How to Make an Offer on a House in Ontario

You've found the one. Now comes the moment that decides whether it's yours: the offer. In Ontario, an offer is a legally binding Agreement of Purchase and Sale, so getting every clause right matters. Here's how to make a smart, competitive offer without overpaying or exposing yourself to risk.

Key takeaways

• An offer in Ontario is the Agreement of Purchase and Sale — a binding contract once accepted.
• Your offer sets the price, deposit, closing date, included items, and any conditions.
• Deposits typically signal seriousness; conditions like financing and inspection protect you.
• A clean, well-structured offer often beats a higher but messy one.
• HOMEH buyers can pair a strong offer with the industry's highest Cashback Rebate.

What an offer actually is

In Ontario, an offer is made through the Agreement of Purchase and Sale (APS) — a standard contract that, once signed by both parties, is legally binding. There's no casual 'I'll take it'; everything is in writing. This is one step in the broader journey covered in how to buy a house in Ontario and the 10 steps to buying a home.

Because it's binding, never sign an APS you don't fully understand. Your buyer's agent drafts it, and your real estate lawyer can review the terms before conditions are waived.

The key terms in your offer

Every Ontario offer covers the same core elements. Get each one right and you've built a strong, credible bid.

How big should your deposit be?

The deposit isn't an extra cost — it counts toward your down payment — but it signals how serious you are. In hot Ontario markets, a larger deposit can strengthen your offer. It's held in trust and applied at closing.

Your deposit is at risk if you walk

If you go firm and then back out without a valid reason, you can forfeit your deposit. That's why conditions matter — read conditional vs firm offer before deciding to waive any.

Conditions: your safety net

Conditions (also called clauses) let you walk away cleanly if something doesn't check out. The most common protect your financing and the home's condition.

• Financing condition — confirms your lender will fund the purchase.
• Home inspection condition — lets you review the home's true state; see what a home inspection covers.
• Status certificate condition — for condos, reviews the corporation's finances and rules via the status certificate.
• Sale of buyer's property — makes the deal contingent on selling your current home.

In competitive situations, buyers sometimes drop conditions to stand out — but that removes your protection. Tread carefully and lean on professional advice.

Negotiating without overpaying

Price is only one lever. A flexible closing date, a clean offer with few conditions, or a strong deposit can win a deal at a fair price. Study recent comparable sales with your agent so your number is grounded in data — not emotion.

Facing multiple bids? Don't get swept up. Our guide to winning a bidding war without overpaying covers strategy in detail, and you can browse live listings to benchmark pricing in your target area.

More room to compete with HOMEH

Because eligible HOMEH buyers receive the industry's highest Cashback Rebate, you can stretch your offer further and still come out ahead. See your number with the cashback calculator.