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Buying your first home in Ontario is an exciting milestone, but the process can feel overwhelming when you are unfamiliar with mortgages, down payments, closing costs, and legal paperwork. Having a clear checklist can help you prepare financially, compare properties, and make confident decisions.

Whether you are planning to buy a condo in Toronto, a townhouse in Mississauga, a detached house in Brampton, or a property elsewhere in the Greater Toronto Area (GTA), preparation is the key to a smoother home-buying experience.

This first-time home buyer checklist for Ontario explains what to do before you start searching, how to prepare your finances, which government programs to investigate, what to check before making an offer, and how to prepare for closing day.

Table of ContentsUnderstand Your Home Buying Budget

Check Your Credit Score and Financial Situation
Save for Your Down Payment
Explore First-Time Home Buyer Programs in Ontario
Get Mortgage Pre-Approval
Calculate Your Closing Costs
Choose the Right Location and Property Type
Work With a Real Estate Agent
Inspect Properties Carefully
Prepare and Submit an Offer
Complete the Home Inspection and Legal Review
Prepare for Closing Day
Complete Your First Month as a Homeowner
Common Mistakes First-Time Buyers Should Avoid
Frequently Asked Questions

1. Understand Your Home Buying Budget

Before browsing real estate listings, determine how much you can comfortably afford. Your maximum mortgage approval is not necessarily the amount you should spend.

Start by reviewing your household income, savings, recurring expenses, outstanding debts, and expected future costs.

Your home-buying budget checklist

Calculate your monthly household income.
List your credit card balances and monthly debt payments.
Review your current rent, utilities, transportation, and living expenses.
Determine how much money you can save each month.
Estimate the monthly mortgage payment you can comfortably manage.
Set aside funds for closing costs and emergencies.

Remember that owning a home involves more than making mortgage payments. You may also need to pay property taxes, home insurance, utilities, repairs, maintenance, and condominium fees.

For example, buying a condominium may require a smaller initial purchase budget than buying a detached house, but monthly maintenance fees can affect your overall affordability.

Practical tip: Establish a comfortable spending limit before looking at properties. This helps you focus on homes that fit your financial situation instead of stretching your budget unnecessarily.

2. Check Your Credit Score and Financial Situation

Your credit history is an important part of a mortgage application. Lenders review your credit profile, income, existing debt, and other financial details when deciding whether to approve your mortgage.

A stronger credit profile can improve your borrowing options, although approval and interest rates depend on several factors.

What to review before applying for a mortgage

Obtain your credit reports and review them for errors.
Pay bills on time and avoid missed payments.
Reduce high credit card balances where possible.
Avoid taking on unnecessary new debt.
Keep records of your income and employment.
Organize statements showing your savings and down payment funds.

If you are self-employed, work on commission, or receive variable income, ask a mortgage professional which income documents will be required.

Lenders may request employment letters, pay stubs, tax returns, Notices of Assessment, bank statements, and other supporting documents.

Preparing these records early can reduce delays during the mortgage approval process.

3. Save for Your Down Payment

Your down payment is the amount you contribute toward the purchase price of your home. The remaining amount is generally financed through a mortgage.

In Canada, the minimum down payment depends on the property’s purchase price. According to the Financial Consumer Agency of Canada, the standard minimums are:

Homes priced at $500,000 or less: 5% of the purchase price.
Homes priced above $500,000 and below $1.5 million: 5% of the first $500,000 and 10% of the remaining amount.
Homes priced at $1.5 million or more: 20% of the purchase price.

If you put down less than 20%, mortgage loan insurance is generally required for eligible properties and borrowers. Lender requirements and eligibility conditions also apply.

Official reference: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html

Example: Minimum down payment

Purchase price	Minimum down payment
$400,000	$20,000
$500,000	$25,000
$600,000	$35,000
$800,000	$55,000
$1,000,000	$75,000

These examples assume the standard minimum down payment rules and exclude closing costs.

Remember your closing funds

Do not use every dollar of your savings for the down payment. You will also need money for legal fees, land transfer tax where applicable, inspections, moving expenses, insurance, and other costs.

Maintaining an emergency fund is equally important because unexpected repairs can occur shortly after moving into your first home.

4. Explore First-Time Home Buyer Programs in Ontario

Several federal and provincial programs may help eligible buyers save for a first home or reduce certain purchase costs. Each program has its own eligibility requirements, contribution limits, withdrawal rules, and deadlines.

First Home Savings Account (FHSA)

The First Home Savings Account allows eligible individuals to save toward a qualifying first home with tax advantages.

Contributions are generally tax-deductible, and qualifying withdrawals for an eligible home purchase are tax-free. The annual contribution limit is $8,000, with a lifetime limit of $40,000, subject to the applicable rules.

Review the eligibility requirements before opening an account or making a withdrawal.

Home Buyers’ Plan (HBP)

The federal Home Buyers’ Plan allows eligible buyers to withdraw funds from their RRSPs to purchase or build a qualifying home.

The current withdrawal limit is up to $60,000 per eligible individual, subject to the program’s conditions. Amounts withdrawn generally need to be repaid over the prescribed period.

Eligible buyers may be able to use both the FHSA and the Home Buyers’ Plan for the same qualifying purchase.

Ontario Land Transfer Tax Refund

Ontario offers a land transfer tax refund of up to $4,000 to eligible first-time home buyers.

Eligibility conditions apply, including requirements relating to previous home ownership, age, occupancy, and residency status. Your real estate lawyer can help determine whether you qualify and arrange the claim.

Official reference: https://www.ontario.ca/document/land-transfer-tax/land-transfer-tax-refunds-first-time-homebuyers

Toronto Municipal Land Transfer Tax Refund

Buyers purchasing an eligible property within the City of Toronto may also qualify for a municipal land transfer tax refund of up to $4,475.

This is separate from the Ontario provincial refund. Toronto’s municipal tax does not apply to properties in Brampton, Mississauga, or other municipalities outside the City of Toronto.

Other assistance programs

Depending on where you plan to buy, you may find municipal, provincial, or non-profit programs that provide financial assistance or affordable homeownership opportunities.

Program availability can change. Confirm that a program is open, that funding remains available, and that you meet the requirements before including any assistance in your budget.

5. Get Mortgage Pre-Approval

Mortgage pre-approval helps you understand how much a lender may be willing to lend based on your financial information.

It is a useful step before starting serious property searches, but it is not a guarantee of final mortgage approval.

What to prepare for pre-approval

Government-issued identification.
Proof of employment and income.
Recent pay stubs or relevant self-employment documents.
Information about existing loans and credit obligations.
Bank statements and proof of down payment.
Details of any other income sources.

A mortgage broker or lender can explain the available mortgage products, estimated payments, interest rates, and qualification requirements.

Understand the mortgage stress test

Canadian mortgage qualification rules generally require borrowers to qualify at a rate higher than their actual contract rate. For many borrowers, the qualifying rate is the greater of the mortgage contract rate plus two percentage points or the applicable minimum qualifying rate.

Your actual borrowing capacity will depend on the applicable rules, income, debts, property expenses, and lender assessment.

Compare mortgage options

Before committing, compare:

Fixed-rate and variable-rate mortgages.
Interest rates and payment frequency.
Mortgage terms and renewal conditions.
Prepayment privileges and penalties.
Mortgage insurance costs, if applicable.
Amortization periods and total interest costs.

First-time buyers who qualify may be eligible for a 30-year amortization on an insured mortgage under the applicable federal rules. A longer amortization can reduce scheduled payments but may increase the total interest paid over time.

6. Calculate Your Closing Costs

Closing costs are expenses paid in addition to your down payment. Buyers sometimes underestimate these costs, which can create unnecessary financial pressure near closing day.

Your exact costs depend on the purchase price, municipality, mortgage arrangement, property type, and transaction details.

Common closing costs in Ontario

Land transfer tax: Provincial land transfer tax generally applies when ownership transfers. Eligible first-time buyers may receive a refund. Toronto buyers may also pay municipal land transfer tax.

Legal fees and disbursements: A real estate lawyer handles the legal transfer, title-related work, mortgage documents, and closing funds.

Home inspection: A professional inspection can identify potential issues with the roof, foundation, electrical systems, plumbing, heating, and other components.

Mortgage insurance: If required, mortgage loan insurance is generally added to the mortgage amount. Ontario sales tax on the insurance premium may be payable at closing.

Title insurance: Your lawyer may arrange title insurance to help protect against certain covered title-related risks.

Property tax and utility adjustments: Depending on the agreement, you may need to reimburse the seller for certain prepaid expenses.

Moving and setup expenses: Include moving services, utility connections, furniture, internet installation, and other immediate costs.

Condominium expenses: Condo buyers should review maintenance fees, potential special assessments, and any other obligations associated with the unit.

Create a closing-cost fund

Ask your mortgage professional and real estate lawyer for an estimate based on the property you are considering. Keep this money separate from your regular spending funds.

Do not assume that your down payment is the only significant cash requirement.

7. Choose the Right Location and Property Type

The right home is not simply the one with the most attractive kitchen or largest living room. It should fit your budget, commute, lifestyle, and long-term plans.

First-time buyers across the GTA can compare different communities and property types before deciding where to purchase.

Brampton

Brampton offers a variety of detached homes, semi-detached houses, townhouses, and condominium options. Buyers should compare neighbourhoods based on their budget, commuting requirements, schools, parks, transit, and access to everyday services.

Mississauga

Mississauga offers condominium apartments, townhouses, semi-detached properties, and detached homes. Buyers may wish to compare transit access, employment areas, shopping, parks, and commuting options.

Toronto

Toronto provides a wide range of condominium and freehold properties, with substantial differences in price and ongoing expenses between neighbourhoods.

Buyers should consider commute times, building condition, condominium fees, parking, and access to essential services.

Other GTA communities

Depending on your budget and lifestyle, you may also consider Milton, Oakville, Vaughan, Ajax, Whitby, Pickering, or other communities across the region.

Compare the total cost of ownership, not only the listing price.

Condo, townhouse, or detached house?

A condominium may offer less exterior maintenance but involve monthly fees and condominium rules. A townhouse may provide additional living space, while a detached house generally offers greater separation from neighbouring properties but can involve higher maintenance costs.

Compare each option using your monthly budget and long-term priorities.

8. Work With a Real Estate Agent

A knowledgeable real estate professional can help you understand the buying process, arrange property viewings, compare recent sales, prepare offers, and navigate negotiations.

When choosing an agent, look for someone who understands your preferred neighbourhoods, communicates clearly, and explains the process without pressuring you.

Questions to ask a prospective agent

How familiar are you with my preferred neighbourhoods?
How do you help first-time buyers evaluate property values?
What should I know about deposits and offer conditions?
How do you approach negotiations?
How will you communicate updates and deadlines?
What services and representation terms are included in our agreement?

Discuss representation, services, and applicable fees before signing an agreement.

Your agent can help you make informed decisions, but you should also use a qualified mortgage professional, real estate lawyer, and home inspector when appropriate.

9. Inspect Properties Carefully

A property can look attractive during a viewing while still having issues that affect its value or future expenses.

Visit properties carefully and take notes. If possible, attend viewings at different times to assess traffic, noise, parking, and the surrounding environment.

Home viewing checklist

Check walls, ceilings, floors, and visible signs of moisture.
Look for cracks and signs of potential foundation problems.
Ask about the age and condition of the roof.
Review the heating, cooling, plumbing, and electrical systems.
Check windows, doors, ventilation, and insulation.
Assess storage, parking, and outdoor space.
Consider the layout and potential future repair costs.
Review the surrounding area and nearby amenities.

A qualified home inspector can provide a more detailed assessment of visible conditions and potential concerns.

An inspection cannot guarantee that every hidden defect will be discovered. If the property is older or has specialized systems, additional professional assessments may be appropriate.

Additional checks for condominium buyers

Request and review the condominium status certificate with your lawyer. It provides important information about the condominium corporation, including its financial position, budget, reserve fund, and certain legal matters.

Also investigate:

Monthly condominium fees and what they cover.
Any special assessments or proposed increases.
Building maintenance and major repair plans.
Parking and locker ownership or use rights.
Rules concerning pets, rentals, and renovations.

These checks can help you understand the responsibilities that come with condominium ownership.

10. Prepare and Submit an Offer

When you find a suitable property, your real estate agent can help you review comparable sales, evaluate the asking price, and prepare an offer.

An offer normally includes the purchase price, deposit, proposed closing date, included fixtures and chattels, and any conditions or other terms.

Before submitting an offer

Review comparable properties and recent sales.
Decide on a maximum purchase price.
Confirm your deposit funds are available.
Choose a suitable closing date.
Identify necessary financing and inspection conditions.
Confirm what appliances and fixtures are included.
Review the agreement and its deadlines carefully.

Understand the deposit

The deposit is usually paid according to the terms of the accepted agreement. It demonstrates the buyer’s commitment and is generally credited toward the purchase price on closing.

It is different from the total down payment. Your agreement should specify the deposit amount, timing, and arrangements.

Do not overlook offer conditions

Depending on the transaction, an offer may include financing, home inspection, or condominium status certificate review conditions.

The right conditions depend on the property and circumstances. Removing conditions before you have completed the necessary checks can expose you to significant financial or contractual risks.

Have your agent explain the offer terms, and consult your lawyer when legal advice is needed.

11. Complete the Home Inspection and Legal Review

Once your offer is accepted, carefully track the dates and obligations set out in the agreement.

If your offer includes conditions, complete the required checks within the specified period.

During the conditional period

Submit the accepted agreement to your mortgage lender.
Provide any additional documents requested by the lender.
Arrange the home inspection, if applicable.
Review the condominium status certificate, if applicable.
Confirm that your intended insurance coverage is available.
Ask your lawyer to review the agreement and identify important legal deadlines.
Make decisions about fulfilling or waiving conditions before their deadlines.

Do not assume that a pre-approval means the lender has approved the specific property. The lender may still need to review the property, appraisal, title, and final documentation.

Once all necessary checks are complete, follow the agreement’s procedures for dealing with the conditions.

12. Prepare for Closing Day

Closing day is when the legal transfer of ownership is completed and the purchase funds are exchanged through the lawyers.

Preparation in the days leading up to closing can help prevent avoidable delays.

Your pre-closing checklist

1. Confirm mortgage approval. Make sure your lender has completed the required approval process and that you understand any remaining conditions.

2. Arrange home insurance. Confirm the appropriate policy will be active from the required date. Your lender may require proof of insurance before releasing mortgage funds.

3. Provide closing funds. Your lawyer will tell you how much money is required and when it must arrive. Follow the lawyer’s instructions for certified funds or wire transfers, and verify payment instructions directly to guard against fraud.

4. Review the closing statement. Check the purchase price, deposit credit, land transfer tax, legal fees, adjustments, and other amounts.

5. Prepare identification and documents. Provide the information your lawyer requires to complete the transaction.

6. Confirm utility arrangements. Arrange electricity, gas, water, and other services where applicable.

7. Schedule moving arrangements. Confirm the expected key-release process and avoid booking access before your lawyer confirms that closing is complete.

8. Arrange the final visit. If your agreement permits a pre-closing visit, check the property’s condition and confirm that included items remain in place.

Your lawyer will coordinate the legal transfer and advise when the keys can be released.

13. Complete Your First Month as a Homeowner

After receiving the keys, take a little time to organize the home and establish a routine for ongoing expenses.

First-month checklist

Change or rekey the locks where appropriate.
Test smoke alarms and carbon monoxide alarms.
Locate the main water shut-off and electrical panel.
Confirm utilities and insurance are active.
Update your address with relevant organizations.
Confirm your municipal property tax account details.
Save your purchase agreement and closing documents securely.
Review any applicable new-home warranty requirements.
Set up automatic payments for recurring bills.
Start a separate fund for repairs and maintenance.

If you purchase a condominium, read the corporation’s rules, understand payment procedures for monthly fees, and keep track of building notices and meetings.

Homeownership also involves ongoing maintenance. Regularly inspect the roof, plumbing, heating, drainage, and other important components as appropriate for your property.

14. Common Mistakes First-Time Buyers Should Avoid

Even well-prepared buyers can overlook important details when they are excited about purchasing their first property.

Spending the entire savings balance

Using all available funds for the down payment can leave you without enough money for closing costs, repairs, or unexpected expenses.

Better approach: Maintain a separate reserve for emergencies and early homeownership costs.

Shopping before understanding affordability

Looking at properties outside your realistic budget can make it harder to evaluate suitable options.

Better approach: Determine your comfortable monthly payment and obtain mortgage pre-approval before serious house hunting.

Ignoring property taxes and maintenance

A mortgage payment does not represent the full cost of owning a home.

Better approach: Estimate property taxes, insurance, utilities, repairs, and condominium fees before making a decision.

Waiving conditions without sufficient review

Removing conditions before completing important checks can create serious financial and contractual risks.

Better approach: Understand the purpose of each condition and obtain the required information before making a decision.

Failing to investigate a condominium

A unit may appear affordable while the corporation has significant maintenance requirements or financial concerns.

Better approach: Review the status certificate, reserve fund information, budget, fees, and relevant legal matters with your lawyer.

Assuming every first-time buyer program applies

Different programs use different definitions of a first-time buyer. Previous ownership, residency, occupancy, and other circumstances may affect eligibility.

Better approach: Verify the rules for each program separately rather than assuming that qualifying for one means qualifying for all.

Making major financial changes before closing

Taking out a car loan, changing employment, or increasing credit card debt may affect mortgage qualification.

Better approach: Speak with your lender before making significant financial changes between mortgage approval and closing.

15. Frequently Asked Questions

1. What is the first step to buying a home in Ontario?

Start by reviewing your income, debts, savings, and credit history. Determine how much you can comfortably afford, estimate the required down payment, and investigate closing costs. Mortgage pre-approval can then help you understand your potential borrowing range before you begin searching for properties.

2. How much down payment do I need to buy my first home in Ontario?

The minimum depends on the purchase price. For a home costing $600,000, the standard minimum down payment is $35,000. Buyers should also save for closing costs and emergencies. A larger down payment may reduce borrowing requirements and mortgage insurance costs, depending on the circumstances.

3. Do first-time home buyers in Ontario receive a rebate?

Eligible first-time buyers may receive an Ontario land transfer tax refund of up to $4,000. Qualifying purchases within Toronto may also be eligible for a separate municipal refund of up to $4,475. Both programs have specific eligibility conditions, so confirm your circumstances with your real estate lawyer.

4. Can I use my FHSA and RRSP to buy my first home?

Eligible buyers may be able to combine a First Home Savings Account withdrawal with an RRSP withdrawal under the Home Buyers’ Plan. Each program has separate eligibility and withdrawal requirements. Review the current Canada Revenue Agency rules and consider speaking with a qualified tax professional before withdrawing funds.

5. How much should I save for closing costs?

Closing costs vary by property price, location, and transaction details. They may include land transfer tax, legal fees, title insurance, inspection costs, mortgage-related expenses, and adjustments. Ask your real estate lawyer and mortgage professional for a property-specific estimate before making an offer.

6. Is mortgage pre-approval a guarantee that I will get a mortgage?

No. Pre-approval provides an initial indication of your borrowing capacity, but final approval may depend on income verification, credit review, property appraisal, lender requirements, and other conditions. Avoid making major financial changes before closing without first discussing them with your lender.

7. Should I buy a condo or a house as my first property?

The right choice depends on your budget, preferred location, lifestyle, and maintenance responsibilities. Condominiums may have lower purchase prices in some areas but require monthly fees. Houses may provide more space and control but can involve higher maintenance costs. Compare total ownership expenses before deciding.

8. Is a home inspection necessary when buying a property?

A professional inspection can help identify visible defects and maintenance concerns before you commit to a purchase without applicable conditions. The need for an inspection and the available protection depend on your agreement and circumstances. Review the inspection arrangements with your agent and seek specialist advice when necessary.

9. What should I check before buying a condo in Ontario?

Review the status certificate, condominium fees, reserve fund, budget, special assessments, and relevant legal matters. Check parking and locker arrangements, building rules, and planned maintenance. Your lawyer can help explain the documents and identify issues that may affect your ownership costs or use of the property.

10. How long does it take to buy a first home?

The timeline depends on your financial preparation, property search, negotiations, mortgage approval, and closing arrangements. Saving for a down payment may take months or years, while the purchase process after an accepted offer depends on the closing date and transaction requirements.

11. Can I buy my first home with one income?

Yes, provided your income, savings, credit profile, and other financial circumstances meet the lender’s requirements. Your available budget may differ from that of a household with two incomes. Review all ongoing expenses and maintain sufficient savings so that the mortgage remains manageable.

12. What happens on closing day?

Your lawyer coordinates the legal transfer, receives and distributes the necessary funds, registers the transaction, and confirms when the purchase is complete. Once the required steps have been completed, the keys can be released according to the closing arrangements.

Final Thoughts: Prepare Before Buying Your First Home in Ontario

Buying your first home is a major financial commitment, but a clear plan can make the process easier to understand.

Start by reviewing your finances, building your down payment, checking available first-time buyer programs, and obtaining mortgage pre-approval. Then compare neighbourhoods, inspect properties carefully, review offer conditions, and prepare your closing funds well before the completion date.

Whether you are considering a condominium in Toronto, a townhouse in Mississauga, or a detached house in Brampton, take time to compare your options and understand the total cost of ownership.

Working with an experienced real estate professional, mortgage specialist, and real estate lawyer can help you make informed decisions at every stage of the buying process.

Ready to plan your first home purchase in Ontario? Begin with your budget and financing, then build your property search around the location, home type, and monthly costs that work for you.

Disclaimer

This article is for general educational purposes only and is not legal, mortgage, tax, or financial advice. Government program rules, eligibility requirements, mortgage regulations, and costs may change. Verify current information with the relevant government authority and qualified professionals before making a purchase decision.