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Keith & Françoise Real Estate Team · eXp Realty Brokerage
Françoise Pollard, Realtor® · Keith Goldson, Broker · Updated April 2026
Ontario’s buying process follows a clear sequence. Each phase builds on the last. For the full framework behind these steps, including conditions, timelines, deposits, and how closing works, see our buying a home in Ontario guide and our Ontario first-time home buyer guide.
Before you speak with a lender or agent, your financial picture needs to be clear. Many first-time buyers know their approval amount but have not confirmed their down payment source, actual monthly budget, or how much cash is needed on closing day.
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Confirm your down payment amount, source, and how quickly you can access it. Lenders verify the source, and gifts or investments carry different documentation requirements than savings.
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Calculate your comfortable monthly payment, not just your maximum approval amount. These are rarely the same number.
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Confirm your stress test qualifying rate. The rate is your contract rate plus 2%, or the floor of 5.25%, whichever is higher. This is the rate your income must qualify at, not the rate you will pay.
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Budget for closing costs beyond the down payment. In Ontario, closing costs typically run 1.5 to 4 percent of the purchase price and require cash on closing day.
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Confirm whether mortgage default insurance applies. If your down payment is under 20%, CMHC insurance is mandatory. The premium, plus Ontario PST of 8% on that premium, is due on closing day and cannot be added to the mortgage. Details at
CMHC.
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Review your credit report before a lender does. Errors take time to correct and can affect your approval or rate.
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Confirm who goes on title and whether a co-signer or guarantor is part of the application. This affects legal costs, land transfer tax eligibility, and mortgage qualification.
Several federal and provincial programs are available to Ontario first-time buyers. Confirming eligibility early matters because some programs require contributions or RRSP seasoning periods well before your purchase closes. For a full breakdown, see our guide to Ontario home buyer incentives.
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First Home Savings Account (FHSA). Confirm eligibility before opening. You must be a first-time buyer who has not owned a qualifying home in the current or preceding four calendar years. Contribute up to $8,000 per year to a $40,000 lifetime maximum. Contributions are tax-deductible and qualifying withdrawals for a first home are completely tax-free with no repayment required.
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RRSP Home Buyers’ Plan (HBP). The withdrawal limit is $60,000 per person, $120,000 for a couple. Funds must be in your RRSP for at least 90 days before withdrawal and repayment spreads over 15 years beginning two years after the withdrawal year. The same four-year calendar-year lookback applies for eligibility.
Tax rebates and credits
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Ontario Land Transfer Tax rebate. First-time buyers receive up to $4,000 back on provincial LTT. On purchases of $368,333 or less, this eliminates the provincial tax entirely. To qualify, neither you nor your spouse can have ever owned a home anywhere in the world. Details at
Ontario.ca.
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Toronto Municipal Land Transfer Tax rebate. Buying in the City of Toronto means a second land transfer tax applies. First-time buyers can also claim a municipal rebate of up to $4,475. The same lifetime ownership rule applies to both the buyer and their spouse.
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First-Time Home Buyers’ Tax Credit. A federal non-refundable tax credit worth up to $1,500 in actual tax savings on a $10,000 claim. Claim it on your return for the year of purchase. Co-purchasers can split the credit provided the combined claim does not exceed $10,000.
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30-year amortization. As of December 15, 2024, first-time buyers purchasing any property, including resale homes, can extend their amortization to 30 years to reduce monthly payments. The standard maximum remains 25 years for repeat buyers purchasing resale properties. Confirm eligibility with your lender.
A pre-approval is a conditional commitment, not a guarantee. Understanding what it covers and what can void it prevents problems during a live transaction. For a plain-language explanation of Ontario mortgage financing, see our guide to mortgage financing for Ontario buyers.
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Confirm your pre-approval details in writing: amount, rate, rate hold period, and any conditions attached.
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Know your rate hold expiry date. Rate holds typically run 90 to 120 days. A search that extends beyond that window means renewal at a potentially different rate.
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Avoid major financial changes after pre-approval. New debt, a job change, or large unexplained cash movements can affect your qualification before closing.
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Confirm your pre-approval covers the property types you are searching. Lenders apply different rules to condos, rural properties, homes with well and septic systems, and buildings flagged by CMHC for financial or legal issues.
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Confirm your deposit is accessible for next-business-day delivery. In Ontario, the deposit is typically due within 24 hours of offer acceptance and must be in certified funds.
First-time buyers often set search filters that are too narrow for actual inventory in their target market. Defining non-negotiables clearly and separating them from preferences produces a more useful, realistic search. Comparing the GTA and Niagara Region? See our guide to GTA vs Niagara home search tips.
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Define your non-negotiables separately from your preferences. Non-negotiables are items you will not compromise on. Keeping them separate prevents eliminating viable properties over things that do not actually affect your daily life.
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Confirm your target areas and identify at least one backup neighbourhood in case inventory in your primary area is limited at your budget.
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Review listing details carefully before booking a showing. Check for rental units, items on rental contracts such as hot water tanks or HVAC equipment, and any listed exclusions.
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For condo searches: confirm the building’s age, management history, maintenance fee range, and investor-to-owner-occupancy ratio before visiting. A building with more than 70% investor-owned units carries meaningfully higher financing and resale risk than an owner-occupied building.
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Assess each showing beyond the interior. Noise, traffic, lot orientation, and proximity to industrial or commercial uses all affect livability and resale value in ways photos do not show.
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Take notes after each showing while impressions are fresh. First-time buyers who view many properties quickly often struggle to recall the distinctions that mattered.
The offer stage is where preparation pays off or breaks down. Work through this checklist before you find a property you want to offer on so you are ready when the moment comes. Our guide to winning offers in the GTA covers how Ontario offers work, competing bids, and when waiving conditions carries real risk.
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Confirm your maximum purchase price before you start viewing seriously. Decide this number in advance, not under pressure during a negotiation.
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Review comparable sales with your Realtor® before writing any offer. Recent sales in the last 30 to 60 days tell you what the market will support, not what the seller hopes for.
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Confirm your Buyer Representation Agreement is signed before any offer is submitted. Under TRESA Phase 2, effective December 1, 2023, Ontario brokerages must have a signed representation agreement in place before any trading in real estate. Without it, your agent can provide information only, not advice or advocacy on your behalf.
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Determine which conditions are essential. A financing condition and a home inspection condition are standard. A status certificate condition is essential for condo purchases. Waiving conditions without proper preparation carries real financial risk.
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Confirm your pre-approval is still valid and covers the specific property type and purchase price you are offering. Condos in investor-heavy buildings and rural properties can affect lender approval even when you personally qualify.
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Confirm your deposit amount and that the funds are accessible for next-business-day delivery. A stronger deposit signals commitment in a competitive situation.
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Verify included and excluded items before signing. Appliances, light fixtures, window coverings, and rental equipment must all be clearly specified. Assumptions about inclusions cause disputes at closing.
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Confirm your preferred closing date and whether you have flexibility. Aligning with the seller’s timing can strengthen your offer without changing the price.
Offer acceptance starts the clock on your conditions. Missing deadlines during this phase puts your deposit at risk. Our guide to title search in Ontario covers what title search involves and why it matters. Closing day details are in our guide to closing day in the GTA.
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Book your home inspection promptly. Good inspectors book quickly and your condition deadline does not wait for convenience.
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For condo purchases: send the status certificate to your lawyer the moment you receive it. Your lawyer needs three business days to review it. Confirm reserve fund health, active litigation, upcoming special assessments, and the percentage of investor-owned units before waiving the condition.
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Submit all lender documentation without delay. Your lender needs an appraisal, updated income confirmation, and property details. Delays on your end push back financing confirmation and can put your condition window at risk.
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Retain a real estate lawyer before your conditions expire. Your lawyer handles title search, off-title searches, document review, and closing funds. Engaging them early gives time to surface and resolve any title issues before closing day.
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Arrange title insurance through your lawyer. It is standard practice in Ontario and covers risks that a title search and off-title searches alone cannot catch, including survey defects and certain liens that predate your purchase.
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Arrange home insurance and provide the binder to your lender before closing. Most lenders require proof of coverage before advancing closing funds.
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Set up utility accounts in your name for the closing date. Hydro, gas, water, and internet all have lead times. Confirm transfer dates with each provider in advance.
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Schedule your final walkthrough close to closing to confirm the property’s condition and that nothing has changed since your inspection.
Most Ontario closings complete in the late afternoon. Key release often does not happen until 4 or 5 p.m. Build flexibility into move-in day logistics and work through this list on and around possession day.
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Confirm key release timing with your lawyer the day before closing. Do not assume keys are available in the morning. Book movers accordingly.
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Change the locks on possession day. You have no way of knowing how many copies of the previous keys exist.
Safety, admin and first-week tasks
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Update your address for banking, government ID, CRA, Service Ontario, and subscriptions. Canada Post offers a mail forwarding service while updates are in process.
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Set up your property tax account with your municipality if it has not transferred automatically. Some municipalities require new owners to register separately to receive tax bills in their name.
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Test smoke detectors and carbon monoxide detectors and replace batteries. Ontario law requires working detectors on every level of the home and outside sleeping areas.
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Locate and label all shutoff valves, the electrical panel, and the main water shutoff. Knowing where these are before an emergency saves significant stress and potential damage.
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Start a first-90-days maintenance list. Furnace filters, eavestrough condition, water heater age, and appliance servicing schedules are all worth reviewing early in ownership.
Questions First-Time Buyers Ask Before Using This Checklist
What is a Buyer Representation Agreement in Ontario and when do I sign it?
A Buyer Representation Agreement is a written contract formalising the agency relationship between you and your brokerage. Under TRESA Phase 2, effective December 1, 2023, Ontario brokerages must have a signed agreement in place before any trading in real estate. You must sign it before your first showing. Buyers who do not sign are self-represented and receive information only, not advice or advocacy on their behalf.
How much do first-time buyers need for closing costs in Ontario?
Budget 1.5% to 4% of the purchase price on top of your down payment. Closing costs include legal fees, title insurance, land transfer tax net of any first-time buyer rebate, home inspection, and adjustments. If your down payment is under 20%, Ontario PST on your CMHC mortgage insurance premium must also be paid in cash at closing and cannot be rolled into the mortgage.
Do first-time buyers in Ontario get a land transfer tax rebate?
Yes. Ontario offers a rebate of up to $4,000 for eligible first-time buyers. Toronto purchases may also qualify for a municipal rebate of up to $4,475. To qualify, neither you nor your spouse or common-law partner can have ever owned a home anywhere in the world. There is no re-entry after previous ownership for these rebates.
What is the minimum down payment for a first-time buyer in Ontario?
The minimum is 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1,499,999. A full 20% down payment is required on any home priced at $1.5 million or more. CMHC mortgage default insurance is mandatory when your down payment is under 20% on a purchase under $1.5 million.
Should first-time buyers in Ontario open an FHSA before they start searching?
Yes, as early as possible. The First Home Savings Account allows eligible first-time buyers to contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions reduce your taxable income and qualifying withdrawals toward a first home are completely tax-free with no repayment required. Contribution room accumulates from the year you open the account, not the year you buy.
What conditions should a first-time buyer always include in an Ontario offer?
A financing condition gives you a defined window to confirm final mortgage approval on the specific property. A home inspection condition gives you the information you need before you are legally committed. For condo purchases, a status certificate condition is also essential. Never waive a financing condition without explicit confirmation from your mortgage broker that the specific property qualifies.
KF
Keith & Françoise Real Estate Team
eXp Realty Brokerage · GTA & Niagara Region
Françoise Pollard, Realtor®, and Keith Goldson, Broker, work with first-time buyers across the Greater Toronto Area and Niagara Region with more than 30 years of combined experience. We help buyers confirm their numbers, understand offer terms, and move through the process without surprises. Reach out at francoisepollard.com.
Ready to work through this with someone who knows the market?
We work with first-time buyers across the GTA and Niagara Region and keep the process practical and clear. Reach out before you start searching.
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Program rules, eligibility requirements, mortgage guidelines, and closing procedures can change. This checklist reflects Ontario buying requirements as of April 2026. Confirm current eligibility requirements, incentive limits, and closing obligations with a qualified mortgage professional and real estate lawyer before making decisions.
