How the Home Buying Process Works in Ontario
Buying a home follows a defined legal and transactional process. While every purchase is unique, understanding the typical steps ahead of time can help buyers plan confidently, manage risk, and avoid surprises along the way.
Below is a clear overview of how the home buying process generally works, from early preparation through to closing day.
Step 1: Planning and preparation
Before viewing homes, buyers should clarify their goals, preferred locations, and budget comfort level. This includes understanding property type, neighbourhood priorities, and must haves versus nice to haves.
Many buyers also choose to work with a Realtor early to review recent sales, current inventory, and market conditions before touring homes. This preparation helps set realistic expectations and avoid rushed decisions later.
Step 2: Mortgage pre approval
Mortgage pre approval helps buyers understand borrowing limits, estimated payments, and how lender guidelines affect affordability.
Buyers should also plan for upfront costs, including:
• The deposit
• The down payment
• Closing costs, such as legal fees, land transfer tax, inspections, and adjustments
A pre approval letter is often required when submitting an offer.
Step 3: Property search and viewings
Once financing and priorities are clear, the search begins. Buyers review listings, attend showings, and compare properties across price points and neighbourhoods.
Seeing homes in person often helps buyers refine priorities and identify trade offs before making an offer.
Step 4: Making an offer and negotiating terms
An offer outlines price, deposit, closing date, and conditions, along with an irrevocable period that sets a response deadline.
Common conditions include:
• Financing
• Home inspection
• Review of documents, such as a condominium status certificate
If accepted, the buyer typically delivers the deposit within 24 hours, as outlined in the agreement.
Step 5: Conditional period
During the conditional period, buyers complete due diligence. If satisfied, conditions are waived or fulfilled in writing, at which point the agreement becomes firm and legally binding.
If conditions are not met, the agreement may be terminated in accordance with its wording.
Step 6: Preparing for closing
After an agreement becomes firm, buyers finalize mortgage documents, secure home insurance, review the Statement of Adjustments, and prepare remaining funds.
Utilities, address changes, and moving logistics are also arranged during this stage.
Step 7: Closing day
On closing day, funds are transferred through the lawyers involved and ownership is registered. Once registration is complete and funds are received, keys are released according to the agreement.
Final thoughts
Understanding the buying process helps buyers make informed decisions and approach each step with confidence rather than pressure.
If you want a deeper walkthrough, download our homebuyers guide or visit our Buyers page.
