Step-by-Step Guide for First-Time Home Buyers in Ontario
1. Get Pre-Approved (Start here)
Before you begin looking at homes, speak with a mortgage advisor. They’ll help you determine your budget, down payment options, and what your monthly payments will look like in real terms.
A pre-approval also protects you from interest rate fluctuations while you search.
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Mortgage Preparation Checklist
Before meeting with a mortgage advisor or lender, it helps to have your information organized.
Here’s what to prepare:
Personal & Financial Information
- Government-issued ID (driver’s license or passport)
- Proof of income (recent pay stubs or employment letter)
- Two years of T4s and Notice of Assessment (if applicable)
- Details of any additional income sources
- Record of current debts (credit cards, car loans, student loans, etc.)
- Record of monthly expenses (utilities, insurance, subscriptions)
Down Payment & Savings
- Proof of down payment funds (bank statements, investment account statements, etc.)
- Record of any gifted funds, including a signed gift letter (if applicable)
- Details on savings or RRSPs used for the Home Buyers’ Plan (if applicable)
2. Choose the Right Realtor
Work with someone experienced in helping first-time buyers. You want an agent who slows the process down, explains every step clearly, and looks out for your financial interests.
The right Realtor will also have a reliable network of mortgage specialists, home inspectors, and lawyers to help guide your transaction with confidence.
3. Begin the Search
Focus on neighbourhoods that align with your lifestyle, commute, and future plans. Review sold data (not just list prices) to understand what homes are truly worth.
Your agent can help you see both the potential and the realistic limitations of a property so you make informed decisions.
4. Make an Offer That Protects You
When you find a home you love, your Realtor will structure an offer that includes conditions such as financing, home inspection, and (if applicable) a status certificate for condos.
These conditions act as safety nets, ensuring you’re protected while still presenting a strong, competitive offer.
5. Due Diligence
Once your offer is accepted, you’ll enter what’s called the conditional period. This is where you work through the conditions included in your offer; the ones your Realtor would have recommended to protect your best interests before the deal becomes firm.
Common conditions include:
final mortgage approval, a home inspection, and review of property documents (or a status certificate if you’re buying a condo). Each must be completed within the timeframe set out in your offer. Once all are satisfied, you’ll remove (or “waive”) the conditions, and your purchase becomes firm.This step confirms that everything aligns financially, structurally, and legally within the offer condition fulfillemt period.
6. Between Firm Deal and Possession
Once the deal is firm, your lawyer and lender step in to coordinate the final details, such as confirming your mortgage, preparing the closing documents, and ensuring the funds are ready for transfer.
During this time, your Realtor will schedule your final walkthrough. This is your chance to confirm that the property is in the same condition as agreed upon, clean and ready for move-in, with any included items still on site and in working order.
7. Closing Day
On closing day, your lawyer completes the transfer of funds and ownership. Once everything is registered, the keys are officially released to you and the home is yours.
Make sure to document utility readings, update your address, and take a quiet moment to enjoy the milestone you’ve just achieved. YOU'RE OFFICIALLY A HOMEOWNER!