Buying your first home in Ontario is a significant undertaking — but it’s manageable if you understand the process. Here’s a practical, step-by-step guide from someone who’s helped hundreds of GTA buyers navigate the journey.
Step 1: Know Your Budget
Before you look at a single listing, get crystal clear on your numbers. Use a mortgage affordability calculator to understand what you can borrow based on your income, existing debts, and down payment. The stress test means you must qualify at your contract rate + 2% (or 5.25%, whichever is higher). Most buyers are surprised by how much this reduces their borrowing power.
Step 2: Save Your Down Payment + Closing Costs
For a $900K home, target $180K down (20%) + $25K–$35K for closing costs. If you’re using the FHSA and HBP, factor those in. Don’t forget the 90-day seasoning rule — most lenders want to see your down payment sitting in your account for 90 days before closing.
Step 3: Get Pre-Approved
Speak with a mortgage broker (not just your bank) to get a proper pre-approval. A broker can access rates from 30+ lenders and find you better terms than walking into your branch. Get this done before you start seriously touring homes.
Step 4: Find a Buyer’s Agent
In Ontario, buyer’s agent representation is free for buyers — the seller pays the commission. Hire an agent who specializes in your target area and price range. Interview 2–3 agents before committing.
Step 5: Make an Offer
When you find the right home, your agent will prepare an Agreement of Purchase and Sale. In competitive situations, you may need to move fast and compete against other buyers. Ensure your financing is locked in, and discuss with your agent whether conditions (financing, inspection) are appropriate for the situation.
Step 6: Close the Deal
After an accepted offer, your lawyer handles the paperwork, title search, and fund transfer. Closing day is when you get the keys — typically 30–90 days after offer acceptance. Budget for moving costs, utility setup, and any immediate repairs or updates.