Buying your first home in Ontario is one of the biggest financial decisions you'll make — and the process has more steps, documents, and decisions than most people expect. Here is a plain-language walkthrough of everything that happens, from the first conversation with a mortgage broker to getting your keys on closing day.
How much do I need to save to buy a home in Ontario?
In Ontario, the minimum down payment depends on the purchase price: 5% for homes up to $500,000; 5% on the first $500K and 10% on the portion above that for homes between $500K–$999,999; and 20% for homes priced at $1 million or more. In the GTHA, where average detached prices in most markets exceed $1M, most buyers need at least 20% down to avoid CMHC mortgage insurance — which adds a significant cost. A realistic budget for a first-time buyer targeting a condo in Mississauga or Hamilton should include 5–20% down plus approximately 1.5–3% in closing costs (land transfer tax, legal fees, title insurance).
What is a mortgage pre-approval and do I need one before house hunting?
Yes — always get pre-approved before you start seriously looking at properties. A pre-approval tells you exactly how much a lender will give you, locks your interest rate for 90–130 days, and signals to sellers that you're a serious buyer. Without it, you risk falling in love with a home you can't afford, or losing a property to another buyer who came to the table prepared. Your mortgage broker will review your income, credit score, debts, and down payment source before issuing a pre-approval letter.
What is the homebuying process step by step in Ontario?
Here is the full sequence, in plain terms:
- Step 1 — Pre-approval: Work with a mortgage broker to understand your budget and get a rate hold.
- Step 2 — Hire a real estate agent: Your agent works for you at no cost (paid by the seller's side on resale). Choose someone who will be honest with you, not just enthusiastic about making a sale.
- Step 3 — Define your criteria: Location, property type, must-haves vs. nice-to-haves. Be specific — it saves time.
- Step 4 — Showings: Tour properties that match. In a balanced market you may see 5–15 homes before finding the right one.
- Step 5 — Make an offer: Your agent prepares an Agreement of Purchase and Sale (APS) with your offer price, deposit, conditions (financing, home inspection), and closing date.
- Step 6 — Negotiate and firm up: The seller may counter-offer. Once both parties agree, the deal firms up when conditions are satisfied or waived.
- Step 7 — Lawyer review: Your real estate lawyer reviews title, surveys, and closing documents. They also handle the money transfer on closing day.
- Step 8 — Closing day: You pay the balance, your lawyer registers the transfer, and you get the keys.
What government programs are available for first-time buyers in Ontario?
As of 2026, Ontario first-time buyers can access several programs: the First Home Savings Account (FHSA) allows you to save up to $40,000 tax-free toward a first home; the Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP tax-free; the First-Time Home Buyer's Tax Credit gives you up to $1,500 back at tax time; and Ontario's First-Time Home Buyers rebate on land transfer tax can return up to $4,000. Stack these programs where you can — together they meaningfully reduce the cash you need upfront.
Do I need a home inspection when buying in Ontario?
In most cases, yes — especially for resale properties. A home inspection typically costs $400–$600 and can uncover issues with the roof, foundation, electrical, plumbing, or HVAC that aren't visible during a showing. Some competitive offer situations make it difficult to include an inspection condition, but in the current balanced market, inspection conditions are more commonly accepted than they were during peak 2021–2022. I always advise first-time buyers to include one where possible — the peace of mind is worth more than the cost.
What closing costs should a first-time buyer expect in Ontario?
Beyond your down payment, budget for: Ontario land transfer tax (first-time buyers get a rebate up to $4,000), Toronto land transfer tax if buying in the city, legal fees ($1,500–$2,500), title insurance (~$300), home inspection ($400–$600), and any adjustments on closing (prepaid utilities, property tax). In total, plan for 1.5–3% of the purchase price in closing costs on top of your down payment.
Ready to start your search?
Buying your first home is one of the most significant decisions you'll make — and it should feel like a confident, informed step forward, not an overwhelming leap. I've guided dozens of first-time buyers across Mississauga, Hamilton, Brampton, and the GTHA through every stage of this process. If you want a straightforward conversation about what you can realistically afford and where to focus, book a free consultation. There's no pressure and no sales pitch — just honest answers.