Ontario / Greater Toronto Area · Reviewed October 26, 2026 · General residential guidance

1. Set a budget you can live with

Begin with your household’s actual cash flow, savings and other commitments. Decide what payment remains comfortable after food, transport, childcare, debt payments and savings. A lender’s maximum approval is a borrowing limit, not a personal spending target.

Prepare separate budgets for money due before closing, money needed to complete the purchase, and ongoing ownership. Allow for the deposit, down payment, legal costs, land transfer taxes, insurance, adjustments, moving and an emergency reserve. After closing, budget for property taxes, utilities, maintenance and condominium fees where applicable. Ask your lawyer and lender for transaction-specific estimates rather than relying on a percentage allowance alone.

Reference: FCAC: buying a home.

2. Confirm financing before making commitments

Provide your lender or mortgage professional with accurate income, debt and down-payment documents. Ask what has been verified, when any rate hold expires, and what remains outstanding. Pre-approval is not final approval: the lender must also accept the property and complete its underwriting. An appraisal below the agreed price can leave a funding gap.

Before removing a financing condition, obtain advice on the lender’s written commitment and any unresolved requirements. Do not assume an online affordability result or a pre-approval letter removes the need for a financing condition.

Reference: FCAC: mortgage pre-approval.

3. Understand representation and written agreements

Read the RECO Information Guide before deciding how you will be represented. Review the services, geographic area, duration, payment terms, termination provisions and any holdover clause in a proposed representation agreement. Ask how remuneration is handled if another party’s contribution does not cover your contractual obligation.

A salesperson assisting a self-represented buyer may represent the seller. Assistance is not the same as advice protecting your interests. Multiple representation also changes what advice can be provided; ask for the required explanation before deciding whether to consent.

References: RECO Information Guide · Self-representation risks.

4. Evaluate the home and its intended use

Make a shortlist based on location, travel time, accessibility, layout and your expected ownership period. Inspect the home beyond its décor. Ask about major systems, water concerns, renovation records, rental equipment and inclusions. Record questions during each viewing so attractive presentation does not replace verification.

If your plans rely on a basement apartment, additions, redevelopment or a home business, obtain municipal and professional confirmation of permitted use and required approvals. A listing description or existing use should not be treated as proof of compliance. Discuss title, easements and other legal restrictions with your lawyer.

References: RECO buyer’s checklist · Ontario: before buying a home.

5. Investigate condominium obligations

For a resale condominium, arrange legal review of the status certificate and accompanying documents within your contract’s deadline. Review the corporation’s finances, reserve fund, known assessments, legal matters, rules and the unit’s financial position. Confirm parking and locker rights and restrictions affecting pets, renovations or rentals.

Monthly fees alone do not show the corporation’s financial health. Ask your lawyer which issues require further investigation and what the documents cannot establish about future expenses. Allow enough time to obtain and review the package before deciding on any condition.

References: CAO: resale condominiums · CAO: reserve funds.

6. Build the offer around the risks

Review price, deposit, closing date, included items, exclusions and all conditions together. Financing, inspection, document review or sale-of-existing-home conditions may be appropriate; the wording and deadlines must fit the transaction. A condition is not a general right to change your mind, and missing a deadline can have serious consequences.

Discuss inspection scope and limitations with your inspector. In competing offers, set your own price ceiling and acceptable risk level before negotiations. Do not remove protections simply because another buyer might do so. Ask how offer information may be shared.

References: RECO: competing offers · RECO: home inspections.

7. Prepare for closing and possession

Give the agreement and amendments to your lawyer and lender promptly. Track every contractual deadline, arrange insurance and confirm the funds and identification your lawyer needs. Verify payment instructions directly using a trusted contact method, especially if instructions change.

Arrange any agreed pre-closing visit, utility transfers and moving logistics. Ask your lawyer how to handle concerns identified before completion. Keep signed documents and relevant records after closing.

New construction needs a separate review

Do not apply resale assumptions to a builder agreement. Have a lawyer review cancellation rights, deposits, adjustments, occupancy, completion dates and warranty requirements. Tarion identifies changes taking effect January 1, 2027; the applicable rules depend on the agreement and timing. Obtain advice before signing rather than assuming every purchase has the same cooling-off protection.

Reference: Tarion: important updates for home buyers.

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