Buying a Home in Ontario: What You Need to Know
Buying a house is likely the largest financial decision you'll ever make. In Ontario, the process involves multiple steps, significant costs beyond the purchase price, and important legal considerations. Whether you're a first-time buyer or an experienced homeowner, understanding the Ontario-specific requirements and opportunities can save you time, money, and stress.
This guide walks you through the complete home buying process in Ontario, from assessing your financial readiness to picking up the keys on closing day. We cover everything including down payment requirements, land transfer tax, home inspection, closing costs, and first-time buyer incentives.
2-6
Months (Avg. Timeline)
5%
Min. Down Payment
1.5-4%
Closing Costs
$4K
LTT Rebate (First-Time)
10 Steps to Buying a House in Ontario
Assess Your Financial Readiness
Before starting your home search, take a thorough look at your finances. Review your credit score (aim for 680+), calculate your total savings for a down payment and closing costs, assess your monthly budget for mortgage payments, property taxes, insurance, and maintenance. Use our mortgage calculator to estimate your affordability.
Get Mortgage Pre-Approval
A mortgage pre-approval is essential. It tells you exactly how much you can borrow, locks in an interest rate for 90-120 days, and shows sellers you're a serious buyer. Gather your income documents (pay stubs, T4s, Notice of Assessment), bank statements, and employment verification. Compare rates from banks, credit unions, and mortgage brokers.
Find an Experienced Real Estate Agent
Choose a licensed real estate agent with local market expertise. They'll help you search for properties, arrange showings, analyse market values, negotiate offers, and guide you through the legal process. Look for an agent who knows your target neighbourhood, has strong reviews, and communicates well.
Define Your Needs and Start House Hunting
Create a list of must-haves (bedrooms, location, school district) and nice-to-haves. Consider your commute, neighbourhood amenities, future family needs, and renovation appetite. Your agent will set up MLS searches, schedule showings, and help you evaluate each property objectively.
Make an Offer
When you find the right home, your agent will prepare an Agreement of Purchase and Sale (APS). This includes your offer price, deposit amount, proposed closing date, and conditions (financing, inspection, etc.). Your agent will advise on offer strategy based on market conditions — whether to bid at asking, above, or below.
Arrange a Home Inspection
Once your offer is accepted (or conditional), hire a certified home inspector to evaluate the property. A thorough inspection covers structural integrity, roof, foundation, plumbing, electrical, HVAC, insulation, and potential issues like moisture or mould. The inspection report helps you negotiate repairs or price adjustments.
Finalise Your Mortgage
With your offer accepted and inspection complete, work with your lender to finalise the mortgage. The lender will require a property appraisal, finalize the interest rate, and prepare mortgage documents. Ensure you have mortgage default insurance (CMHC) if your down payment is less than 20%.
Hire a Real Estate Lawyer
Your lawyer conducts a title search, reviews the purchase agreement, ensures there are no liens or encumbrances on the property, arranges title insurance, prepares closing documents, and holds your deposit in trust. Budget $1,500 to $2,500+ for legal fees.
Complete the Closing Process
Before closing, do a final walkthrough to ensure the property is in the agreed-upon condition. On closing day, your lawyer will register the property transfer, your mortgage funds will be released, you'll pay closing costs (land transfer tax, legal fees, adjustments), and you'll receive the keys to your new home.
Move In and Settle
Set up utilities (hydro, gas, water, internet), update your address with banks and government agencies, change the locks, register for property tax and garbage collection, and explore your new neighbourhood. Welcome home!
Ontario Land Transfer Tax
The Land Transfer Tax is one of the largest closing costs when buying a home in Ontario. It's calculated on a tiered basis based on the purchase price.
Ontario LTT Rate Schedule
First $55,000
0.5%
$275
$55,001 - $250,000
1.0%
$1,950
$250,001 - $400,000
1.5%
$2,250
$400,001 - $2,000,000
2.0%
Varies
Over $2,000,000
2.5%
Varies
Calculate your exact Land Transfer Tax amount with our Land Transfer Tax Calculator.
First-Time Buyer Incentives
Ontario and the federal government offer several programs designed to make homeownership more accessible for first-time buyers. Take advantage of these incentives to reduce your upfront costs.
Ontario LTT Rebate
Up to $4,000
First-time home buyers can claim a rebate of up to $4,000 on the Ontario Land Transfer Tax, fully covering the tax on homes up to $368,000.
Home Buyers' Plan (HBP)
Up to $35,000
Withdraw up to $35,000 ($70,000 per couple) from your RRSP tax-free for a down payment. Repay over 15 years starting the second year after withdrawal.
First Home Savings Account (FHSA)
Up to $40,000
Save up to $8,000 per year (lifetime max $40,000) in a tax-free account. Contributions are tax-deductible and withdrawals for a home purchase are tax-free.
Home Buyer's Tax Credit
$1,500
A non-refundable federal tax credit of $10,000 (worth $1,500 in tax savings at 15%) available to first-time home buyers in the year of purchase.
Understanding Closing Costs
Beyond the purchase price and down payment, buyers need to budget for several closing costs. Here's a breakdown of what to expect.
Land Transfer Tax
Varies by price
See calculator above
Legal Fees
$1,500 - $2,500+
Includes disbursements
Title Insurance
$300 - $600
One-time premium
Home Inspection
$400 - $600
Before closing
Appraisal Fee
$300 - $500
May be required by lender
Property Tax Adjustment
Varies
Prorated from closing date
Utility Connections
$50 - $200
Hydro, gas, water, internet
Moving Costs
$500 - $3,000+
Depends on distance and volume
Use our buying costs calculator and mortgage calculator to plan your budget.
Frequently Asked Questions
How much do I need for a down payment in Ontario?
In Ontario, the minimum down payment depends on the purchase price. For homes up to $500,000, you need at least 5% down. For homes between $500,000 and $999,999, it's 5% on the first $500,000 and 10% on the remainder. For homes $1 million or more, the minimum is 20%. First-time buyers may qualify for the Home Buyers' Plan (HBP), allowing them to withdraw up to $35,000 from their RRSP tax-free for a down payment.
What are the closing costs when buying a house in Ontario?
Typical closing costs in Ontario range from 1.5% to 4% of the purchase price and include: Ontario Land Transfer Tax (varies by price bracket), Toronto Municipal Land Transfer Tax (if buying in Toronto), legal fees ($1,500-$2,500+), title insurance ($300-$600), home inspection ($400-$600), property tax adjustments, utility connection fees, and moving costs. First-time buyers may be eligible for rebates on land transfer tax.
How long does it take to buy a house in Ontario?
The entire home buying process in Ontario typically takes 2 to 6 months from start to finish. Getting pre-approved takes 1-2 weeks, house hunting can take several weeks to months, and once an offer is accepted, the closing process usually takes 30 to 90 days (the standard closing period). In competitive markets, the timeline may be shorter as buyers need to act quickly, while in slower markets, negotiations may take longer.
Do I need a real estate agent to buy a house in Ontario?
While not legally required, having a buyer's agent is highly recommended. A buyer's agent provides access to MLS listings, helps you evaluate properties, negotiates on your behalf, prepares offers, and guides you through the closing process. In Ontario, the buyer's agent's commission is traditionally paid by the seller, though recent changes may affect how buyer representation is structured. An experienced local agent adds significant value to the transaction.
What is the Ontario Land Transfer Tax?
The Ontario Land Transfer Tax is a provincial tax paid by the buyer on every property purchase. It is calculated on a tiered basis: 0.5% on the first $55,000, 1% on $55,001 to $250,000, 1.5% on $250,001 to $400,000, 2% on $400,001 to $2,000,000, and 2.5% on amounts over $2,000,000. First-time home buyers may qualify for a rebate of up to $4,000. If buying in Toronto, an additional Municipal Land Transfer Tax also applies.
What first-time buyer incentives are available in Ontario?
Ontario offers several incentives for first-time home buyers: Ontario Land Transfer Tax Rebate (up to $4,000), Federal Home Buyers' Plan (withdraw up to $35,000 from RRSP), First Home Savings Account (FHSA — save up to $40,000 tax-free), GST/HST New Housing Rebate (for newly built homes), and the First-Time Home Buyer Incentive (shared equity mortgage with the federal government). Eligibility requirements vary for each program.
Ready to Buy a Home in Ontario?
The Battaglia Team has helped over 1,000 families buy homes in Mississauga and the GTA. Let us guide you through every step of the process with expert advice and personalized service.
Call us today at +1 (416) 564-6611