There is nothing quite like the life-changing experience of buying a house in Ontario. But our clients often ask: How does buying a house work? With a clear roadmap of where you are now and what lies ahead, the process becomes far less intimidating. This guide walks you through the steps of buying a house and stages of the home-buying journey, from establishing your budget and assembling the right team to negotiating your offer and closing the transaction. We have home buyer tips, all the real estate advice for buyers and what to consider when buying a house!
Are you ready to get started on your homebuyer journey? Book a buyer’s meeting with us today!
Partnering With the Right Realtor®
Finding a beautiful home, in a great neighbourhood, at the right price rarely happens by chance. It’s the result of careful planning, market analysis, and seamless execution—this is where your Realtor® becomes essential, they know what to consider when buying a house.
The right agent is someone you trust to advocate for your best interests at every step. They should feel like a knowledgeable friend who understands the market inside and out, protects your time and money, and negotiates confidently on your behalf. Partnering with a professional who is informed, compassionate, and results-driven ensures that your experience is not only successful but enjoyable.
Working with the right agent makes a huge difference. Before hiring a buyer’s agent, make sure you ask them these 10 questions.
Building a Clear Financial Picture
The numbers matter. Understanding how to get a mortgage and how financing works gives you a clearer picture of what you can afford and positions you to negotiate effectively. Before you begin touring homes and submitting offers, it’s crucial to establish a well-defined financial picture.
Down Payment
Buyers typically need a minimum of 5% to 20% of the purchase price for a down payment. While minimum down payments make homeownership more accessible, putting more money down reduces the amount you borrow, lowers your interest costs over time, and eliminates mortgage insurance if you reach the 20% threshold.
Deposit
The deposit is part of your down payment and is submitted shortly after your offer is accepted—often within 24 hours. Because of the urgency, these funds should be readily accessible. The deposit is paid to the listing brokerage, who holds it in trust on behalf of the Seller until closing. While 5% is common, the amount is negotiable. A higher deposit can strengthen your offer by demonstrating commitment and financial stability.
The Power of Mortgage Pre-Approval
Getting a mortgage pre-approval is one of the most valuable steps in the buying process. Before shopping for homes, you’ll meet with a lender or mortgage broker to complete an application. They’ll review your income, debts, and credit history to determine how much you can borrow.
Once approved, you’ll receive a Certificate of Pre-Approval. This can be an advantage in negotiations as this signals to sellers that you are financially qualified. Pre-approvals also typically lock in your interest rate for 90 to 120 days. If rates rise, you’re protected; if they fall, you benefit from the lower rate.
To streamline this process, bring your most recent T4s, valid identification, and employment records. If your down payment is coming from another source (eg. gift from family) you will also need to provide a ‘gift letter’ to verify. Accurate documentation puts you on the fastest path from home seeker to homeowner.
Learn more about the costs associated with buying a home with our helpful buyer calculators.
Defining What You’re Looking For
Before attending showings, it’s important to define your goals. A thoughtful conversation with your Realtor will help you distinguish between your needs and wants. It will also set expectations of what your budget may allow for.
Start with a wish list—everything your ideal home would have. Then apply realistic filters. Many buyers find they can trade certain features for a better location, price, or long-term value. Being flexible on some elements is key.
As you refine your priorities, some features will emerge as non-negotiable. Your agent will encourage you to look beyond surface-level appeal and focus on what truly matters:
- Is the home well built, or simply staged to impress?
- Will it require major upgrades or repairs?
- Does it make sense as a long-term investment?
- Is the location desirable, with a suitable lot size?
While cosmetic details can change, you should focus on the permanent factors that can’t be changed- location, lot size, ceiling height, etc.
Timing is everything when it comes to buying a home you love. Never miss a beat by signing up to receive listing alerts. We’ll email you as soon as listings matching your criteria hit the market!
Making and Negotiating an Offer
Once you’ve found the right home, your agent will guide you through crafting a compelling offer (known as an “Agreement of Purchase and Sale”). This includes determining price, deposit, conditions, and closing timelines—all aligned with current market conditions and your personal situation.
After submission, the seller will respond in one of three ways, they may:
- Accept your offer
- Counter (also called a “sign back”)
- Decline
Throughout negotiations, your agent remains your biggest advocate, ensuring you secure the best possible price and terms- or knowing when to walk away.
Offer Accepted! What Comes Next?
Congratulations—your offer has been accepted!
Moving Beyond the Conditional Period
If your offer includes conditions, the conditional period allows both buyer and seller to ensure all terms are satisfied. This is not a “get out of the deal” clause, but a safeguard that ensures confidence on both sides before the transaction becomes firm.
Sold firm! The sale is now pending
Most agreements will have a completion date (“closing date”) that is 60, 90 or 120 days from the date the offer was made. This time period is referred to as pending. With the help of a skilled real estate lawyer, this final stretch of the process becomes much smoother. At this stage, you’ll also begin planning your move and preparing for closing costs.
Looking for comprehensive, step-by-step home buying instructions? Download our Buying Guide for a closer look.
Other Costs to Consider…
Buying a home involves more than just the purchase price. Common closing costs include:
Land Transfer Taxes: Typically the largest closing cost, calculated as a tiered percentage of the purchase price.
Legal Fees: Lawyers conduct title searches, manage funds, and ensure a clean transfer of ownership. Title insurance is strongly recommended and reasonably priced.
Mortgage Insurance: Required if your down payment is under 20%. This cost can usually be added to your mortgage if not available in cash on closing.
Property Taxes and Adjustments: You’ll reimburse the seller for prepaid taxes and utilities via a Statement of Adjustments.
Moving Expenses: Whether hiring movers or managing it yourself, plan for these costs.
Example Scenario
If you purchase a $1,000,000 home with a 7.5% down payment:
- A $50,000 deposit is paid within 24 hours of offer acceptance
- The remaining $25,000 is paid on closing
- Legal fees range from $1,500 and up
- Mortgage insurance may total approximately $37,000, with applicable taxes added
- Land Transfer tax would be approximately $16,475 (double, if purchased in Toronto)
Including your down payment, total funds required could be around $130,000 (less for first-time buyers), plus moving costs and adjustments. Your lawyer will require a bank draft or certified cheque a few days before closing to cover any amounts not included in your mortgage.
Final Tip: Budget for Breathing Room
We recommend cushioning your budget by 3–5%. This buffer provides flexibility, reduces stress, and contributes to a more comfortable home-buying experience.
With the right preparation, professional guidance, and financial clarity, buying a home can be one of the most rewarding milestones of your life.
Get in touch today by filling out the form on this page, calling us at 905.331.6790, or emailing us at sarah@sarahlogue.ca.
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