How to prepare when buying a home in Toronto
Save for your down payment
Accumulating money for the down payment is the first step toward buying a home in Toronto. For homes priced up to $500,000, a 5% minimum down payment is required. If you can save more, you can put more down and carry a lower mortgage. See our step-by-step guide to saving for a down payment for a full breakdown.
Get a mortgage pre-approval
A pre-approval gives you an estimate of your borrowing capacity — the mortgage amount you're likely approved for, and the loan terms, including the interest rate. It's important to remember a pre-approval is not an actual approval; it's an estimate, but a useful one. A lender will look at your income, credit history, and existing debts, and once approved you'll receive a letter with an interest rate guarantee, typically valid for 90 or 120 days. A pre-approval doesn't guarantee any specific property will be financed — the lender will still order an independent appraisal before advancing your mortgage.
Get in touch with a real estate agent
The right agent finds the house that's right for you, based on your specific needs — not just what a guide can tell you. Get in touch to discuss your home buying requirements.
Smart house hunting
When you start your search, think about your lifestyle, how long you plan to stay in the home, and any life changes you might foresee. Consider which Toronto neighbourhoods you love, how many bedrooms and bathrooms you need, and your absolute must-haves. These considerations keep your search focused. We'll set up a customized search based on your criteria and send you matching properties as they list.
Have your deposit money ready
In Toronto's real estate market, having your deposit funds ready with your offer tells the seller you mean business. A deposit of 5% of the purchase price is the norm in this marketplace, and unless the offer paperwork says otherwise, it's due within 24 hours of an accepted offer.
Finding the hidden gems
Engaging with a network of agents across the city means learning about a property before it hits the market — the chance to make an offer before it's seen by the masses.
Scheduling viewings
Once you've picked which properties you want to see, we take care of scheduling at times that work for you. Seeing a wide range of properties helps you understand what's available in your price range and make a confident, well-informed decision.
Navigating a competitive market
Toronto real estate can move fast — depending on the neighbourhood, a listing can sell in as little as a day, sometimes with multiple offers. A few things shape the strategy behind any offer:
- Comparative market analysis — what similar properties have actually traded for in that neighbourhood, so an offer price is grounded in evidence.
- Current market climate — whether the moment calls for an aggressive offer or room to negotiate depends on current inventory and demand.
- Leverage — an experienced agent looks for what matters to the seller (a closing date, a condition) and uses it in negotiation.
The four types of offers
- Conditional sale — the offer includes conditions (financing, inspection, status certificate review, etc.). If every condition is met, the deal becomes firm; if not, the deposit is returned and both sides are released.
- Counter-offer — the seller signs back different terms (price, closing date). Several rounds of back-and-forth are common.
- Firm sale — buyer and seller agree with no conditions attached; the deal is firm once signed and the deposit is paid.
- No sale — the two sides can't agree; the deposit is returned and the search continues.
Additional costs to budget for
If your down payment is under 20% of the purchase price, the lender will require mortgage insurance — higher when your deposit is lower, and it drops as you put more down.
We also recommend keeping a rainy-day fund for unexpected maintenance costs, particularly on an older home — even a thorough inspection doesn't catch everything. See our piece on building that fund for more.
Budget as well for title insurance, land transfer tax, lawyer fees, movers, and any renovations you're planning. In Toronto specifically, there are two land transfer taxes — one provincial, one municipal — both calculated on the same purchase price. Use our land transfer tax calculator to see both, plus the first-time buyer rebate if it applies.