12 Steps to Buying a Home in Ontario
A Practical 2026 Guide for GTA Home Buyers
Buying a home is exciting—but there are a lot of moving pieces between deciding you’re ready and actually getting the keys.
How much can you comfortably afford? How much do you need for a down payment? Which government programs could save you money? What conditions should go into your offer? And what exactly happens on closing day?
This 12-step guide walks you through the Ontario home-buying process from beginning to end, with special attention to the GTA and government programs available to buyers in 2026.
Before We Begin: 2026 Incentives Buyers Should Know About
If you’re a first-time buyer—or considering a newly built home—there are several programs worth understanding before deciding how much cash you need.
First Home Savings Account — FHSA
The FHSA is one of the most useful savings tools currently available to first-time home buyers.
You can contribute up to $8,000 per year, up to a $40,000 lifetime maximum. Contributions are generally tax-deductible, similar to an RRSP, while qualifying withdrawals used toward your first home are tax-free.
Unused participation room can also be carried forward, subject to program limits.
Why it matters: You can potentially receive a tax deduction when you contribute while generally paying no tax when making a qualifying withdrawal toward your first home.
RRSP Home Buyers’ Plan — HBP
Eligible buyers can currently withdraw up to $60,000 from their RRSP through the Home Buyers’ Plan. A couple who both qualify could potentially access up to $120,000 combined.
The FHSA and HBP can also be used toward the same qualifying home if you meet the conditions of both programs.
For buyers making their first HBP withdrawal between January 1, 2026 and December 31, 2028, temporary relief means repayment does not begin until the fifth year following the withdrawal year.
For example, someone making a qualifying withdrawal in 2026 would begin repayments in 2031.
Ontario First-Time Home Buyer Land Transfer Tax Refund
Eligible first-time buyers can receive up to $4,000 back on Ontario Land Transfer Tax.
Ontario’s definition is important. Generally, you must never have owned a home or an interest in a home anywhere in the world. Rules involving a spouse can also affect eligibility.
Buying in Toronto? There May Be Another Rebate
Toronto charges its own Municipal Land Transfer Tax in addition to Ontario Land Transfer Tax.
Eligible first-time buyers purchasing within the City of Toronto can currently receive an additional rebate of up to $4,475.
That means a qualifying Toronto first-time buyer could potentially receive up to $8,475 in combined provincial and municipal land-transfer-tax relief.
Federal Home Buyers’ Amount
Eligible buyers can claim up to $10,000 as the federal Home Buyers’ Amount on their income-tax return.
This is a non-refundable tax credit rather than a $10,000 cash rebate. Based on the 2026 lowest federal personal income-tax rate of 14%, the credit can represent up to approximately $1,400 in federal tax savings, depending on your individual tax situation.
Buying a Newly Built Home? Pay Attention to the 2026 HST Rebates
Eligible first-time buyers of qualifying new or substantially renovated homes may qualify for the federal First-Time Home Buyers’ GST/HST Rebate.
The program can provide full relief of the 5% federal portion for qualifying homes up to $1 million, with reduced relief between $1 million and $1.5 million. The maximum federal rebate is $50,000.
Ontario has also introduced a temporary Enhanced New Housing Rebate. For qualifying new or substantially renovated principal residences, it can provide relief of up to $80,000 from the 8% provincial portion of HST.
For a home purchased from a builder, the enhanced program generally applies to qualifying agreements entered into from April 1, 2026 through March 31, 2027, subject to additional eligibility, construction and occupancy requirements.
Ontario has also introduced the Ontario New Home Affordability Payment (ONHAP), which can provide up to $50,000 and is coordinated with applicable federal GST/HST rebates.
Depending on the buyer, property, agreement date and program eligibility, the combined tax relief on a qualifying newly built home can therefore be substantial.
Important: “First-Time Buyer” Does Not Mean the Same Thing Everywhere
Different government programs use different eligibility tests. Qualifying for one first-time buyer program does not automatically mean you qualify for another.
Before relying on a rebate or withdrawal as part of your purchase budget, confirm your eligibility with the applicable government authority and your lawyer, accountant or mortgage professional.
Step 1: Make Sure You’re Ready to Buy
Before scrolling through listings or booking showings, answer a more important question:
Homeownership can provide stability, control over your living space and an opportunity to build long-term equity—but it also comes with responsibilities that renting doesn’t.
Your mortgage is only part of the equation.
You may also be responsible for property taxes, utilities, insurance, condo fees, maintenance, repairs and unexpected expenses.
Ask Yourself:
- Is my income reasonably stable?
- Do I have money saved beyond my down payment?
- Are my other debts manageable?
- Am I prepared to stay in the property long enough for buying to make financial sense?
- Could I still handle my expenses if something unexpected happened?
- Does buying fit my lifestyle and future plans?
Don’t make the mistake of trying to perfectly “time” the market.
Real estate moves through cycles. Prices, inventory, interest rates and negotiating power can all change.
A better approach is to buy when your finances, lifestyle and time horizon make sense —and then purchase a property you can comfortably afford.
Step 2: Know What You Can Actually Afford
This is where a successful home search really begins.
The question isn’t simply:
The better question is:
Those numbers aren’t always the same.
Start With the Down Payment
Current Canadian minimum down-payment rules are:
| Purchase Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5% |
| $500,000 to under $1.5 million | 5% of the first $500,000 + 10% of the remaining purchase price |
| $1.5 million or more | 20% |
If you put less than 20% down, mortgage default insurance will generally be required.
Example: $900,000 Purchase
5% × $500,000 = $25,000
10% × $400,000 = $40,000
Minimum down payment = $65,000
But don’t empty your bank account just to reach the minimum.
You still need money for closing.
Remember the Other Costs
Your upfront budget should consider:
Typical costs can include:
- Ontario Land Transfer Tax
- Toronto Municipal Land Transfer Tax, where applicable
- Lawyer’s fees and disbursements
- Title insurance
- Home inspection
- Appraisal, if required
- Mortgage insurance tax, where applicable
- Adjustments for property taxes or utilities
- Moving expenses
- New furniture or appliances
- Immediate maintenance or repairs
Keeping an emergency reserve after closing is usually much healthier than spending every available dollar on the purchase.
Understand Mortgage Qualification
Mortgage professionals look at your income compared with your housing expenses and debts.
Two common calculations are:
GDS — Gross Debt Service: housing-related costs compared with gross household income.
TDS — Total Debt Service: housing costs plus your other debt obligations compared with gross household income.
For CMHC-insured mortgages, maximum thresholds are currently 39% GDS and 44% TDS, although individual lenders and borrower circumstances may result in different requirements.
You’ll also generally have to qualify using the mortgage stress test, based on the greater of:
Get Pre-Approved Early
Before seriously shopping, speak with a mortgage broker or lender.
A good pre-approval should help clarify:
- Your estimated maximum purchase price
- Available mortgage rates
- Monthly payment estimates
- Down-payment requirements
- Documentation you will need
- Potential financing challenges
Remember: A pre-approval is not a final mortgage approval. The lender still needs to approve the actual property you purchase.
Step 3: Decide What You Actually Want
Now that you understand your numbers, it’s time to build your search.
Must-Haves
Things you genuinely need, such as:
- Maximum commute
- Minimum number of bedrooms
- Parking
- Transit access
- School requirements
- Accessibility
- Maximum monthly condo fee
Nice-to-Haves
Things you’d love—but could compromise on.
- A second parking space
- South-facing exposure
- Finished basement
- Large balcony
- Walk-in closet
- Home office
Deal Breakers
Know the things you simply won’t accept.
Identifying these upfront makes your search dramatically easier.
Choosing a Location
In the GTA, your budget can look very different depending on where you buy.
Downtown Toronto may offer transit, walkability and shorter commutes, while Mississauga, Vaughan, Oakville, Burlington, Durham Region or other suburban markets may offer additional space at a similar price.
Instead of choosing a city based only on reputation, compare:
Visit neighbourhoods at different times of day. Test the commute. Walk to the GO station. Visit the local grocery stores, parks and restaurants.
You’re not just buying four walls.
You’re buying the lifestyle around them.
Choosing the Property Type
Detached Home
No shared walls and generally more land and privacy, but typically a higher purchase price and more maintenance responsibility.
Semi-Detached
Shares one common wall and can provide many of the benefits of a detached home at a lower entry price.
Freehold Townhome
Usually attached on one or both sides but typically without traditional monthly condo fees.
Some freeholds may still have POTL or common-element fees, so never assume “freehold” automatically means zero monthly fees.
Condo Townhome
You own the unit while a condominium corporation maintains specified common elements. Monthly condo fees apply.
Condo Apartment
Often provides one of the more accessible entry points into GTA homeownership.
Amenities and common elements are maintained through the condominium corporation and funded through monthly maintenance fees.
With any condominium purchase, your REALTOR® and lawyer should carefully review the status certificate, financial statements, reserve fund information, rules, insurance and any known legal or financial issues.
New Construction vs. Resale
Resale
You can physically inspect the property, research comparable sales and usually have a clearer understanding of the surrounding neighbourhood.
Older properties, however, may require repairs or upgrades.
New Construction
You may benefit from modern finishes, warranties, energy efficiency and customization—but there can also be occupancy fees, development-related charges, construction delays and more complicated agreements.
Have a lawyer experienced in new construction review the agreement and understand exactly what is included in the price.
With the significant new-home tax incentives available in 2026, the financial comparison between resale and new construction deserves a fresh look as well.
Step 4: Choose the Right REALTOR®
Buying a home isn’t simply about gaining access to listings.
A good buyer representative should help you make better decisions.
Your REALTOR® should understand your budget, the areas you’re considering, recent comparable sales, property risks, negotiation strategy and the documents you’re signing.
They should also be willing to tell you when a property isn’t a good purchase.
Representation in Ontario
Ontario’s real estate representation rules operate under TRESA.
Before receiving services or assistance, buyers and sellers are provided with the RECO Information Guide, which explains representation, your rights and your options.
Brokerage Representation
The brokerage represents the client.
Designated Representation
A specific agent or agents are designated to represent the client.
Multiple Representation
This can arise when the same brokerage or designated representative represents clients with competing interests in the same transaction.
Multiple representation requires disclosure and written consent, and it can reduce the advice and advocacy the brokerage or representative is permitted to provide.
Representation agreements should also clearly explain the compensation you’re agreeing to pay and what happens if the seller covers some or all of your brokerage fees.
Interview Your Agent
Consider asking:
- Which neighbourhoods do you regularly work in?
- What types of properties do you specialize in?
- How do you analyze a property’s value?
- What happens when we’re competing against another buyer?
- How will you identify potential problems with a condo or house?
- How frequently will we communicate?
- What exactly am I agreeing to in the buyer representation agreement?
Choose someone you trust enough to call when the decision isn’t obvious.
That’s when a REALTOR® provides the most value.
Step 5: Start the Home Search
Now the fun begins.
Your REALTOR® can set up an MLS search based on your criteria so that you’re notified when relevant properties come onto the market.
You can also explore publicly advertised listings through REALTOR.ca and other real estate platforms.
But don’t evaluate homes based only on photos.
For Every Serious Property, Look at the Bigger Picture
- Recent comparable sales
- Days on market
- Listing history
- Property taxes
- Condo fees
- Parking and locker ownership
- Age of major mechanical systems
- Renovations and permits
- Neighbourhood development
- Transit
- Schools
- Noise
- Future construction
- Resale potential
When viewing several homes, they start blending together surprisingly quickly.
Take notes.
That question can save you from an emotional purchase.
Step 6: If You Already Own a Home, Plan the Sale Carefully
Moving from one property to another introduces another big decision:
There isn’t one answer that works for everyone.
Selling First
This gives you certainty about how much equity you’ll have available and removes the risk of carrying two properties.
The downside is that you may need temporary housing if you don’t find your next home quickly.
Buying First
This gives you more certainty about where you’re going next.
But if your existing home takes longer to sell than expected, you could temporarily be responsible for two properties.
Your REALTOR®, mortgage professional and lawyer can help you evaluate strategies such as:
- Extended closing dates
- Bridge financing
- Conditions on the sale of your existing property
- Matching closing dates
- Temporary accommodations
The right strategy depends heavily on current inventory and negotiating conditions in your specific neighbourhood—not simply whether someone describes the entire GTA as a “buyer’s market” or “seller’s market.”
Step 7: Get a Real Estate Lawyer Involved Early
Your lawyer plays a critical role in getting you from an accepted offer to legal ownership.
Don’t wait until three days before closing to find one.
Ideally, have a lawyer selected before you start making serious offers—especially if you’re considering a condominium, unusual property or new construction.
Your lawyer can assist with:
- Reviewing the Agreement of Purchase and Sale
- Reviewing a condominium status certificate
- Reviewing new-construction agreements
- Conducting title searches
- Identifying title issues
- Reviewing mortgage instructions
- Arranging title insurance
- Calculating Land Transfer Tax
- Applying eligible rebates
- Preparing closing documents
- Handling funds
- Registering the property in your name
Your REALTOR® deals primarily with the real estate transaction, market analysis and negotiation.
Your lawyer protects your legal interests and handles the legal transfer of ownership.
Both are important.
Step 8: Make the Offer
This is where strategy becomes important.
Your REALTOR® will prepare an Agreement of Purchase and Sale setting out the price and terms under which you’re prepared to buy the property.
Purchase Price
What you’re offering to pay.
Deposit
Money delivered in accordance with the agreement and held in trust as part of the purchase price.
Deposit expectations vary considerably by property and market, so discuss both the amount and required timing before submitting your offer.
Closing Date
The date legal ownership transfers to you.
Inclusions and Exclusions
Appliances, light fixtures, window coverings, rental equipment and other items should be clearly identified.
Never assume something is included simply because you saw it during the showing.
Conditions
Depending on the property and situation, an offer might include conditions involving:
- Financing
- Home inspection
- Condominium status certificate review
- Sale of the buyer’s current home
- Lawyer review
- Insurance
- Other property-specific due diligence
Conditions provide protection—but they can also affect how attractive your offer is to a seller.
The objective isn’t to include every possible condition or waive everything.
It’s to understand the risk you’re accepting.
Firm Offers
A firm offer has no conditions.
If accepted, you are generally legally committed to completing the purchase.
Be careful: Never remove an important condition simply because you’re emotionally attached to a property without first understanding what could happen if financing, insurance or another issue later falls through.
Step 9: Finalize Your Mortgage and Understand the Numbers
Once you have an accepted offer, immediately send the agreement to your mortgage professional.
Your lender still needs to approve you and the property.
They may request:
- Employment confirmation
- Recent pay statements
- Notices of Assessment
- T4s
- Bank statements
- Proof of down payment
- Evidence showing the source of deposited funds
- Investment statements
- Information on outstanding debts
- The Agreement of Purchase and Sale
- MLS listing
- Property appraisal
Self-employed applicants may require additional documentation.
Mortgage Term vs. Amortization
Mortgage term: how long your current mortgage agreement and interest-rate arrangement lasts.
Amortization: how long it would take to repay the mortgage in full based on the payment schedule.
A five-year mortgage term does not mean your mortgage will be paid off in five years.
A Major Change for First-Time Buyers
Since December 15, 2024, insured 30-year amortizations have been available to qualifying first-time home buyers and buyers of new construction.
The federal government also increased the insured-mortgage purchase-price cap from $1 million to $1.5 million.
A longer amortization lowers the required monthly payment, which may improve cash flow and qualification—but you’ll generally pay more total interest if you take the full period to repay the mortgage.
So don’t look only at:
Also ask:
Fixed vs. Variable
A fixed-rate mortgage generally offers predictable payments or interest costs during the term.
Variable-rate products fluctuate with the lender’s prime rate.
Neither is automatically better.
Your decision should consider:
- Risk tolerance
- Cash-flow flexibility
- Plans to sell
- Possibility of refinancing
- Prepayment privileges
- Mortgage penalties
- Portability
- Current interest-rate environment
The lowest advertised rate isn’t necessarily the best mortgage.
Step 10: Inspect the Property
You’ve probably spent hours comparing mortgage rates and negotiating thousands of dollars on price.
Don’t stop doing your homework now.
A home inspection is a visual examination of the property’s major accessible systems and components, commonly including:
- Foundation
- Roof
- Electrical
- Plumbing
- Heating and cooling
- Attic and insulation
- Windows and doors
- Walls, ceilings and floors
- Visible drainage or moisture concerns
A home inspection isn’t a guarantee and doesn’t uncover everything hidden behind finished walls.
But it can substantially improve your understanding of what you’re buying.
Choose Your Inspector Carefully
Ontario-specific note: Ontario currently does not have mandatory qualification requirements for home inspectors, and RECO does not regulate home inspectors.
Ask about:
- Training
- Experience
- Professional accreditation
- Insurance
- References
- Written contracts
- Sample reports
- Experience with the specific property type you’re buying
Whenever possible, attend the inspection.
It’s one of the best opportunities you’ll have to learn how your future home actually works.
Step 11: Prepare for Closing
Your offer has been accepted, the conditions have been dealt with and you’re approaching the finish line.
Now it’s time to make sure nothing gets missed.
Before Closing
Work through the following with your REALTOR®, mortgage professional and lawyer:
- Finalize mortgage approval
- Provide all lender documentation
- Arrange home insurance
- Complete any agreed inspection or due diligence
- Review the status certificate if purchasing a condo
- Arrange the remaining down payment
- Budget for Land Transfer Tax and closing costs
- Transfer utilities
- Book movers
- Update your address
- Arrange internet and other services
- Complete your final buyer visit
- Sign documents with your lawyer
Your lawyer will provide the final amount you need to bring into the transaction.
This amount may include your remaining down payment, Land Transfer Tax, legal costs and adjustments.
What Are Adjustments?
The seller may have already paid certain expenses beyond the closing date—for example, property taxes.
Your lawyer calculates your share and adjusts the final closing amount accordingly.
Closing Day
On closing day, your lawyer coordinates the transfer of funds and registration of ownership.
Once the transaction has legally closed, your lawyer releases the keys according to the arrangements made for the transaction.
Practical tip: Don’t book movers for 8:00 a.m. expecting to already have your keys. Closings commonly aren’t completed until later in the day, so give yourself some breathing room.
Step 12: Move In—and Start Homeownership on the Right Foot
Congratulations.
After months of saving, planning, searching, negotiating and signing paperwork, the home is finally yours.
Now resist the temptation to immediately renovate everything.
Live in the property first.
Learn how the space works.
Understand your new monthly budget.
Figure out which projects actually matter.
Build a Home Emergency Fund
Homeownership comes with irregular expenses.
A furnace doesn’t care that you just bought new furniture.
Neither does a leaking roof.
Set aside money each month for maintenance and unexpected repairs.
Keep Your Important Documents
Maintain copies of:
- Agreement of Purchase and Sale
- Mortgage documents
- Lawyer’s closing documents
- Title insurance
- Home inspection
- Status certificate
- Insurance
- Renovation permits and receipts
- Appliance warranties
- Property-tax records
If you received first-time-buyer incentives, keep the documentation supporting your eligibility.
The biggest mistake isn’t necessarily overpaying by $5,000. A great home should fit both your lifestyle and your numbers. You still want room in your budget to travel, invest, enjoy your hobbies, handle emergencies and live your life. That’s what sustainable homeownership looks like. The strongest transactions usually involve several professionals working together. No one professional replaces all the others. A good home-buying team helps you make informed decisions at every stage. You don’t need to know exactly which home you’re buying before having a conversation. In fact, some of the most important decisions happen before the first showing—understanding your budget, choosing the right neighbourhoods and developing a purchase strategy. If you’re thinking about buying your first home, moving up to your next property, or comparing condos and townhomes across the GTA, I’d be happy to help you put together a clear plan. The goal isn’t simply to buy a home. It’s to buy the right home, at the right numbers, with a strategy you understand and feel comfortable with.
The Biggest Home-Buying Mistake to Avoid
Your Ontario Home-Buying Team
Professional
How They Help
REALTOR®
Property search, market analysis, negotiation and transaction guidance
Mortgage Professional
Financing strategy, qualification and mortgage approval
Real Estate Lawyer
Legal review, title, land-transfer-tax matters and closing
Home Inspector
Property-condition assessment and inspection
Insurance Professional
Homeowner and property-insurance coverage
Accountant or Tax Professional
Tax planning and confirmation of incentive eligibility when appropriate
Ready to Start Your Home Search?