search
RECO Logo
hamburger icon
search
Consumers
Buyer journey Seller journey Resources RECO Information Guide Things you need to know Make sure your real estate agent is registered Information for buyers Information for sellers Your deposit is protected
Agents and Brokerages
TRESA Explained RECO Bulletins RECO tool for sharing RECO Information Guide and forms Becoming a real estate agent Becoming a real estate broker Info for real estate agents Info for brokerages Insurance Fee schedule Labour mobility
Learners
About real estate education in Ontario Education requirements Becoming a real estate agent Becoming a real estate broker Post-registration education for agents Brokerage staff compliance training Continuing education (CE) Updates More information
Enforcement
About RECO’s complaints process Submitting a complaint After submitting a complaint If you are the subject of a complaint Inquiring about the number of offers on a property Enforcement activities
News
Events
iPro
Information and latest updates on iPro Submit a Claim Home buyers and sellers FAQ Agent and brokerage FAQ
About
What we do Performance measures Governance Our team Advisory councils
Agent/Brokerage Search MyWeb Login Submit a Complaint RECO Information Guide
Home Consumers Buyer journey Getting ready to buy

Before you start, you will need to consider:

What can you afford? Buying a home isn’t just about the purchase price. There are other costs too—like legal fees, moving expenses, property taxes, and home insurance. Make sure you understand all the costs (outlined below) involved so there are no surprises. 

How will you pay for it? Depending on the sale price, you will need a minimum down payment of five per cent to purchase a home (as high as 20 per cent may be required). Most buyers need a mortgage (a loan from a bank or mortgage broker) to cover the remaining costs. It’s a good idea to get pre-approved before you start your search. This helps you understand what you can afford and makes you a stronger buyer when it’s time to make an offer.

What kind of home do you want? Think about what’s most important to you. Do you want a house, condo, or a townhouse? How many bedrooms? A yard? Make a list of your must-haves and nice-to-haves.

Where do you want to live? Consider your lifestyle, commute, school zones, and access to services. The right location is just as important as the right home.

In addition to the purchase price, what other costs are involved?

There are additional costs that may be involved in buying a home. Here are some key expenses that may apply:

Legal fees 

  • Home inspection (if required)
  • Real estate brokerage fees/commissions (including HST)  
  • Mortgage/title insurance (if required)
  • Taxes, including the Ontario Land Transfer Tax (where applicable)

Moving costs

  • Warranty fees (new construction)
  • Interim occupancy fees (new construction condominiums)

Property taxes

  • Home insurance
  • Condominium fees
  • Utilities
  • Repairs and maintenance

Ask your real estate agent to explain the full costs of buying a home, so you know how much money to set aside.

Learn more:
Understanding Title insurance | Financial Services Regulatory Authority of Ontario
What is mortgage loan insurance?
Land Transfer Tax

Most buyers require a loan (a mortgage) to purchase a home. This is the loan given to you by a lender (a financial institution lending you the money).

A loan or mortgage can be arranged through a licensed mortgage broker or directly through a financial institution.

Before you start considering the purchase of a home, you will need to know how much money you could borrow from a lender to pay for the purchase price and related fees. Pre-approval helps you:

  • Determine the maximum amount to borrow you qualify for.
  • Determine an estimate of your mortgage payments (amount and frequency).
  • Lock an interest rate for a specific period of time.

Most importantly, pre-approval ensures your search can focus on properties you can afford.

Learn more:
Choosing a mortgage that’s right for you
Getting pre-approved for a mortgage
Tools and information to help you buy a house or condominium in Canada

A deposit is a sum of money that is paid upfront, at the time your offer to purchase a home is accepted. It represents a commitment to the seller, indicating that you are serious about the purchase and intend to follow through. Note, if your offer is not accepted, your deposit should be returned. 

The deposit is part of a down payment, which will be paid later in the process.

A down payment is the amount of money you put towards the purchase of a home -- and this includes the deposit amount. The lender deducts your down payment from the purchase price of your home – and the mortgage or loan covers the rest of the price of the home.

In Canada, to obtain a mortgage/loan from -most lenders and to be eligible for mortgage loan insurance, you must have a minimum down payment of 5% of the total purchase price of the home.

If your down payment is less than 20% of the price of your home, you will typically need to buy mortgage loan insurance. Note that in Ontario, provincial sales tax applies to mortgage loan insurance premiums.

A buyer is free to have a down payment that is higher than 20%.

The amount of down payment you will need depends on the purchase price of the home. Your income, debts, and the appraised value of the home will also affect the amount of your down payment. Speak to a licensed mortgage broker or your financial institution for more information.

Learn more:
How much you need for a down payment
About mortgage loan insurance

Your real estate agent will need to understand what you are looking for. Before you start your search for a real estate agent, consider your wants and needs. Your needs are the things the home must have for you to even consider it. Your wants are the extras that might make one home more desirable than another.

  • What type of property are you looking for? Decide whether you want a house, condominium or another type of property. Each property type offers unique benefits and potential drawbacks that can impact your lifestyle and financial situation.
  • What features, such as a minimum number of bedrooms or a finished basement, are important?
  • What locations are you considering?

What you are looking for, combined with what you can afford, will help your real estate agent identify the homes that are most likely to meet your needs.