Buying · Ontario
How to buy a house in Ontario — the complete 2026 step-by-step.
From credit prep to closing day, in the order it actually happens. Written for first-time buyers in the GTA and beyond.
Step 1: Get your finances in order
Before you tour a single home:
- Check your credit score. Aim for 680+ for the best rates; 600 is the practical minimum for insured mortgages.
- Understand the stress test. You must qualify at your contract rate + 2%, or 5.25%, whichever is higher.
- Know your debt ratios. Lenders cap GDS at 39% and TDS at 44% of gross income.
- Pick your amortization. First-time buyers and new-construction buyers can access 30-year amortizations on insured mortgages.
Step 2: Down payment & program stacking
5% on the first $500K, 10% on the portion to $1.499M, 20% at $1.5M+. Stack FHSA + RRSP HBP + family gifts. Full breakdown: Minimum Down Payment Ontario →
Step 3: Get pre-approved (not pre-qualified)
Pre-approval = real underwriting, real rate hold (90–120 days), real maximum purchase price. Pre-qualification = a guess. You need the first one.
Step 4: Hire your agent
Buyer representation in Ontario is almost always paid by the seller. There's no cost to having a licensed agent represent you exclusively — and an unrepresented buyer talking directly to the listing agent has no fiduciary advocate.
Step 5: Search smart
- Narrow neighbourhoods before listings — 2–3 max.
- Tour 8–15 homes maximum. Beyond that, you're not searching, you're avoiding the decision.
- Learn the pocket-level gap between list price and likely sale price.
Step 6: Make a clean offer
Components: price, deposit (typically 5%), conditions (financing, inspection, status certificate for condos), inclusions/exclusions, closing date, irrevocable time. Offer presentation strategy varies — bully offers, blind bidding, offer dates — and is where experienced representation matters most.
Step 7: Close the deal
Lawyer files, final mortgage instructions, land transfer tax payment, title insurance, key handover on closing day. Total closing cost budget: 2.5–4% of purchase price. Full breakdown: Closing Costs Ontario →
Companion guides
First-time buyer GTA guide →
Minimum down payment Ontario →
Closing costs Ontario →
Walking through this for the first time? Mohammed will explain each step at your pace.
647.673.0810Buying FAQs
Common questions about buying in Ontario.
What's the very first step?
Not house-hunting — fixing your finances. Check your credit score, understand the stress test (you qualify at contract rate + 2% or 5.25%, whichever is higher), and know your debt ratios (GDS ≤ 39%, TDS ≤ 44%). Then get pre-approved.
How long does buying a house in Ontario take?
Typically 60–120 days end-to-end: 1–2 weeks for pre-approval, 2–8 weeks of active searching, and a 30–60 day closing period after the accepted offer.
What conditions should I include in my offer?
For resale: financing (5 business days), home inspection (5 business days), and — for condos — status certificate review (10 business days). New construction has its own statutory cooling-off period.
Do I need a real estate lawyer?
Yes, by law. The lawyer handles title search, mortgage instructions, land transfer tax, title insurance, and the actual transfer of funds and keys on closing day. Budget $1,800–$2,500 including disbursements.
How big is the deposit?
Typically 5% of the purchase price, delivered by certified cheque or wire within 24 hours of an accepted offer. The deposit becomes part of your down payment at closing.