RE/MAX ULTIMATE
How to buy a home in Toronto
Buying a Torontohome with iDEALToronto means professional representation from search to closing — with a buyer’s agent who works solely in your interest, not the seller’s. In most cases, their fee is paid by the seller. This guide covers every stage: pre-qualification, offer terms, land transfer tax, inspection costs, and closing.
$0
Cost to buyer in most cases — seller pays the agent fee
$8,475
Max combined LTT rebate available to first-time buyers in Toronto
10X
Hours of preparation for every hour spent showing homes
Do you need your own agent when buying?
Many buyers don’t realise that a listing agent showing them a property is legally working for the seller — not them. That agent is obligated to share any information you give them with their client. Promises of savings or reduced fees from a listing agent benefit the seller, not you.
Many buyers don’t realise that a listing agent showing them a property is legally working for the seller — not them. That agent is obligated to share any information you give them with their client. Promises of savings or reduced fees from a listing agent benefit the seller, not you.
Working with the seller’s agent
- Legally obligated to share your information with the seller
- Can harm your negotiating position
- “Savings” they offer benefit the seller, not you
- No obligation to find you the best property for your needs
Working with your own buyer’s agent
- Shows you properties that match your needs
- Provides comparable sales data for informed offers
- Negotiates solely on your behalf
- Fee is paid by the seller in most cases
- First access to new opportunities as they come to market
What happens when you buy a home?
Every purchase follows the same stages. Understanding each one helps you move quickly and confidently when the right property appears.
1. Get pre-qualified
Before viewing properties, work with a mortgage representative to understand exactly how much you can borrow, set a realistic monthly payment and budget, estimate your down payment and closing costs, and explore any first-time buyer programmes that may increase your purchasing power. A pre-qualification certificate also gives you a competitive edge in multiple-offer situations by showing sellers you are financially ready.
2. Define your needs and location
Before searching, be clear on property type, size, bedroom and bathroom count, and must-have features — for both houses and condos. Then layer on neighbourhood priorities: transit access, walkability, proximity to work, school districts, parks, and restaurants. Your agent will help you compare neighbourhoods objectively against your list.
3. Search the market
Your buyer’s agent is responsible for ensuring you have access to the entire market — not just MLS listings. This includes private sales, expired listings, exclusive properties, and pre-construction developments. You will receive first access to new opportunities that match your criteria as they come up.
4. Complete the loan process
Once you have found a property, your mortgage representative assembles the full application package: credit report, employment and income verification, down payment confirmation, and appraisal. The package is submitted to the lender for underwriting approval. When approved, loan documents are prepared and sent to your lawyer for title registration.
5. Make an offer
Your agent prepares the Agreement of Purchase and Sale, including protective conditions — financing, home inspection, and condo status certificate review if applicable. All offers have an irrevocable period. The seller will accept, reject, or counter. Your agent negotiates on your behalf through every outcome.
6. Complete the sale and receive your keys
Your lawyer confirms clear title, registers the mortgage, handles the statement of adjustments, and coordinates with utility companies for final readings. Fire insurance must be in place before closing. On completion day, starting at 12:01 a.m., you are responsible for property taxes and utilities. You receive your keys and the property is yours.
What conditions should a buyer include in an offer?
When you find your property, your agent prepares the Agreement of Purchase and Sale. Most offers include one or more conditions that protect you if something unexpected comes up before closing.
What happens after you submit an offer?
Seller rejects it
Seller accepts as-is
Seller counter-offers
A counter-offer may include changes to price, closing date, or conditions. You can accept it or make further changes. In multiple-offer situations, sellers may not counter at all — instead you may be asked to improve your offer immediately. Your agent’s negotiation experience is most valuable in exactly these moments.
What are the key terms in an offer?
Every offer to purchase contains specific legal terms. Your agent will walk you through the full document — here is what each term means.
Irrevocable date
The deadline by which the seller must accept, reject, or counter your offer. Usually set for the same day or the following day. After this period, the offer is considered expired.
Completion date
The agreed date when ownership of the property transfers from the seller to you. Also called the closing date. It is negotiated and specified in the offer.
Requisition date
The period — usually 7–10 days before closing — during which your lawyer must confirm there are no title issues, liens, or encumbrances on the property.
The deposit
A deposit may accompany your offer or be delivered to the seller’s brokerage within 24 hours of acceptance. In Toronto, deposits typically represent 5–10% of the purchase price and are held in trust until closing.
Fixtures
Items permanently attached to the property and automatically included in the sale — bathtubs, sinks, kitchen cabinetry. Anything nailed down is generally considered a fixture.
Chattels
Moveable items not automatically included in the sale. If you want them, they must be explicitly listed in the offer. Common examples: appliances, light fixtures, rugs, drapes, window A/C units, garage door openers, and outdoor furniture.
How much does a home inspection cost in Toronto?
A home inspection is one of the most important conditions you can include in an offer. Inspectors check major systems and structural elements before you commit to the purchase.
| Inspection type | Cost range | What is covered |
| Standard | $450 – $550 | All major systems and components: roofing, exterior, structure, heating/cooling, electrical, plumbing, and interior |
| Basic | $225 – $295 | Five major structural and mechanical systems: roofing, structure, electrical, heating/cooling, and plumbing |
| Single item | $150 – $195 | One specific system — plumbing, roofing, etc. |
Some sellers offer a pre-listing inspection report. You can still commission your own inspection for independent peace of mind even if one already exists.
What happens at closing when buying a property?
Once your offer is accepted and all conditions are met, your lawyer takes over the final steps.
Your lawyer’s role
- Ensures the property has clear, marketable title — free of liens, encumbrances, or judgments
- Reviews all sale documents provided by your agent
- Registers the mortgage on your behalf
- Handles the statement of adjustments
- Notifies utility companies and arranges final meter readings
- Typical legal fees: $1,000–$1,500 plus disbursements
Common disbursements
- City tax certificate
- Land registry searches
- Title registration (deed and mortgage)
- Registration fees
- Utility searches
- Copies, postage, and courier fees
Frequently asked questions
You are not legally required to use one, but it is strongly recommended. A listing agent showing you a property is legally working for the seller — they are obligated to share information you give them with their client. A buyer’s agent works solely in your interest, provides comparable sales data, negotiates on your behalf, and in most cases their fee is paid by the seller at closing.
Toronto buyers pay both a provincial and a municipal land transfer tax on top of each other. The provincial rate runs from 0.5% on the first $55,000 up to 2% above $400,000. The City of Toronto applies an identical structure for its municipal tax. First-time buyers can receive rebates of up to $4,475 (municipal) and $4,000 (provincial) — a combined saving of up to $8,475.
The most common protective conditions are: a financing condition (time to secure mortgage approval), a home inspection condition (professional inspection before finalising), and — for condos — a status certificate review condition (time for your lawyer to review the building’s finances and rules). Your agent will advise which conditions are appropriate for the specific property and market situation.
There are three possible outcomes: acceptance as-is, outright rejection, or a counter-offer with changes to price, closing date, or conditions. In multiple-offer situations, sellers may skip the counter and ask you to improve your offer immediately. Your agent will guide you through each scenario and negotiate on your behalf.
Legal fees for a standard Toronto residential transaction typically run $1,000–$1,500 plus disbursements — which include land registry searches, title registration, city tax certificates, utility searches, and courier costs. Your lawyer ensures the property has clear title free of liens or judgments, registers your mortgage, and handles closing coordination.