Buying your first home in Ontario can feel exciting and overwhelming at the same time. A clear plan can help you understand the steps, prepare your documents and avoid surprises. Every purchase is different, so use this guide as a starting point for questions—not as a guarantee of mortgage approval.
1. Start with a realistic budget
Look beyond the purchase price. Estimate the monthly mortgage payment, property taxes, home insurance, utilities, maintenance, condo fees if applicable, and an emergency cushion. Choose a payment that leaves room for everyday expenses and savings.
2. Understand your down payment and mortgage options
The minimum down payment depends on the purchase price and applicable rules. Some mortgages require mortgage default insurance when the down payment is below a specified threshold. Ask a licensed mortgage professional to explain the options, costs and qualification requirements for your situation.
3. Prepare your documents
Common documents may include government-issued identification, recent pay statements, employment details, T4s or Notices of Assessment, bank statements showing the down payment, and details of debts. Self-employed applicants may need additional income and business records. Lender requirements vary.
4. Budget for Ontario closing costs
Possible costs include legal fees and disbursements, title insurance, a home inspection, appraisal fees if required, adjustments, moving costs and Ontario land transfer tax. Eligible first-time buyers may qualify for an Ontario land transfer tax refund. Toronto buyers may also need to consider the City of Toronto municipal land transfer tax.
5. Get advice before making commitments
A pre-approval can help you understand an estimated borrowing range, but it is not final mortgage approval. The lender still reviews your application, documents and property. Consider making an offer conditional on financing and inspection where appropriate, with advice from your real estate professional and lawyer.
6. Protect your future budget
Think about repairs, job changes, parental leave and other unexpected costs. Review any insurance needs separately and understand what a policy does—and does not—cover before purchasing it.
Quick checklist
- Set a comfortable monthly housing budget.
- Review your credit report and current debts.
- Gather income and down-payment documents.
- Estimate legal costs, land transfer tax and moving expenses.
- Discuss pre-approval and mortgage options before house hunting.
- Ask your lawyer about closing documents and deadlines.
Let’s talk about your next step
Contact me to discuss your questions. A consultation does not guarantee approval or coverage.
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