How to Buy a Home in Ontario: Step-by-Step (2026)
Quick answer
To buy a home in Ontario: (1) set your budget and get mortgage pre-approval, (2) save your down payment and budget 1.5–4% for closing costs, (3) search listings and tour homes, (4) make an offer — usually with financing and inspection conditions, (5) get the home appraised and finalise your mortgage, and (6) close with a real estate lawyer. Budget for land transfer tax, which is higher in the City of Toronto.
1. Budget and get pre-approved
Start with a mortgage pre-approval so you know your price range and lock a rate hold. Lenders assess your income, debts and down payment; in Ontario the minimum down payment is 5% on the first $500,000 and 10% on the portion above, with 20% needed to avoid CMHC insurance on homes under $1M.
2. Plan for closing costs and land transfer tax
Beyond the price, budget roughly 1.5–4% for closing costs: land transfer tax, lawyer fees, title insurance, inspection and adjustments. Buyers in the City of Toronto pay a municipal land transfer tax on top of the provincial one, though first-time buyers can qualify for rebates.
3. Search and tour homes
Use live MLS listings, sold data and neighbourhood insights to shortlist. Tools that show recent sold prices and days-on-market help you judge whether a home is fairly priced before you offer.
4. Make an offer with the right conditions
A typical Ontario offer includes conditions for financing and a home inspection, and for condos, a status-certificate review. Conditions protect you; in competitive situations buyers sometimes shorten or waive them — understand the risk before you do.
5. Appraisal, mortgage and final approval
Once your offer is accepted, your lender may order an appraisal and finalise your mortgage. Satisfy your conditions in writing within the agreed timeframe to firm up the deal.
6. Close with a lawyer
A real estate lawyer handles title search, registration and the transfer of funds. On closing day, title transfers and you get the keys. Your deposit is credited toward the purchase.
Key takeaways
- Get pre-approved before you shop.
- Budget 1.5–4% for closing costs plus land transfer tax (extra in Toronto).
- Use sold data to judge fair pricing.
- Financing and inspection conditions protect you.
- A lawyer closes the deal and transfers title.
Frequently asked
How much do I need to buy a home in Ontario?+
You need a down payment (minimum 5% on the first $500k, 10% above, 20% to avoid CMHC insurance under $1M) plus 1.5–4% for closing costs including land transfer tax.
How much is land transfer tax in Ontario?+
Ontario charges a provincial land transfer tax on a sliding scale; buyers in the City of Toronto pay an additional municipal land transfer tax. First-time buyers may qualify for rebates on both.
What conditions should I include in an offer?+
Commonly a financing condition and a home-inspection condition, plus a status-certificate review for condos. They give you time to confirm everything before the deal becomes firm.