Buying a home in Toronto.

Get financing ready (before you search)

The single biggest mistake buyers make in Toronto is starting their search before getting their financing in order. By the time they find something they like, they're 1-2 weeks behind a buyer who came ready, and that's the difference between winning and losing the unit.

What "ready" means:

• Pre-approval (not pre-qualification — there's a difference). A mortgage broker or lender confirms in writing how much they'll lend you, locks in a rate for 90-120 days.
• Down payment in cash, in your account — not in a TFSA you'll need to liquidate, not "I'll borrow it from family later." Available, today.
• Closing costs budgeted — typically 2-4% of purchase price on top of down payment (see Closing Costs).
• A real estate lawyer chosen — line them up before you make an offer, not after.

Search smart

Toronto inventory turns over fast. Strong listings get 5-10 offers within days. Slow listings linger because something's off (price, condition, building issue). Both situations require strategy.

• Set up an MLS alert — instant notifications when new listings match your criteria. Most realtors offer this free to active clients.
• Tour widely at first — see 8-10 places in your range, even ones that don't seem perfect. You learn the market by walking through it.
• Don't fall in love with photos. Wide-angle lenses lie. Always see it in person.
• Visit at different times. A condo facing a quiet street at noon may be facing a loud bar district at 11pm.

Making an offer

An offer in Ontario uses OREA Form 100 (Agreement of Purchase and Sale). Key components:

• Price — your offered amount
• Deposit — typically 5% of purchase price, certified cheque or wire, due within 24 hours of acceptance
• Closing date — usually 30-90 days from acceptance
• Conditions — financing, inspection, status certificate (condos), etc. — see next section
• Inclusions/exclusions — what stays (appliances, fixtures, window coverings)
• Irrevocability period — how long the seller has to accept (usually 24-48 hours)

The conditions period

If your offer has conditions (usually 5-10 business days), this is when you verify everything:

• Financing condition — confirm with your lender that they'll actually fund the mortgage at the agreed price
• Inspection condition — hire a licensed home inspector ($400-600), get a written report
• Status certificate review (condos) — your lawyer reviews the condo corp's financial health, reserve fund, special assessments, rules
• Insurance quote — confirm you can actually insure the property at a reasonable rate

If any condition isn't met, you can walk away and get your deposit back. Once all conditions are waived, the deal is firm — backing out means losing your deposit and potentially being sued.

Closing day

Closing happens at your lawyer's office. You'll:

• Sign final mortgage documents
• Pay closing costs (LTT, legal fees, adjustments) via certified cheque or wire
• Wait while your lawyer registers the title transfer with the Land Registry
• Receive your keys (usually late afternoon)

Plan to be available all day. Most closings happen between 3 PM and 6 PM. Don't book movers for the morning of closing — push them to the next day, or evening at earliest.

After you move in

• Change the locks — non-negotiable. Previous tenants/owners may have made copies.
• Set up utilities — most need to be transferred or new accounts opened (Toronto Hydro, Enbridge for gas, Toronto Water if not included in condo fees)
• Update your address — driver's licence, banks, CRA, employer
• File your first-time buyer rebate if applicable — your lawyer should do this automatically at closing for the LTT rebate
• Keep every closing document — you'll need them for tax filings and eventually for resale

Common mistakes (avoid these)

Underestimating closing costs. Plan 2-4% of price on top of down payment. Toronto buyers regularly forget MLTT exists and find themselves $13-15k short at closing.

Buying before getting pre-approved. You'll lose offers to better-prepared buyers, then end up either over-leveraged or watching the market move while you scramble.

Skipping the inspection to win a bidding war. Saving $500 on inspection while overpaying or buying a hidden $20,000 problem is bad math.

Falling in love with the unit, not the building. The condo board, reserve fund, building age, and maintenance history matter more than the kitchen finishes. Read the status certificate.

Going firm without understanding the consequences. No-conditions offers can win bidding wars but if your financing falls through, you lose your deposit and may be sued for the seller's loss.

This guide is informational, not financial or legal advice. Talk to a licensed mortgage professional, real estate lawyer, and an experienced realtor before making decisions specific to your situation.