First-Time Home Buyer in Ontario: A Step-by-Step Guide

by Ana Bastas

First-Time Home Buyer in Ontario: A Step-by-Step Guide to Buying Your First Home

Buying Your First Home Can Feel Overwhelming. It Doesn't Have to.

Buying your first home is exciting—but there's a lot to learn.

How much can you afford?

How much do you need for a down payment?

What's the difference between a deposit and a down payment?

When do you need a lawyer?

What conditions should be in your offer?

How much money do you need for closing costs?

And perhaps one of the biggest questions:

Where do you even start?

The answer is not by scrolling through homes online.

The strongest first-time buyers begin by understanding their finances, establishing a realistic budget and building the right professional team before they start seriously looking at properties.

Here's how I guide first-time buyers through the process.

Step 1: Understand Your Financial Position

Before we talk about neighbourhoods, bedrooms or finishes, we need to understand what you can comfortably afford.

That doesn't necessarily mean purchasing at the absolute maximum amount a lender is willing to approve.

Your home needs to fit within your overall financial life.

Consider expenses beyond the mortgage, including:

Property taxes
Utilities
Home insurance
Condo fees, if applicable
Maintenance and repairs
Transportation
Existing debt
Lifestyle expenses
Emergency savings

Owning a home should help you build wealth—not leave you financially stretched every month.

Step 2: Speak With a Mortgage Professional

One of the first professionals we want involved is a qualified mortgage professional.

A mortgage pre-approval can help establish:

Your approximate purchasing power → expected down payment → estimated mortgage payment → financing options → documentation requirements

It can also uncover issues that should be addressed before you find a property you love.

For example, your income structure, credit, existing debts or source of down payment could affect your financing.

Finding this out early gives us time to develop a strategy.

Step 3: Understand Your Down Payment

Your down payment is the portion of the purchase price you contribute toward buying the property rather than financing through your mortgage.

The amount required depends on several factors, including the purchase price and the mortgage product for which you qualify.

Some buyers assume they need 20% down to purchase a home.

That's not necessarily the case.

Depending on your circumstances and the property, you may be able to purchase with less than 20% down, although an insured mortgage and additional requirements may apply.

If you have a larger down payment available, we'll also want to discuss with your mortgage professional whether using all of it toward the purchase is actually the best financial decision.

Step 4: Learn About First-Time Home Buyer Programs

There are programs that may help eligible first-time home buyers in Canada and Ontario.

Depending on your circumstances, these may include programs involving:

A First Home Savings Account (FHSA)
The Home Buyers' Plan (HBP) using eligible RRSP funds
Ontario's land transfer tax refund for eligible first-time purchasers
A potential Toronto municipal land transfer tax rebate if purchasing within Toronto
Other federal, provincial or municipal programs available at the time of your purchase

Eligibility requirements, contribution limits, withdrawal rules and program amounts can change.

Never structure your purchase around an online article alone.

Before purchasing, confirm the current rules with the appropriate mortgage, tax, legal or financial professional.

Step 5: Budget for Closing Costs

Your down payment is not the only cash you'll need.

First-time buyers are sometimes surprised by the additional expenses associated with purchasing.

Depending on your transaction, closing costs could include:

Land transfer tax
Legal fees and disbursements
Title insurance
Property inspection
Adjustments for taxes or utilities
Condo-related costs
Moving expenses
Home insurance
Immediate repairs or purchases
Other transaction-specific expenses

Any applicable first-time buyer rebates may reduce certain costs, but you still need to plan for them.

Before we start seriously shopping, I want you to understand approximately how much cash you'll need—not just for the down payment, but to actually complete the purchase.

Step 6: Choose Your Realtor

Your Realtor's job isn't simply to unlock doors.

Especially for a first-time buyer, representation should include education, strategy and risk management throughout the transaction.

Our job is to help you understand things such as:

Comparable sales
Property value
Neighbourhood considerations
Offer strategy
Conditions
Deposits
Closing dates
Property disclosures
Listing history
Potential resale considerations
Condo status certificates where applicable
Inspection considerations
Negotiation
Transaction deadlines

You should understand what you're signing and why you're signing it.

If something isn't clear, ask.

There are no questions I consider too basic for a first-time buyer.

Step 7: Define What You Actually Need

Now we can start talking about the fun part.

Before looking at homes, I like to separate your criteria into three categories:

Must Have

Things you genuinely need.

For example:

Maximum commute
Number of bedrooms
Parking
Accessibility requirements
Specific geographic area

Would Like

Features that would improve your enjoyment of the property but aren't necessarily deal-breakers.

For example:

Kitchen island
Finished basement
Ensuite
Larger yard
Walk-in closet

Bonus

The things you'd love—but wouldn't walk away from the right home without.

This prevents buyers from eliminating excellent properties because they don't have every feature on the wish list.

Step 8: Start Viewing Homes

Online photographs are useful.

They are not the same as walking through a property.

During showings, we aren't just looking at whether you like the kitchen.

We're evaluating the property from several perspectives.

Condition.

Location.

Layout.

Value.

Potential future resale.

Competition.

Potential concerns.

I also want first-time buyers to understand something important:

You do not need to buy the first home you see.

And you don't necessarily need to see 50 homes either.

The goal is to become educated enough about the market that when the right opportunity appears, you recognize it.

Step 9: We Analyze the Property Before You Offer

You've found a home you love.

Now we slow down.

Before deciding what to offer, I want to know:

What have comparable properties actually sold for?

Not just what sellers are asking.

We may review:

Recent comparable sales
Current competing listings
Previous listing history
Days on market
Price changes
Property condition
Lot and location
Renovations
Market activity
Offer circumstances, where known

The listing price is part of the information.

It is not automatically the market value.

Step 10: Understand Your Deposit

This is one of the most commonly misunderstood parts of buying a first home.

Your deposit and down payment are related, but they are not the same thing.

The deposit accompanies or follows the accepted Agreement of Purchase and Sale according to the terms of the agreement.

It demonstrates your commitment to the transaction and is ultimately credited toward the purchase price on closing.

The amount, timing and handling of the deposit matter.

We'll explain exactly what is required before you submit an offer so you're prepared if your offer is accepted.

Step 11: Decide Which Conditions You Need

Conditions are designed to protect buyers while certain due diligence is completed.

Depending on the property and transaction, these could involve:

Financing
Home inspection
Status certificate review for a condominium
Sale of an existing property
Other property-specific due diligence

Not every transaction requires the same conditions.

And conditions should never be removed simply because someone tells you it will make your offer “stronger.”

An offer strategy needs to balance competitiveness with risk.

Your specific circumstances matter.

Step 12: Your Offer Is Accepted — What Happens Next?

Congratulations.

But we're not finished.

If your agreement contains conditions, there will typically be deadlines for completing the required due diligence.

That could mean coordinating with:

Mortgage professional → home inspector → condominium lawyer/status certificate review → insurance provider → other professionals

Your real estate team should be monitoring these dates closely.

Missing a contractual deadline can have serious consequences.

Step 13: Hire Your Real Estate Lawyer

Your lawyer plays an important role in completing the transaction.

Among other things, your lawyer will generally handle the legal closing process, review title matters, facilitate the transfer of funds and ownership, and address transaction-specific legal requirements.

We'll coordinate with your lawyer and provide the necessary transaction documents.

Step 14: Prepare for Closing

As closing approaches, there will be several things to organize.

Depending on your transaction, these may include:

Finalizing mortgage instructions
Arranging home insurance
Transferring funds
Setting up utilities
Booking movers
Arranging elevator access for a condominium
Reviewing closing documents
Completing your final walkthrough
Confirming key arrangements

This is where having a structured closing process becomes extremely valuable.

You shouldn't be wondering:

“What am I supposed to be doing right now?”

Your team should be telling you.

Step 15: Closing Day — You Get the Keys

On closing day, your lawyer completes the legal transfer.

Once the transaction has officially closed and keys are released:

You're a homeowner. 🔑

But our relationship doesn't end when you receive the keys.

Owning the property is the next phase.

Over time, we'll continue helping you understand your home's market position, evaluate future improvements and make informed real estate decisions as your needs change.

Your first home may eventually become:

your first investment → your first rental → the equity for your next purchase → the beginning of a larger real estate portfolio.

For many people, buying their first home is the first major step toward building long-term real estate wealth.

One of the Biggest Mistakes First-Time Buyers Make

They wait until they find a property they love before getting organized.

Then everything becomes urgent.

They need financing.

They need a Realtor.

They need deposit funds.

They need to understand closing costs.

And they need to make major financial decisions quickly.

There is a much better way.

Prepare first. Shop second.

Even if you're 6–12 months away from purchasing, that's an excellent time to begin.

Thinking About Buying Your First Home in Ontario?

You don't need to know everything before contacting us.

That's what we're here for.

The Ana Bastas Real Estate Team works with first-time buyers throughout Georgetown, Halton Hills, Milton, Oakville, Burlington, Hamilton, Niagara, the GTA and Ottawa, helping buyers understand the process before making major financial decisions.

We'll help you establish a plan, connect you with the appropriate professionals and guide you from your first conversation through closing—and beyond.

Start With a First-Time Buyer Strategy Call

→ BOOK YOUR BUYER STRATEGY CALL

FAQ SECTION

How much money do I need to buy my first home in Ontario?

It depends on the purchase price, mortgage structure and your circumstances. Buyers need to plan for both their down payment and additional closing costs. A mortgage professional can determine the financing requirements applicable to you.

Do first-time home buyers need 20% down in Ontario?

Not necessarily. Some eligible buyers can purchase with less than 20% down, subject to mortgage qualification, insurance requirements and applicable rules.

What is the difference between a deposit and a down payment?

The deposit is money provided in connection with the Agreement of Purchase and Sale and is ultimately credited toward the purchase. The down payment is the total amount of your own funds being contributed toward the purchase rather than financed through the mortgage.

What programs are available for first-time home buyers in Ontario?

Depending on eligibility, buyers may have access to programs such as the FHSA, Home Buyers' Plan and land transfer tax refunds. Programs and limits can change, so current eligibility should always be verified before purchasing.

Do I need a home inspection?

Whether an inspection condition is appropriate depends on the property, transaction and your risk tolerance. Your Realtor should discuss the risks and options with you before preparing an offer.

Do I need a lawyer to buy a house in Ontario?

A real estate lawyer is involved in completing the legal closing and transfer of ownership in an Ontario real estate transaction.

When should I get pre-approved for a mortgage?

Ideally, before seriously shopping for homes. Understanding your financing early helps establish a realistic budget and can identify potential issues before you're under pressure to complete a purchase.