is firm, your next steps move to your lawyer. They order the title search, review off-title searches, and confirm the mortgage is in order. Our guide to closing day in the GTA covers exactly what happens in those final weeks.
Financing: The First Step When Buying a Home in Ontario
Financing first, property search second. Reversing this order is one of the most common and costly mistakes buyers make. You fall in love with homes you cannot afford, your offer structure looks weak to sellers, and your timeline collapses if a lender needs more time than your conditional period allows.
A mortgage pre-approval tells you what a lender would likely offer based on your income, credit history, and debt load at the time of application. Final approval depends on the specific property passing a lender appraisal and your financial position remaining stable until closing. Changing jobs, taking on new debt, or making large purchases between pre-approval and closing can cost you the mortgage.
The mortgage stress test
Every mortgage applicant in Ontario must qualify at the higher of their contract rate plus 2%, or a floor rate of 5.25%. The stress test has not changed as of January 2026. One exception applies: switching lenders at renewal without changing your loan amount or amortization. In that case, the stress test no longer applies, following changes that took effect in November 2024.
For a full breakdown of mortgage types, lender options, and self-employed qualification, our guide to mortgage financing for Ontario buyers covers the details. CMHC’s home buying resources also offer independent guidance on mortgage eligibility and insurance requirements.
Down Payments and CMHC Mortgage Insurance
Down payment rules when buying a home in Ontario depend on the purchase price and whether the property will be owner-occupied or an investment. The minimum down payment structure is set federally and applies across all of Ontario.
Minimum down payment by purchase price
On the first $500,000 of the purchase price, the minimum down payment is 5%. On the portion from $500,001 to $1,500,000, the minimum rises to 10% on that portion. Any purchase above $1,500,000 requires a full 20% down payment. Investment properties always require a minimum of 20%, regardless of purchase price.
CMHC mortgage default insurance
When your down payment is under 20%, your mortgage must be insured. As of December 15, 2024, the insured mortgage limit was raised from $1 million to $1.5 million. That change opened insured financing to more GTA buyers who previously needed a full 20% down. The insurance premium is added to your mortgage amount. Current tiers are:
| Down Payment | CMHC Premium |
|---|---|
| 5% to 9.99% | 4.00% of mortgage amount |
| 10% to 14.99% | 3.10% of mortgage amount |
| 15% to 19.99% | 2.80% of mortgage amount |
| 20% or more | No insurance required |
Ontario PST of 8% is applied to the premium at closing and must be paid upfront in cash. It cannot be added to the mortgage. First-time buyers and new build purchasers can now access a 30-year amortization on insured mortgages, a change effective December 15, 2024. Repeat buyers purchasing resale properties remain limited to 25 years.
First-Time Buyer Programs for Buying a Home in Ontario
Ontario and the federal government offer meaningful financial support for first-time buyers. Knowing these programs before you buy can save you tens of thousands of dollars and increase your effective down payment without touching your savings.
First Home Savings Account
The FHSA allows first-time buyers to contribute up to $8,000 per year, with a lifetime cap of $40,000. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are completely tax-free. You can carry forward up to $8,000 of unused room from the prior year. Limits are unchanged for 2026. The FHSA can be combined with the RRSP Home Buyers’ Plan for maximum impact.
RRSP Home Buyers’ Plan
First-time buyers can withdraw up to $60,000 per person from their RRSP toward a home purchase. For a couple, that is $120,000 combined. The withdrawal is tax-free at the time it is made but must be repaid over 15 years. If a repayment is missed in any year, that amount is added to your taxable income for that year.
Federal First-Time Home Buyer Tax Credit
The First-Time Home Buyer Tax Credit provides a non-refundable federal tax credit of up to $10,000 in the year of purchase, equal to $1,500 in actual tax savings. It was doubled in December 2022 and has remained at this level since.
For full detail on all programs including eligibility conditions, see our guide to Ontario home buyer incentives. If you have owned before and are returning to the market, our guide to Ontario home buyer programs for returning buyers covers what applies to you.
Closing Costs: What You Will Actually Pay
Most buyers underestimate closing costs. When buying a home in Ontario, land transfer tax alone can add tens of thousands of dollars to what you owe on closing day, on top of your down payment. Budget for all of it before you start searching, not after you have an accepted offer.
Ontario land transfer tax
Ontario charges a provincial land transfer tax on every residential purchase. First-time buyers receive a rebate of up to $4,000 against the provincial LTT, which fully covers the tax on purchases up to $368,333. On any purchase above that, the $4,000 rebate applies and the buyer pays the balance.
Toronto municipal land transfer tax
Buyers purchasing within Toronto city limits pay a second, municipal land transfer tax. Toronto first-time buyers receive a separate municipal rebate of up to $4,475, covering the municipal tax on purchases up to $400,000. Toronto buyers at higher price points pay both provincial and municipal LTT after applying their respective rebates.
Non-resident speculation tax
Foreign nationals purchasing residential property in Ontario pay a provincial Non-Resident Speculation Tax of 25% of the purchase price, on top of standard land transfer tax. Certain exemptions apply based on visa or residency status. Confirm your eligibility with a real estate lawyer before submitting an offer.
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 | $1,500 to $2,500+ | Plus disbursements |
| Title insurance | $200 to $400 | Arranged through your lawyer |
| Home inspection | $400 to $600 | Paid before or at closing |
| CMHC PST (if insured) | 8% of premium | Paid in cash at closing |
| Property tax adjustment | Varies | Depends on closing date and prepaid taxes |
In total, closing costs outside of your down payment typically run from 1.5% to 4% of the purchase price, with Toronto buyers at the higher end due to the municipal LTT.
Not sure what you can actually afford in Ontario right now?
We work through the numbers with buyers every week across the GTA and Niagara Region. A 20-minute conversation can tell you more than an hour of online calculators.
Talk to the TeamOffers When Buying a Home in Ontario: 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 critical fails. Including conditions is standard practice in most Ontario markets in 2026. Buyers who skip them to appear more competitive take on real, unpriced risk with no corresponding reward in most situations.
In most 2026 transactions, the risk is not losing the property. The risk is buying it without fully understanding what you are committing to.
The three conditions most buyers need
The financing condition gives you a defined window to obtain a confirmed mortgage commitment on the specific property. The home inspection condition gives you the right to review a professional inspector’s findings. You can walk away if the result is not acceptable. For condo purchases, the status certificate condition gives your lawyer time to review the corporation’s financial health, reserve fund, and any outstanding litigations.
Each condition has a deadline negotiated in the agreement, typically five to ten business days. Missing a deadline without waiving or extending means the condition expires. Your agent should be tracking these and communicating with you throughout the period.
When to consider waiving conditions
Waiving conditions is a deliberate decision made with full information, not a default response to a competing offer. If you waive a financing condition and the lender declines, you still own the property. If you waive an inspection condition and the furnace fails that first winter, that is your cost and your problem. Understanding what you are giving up before you waive it is not optional.
In a multiple offer situation, our guide to winning offers in the GTA covers strategy in detail. For condo-specific due diligence, see our guide to buying a condo in the GTA.
Buyer Representation in Ontario: What TRESA Changed
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 agent can provide real estate advice or advocacy to a buyer.
What a Buyer Representation Agreement covers
A Buyer Representation Agreement formalizes the working relationship between you and your brokerage. It sets out the services you will receive, the area and property type covered, the term of the agreement, and the commission structure. Signing it means the brokerage owes you fiduciary duties: the obligation to act in your best interest, maintain confidentiality, and disclose conflicts of interest.
What happens if you do not sign
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 duty to protect their interests. In a complex transaction, that is a meaningful and potentially costly difference. The Real Estate Council of Ontario (RECO) provides plain-language information on what representation means and what to expect from a registered agent.
The Ontario Market in 2026: What Buyers Need to Know
The GTA market in 2026 is meaningfully different from the one that defined 2021 and 2022. TRREB’s market outlook forecasts 60,000 to 70,000 sales across the GTA in 2026, broadly flat year over year. The HPI benchmark price is forecast in the $1.0 million to $1.03 million range. Buyers have more time, more inventory, and more negotiating room than at any point in the past five years. Most are not using that advantage well. If you are buying a home in Ontario right now, this is the market context you are working within.
What is actually sitting on the market right now
Condos are sitting the longest, particularly in Toronto and Mississauga. Investors who bought at 2021 prices are listing into a market with elevated supply and softened demand. That creates real opportunity for buyers who are not competing against the same fear-driven urgency that defined 2021 and 2022.
Freehold detached and semi-detached homes in well-located communities with good school catchments and transit access still attract 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.
What buyers are doing wrong right now
The most common mistake we see in 2026: buyers treating this market with the same urgency habits they built during the pandemic. 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. Use it.
The second most common mistake: waiting indefinitely for prices to drop further. Rate uncertainty keeps some buyers on the sidelines. But well-located properties in the GTA and Niagara tend to reward the buyer who goes in informed and patient, not the one who tries to time the bottom precisely.
This market is not about timing the bottom. It is about recognizing value when it is in front of you and acting with clarity.
GTA vs. Niagara: a side-by-side snapshot
| GTA | Niagara Region | |
|---|---|---|
| Price range (detached) | $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 condo inventory |
| Trade-off | Higher price; more property types | More purchasing power; commute factor |
Our guide to finding your neighbourhood in the GTA goes deep on community research and how to assess a location for long-term value.
Move-Up Buyers: Selling and Buying at the Same Time
Move-up buyers face a coordination challenge that first-timers do not: you are typically selling one property while buying another, and the timing between the two carries real financial risk on both sides.
Sell first or buy first?
There is no universal right answer, but the risks on both sides are real. Buying before your current home is sold can leave you carrying two mortgages if your home sits longer than expected. Selling before you have a purchase secured puts you under time pressure to buy something that may not be right, just to resolve the housing problem.
The sequence we most often recommend: list your current home first, get it under agreement, then conduct a focused search during the period between acceptance and closing. Knowing your exact net proceeds and your firm closing date gives you clarity on what you can offer when buying a home in Ontario and when you need to be in.
Bridge financing
Bridge financing is a short-term loan that covers the gap when your purchase closes before your sale does. Not all lenders offer it, fees and interest apply, and it needs to be arranged in advance. Ask your mortgage professional about bridge financing before both transactions are firm, not after. Also budget for carrying costs: two sets of legal fees, potential overlap in property taxes and utilities, and moving costs.
Planning to sell and buy at the same time?
We have helped clients structure this exact transition across the GTA and Niagara Region, including our own move from Vaughan to St. Catharines. Timing, pricing, and financing all have to align. We can walk you through it before you make a move.
Start the ConversationBuying a Home in Ontario as an Investment Property
Investment property purchases follow the same legal process as any other purchase. The financial analysis, lender requirements, and risk profile are different enough that buyers entering this market for the first time should understand these distinctions before submitting an offer.
Down payment and financing for investment purchases
A minimum 20% down payment is required for all investment properties in Ontario. CMHC mortgage insurance is not available for non-owner-occupied purchases. Lenders qualify you on a combination of your personal income and the property’s projected rental income, though a conservative discount is applied to rental figures. The stress test applies the same as any other purchase.
Know the Residential Tenancies Act before you buy
Ontario’s Residential Tenancies Act is among the most tenant-protective legislation in Canada. Before purchasing a tenanted property, understand your rights as a new owner, how vacant possession works, and the legal process for asking a tenant to vacate. A purchase that looks attractive on paper can become complicated quickly if the path to vacant possession is longer than expected. This is one of the more costly surprises investment buyers encounter here.
Consider 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, repairs, and rate changes.
We’ve Seen This Play Out
We met a young couple at a Brampton open house years ago. Both professionals, both ready to stop renting. Two weeks later they bought their first home: 1,100 square feet, exactly what they needed.
Over the next decade we helped them through four more transactions: a larger family home when their first daughter arrived, a move to Etobicoke when a career change brought a long commute, an investment property in Barrie they held and sold at a profit, and finally a home in the right school catchment before their second daughter was born. Every time they were ready to move, they called us first. That is what this kind of relationship looks like: not a single transaction, but a series of well-timed decisions made with people who know your history.
GTA vs. Niagara: What Each Market Actually Looks Like
Ontario is not a single market. Buying in the GTA is a meaningfully different experience from buying in the Niagara Region, and both require different strategies and expectations around price, competition, and local housing stock.
Buying in the GTA
GTA buyers face higher price points, a wider range of property types, and more competition in desirable communities. The condo market has shifted significantly toward buyers since its 2021 and 2022 peak, with elevated inventory and real room to negotiate on price and conditions. Freehold detached and semi-detached homes in well-located areas still attract meaningful interest. Buyers working with a defined budget need a clear strategy around which communities and property types give them the most long-term value.
Buying in the Niagara Region
Niagara buyers generally find significantly more purchasing power. Detached homes are accessible at price points that would buy a condo in many GTA neighbourhoods. Buying a home in Ontario’s Niagara Region allows for more deliberate decision-making, and conditions are standard practice in most transactions. The trade-off for buyers still working in the GTA is commute time. Older housing stock in communities like Welland and Thorold requires closer attention to property condition and deferred maintenance.
When Not to Buy a Home in Ontario: Honest Signals to Wait
Most buying guides tell you how to buy. This section tells you when not to. We have had these conversations with clients, and they are the right ones to have before someone commits to a purchase they are not ready for.
Your financing is not confirmed. A pre-approval conversation with a bank is not a mortgage commitment. If you do not have a confirmed pre-approval in writing, you are not ready to write an offer. Going firm without confirmed financing is one of the highest-risk positions a buyer can be in.
You are buying to escape something, not to solve something. Buyers going through a divorce, a job change, or a difficult living situation sometimes make decisions driven by urgency. That urgency rarely produces a good long-term outcome. The right property at the right price is worth the extra weeks it takes to find it.
Financial signals that mean wait
The numbers only work in a best-case scenario. If your carrying cost depends on a tenant who stays, rates that do not move, and no major repairs in the first three years, the deal is not as strong as it looks. Stress-test every investment against a vacancy, a rate change, and a furnace.
You have not accounted for closing costs. If your plan requires every dollar of your savings to cover the down payment with nothing left for land transfer tax, legal fees, and adjustments, you are not financially ready to be buying a home in Ontario. Those costs are real and they are due on closing day.
Waiting is not a failure in real estate. Buying before you are ready is.
Related Articles in This Guide
Starting out: Begin with the First-Time Home Buyer Guide Ontario, then move to Mortgage Financing Simplified for Ontario Buyers before you speak with a lender.
Researching programs and incentives: See Ontario Home Buyer Incentives for first-time programs and Ontario Home Buyer Programs for Returning Buyers if you have owned before. Use the Ontario First-Time Home Buyer Checklist to confirm every box is checked.
Actively searching: Our GTA vs. Niagara Home Search Tips covers both markets. Our guide to finding your neighbourhood in the GTA goes deep on community research. Considering a condo? Read Buying a Condo in the GTA before you write an offer. Going through a divorce? See Buying a Home After Divorce in Ontario.
Making an offer: Read our guide to winning offers in the GTA before you compete in a multiple offer situation.
Close to closing: Review Title Search in Ontario: Protect Your Purchase and our guide to Closing Day in the GTA.
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, and 10% on the portion from $500,001 to $1,500,000. Any purchase above $1,500,000 requires a full 20% down payment. Investment properties always require at least 20%, regardless of price.
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, the mortgage registration, and the transfer of funds on closing day. Budget for legal fees as part of your closing cost estimate.
What is the mortgage stress test and does it still apply in 2026?
The stress test requires all buyers to qualify at the higher of their contract rate plus 2%, or a floor rate of 5.25%, whichever is greater. It continues to apply in 2026. The one exception: buyers switching lenders at renewal without increasing their loan amount or amortization are now exempt, following changes effective November 2024.
What is CMHC insurance and when is it required?
CMHC mortgage default insurance is required when your down payment is less than 20% of the purchase price. The premium ranges from 2.80% to 4.00% of the mortgage amount depending on your down payment tier. Ontario PST of 8% is applied to the premium and paid in cash at closing. As of December 2024, insured mortgages are available on purchases up to $1.5 million.
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 duty to act in your interest. Under TRESA Phase 2, effective December 1, 2023, this agreement is mandatory in Ontario before an agent can provide advice or advocacy on your behalf. Buyers who do not sign become self-represented parties and receive information only.
How much is land transfer tax in Ontario for a first-time buyer?
Ontario first-time buyers receive a provincial land transfer tax rebate of up to $4,000, which fully covers the tax on purchases up to $368,333. Buyers purchasing within Toronto pay a second municipal land transfer tax and can receive an additional municipal rebate of up to $4,475, covering the municipal tax on purchases up to $400,000.
Can I use my RRSP and FHSA together to buy a home?
Yes. The RRSP Home Buyers’ Plan allows up to $60,000 per person ($120,000 for a couple) to be withdrawn tax-free and repaid over 15 years. The FHSA allows up to $40,000 lifetime in contributions that are tax-deductible going in and tax-free coming out for a qualifying purchase. Both can be combined for maximum impact.
Do foreign buyers pay extra tax when purchasing in Ontario?
Yes. Foreign nationals purchasing residential property in Ontario are subject to the Non-Resident Speculation Tax at a rate of 25% of the purchase price, on top of standard land transfer tax. Exemptions exist for certain visa and work permit holders. Confirm your status 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 the purchase of resale residential properties in Ontario. It applies to newly built homes and substantially renovated properties. If you are purchasing a new build, the GST/HST New Housing Rebate may offset part of the tax for qualifying purchases.
How long does a conditional period last in Ontario?
Conditional periods are negotiated in the Agreement of Purchase and Sale and most commonly run five to ten business days for financing and home inspection conditions. The length is not fixed by law. Too short a window can leave buyers without enough time to complete proper due diligence.
Keith & Françoise Real Estate Team
eXp Realty Brokerage · GTA & Niagara Region
We are Françoise Pollard, Realtor®, and Keith Goldson, Broker, with eXp Realty Brokerage. We have more than 30 years of combined experience representing buyers across the GTA and Niagara Region. In 2025 we made the move ourselves, selling our home in Vaughan and buying in St. Catharines. We understand both markets from the inside, not just as Realtors® but as buyers who have gone through the same process we guide our clients through every week. If you are thinking about buying in Ontario, we are glad to have that conversation.
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.