How to Buy a Home in Toronto: A Step-by-Step Guide
Pre-approval, land transfer tax, closing costs, offers and conditions — the whole Toronto home-buying journey, in plain language.
By Sarah Cromie, Sales Representative · Valery Real Estate Inc.
Published June 25, 2026
Buying a home in Toronto is one of the most exciting — and significant — financial decisions you’ll ever make. Whether you’re a first-time buyer navigating the process for the first time, or an experienced investor expanding your portfolio, having the right guidance makes all the difference. This guide walks you through every step of the Toronto home-buying journey.
Step 1: Define Your Goals & Budget
Before you start browsing listings, get clear on what you’re looking for:
- Property type: Condo, townhouse, semi-detached, or detached home?
- Location: Which Toronto neighbourhoods suit your lifestyle and commute?
- Must-haves vs. nice-to-haves: Number of bedrooms, parking, outdoor space, etc.
- Timeline: Are you ready to move in 3 months, or are you planning 12 months out?
Once you have a sense of what you want, it’s time to get real about what you can afford.
Step 2: Get Pre-Approved for a Mortgage
A mortgage pre-approval is one of the most important steps you can take before entering the Toronto market. Here’s why:
- It tells you exactly how much you can borrow
- It shows sellers and agents that you’re a serious buyer
- It locks in an interest rate for 90–120 days, protecting you from rate increases
What lenders look at:
- Income and employment history
- Credit score (aim for 680+)
- Existing debts and liabilities
- Down payment amount and source
Minimum down payment in Canada:
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% |
| $500,001 – $999,999 | 5% on first $500K + 10% on remainder |
| $1,000,000+ | 20% |
Step 3: Understand Toronto’s Additional Costs
Beyond your down payment, budget for these Toronto-specific costs:
Land Transfer Tax (LTT)
Toronto buyers pay two land transfer taxes — one provincial and one municipal. This is unique to the City of Toronto.
- On a $900,000 home, combined LTT can be approximately $28,000–$32,000
- First-time buyers may be eligible for a rebate of up to $4,000 (provincial) and up to $4,475 (municipal) — combined up to $8,475
Other Closing Costs to Budget For
| Cost | Estimated amount |
|---|---|
| Home inspection | $400–$600 |
| Real estate lawyer fees | $1,500–$2,500 |
| Title insurance | $200–$400 |
| Utility hookups & moving | $500–$2,000 |
| HST (on new builds only) | Up to 13% of purchase price |
Step 4: Work with a Toronto REALTOR®
In Ontario, buyer representation is free to you — the seller’s brokerage compensates your agent. There is no cost to having a REALTOR® in your corner.
What your agent does for you:
- Searches MLS for properties matching your criteria
- Books and accompanies you to showings
- Provides comparative market analysis (CMA) so you never overpay
- Writes and negotiates your offer
- Coordinates with lawyers, inspectors, and mortgage brokers
- Guides you through conditions, waiver deadlines, and closing
All Ontario REALTORS® are governed by RECO and must follow the Code of Ethics under the Trust in Real Estate Services Act (TRESA), ensuring you receive professional, ethical service.
Selling at the same time? See the seller’s guide.
Step 5: Start Your Property Search
With your pre-approval in hand and your agent by your side, it’s time to start looking at homes.
Practical tips for Toronto buyers:
- Act quickly — desirable properties in Toronto often receive offers within days
- Visit homes in person when possible; photos can be deceiving
- Pay attention to the building’s status certificate if buying a condo (this reveals the financial health of the condo corporation)
- Research the neighbourhood: transit access, schools, walkability, and planned development
- Check TRREB’s monthly market reports to understand current supply and demand
Step 6: Making an Offer
When you find the right home, your agent will prepare an Agreement of Purchase and Sale (APS).
Key elements of an offer:
- Purchase price
- Deposit (typically 5% of purchase price, due within 24 hours of acceptance)
- Conditions (e.g., financing, home inspection, status certificate review for condos)
- Closing date (when ownership transfers to you)
Offer Types in Today’s Toronto Market
Offer date (holdback): Some sellers set a date to review all offers at once, which can lead to multiple-offer situations.
Anytime offers: Many sellers accept offers on a rolling basis. Your agent will advise on the best strategy.
Under TRESA (2023+): Sellers may now choose to disclose competing offer details (excluding personal information) to create a more transparent process.
Step 7: After Your Offer is Accepted
Congratulations! Once your offer is accepted, here’s what happens next:
- Pay your deposit — Typically within 24 hours of acceptance, held in trust by the brokerage
- Fulfill your conditions — Book your home inspection, confirm financing, review condo documents
- Hire a real estate lawyer — Your lawyer handles title search, title insurance, and the financial closing
- Final walkthrough — Typically done the day before closing to ensure the property is in the agreed-upon condition
- Closing day — Your lawyer transfers funds and registers the title. You get the keys!
Frequently asked questions
How long does it take to buy a home in Toronto?+
From starting your search to getting the keys, most buyers take 2–6 months. The closing period after an accepted offer is typically 30–90 days.
Do I need a home inspection?+
It's strongly recommended. A home inspection ($400–$600) can reveal issues that could cost tens of thousands of dollars. In competitive markets some buyers waive it — always discuss the risks with your agent first.
What is a status certificate?+
If you're buying a condo, the status certificate is a legal document that reveals the financial health of the condo corporation, any special assessments, the reserve fund balance, and ongoing litigation. Your lawyer should review it before you waive conditions.
What's the difference between freehold and condo ownership?+
With freehold, you own the structure and the land. With a condo, you own your unit and share ownership of the common areas, and you pay monthly maintenance fees to the condo corporation.