Buying your first home in Ontario is one of the largest financial decisions you'll make. It's also one of the most process-heavy. Miss a step and you could lose a deposit, miss a rebate, or face unexpected costs at closing. This checklist is designed to walk you through the entire process clearly.
Step 1: Know Your Numbers Before You Shop
Before you fall in love with a home, you need to know what you can actually afford.
- Get mortgage pre-approval — not just pre-qualification. Pre-approval means a lender has reviewed your income, credit, and debt and given you a conditional commitment. This tells you your real budget and strengthens your offer.
- Calculate your true monthly cost — mortgage payment + property taxes + utilities + condo fees (if applicable) + maintenance reserve.
- Check your credit score — anything under 680 will affect your rate. Under 600 may limit your lender options significantly.
Step 2: Understand Ontario's Costs Beyond the Purchase Price
First-time buyers are often surprised by closing costs. Budget an additional 1.5%–4% of the purchase price on top of your down payment.
| Cost | Estimate |
|---|---|
| Land Transfer Tax (Provincial) | ~1.5% of purchase price |
| Toronto Municipal LTT (Toronto only) | ~1.5% additional |
| Legal fees | $1,500–$3,000 |
| Home inspection | $450–$700 |
| Title insurance | $300–$500 |
| Moving costs | $1,500–$5,000 |
First-Time Buyer Rebates You Shouldn't Miss
- Ontario Land Transfer Tax Rebate — up to $4,000 back on provincial LTT
- Toronto Municipal LTT Rebate — up to $4,475 additional if buying in Toronto
- First Home Savings Account (FHSA) — contribute up to $8,000/year, tax-free, toward a first home
- Home Buyers' Plan (HBP) — withdraw up to $60,000 from your RRSP tax-free for a first purchase
Step 3: Find the Right Neighbourhood First, Then the Home
Most first-time buyers fall into the trap of shopping by features (granite counters, finished basement) before they've locked down the neighbourhood. The neighbourhood choice affects resale value, commute, school quality, and quality of life far more than finishes you can upgrade later.
Key questions to ask about any neighbourhood:
- What's the average time on market? (Low DOM = competitive, high = negotiate room)
- What's the price trend over 3 years?
- What's within walking distance? (Transit, groceries, schools)
- Are there any planned developments nearby?
Step 4: Work With an Agent Who Represents You
In Ontario, you have the right to buyer representation at no direct cost to you — the seller pays both agents' commissions. Make sure your agent is exclusively representing your interests, not the seller's.
What a good buyer's agent does:
- Sends you relevant listings including off-market opportunities
- Advises on offer strategy and price
- Coordinates home inspection, lawyers, and lenders
- Negotiates on your behalf
Step 5: Making the Offer
Once you've found the right home, your agent will prepare an Agreement of Purchase and Sale. Key terms to understand:
- Deposit — typically 5% of purchase price, due within 24 hours of acceptance
- Conditions — financing condition (5 business days), home inspection condition (recommended), status certificate condition (condos only)
- Closing date — typically 30–90 days from acceptance
In a competitive market, some buyers waive conditions to win. This is a risk you should discuss openly with your agent before doing.
Step 6: Due Diligence Period
If you have conditions, use them properly.
- Book your home inspection immediately — good inspectors book up fast
- Send the accepted offer to your mortgage broker same day — the financing clock starts ticking
- For condos: review the status certificate with a lawyer. It tells you about the condo corporation's finances and any pending special assessments.
Step 7: Preparing for Closing Day
About 10 days before closing:
- Meet with your real estate lawyer to sign documents and pay closing costs
- Confirm utility transfers (hydro, gas, water)
- Do a final walkthrough of the property — confirm condition matches what you agreed to purchase
On closing day, your lawyer registers the transfer of title and you receive the keys.
Frequently Asked Questions
How much do I need for a down payment in Ontario? The minimum is 5% for homes under $500K, 10% on the portion between $500K–$999K, and 20% on homes $1M and above. Under 20% requires mortgage default insurance (CMHC).
What is the First Home Savings Account (FHSA)? The FHSA is a registered account introduced in 2023 that lets first-time buyers contribute up to $8,000/year (max $40,000 lifetime) tax-deductibly, with tax-free withdrawals for a home purchase.
Do I need a home inspection in Ontario? It's not legally required but strongly recommended. A home inspection typically costs $450–$700 and can reveal issues that affect your offer price or decision.
How long does it take to close on a home in Ontario? Typically 30–90 days from acceptance of the offer. In some cases (new builds), it can be much longer.
Can I buy a home in Ontario as a permanent resident? Yes. Permanent residents have the same buying rights as Canadian citizens. Some foreign buyer restrictions apply to non-residents and non-Canadians under the Prohibition on the Purchase of Residential Property by Non-Canadians Act.
Ready to Buy Your First Home in the GTA?
Arsh Chauhan is a RE/MAX real estate agent serving first-time buyers across Kleinburg, Vaughan, Brampton, Mississauga, and the broader GTA. From pre-approval to closing day, Arsh walks you through every step — no jargon, no pressure, just straight answers.
Contact Arsh to start your homebuying journey, or use the free home evaluation tool to understand what's happening in your target neighbourhood right now.