How to Buy a House in Ontario: The Complete Guide

Buying a home in Ontario can feel overwhelming, but it follows a predictable path. This guide walks you through the entire journey — from saving your down payment to getting the keys — with real numbers, current rules, and the steps that actually matter. It's the home base for everything you need to know as an Ontario buyer.

Key takeaways

• The minimum down payment in Ontario is 5% on the first $500,000 of the price, rising to 20% on homes of $1.5M+.
• Get a mortgage pre-approval before you shop so you know your real budget and qualify under the stress test.
• Budget 1.5%–4% of the price for closing costs on top of your down payment.
• First-time buyers can stack FHSA, the RRSP Home Buyers' Plan and land transfer tax rebates of up to $4,000 provincial (plus $4,475 in Toronto).
• Eligible HOMEH buyers receive the industry's highest Cashback Rebate — a uniquely Canadian advantage you won't find with a traditional brokerage.

Step 1: Know what you can afford

Before you fall in love with a listing, get clear on your budget. Lenders look at two ratios: your Gross Debt Service (GDS) ratio — housing costs as a share of gross income — and your Total Debt Service (TDS) ratio, which adds in all other debts. As a guideline, aim to keep GDS at or below 39% and TDS at or below 44%.

Affordability isn't just income — it's also your down payment and the all-in monthly cost. Run your numbers through the HOMEH affordability calculator first, then read our deep dive on how much house you can afford in Canada.

Step 2: Save your down payment

Your down payment is the cash you put toward the purchase. In Canada the minimum scales with the price, and anything under 20% down requires mortgage default insurance (usually from CMHC).

First-time buyer? Use the right accounts

The FHSA lets you contribute up to $8,000/year ($40,000 lifetime) with tax-deductible contributions and tax-free withdrawals. The RRSP Home Buyers' Plan lets you withdraw up to $60,000 per person tax-free. You can use both.

Step 3: Get a mortgage pre-approval

A pre-approval tells you how much a lender will actually lend, locks a rate for a window of time, and signals to sellers that you're serious. It's different from a casual pre-qualification — see pre-approval vs pre-qualification.

To qualify, you'll pass the federal mortgage stress test: you must prove you could carry payments at the greater of your contract rate plus 2% or the 5.25% benchmark floor. Learn how it works in our guide to the mortgage stress test, and see how amounts add up in how mortgages work in Canada.

Step 4: Shop, then make an offer

Now the fun part. Browse live listings, tour homes, and when you find the one, your agent prepares an Agreement of Purchase and Sale. Your offer sets the price, deposit, closing date, and any conditions (financing, inspection, status certificate for condos).

Getting the offer right is a skill of its own — start with how to make an offer in Ontario, understand the difference between a conditional and a firm offer, and if there are competing bids, read how to win a bidding war without overpaying.

Don't waive conditions blindly

A firm offer with no conditions can win a competitive deal, but it removes your safety net. Never skip due diligence — like a home inspection — without fully understanding the risk.

Step 5: Close the deal

Once your offer is accepted and conditions are met, you move to closing. In Ontario a real estate lawyer is required to register the transfer and handle funds. On top of your down payment, budget 1.5%–4% of the price for closing costs.

Land transfer tax is typically the biggest line item, and Toronto buyers pay it twice (provincial plus municipal). Get the complete picture in closing costs in Ontario explained.

How HOMEH puts money back in your pocket

Buying a home is expensive, but it doesn't have to cost you the commission a traditional brokerage keeps. As a licensed Ontario brokerage, HOMEH shares its commission with you.

Get the industry's highest Cashback Rebate with HOMEH

Eligible HOMEH buyers receive the industry's highest Cashback Rebate — enough to cover your closing costs many times over, or boost your down payment. Estimate yours with the cashback calculator, then confirm your budget with the affordability calculator.