Real estate, calculated.
Buying a home in Ontario
Buying a home in Ontario follows a fairly consistent path whether you are in Toronto, Ottawa, or a smaller town. This guide lays out the steps in order so you know what is coming, what it costs, and who does what.
It is written to inform, not to advise. For anything specific to your finances or a particular property, the right licensed professional is named at each step.
1. Sort out financing first
Before you shop, talk to a mortgage professional about how much you can borrow and get a pre-approval. A pre-approval is not a guarantee, but it tells you a realistic price range and shows sellers you are serious.
If your down payment is less than 20% of the price, your mortgage will usually require default insurance (commonly through CMHC or a private insurer). That premium is added to your mortgage.
2. Budget for closing costs, not just the price
The purchase price is only part of what you pay. Ontario charges Land Transfer Tax on the value of the property, and buyers in the City of Toronto pay a second, municipal Land Transfer Tax on top of the provincial one.
Other typical closing costs include your real estate lawyer's fees and disbursements, a home inspection, title insurance, and adjustments for prepaid property taxes or utilities. First-time buyers may qualify for Land Transfer Tax refunds — check the official pages for current amounts and eligibility.
3. Work with a registered real estate professional
In Ontario, real estate salespeople and brokers are registered with and regulated by the Real Estate Council of Ontario (RECO). A registered representative can show you homes, explain comparable sales, and prepare and present your offer.
Alex Goodman is a Sales Representative with RE/MAX. AskEmma is his search and research tool — Emma explains what homes are priced above or below comparable sales and why, but she is software, not a licensed professional, and she does not give legal or financial advice.
4. Search, view, and make an offer
Once you know your budget, you can search, tour homes, and — when you find the right one — make a written offer (an Agreement of Purchase and Sale).
Offers are either firm (no conditions) or conditional. Common conditions give you time to arrange financing, complete a home inspection, or, for a condo, review the status certificate. A firm offer is binding once accepted, so conditions are how you protect yourself while you confirm the details.
5. From accepted offer to closing
After an offer is accepted, you satisfy any conditions, then the deal becomes firm. Your real estate lawyer handles the title search, closing documents, and the transfer of funds and ownership on closing day.
Keep your financing and paperwork current through to closing — lenders reconfirm details before releasing funds.
Common questions
Do I pay Land Transfer Tax twice in Toronto?
Buyers of property inside the City of Toronto pay the provincial Ontario Land Transfer Tax and a separate municipal Land Transfer Tax. Buyers elsewhere in Ontario pay only the provincial tax. See the official ontario.ca and toronto.ca pages for current rates and any first-time-buyer rebates.
What is the difference between a firm and a conditional offer?
A firm offer has no conditions and is binding once accepted. A conditional offer includes conditions — such as financing, inspection, or condo status-certificate review — that must be met within a set time before the deal becomes firm.
Does AskEmma give financial or legal advice?
No. AskEmma is a research tool that explains listings and how they compare to recent sales. Legal, tax, mortgage, and appraisal questions are for the appropriate licensed professional.
Do the next bit with AskEmma
Ask Emma to find real listings and explain how each compares to recent sales, or talk to Alex when you want a professional opinion.
Official sources
This page is general education, not legal, tax, financial, mortgage or appraisal advice. Confirm anything specific to your situation with the right licensed professional — a real estate lawyer, a mortgage professional, a home inspector, and a registered real estate salesperson or broker.