Buying real estate in Ontario means signing a binding Agreement of Purchase and Sale, then having a lawyer complete the legal transfer of title into your name on closing day. Everything in between runs from arranging your financing and budgeting for closing costs to title searches and registering the deed through Ontario’s electronic land registration system.
This guide walks through the purchase in the order it actually happens, with the Ontario rules and numbers that decide what you pay and when you own the property. It focuses on freehold homes, with shorter sections on new builds and on what changes when you buy a condo. We handle residential closings across Ontario every week. Whether this is your first home or your fifth, the legal steps are the same, and the places buyers lose money are predictable.
What does buying a home in Ontario actually involve?
Two professionals guide a home purchase, and they do different jobs. Your real estate agent finds the property and negotiates the price and terms. Your real estate lawyer handles the legal side, called conveyancing, which is the work of transferring ownership of the land from the seller to you and making sure you receive a clean title in return for your money.
A purchase pulls in several people beyond those two. Your lender or mortgage broker arranges the financing. A home inspector checks the property’s condition. An insurance broker binds your home insurance for the closing date. Your lawyer ties the legal side together, confirms the title is clear, and handles the flow of funds. Knowing who does what helps you keep the deal moving and spot the moment each person needs something from you.
The legal heart of the deal is the Agreement of Purchase and Sale, often called the APS. This is the binding contract that sets the price, the closing date, what stays with the home, and any conditions. Most Ontario deals use the standard Ontario Real Estate Association Form 100. That form makes time of the essence and requires the deal to be completed by 6 p.m. on the closing date. Miss that deadline without a written extension and you can be in breach of contract.
When the seller accepts your offer, you provide a deposit that shows you are serious. It is commonly around 5 percent of the price, delivered shortly after acceptance, and held in trust by the listing brokerage until closing. The deposit is not an extra cost. It counts toward your purchase price on closing day. Your offer also sets an irrevocable period, which is the deadline for the seller to accept before your offer expires.
The agreement also decides what stays with the home. Fixtures, meaning things attached to the property such as light fixtures and built in shelving, usually stay unless the agreement says otherwise. Chattels, meaning movable items such as the fridge, stove, or washer, only stay if they are listed. Write down every item you expect to keep. Promises from the seller or details in the listing are not binding. If it is not in the agreement, you may not get it.
Closing is the day you become the legal owner. Your lawyer exchanges funds with the seller’s lawyer and registers the transfer of title electronically. Ownership passes at the moment of registration, not when you sign the offer and not when you hand over the deposit.
The single most useful thing you can do early is talk to a real estate lawyer before you sign anything, or at least the moment your offer is accepted. A short review of the agreement can catch problems with the conditions, the closing date, or what is included while you still have room to fix them.
How much money do you actually need up front?
Your down payment is only part of the cash you need, and the minimum depends on the price. In Canada you put down at least 5 percent on the first $500,000, 10 percent on the portion between $500,000 and $1,500,000, and 20 percent on homes priced at $1,500,000 or more. These are federal rules and they are current as of publication.
If your down payment is under 20 percent, you must carry mortgage default insurance, often called CMHC insurance, which protects the lender if you stop paying. The premium itself is added to your mortgage, but in Ontario the 8 percent provincial sales tax on that premium is due in cash on closing day. That is a closing cost many buyers forget to budget for.
Two more things catch buyers off guard. Your closing costs are separate from the down payment, and land transfer tax along with most closing costs must be paid in cash and cannot be added to your mortgage. Budget for them as their own line, not as part of the down payment.
Two federal programs help first time buyers build a down payment. The First Home Savings Account lets you contribute up to $8,000 a year, to a lifetime limit of $40,000, with the contributions tax deductible. The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP for a first home, repaid over 15 years. You can use both for the same purchase, and a couple buying together can each use both accounts. These are Canada Revenue Agency programs, and the limits are current as of publication.
Before you start shopping, set aside your down payment and a separate cash cushion for closing costs. The next section shows what those costs look like.
What are the closing costs when you buy in Ontario?
Closing costs in Ontario usually fall between roughly 1.5 and 4 percent of the purchase price. The single largest item for most buyers is land transfer tax, and in Toronto there are two of them. The table below sets out the main costs and what each one is.
| Cost | What it is | Typical amount in Ontario |
|---|---|---|
| Provincial land transfer tax | Tax paid to Ontario on the transfer of title | Sliding scale by price. About $6,475 on a $500,000 home |
| Toronto municipal land transfer tax | A second land transfer tax for homes inside the City of Toronto | Roughly doubles the land transfer tax. Confirm current 2026 rates |
| Legal fees and disbursements | Your lawyer’s fee plus title search, registration, and software costs | Fixed fee quote available before you retain us |
| Title insurance | A one time policy that protects your ownership against title defects | Varies with price and insurer, often a few hundred dollars |
| Provincial sales tax on mortgage insurance | 8 percent PST on the CMHC premium when you put down less than 20 percent | Due in cash on closing |
| Home inspection (optional) | An assessment of the property’s condition before you buy | Varies by size and property |
| Status certificate (condos only) | The condo corporation’s disclosure package | Capped at $100 including tax by law |
| Property tax and utility adjustments | Reimbursing the seller for amounts they prepaid | Prorated to the closing date |
The adjustments line deserves a closer look, because it surprises people. If the seller prepaid the property taxes for the year, you reimburse them for the part of the year you will own the home. The same applies to prepaid utilities or, in a condo, prepaid condo fees. Your lawyer calculates these to the day on your statement of adjustments, so the final figure is exact rather than a rough estimate.
Legal fees vary with the complexity of the deal. We work on transparent fixed fees for residential purchases and give you a full quote before you retain us, so there are no surprises on closing. When you compare quotes, ask what is included and whether title insurance and disbursements are extra, so you are comparing the full cost. You can request a quote before you commit.
How is Ontario land transfer tax calculated?
Ontario land transfer tax is charged on a sliding scale, so different portions of the price are taxed at different rates. For a home with one or two single family residences, the rates are as follows.
- 0.5 percent on the first $55,000
- 1.0 percent on the portion from $55,000 to $250,000
- 1.5 percent on the portion from $250,000 to $400,000
- 2.0 percent on the portion from $400,000 to $2,000,000
- 2.5 percent on the portion above $2,000,000
On a $500,000 home, that adds up to $275 plus $1,950 plus $2,250 plus $2,000, for $6,475 in provincial land transfer tax. You can confirm the formula on the Government of Ontario land transfer tax page. Your lawyer calculates the exact figure and pays it on your behalf when registering the transfer, so it comes out of the funds you provide before closing.
If the home is in the City of Toronto, you pay a second municipal land transfer tax on top of the provincial one, which roughly doubles the bill. Toronto updated its municipal rates in 2026, so confirm the current figure for your price before you budget.
First time buyers can claim a provincial rebate of up to $4,000, which removes the tax entirely on homes priced up to about $368,000 and reduces it above that. Buyers in Toronto can claim a further municipal rebate of up to $4,475. To qualify you must be at least 18, never have owned a home anywhere in the world, and occupy the home as your principal residence within 9 months. You claim the rebate at registration or within 18 months of closing. One trap catches many couples. If your spouse owned a home while you were together, you can lose the rebate even if you personally never owned one.
Put together, a first time buyer of a $500,000 home outside Toronto would owe $6,475 in provincial land transfer tax, then claim the $4,000 rebate, for a net $2,475. Your lawyer claims the rebate electronically when registering the transfer, so in most cases you never pay the full amount and wait for a refund.
If you are not a Canadian citizen or permanent resident, you may also owe a 25 percent speculation tax called the Non Resident Speculation Tax, which now applies to homes bought anywhere in Ontario. Many older guides still say the rate is 15 percent or that it only applies around the Greater Toronto Area. That is out of date. The rate is 25 percent province wide as of publication, so a foreign buyer should factor it in early because it dwarfs every other closing cost.
Land transfer tax is real cash due on closing day. Run your number early, then have your lawyer confirm the exact amount on your statement of adjustments.
What goes into your offer, and which conditions protect you?
Your offer is a legal document, not a wish list. In Ontario it is the Agreement of Purchase and Sale, and once the seller signs it back within the irrevocable period, you are bound. The price and closing date matter, but the conditions you include are what let you walk away safely if something goes wrong.
Most buyers include one or more conditions that must be satisfied before the deal becomes firm. A financing condition gives you time to confirm your mortgage. A home inspection condition lets you check the property’s condition. For a condo, a status certificate condition lets your lawyer review the corporation’s finances before you commit. If you are counting on selling your current home first, a sale of property condition protects you. If a condition is not met by its deadline, you can usually end the deal and have your deposit returned.
An offer with no conditions is called a firm offer. It is the strongest kind in a competing market, but it is also the riskiest, because there is no way out if your financing falls through or the inspection turns up a serious problem. We regularly see buyers waive conditions to win a bidding war and then discover an issue they cannot escape. Talk to your lawyer before you waive anything, even under time pressure.
When a condition is met, you sign a waiver or a notice of fulfillment, and once all conditions are cleared the deal becomes firm. After that point your deposit is at risk if you do not close, so treat the move from conditional to firm as the moment the deal becomes real.
Decide which conditions you need before you sign, not after. They are far easier to include up front than to add once the seller has accepted.
When should you bring in a real estate lawyer?
Ideally before you sign the Agreement of Purchase and Sale, and at the latest about 30 days before your closing date. Retaining a lawyer early gives time to do the legal work properly and to fix problems before they become expensive.
Before you sign, a lawyer can review the agreement, check the closing date works with your financing, review the conditions, and flag anything in the title or the property that could cause trouble. After you are bound, the clock starts. We like to be retained at least 30 days before closing for a straightforward purchase. For new builds, or financed deals with several conditions, give 45 to 60 days.
In our practice, the files that go smoothly are almost always the ones where we were involved early. The files that go sideways tend to be the ones where a buyer signed a tight closing date first and called a lawyer later, with no slack left to clear a title problem or wait for a slow lender.
Choosing the right lawyer matters too. Look for someone who is experienced in Ontario real estate, gives you a clear fixed fee in writing, and answers your questions promptly. Closings turn on deadlines, so responsiveness is as important as price. Ask what the fee includes and whether title insurance and disbursements are extra, so the quote you compare is the full quote.
What does our purchase process look like, step by step?
Here is how a typical residential purchase runs at our firm, from the day you retain us to the day you get the keys.
1. Retainer and review, about 30 days before closing
You send us the signed Agreement of Purchase and Sale, two pieces of photo identification for each buyer, and your mortgage details. We review the agreement, confirm the closing date works, and tell you the cash you will need to bring to closing so there are no surprises. A health card is not accepted as identification for a real estate transaction, so use a driver’s licence and a passport where you can.
2. Searches and due diligence, the weeks before closing
We search title under Ontario’s land titles system to confirm the seller owns the property and to find anything registered against it. We also order off title searches, which look beyond the title for unpaid property taxes, utility arrears, open building permits, work orders, and zoning compliance. If a search turns up a problem, we deliver a requisition letter to the seller’s lawyer by the requisition date in your agreement, asking them to fix it before closing.
3. Mortgage and funds, one to two weeks before closing
We receive mortgage instructions from your lender, prepare your mortgage documents, and arrange for the mortgage money to be sent to our trust account. We confirm your home insurance is bound for the closing date, because most lenders will not release funds without proof of insurance. We also run the final searches and prepare the transfer.
4. Signing and the statement of adjustments, the week before closing
You come in to sign, in person or virtually, and we walk you through every document, including the transfer, your mortgage, and the declarations Ontario requires. We prepare your statement of adjustments, the final accounting that shows the exact cash you need to bring to close, after credits for your deposit and any prepaid items.
5. Closing day
We do a final search of the title that morning, exchange funds with the seller’s lawyer, and register the transfer of title and your mortgage through Teraview, the platform for Ontario’s electronic land registration system. Registration is only open Monday to Friday from 8:30 a.m. to 5:00 p.m., as the Teraview hours of service confirm. Once registration is complete and the seller’s lawyer confirms funds, the keys are released to you. After closing, we send you a reporting letter with a copy of the registered transfer and a summary of where your money went.
The most common delays we see come from mortgage instructions that arrive late, title issues that surface close to closing, and same day buy and sell chains where one slow wire transfer holds up everything. Choosing the right closing date removes much of this risk before it starts, which is why we wrote a full guide on the worst days to close a home.
What does a title search find, and why does it matter?
A title search is your lawyer’s review of the public land records to confirm the seller actually owns the property and to uncover anything that travels with the title. You take the property subject to whatever is registered against it and not cleared before closing, so this step protects you from inheriting someone else’s problem.
A title search can reveal the chain of ownership, registered mortgages and liens, easements that give others rights over the land such as a shared driveway or a utility right of way, restrictive covenants that limit how you use the property, and writs of execution against the seller. A writ is a court ordered claim from an unpaid debt or judgment, and if one is registered against the seller it must be cleared before the property can transfer to you. Off title searches add another layer, catching unpaid property taxes, utility arrears, and open building permits or work orders that a buyer would otherwise inherit.
Most buyers also purchase title insurance, a one time policy that protects you against title defects, certain kinds of fraud, and problems an ordinary search might miss, such as an unknown encroachment or work a past owner did without a permit. It often removes the need for a new survey, which is one reason it has become standard in Ontario closings, and your lender will usually require a policy in any event.
When a search turns up a defect, your lawyer sends a requisition letter listing what the seller must clear. The agreement sets a requisition date, which is the deadline to raise these issues. Anything missed after that date can become your problem, which is one more reason to retain a real estate lawyer with time to spare.
What happens on closing day?
On closing day your lawyer does a final search of the title that morning, called a subsearch, to confirm nothing new was registered overnight. Mortgage funds usually arrive from your lender around midday. Your lawyer assembles all the money, your down payment, the mortgage funds, and the closing balance, then sends the seller’s share to the seller’s lawyer and registers the transfer.
Most residential closings complete in the early afternoon, well inside the registration window that closes at 5:00 p.m. You become the legal owner at the exact moment of registration, not before. The keys are released once the seller’s lawyer confirms they have received the funds, which is why a morning closing rarely means keys at nine.
Keep your phone on and stay reachable on closing day. Even a routine deal can need a quick decision from you, and a few minutes of delay late in the afternoon can be the difference between closing on time and waiting until the next business day.
What is different when you buy a new build?
Buying a newly built home or a preconstruction condo follows the same legal path, with a few extra layers. Your purchase comes with the Tarion warranty, a statutory warranty every Ontario builder must provide under the Ontario New Home Warranties Plan Act. It covers workmanship and materials for one year, certain systems and water penetration for two years, and major structural defects for seven years, along with deposit protection and compensation if the builder delays your closing. Builders are licensed separately by the Home Construction Regulatory Authority.
New builds also carry tax differences. The price usually includes HST, and you may qualify for a new housing rebate, so confirm the net price and any rebate with your lawyer before you rely on the number. Preconstruction condos add an interim occupancy period, where you move in and pay occupancy fees to the builder before the building is registered and you take legal title. The timelines are longer and the contracts are more complex, so legal review before you commit matters even more than on a resale.
If you are buying a preconstruction condo, you have a 10 day cooling off period to cancel after you receive the disclosure package, a right under the Condominium Act, 1998. Use it. Have your lawyer review the agreement and the disclosure documents within that window, while you still have the right to walk away.
What mistakes do buyers make most often, and what they cost?
These are the patterns we see go wrong, and what each one can cost you.
Choosing a risky closing date
Friday closings, month end closings, and the day before a long weekend are the riskiest. If your registration misses the 5:00 p.m. Teraview cutoff for any reason, you can be in breach by 6:00 p.m. with no way to register until the next business day. The cost can include movers paid for nothing, storage, a hotel, and daily interest on bridge financing. A midweek date in the calmer middle of the month avoids most of this. Our guide to the worst days to close explains why.
Closing your sale and your purchase on the same day
It feels efficient, but it puts every transaction in a chain that depends on funds moving perfectly. One slow wire transfer and you can be legally bound to complete the purchase with no money in hand. Staggering your closings by a day or two, or arranging bridge financing, removes the risk.
Leaving less than 30 days from offer to closing
A short timeline leaves no slack to clear a title defect or to deal with a financing surprise. If something goes wrong, there is no time to fix it before the deadline, and you can be forced to choose between closing on bad terms and losing your deposit.
Treating financing as a sure thing
A preapproval is not final approval. Lenders can still withdraw financing late over a change in your credit, your employment, or a low appraisal. If that happens after your conditions are waived, you can lose your deposit and face a claim for damages. Keep your finances steady from offer to closing and avoid new debt or large purchases.
Underestimating the cash to close
Land transfer tax and the adjustments for prepaid property taxes cannot be rolled into your mortgage. Buyers who budget only for the down payment can find themselves scrambling for thousands of dollars days before closing. Add up the full closing cost list early and keep that cash separate.
Forgetting home insurance for closing day
Most lenders will not release mortgage funds without proof that your home insurance is bound for the closing date. Leave this to the last minute and your closing can stall while you chase a binder. Arrange insurance as soon as your deal is firm and send the binder to your lawyer a few days before closing.
Assuming verbal promises are part of the deal
If the seller says the fridge and the curtains stay, but the agreement does not list them, you may arrive to an empty kitchen with no recourse. Anything you expect to keep must be written into the Agreement of Purchase and Sale. The same care pays off with a home inspection, which is cheap insurance against an expensive surprise.
The date you write on your offer is a decision that should be considered. The buyers who are stressed are typically the ones who picked a Friday or a month end with no buffer.
Freehold versus condo, what changes when you buy?
When you buy a freehold home you own the house and the land outright. When you buy a condo you own your unit and a share of the common elements such as hallways, the roof, and amenities, and you take on monthly condo fees and a share of the corporation’s financial health. The legal review changes too, because a condo brings risks a freehold does not.
For a condo, your lawyer reviews the status certificate, a disclosure package the condo corporation must provide under section 76 of the Condominium Act, 1998. The corporation has 10 days to deliver it after a written request, and the fee is capped at $100 including tax. It reveals the reserve fund balance, any planned special assessments, whether the unit is behind on fees, the rules you will have to follow, and any lawsuits involving the corporation. A thin reserve fund or a looming special assessment can cost you thousands after closing, so this review is not a formality. If the corporation misses the 10 day deadline, the certificate is treated as showing nothing owing, which works in your favour. You can read more from the Condominium Authority of Ontario.
| Feature | Freehold | Condo |
|---|---|---|
| What you own | The house and the land | Your unit and a share of the common elements |
| Monthly fees | None to the property itself | Monthly condo fees |
| Key document your lawyer reviews | Title search and off title searches | Title search plus the status certificate |
| Who maintains the building and grounds | You do | The condo corporation |
| Main added risk | Title defects and undisclosed work orders | Special assessments and an underfunded reserve fund |
A clean status certificate is as important for a condo buyer as a clean title search is for a freehold buyer. Never waive a condo condition before your lawyer has read it.
Your Ontario home buying checklist
Use this checklist to keep your purchase on track from offer to keys.
Before you make an offer
- Get your financing sorted and know your true budget, including closing costs and the cash you cannot finance.
- Estimate your land transfer tax and, in Toronto, the second municipal tax, so the cash to close is no surprise.
- List every fixture and chattel you expect to keep so it can go into the agreement.
- Have a real estate lawyer review the agreement and the conditions before you sign, or the moment your offer is accepted.
After your offer is accepted
- Send the signed agreement, your identification, and your mortgage details to your lawyer.
- Satisfy or waive your conditions by their deadlines, and keep written records.
- Bind home insurance for the closing date and send the binder to your lawyer.
- For a condo, order the status certificate and have your lawyer review it before you waive conditions.
In the week before closing
- Sign your documents and review the statement of adjustments line by line.
- Send your closing funds to your lawyer’s trust account at least one business day before closing.
- Keep your phone on and stay reachable on closing day.
Frequently asked questions
Do I need a lawyer to buy a house in Ontario?
Yes. Only a lawyer can register the transfer of title and your mortgage through Ontario’s electronic land registration system, and lenders require a lawyer to certify title before they release mortgage funds. A lawyer also protects you by searching title and clearing problems before you own the home, so the role is both required and genuinely useful.
How long does it take to close on a home in Ontario?
For a typical financed purchase, plan on 30 to 60 days from accepted offer to closing. We like at least 30 days to run the searches and clear any problems, and we recommend retaining your lawyer about 30 days before closing for a straightforward deal. Closings under 30 days are possible but leave little room to fix title or financing problems, and new construction usually takes longer.
How much are closing costs when buying a home in Ontario?
They usually run between roughly 1.5 and 4 percent of the purchase price, and land transfer tax is the biggest piece. On a $500,000 home, provincial land transfer tax alone is $6,475, with a second municipal tax on top in Toronto. Remember these costs are cash and cannot be added to your mortgage, so budget for them separately from your down payment.
Can I get my land transfer tax back as a first time buyer?
You may qualify for a provincial rebate of up to $4,000, which removes the tax entirely on homes up to about $368,000, plus a Toronto rebate of up to $4,475 if you buy in the city. You must never have owned a home anywhere, occupy the property within 9 months, and claim within 18 months. A spouse’s past ownership can disqualify you, so confirm your eligibility with your lawyer before you count on the savings.
What is a status certificate and do I need one for a condo?
A status certificate is the condo corporation’s disclosure package on its finances, rules, and the status of your unit. If you are buying a condo, your lawyer should review it before you waive conditions, because it can reveal a looming special assessment or an underfunded reserve fund that could cost you thousands. The corporation must provide it within 10 days for a fee capped at $100 including tax.
What happens if my deal does not close on time?
The standard agreement makes time of the essence with a 6 p.m. deadline on the closing date. If you miss it without a written extension, you can be in breach, which may mean a lost deposit or a claim for damages depending on who failed to close. In practice, lawyers often negotiate a short written extension, but the other side does not have to agree, so the safest plan is to leave enough time that you never need one.
The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.
