How to Buy a Home in Toronto

Sales and new listings both went down, and the average condo price is lower than last year. There may be room to negotiate on price. It is also a good time to look closely at terms like the closing date and conditions. On Oct 28, the Bank of Canada raised its key rate from 2.25% to 2.5%. Mortgage (home loan) rates may go up too, so check your pre-approved rate again.

Sources: TRREB (October news release and Market Watch report), Bank of Canada. See the source list below.

1. Sign a buyer agreement with your real estate agent

   Since December 1, 2023, an Ontario real estate agent can only work with buyers as clients. The old “customer” option (getting some help from a real estate agent who does not represent you) has ended. So you sign a Buyer Representation Agreement (a contract that says the agent works for you). I explain how long it lasts and how the fee works before you sign.

   The law: before giving you any service, a real estate agent must give you the RECO Information Guide and explain it, and a buyer representation agreement must be put in writing and signed before you make an offer (O. Reg. 567/05 s. 13, 13.6). The agreement must clearly show its start date, end date and how the fee is worked out (s. 13.4).

2. Get mortgage pre-approval

   Ask a bank or mortgage broker how much you can borrow. Canada has a stress test (a check to see if you could still pay at a higher rate than your real rate). So your pre-approved amount may be lower than you expect.

   The law: for an uninsured mortgage (20% or more down), OSFI (the federal bank regulator) rules make the lender check that you could pay at the higher of “your contract rate + 2%” or 5.25% (OSFI, December 2023). With less than 20% down you need mortgage insurance. Insured mortgages use the same test rate under CMHC’s rules, and are only for homes priced under $1,500,000 (CMHC).

3. Search and see homes

   I narrow down homes that fit what you want, and we go see them together. For condos, I check the monthly fees and building condition. For houses, I check big-cost items like the roof and heating.

   The law: your real estate agent must tell you about every home that fits what you want, no matter how much commission it pays (O. Reg. 567/05 s. 22.4). Your real estate agent must verify your ID for the transaction (federal anti-money-laundering regulations, s. 101). In practice, this is done before the offer is written (common practice).

4. Make an offer and negotiate

   Your offer goes in an Agreement of Purchase and Sale. It sets the price, closing date, what is included and any conditions. If the seller accepts, you pay a deposit by the deadline. The deposit amount and deadline can also be negotiated.

   The law: the seller’s brokerage must tell every bidder how many written offers there are (O. Reg. 567/05 s. 22.7). Your deposit is held in the brokerage’s trust account, separate from its own money (TRESA s. 27).

5. Check your conditions

   You check conditions like financing (getting your loan) and a home inspection (a check of the home’s condition) within the set time. For a condo, your lawyer reviews the Status Certificate (a paper from the condo office about the building’s money and upkeep).

   The law: a condo corporation must give a status certificate within 10 days of a request (and payment of its fee), and it is bound by what the certificate says (Condominium Act s. 76). A new condo bought from the builder has a 10-day cooling-off period (s. 73).

6. Closing and keys

   On closing day, your lawyer sends the rest of the money, pays the land transfer tax and registers you as the owner. Once that is done, you get your keys.

   The law: your lawyer checks that a married seller’s spouse has consented (Family Law Act s. 21). Land transfer tax is paid when the deed is registered, and the first-time buyer refund is usually applied right then (Land Transfer Tax Act s. 9.2).

Quotes are copied word for word from the law. The “In plain words” lines are our explanation, not an official translation. This is not legal advice.

1. You get the RECO Information Guide, explained, before any service

   Every Ontario real estate agent must give you the guide made by RECO (the Real Estate Council of Ontario) and explain it before helping you in any way, even a showing. The guide sets out your rights: representation, fees, and multiple representation (one agent acting for both sides).

   Read the law

   Before providing services or assistance to a person in relation to trading in real estate a registrant shall provide the person with a copy of the information guide or a link to the guide on the administrative authority’s website. … Before providing services or assistance to a person in relation to a trade in real estate a broker or salesperson shall explain the contents of the information guide to the person.

   In plain wordsBefore a real estate agent helps you in any way, they must give you the RECO Information Guide (or a link to it) and explain what is in it. If you did not get it, you can ask for it.

   Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026

2. Your buyer agreement must be in writing, with clear dates and fees

   Since December 1, 2023, an Ontario brokerage cannot sign a buyer agreement that does not include representation (O. Reg. 567/05 s. 13.3.1). The buyer representation agreement must be in writing before you make an offer, and must clearly show the start and end dates, how the fee is worked out, and the services. You initial next to the end date. Once you have a representation agreement, your real estate agent must tell you about every home that fits your criteria, no matter how much commission it pays (s. 22.4).

   Read the law

   If a brokerage enters into a buyer representation agreement with a buyer and the agreement is not in writing, the brokerage shall, as soon as possible after entering the agreement and before the buyer makes an offer, reduce the agreement to writing, have it signed on behalf of the brokerage and provide it to the buyer for signature.

   In plain wordsEven a spoken agreement must be put in writing, signed by the brokerage and given to you to sign, before you make an offer.

   Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026

   The agreement clearly, comprehensibly and prominently, sets out the following information: i. The date on which the agreement takes effect and the date on which it expires. ii. The method for determining, A. the amount of any remuneration payable to the brokerage, … 2. The expiry date is displayed prominently on the first page of the agreement. 3. The buyer or seller has initialled the agreement next to the expiry date.

   In plain wordsThe agreement must clearly show its start and end dates and how the fee is worked out. The end date must be easy to see on the first page, and you initial next to it.

   Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026

   If a brokerage has entered into a representation agreement with a buyer, a broker or salesperson who represents the buyer under the agreement shall inform the buyer of properties that meet the buyer’s criteria without having any regard to the amount of the remuneration, if any, to which the brokerage might be entitled.

   In plain wordsYour real estate agent must tell you about every home that fits your criteria, even if it pays little or no commission.

   Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026

3. Your deposit is held in trust and insured

   Your deposit usually goes into the listing brokerage’s trust account. The law makes the brokerage keep it apart from its own money, use it only as the contract says, and deposit it within five business days (O. Reg. 567/05 s. 17). If the brokerage goes broke or steals the money, RECO consumer deposit insurance covers up to $200,000 per claim.

   Read the law

   Every brokerage shall, … (b) deposit into the account all money that comes into the brokerage’s hands in trust for other persons in connection with the brokerage’s business; (c) at all times keep the money separate and apart from money belonging to the brokerage; and (d) disburse the money only in accordance with the terms of the trust.

   In plain wordsA brokerage must put client money such as your deposit in a separate trust account, keep it apart from its own money, and pay it out only as the contract says.

   Source: ontario.ca/laws/statute/02r30 · checked Oct 30, 2026

   The coverage is available at no cost to you. All brokers and salespersons are required by law to participate in an insurance program that includes consumer deposit insurance. … The consumer deposit coverage provides up to a maximum of $200,000 per claim and up to a maximum of $4 million for all claims related to a single event (for example, insolvency of a brokerage).

   In plain wordsA deposit paid to a registered brokerage is insured, up to $200,000 per claim, against things like theft or the brokerage going broke. You pay nothing for this.

   Source: reco.on.ca/consumers/consumer-deposit-insurance/ · checked Oct 30, 2026

4. You must be told how many competing offers there are; open offers

   When several people bid on the same home (multiple offers), the seller’s brokerage must tell every bidder how many written offers there are. Since December 2023, if the seller directs it in writing, the price or terms of other offers can be shared (an “open offer”), but it is the seller’s choice, not a duty. Bidders’ identities cannot be shared.

   Read the law

   If a brokerage that has entered into a representation agreement with a seller receives a competing written offer, the brokerage shall, (a) communicate the number of competing written offers to every person who is making one of the offers; and (b) if the seller directs, share the substance of the competing written offers with every person who is making one of the offers.

   In plain wordsThe seller’s brokerage must tell every bidder how many written offers there are. If the seller directs it in writing, the brokerage may also share what is in the other offers (such as the price). This is called an “open offer”.

   Source: ontario.ca/laws/regulation/050567 · checked Oct 30, 2026

   The legislation does not address an “open offer process” or put rules in place regarding how an open offer process would be conducted. It simply permits an agent to follow the seller’s written direction to share all or select parts of the content of offers.

   In plain wordsAn open offer is the seller’s choice, not a duty. The law only allows sharing offer contents; it does not set rules on how. So ask in advance whether your offer may be shown to other bidders.

   Source: reco.on.ca/agents-and-brokerages/reco-bulletins/reco-bulletin-4-1-number-and-content-of-competing-offers/ · checked Oct 30, 2026

5. A new condo can be cancelled within 10 days

   If you buy a new (pre-construction) condo straight from the developer, you can cancel in writing, for any reason, within 10 days of getting the disclosure statement, the condo guide and the fully signed contract, and get your deposit back. Your lawyer reviews the contract during these 10 days. Resale homes and new freehold houses have no such period.

   Read the law

   To rescind an agreement of purchase and sale under this section, a purchaser or the purchaser’s solicitor shall give a written notice of rescission to the declarant or to the declarant’s solicitor who must receive the notice within 10 days of the latest of, (a) the date that the purchaser receives the disclosure statement; (b) the date that the purchaser receives a copy of the applicable condominium guide under section 71.1; and (c) the date that the purchaser receives a copy of the agreement of purchase and sale executed by the declarant and the purchaser.

   In plain wordsIf you buy a new condo straight from the developer (the “declarant”), you can cancel in writing within 10 days of the latest of: getting the disclosure statement, the condo guide, or the contract signed by both sides. The notice must reach the developer (or their lawyer) within those 10 days.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

6. For a resale condo, you have the right to a status certificate

   A status certificate is a paper from the condo corporation showing the unit’s fees and any arrears, the building’s reserve fund, lawsuits, budget, rules and insurance. The corporation must give it within 10 days of a request (and fee), and is bound by what it says. A condo offer usually has a condition that your lawyer reviews it.

   Read the law

   The corporation shall give to each person who so requests a status certificate with respect to a unit in the corporation, in the prescribed form, that specifies the date on which it was made and that contains, (a) a statement of the common expenses for the unit and the default, if any, in payment of the common expenses; … The corporation shall give the status certificate within 10 days after receiving a request for it and payment of the fee charged by the corporation for it. … The status certificate binds the corporation, as of the date it is given or deemed to have been given, with respect to the information that it contains or is deemed to contain, as against a purchaser or mortgagee of a unit who relies on the certificate.

   In plain wordsAnyone who asks (and pays the fee) must get the status certificate within 10 days. It lists the condo fees, any unpaid amounts, the reserve fund, lawsuits, budget and rules, and the corporation is bound by what it says. That is why a resale condo offer usually includes a “status certificate review” condition.

   Source: ontario.ca/laws/statute/98c19 · checked Oct 30, 2026

7. The seller’s spouse must consent (Family Law Act)

   In Ontario, the home a married couple lives in is a “matrimonial home”. It cannot be sold without the spouse’s consent, even if only one name is on title. The contract usually has a spousal consent box the seller’s spouse signs. Your lawyer checks this before closing so no ownership dispute comes up later. This section does not apply to common-law couples.

   Read the law

   No spouse shall dispose of or encumber an interest in a matrimonial home unless, (a) the other spouse joins in the instrument or consents to the transaction; (b) the other spouse has released all rights under this Part by a separation agreement; (c) a court order has authorized the transaction or has released the property from the application of this Part; …

   In plain wordsA married person cannot sell or mortgage the family home (the “matrimonial home”) unless their spouse signs or consents, even if only one name is on title. Your lawyer checks the seller’s spousal consent, and the same rule will apply to you when you sell later.

   Source: ontario.ca/laws/statute/90f03 · checked Oct 30, 2026

8. ID checks are required by law (FINTRAC)

   Under federal anti-money-laundering law, real estate agents (and builders and mortgage brokers) must verify your identity with government ID and keep a record. They also record money received, and must report cash of $10,000 or more to FINTRAC (Canada’s financial intelligence unit). That is why deposits are paid by bank draft or wire, not cash (common practice).

   Read the law

   A real estate broker or sales representative shall (a) in accordance with section 105, verify the identity of a person who conducts a transaction in respect of which they are required to keep a record under subsection 58(1); … If every party to a transaction is represented by a real estate broker or sales representative, each real estate broker or sales representative is required only to verify the identity of the party or parties that they represent.

   In plain wordsYour real estate agent must verify your identity (for example with government ID) and keep a record of it under FINTRAC rules. This is required in every deal, not a sign of distrust. They also keep a record of money they receive.

   Source: laws-lois.justice.gc.ca/eng/regulations/SOR-2002-184/FullText.html · checked Oct 30, 2026

9. Not a citizen or PR: 25% tax and the federal purchase ban

   Across Ontario, a foreign buyer pays the 25% Non-Resident Speculation Tax (NRST), plus a 10% city tax inside Toronto. On top of that, federal law bans non-Canadians from buying residential property at all (to January 1, 2027 under the current law; Budget 2026 proposes 2029 for existing homes and an exemption for new homes, not law yet). There are exceptions, such as temporary residents on work or study permits who meet set conditions, or buying with a Canadian spouse, and an NRST rebate may be available once you become a permanent resident. Always check with a lawyer before you make an offer.

   Read the law

   The NRST applies on the purchase or acquisition of an interest in residential property located anywhere in Ontario by individuals who are foreign nationals (individuals who are not Canadian citizens, permanent residents of Canada or registered as an Indian under the Indian Act (Canada)) or by foreign corporations or taxable trustees. Effective October 25, 2022, the NRST rate is 25%.

   In plain wordsIf you are not a Canadian citizen or permanent resident and buy a home anywhere in Ontario, you pay an extra 25% of the price. If even one co-buyer is a foreign national, the tax applies to the whole price. Some rebates and exceptions (such as OINP nominees) exist.

   Source: ontario.ca/document/land-transfer-tax/non-resident-speculation-tax · checked Oct 30, 2026

   Municipal Non-Resident Speculation Tax (MNRST) – City Council adopted item 2024.EX11.1 – Municipal Non-Resident Speculation Tax on Foreign Buyers of Residential Property, which introduced a rate of 10 per cent on the purchase price for foreign buyers on certain residential properties, in additional to the MLTT, effective January 1, 2025.

   In plain wordsFor a home inside the City of Toronto, since January 1, 2025, foreign buyers pay a city tax of 10% on top of the 25% provincial NRST.

   Source: toronto.ca/services-payments/property-taxes-utilities/municipal-land-transfer-tax-mltt/municipal-land-transfer-tax-mltt-rates-and-fees/ · checked Oct 30, 2026

   Despite section 34 of the Citizenship Act, it is prohibited for a non-Canadian to purchase, directly or indirectly, any residential property. … Subsection (1) does not apply to (a) a temporary resident within the meaning of the Immigration and Refugee Protection Act who satisfies prescribed conditions;

   In plain wordsAs a rule, a non-Canadian (not a citizen or permanent resident) cannot buy residential property. There are exceptions, such as temporary residents (work permit holders, students) who meet set conditions, or buying with a Canadian spouse. The federal government extended the ban to January 1, 2027 (S.C. 2024, c. 17, s. 149).

   Source: laws-lois.justice.gc.ca/eng/acts/P-25.2/FullText.html · checked Oct 30, 2026

   Subsection 237(2) of the Budget Implementation Act, 2022, No. 1 is replaced by the following: … Section 236 comes into force on the fourth anniversary of the day on which section 235 comes into force.

   In plain wordsThe ban was enacted by s. 235 of the 2022 budget act and started on January 1, 2023; s. 236 repeals it. The 2024 amendment set the repeal at the fourth anniversary of the start date, so the ban runs to January 1, 2027. After that it may be extended again or changed.

   Source: laws-lois.justice.gc.ca/eng/AnnualStatutes/2024_17/FullText.html · checked Oct 30, 2026

10. New homes come with the Tarion warranty and deposit protection

    A newly built home in Ontario (house, townhouse or condo) comes with the builder’s warranty by law, backed by Tarion (Ontario’s new home warranty group). The warranty starts when you sign the contract and runs up to 7 years after you move in (the 1-, 2- and 7-year items differ). Before you move in, you have deposit protection and delayed closing coverage, and new condo deposits are held in trust under the Condominium Act. The builder must be licensed by the HCRA (Home Construction Regulatory Authority).

    Read the law

    Every vendor of a home warrants to the owner, (a) that the home, (i) is constructed in a workmanlike manner and is free from defects in material, (ii) is fit for habitation, and (iii) is constructed in accordance with the Ontario Building Code; (b) that the home is free of major structural defects as defined by the regulations;

    In plain wordsA builder who sells a new home must, by law, warrant that it is well built, free of defects in materials, fit to live in, built to the Ontario Building Code and free of major structural defects. Tarion (Ontario’s new home warranty group) backs this warranty.

    Source: ontario.ca/laws/statute/90o31 · checked Oct 30, 2026

    Condominium unit deposits must be placed in trust under the provisions of the Condominium Act. If your purchase agreement is terminated by your builder, your deposit must be returned to you in full within 10 days. If your builder does not return your deposit, Tarion provides deposit protection of up to $20,000.

    In plain wordsA new condo deposit is held in trust under the Condominium Act, and if the builder cancels, it must be returned in full within 10 days. If not, Tarion covers up to $20,000. For new freehold homes (contracts since 2018), Tarion covers up to $60,000 for homes priced $600,000 or less, and 10% of the price (up to $100,000) above that (same Tarion page).

    Source: tarion.com/node/730 · checked Oct 30, 2026

This describes a typical resale home contract. The exact wording differs from deal to deal, and new-home and pre-construction contracts use the builder’s own much longer form.

1. Irrevocability (offer deadline)

   The date and time until which your offer stands. If the seller signs before then, it becomes a contract, and you cannot take the offer back before that time. It is usually set short, from a few hours to a day.

2. Completion (closing) date

   The day you pay the rest and ownership passes to you. The lawyers exchange money and registration, and you get the keys. Line it up with your mortgage approval, the end of your current lease and your moving date. Land transfer tax is paid on this day.

3. Deposit

   Money you pay after the offer is accepted to hold the deal. The clause sets the amount, the deadline (usually “within 24 hours of acceptance”) and who holds it in trust (usually the listing brokerage). It counts toward your down payment and is subtracted at closing. You can lose it if you break the contract.

4. Chattels and fixtures (what is included)

   Things that can be carried away (chattels), like the fridge, washer, curtains and light fixtures, are yours only if they are listed. Built-in items (fixtures) stay with the home unless the seller lists them as excluded (for example a chandelier). Writing model names or locations avoids arguments.

5. Rental items

   Equipment such as the hot water tank, furnace or water filter is often rented, not owned. Rental items listed in the contract pass to you, and you take over the monthly payments. Check the monthly cost, the remaining term and any buy-out fee.

6. HST (sales tax)

   Says whether HST is included in the price or added on top. A resale home someone has lived in usually has no HST (the common case). New or substantially renovated homes and business property can be different, so check with a lawyer or accountant.

7. Title search and requisition date

   The deadline for your lawyer to search the title (ownership records) for mortgages, other people’s rights or restrictions on the home. If there is a problem, your lawyer must ask the seller to fix it (a requisition) by this date. It is set a few weeks before closing.

8. Conditions (Schedule A)

   A page attached to the contract listing your conditions, such as financing, a home inspection or a status certificate review, and their deadlines. If a condition is not met in time, the deal ends and you get your deposit back. A firm offer (no conditions) has none of this protection, so be careful.