When buying a home in Toronto for the first time, there is a lot of information to learn. This is most likely the biggest investment you have ever made, so the more you know about the process of becoming a first-time home buyer, the better informed you will be able to make decisions. So grab a pen and paper, settle in, and prepare to learn all there is to know about buying your first home or apartment.

We’ve outlined the steps to guide you through your first home purchase below:

1 - What Can You Afford?

The initial phase in the journey to acquire a house or condominium in Toronto involves ascertaining the amount your bank is prepared to lend you. By obtaining pre-qualification for a mortgage, your lender will evaluate your:

Income
Debts
Down payment
Credit history

The pre-approval should be officially recorded and will involve a locked-in interest rate, typically remaining valid for 90 days. This pre-qualification procedure establishes the exact mortgage amount you're eligible for, allowing you to identify the price range of homes that match your search criteria. It streamlines your efforts in searching for a house and eradicates any uncertainty and financial ambiguity when you encounter your ideal home.

2 - What’s Your Wishlist?

Recognizing your home needs and desires holds great significance. It's essential to outline your non-negotiable must-haves, your nice-to-have preferences, and your absolute deal-breakers. How many bedrooms are indispensable for you? What kind of outdoor area do you envision having? Think about aspects like countertops, appliances, and flooring. Keep in mind that if you're unsure about your preferences, it may be challenging to achieve your desired outcome.

Furthermore, your choice of location is a significant decision. Which neighbourhood in Toronto truly resonates with your sense of home?

green plant in a white vase in the foreground of a living room

3 - Selecting A Realtor

Purchasing a house or condominium is likely to be the most substantial investment you'll ever undertake, but rest assured, you don't have to navigate it alone. Your support network will consist of:

A great Toronto Real Estate Agent who works exclusively in your best interests.
A lender - a bank or mortgage broker to take you through your financing options.
A real estate lawyer to help with the legal aspects of the purchase

There are thousands of professionals out there, so ask your friends and family for recommendations, do your research and don’t be afraid to interview multiple people.

skyline with CN tower and buildings with a sunset

4 - Starting Your Home Search

Now that you are pre-qualified for a mortgage, narrowed down your search and picked a great Toronto Realtor to work with, it’s time to start looking at listings and houses. While realtor.ca is a good place to start searching for homes, your real estate agent will send you custom listings that match your criteria.

PS. ask your agent to set you up on Collab - a tool that lets you control your home search with live-time updates from the MLS

The process of searching for a house will encompass sorting through digital listings, virtually previewing properties, and ultimately, physically visiting homes. This phase allows you to immerse yourself in the various neighbourhoods of Toronto, fine-tune your preferences, and ask pertinent questions. While a wish list may seem somewhat analytical and serves as a valuable tool for determining which properties to explore, the reality is that most individuals walk into their dream home and sense that it’s the one. Certainly, it’s crucial for it to align with your requirements and desires, but don’t underestimate the instinctive power of simply “knowing”.

condo kitchen with island with beige cupboard and marble

5 - Submitting An Offer

Your house-hunting efforts have paid off, you’ve found the right home for you: it satisfies your wants/needs, it’s in your price range, and it feels right. The offer process is both exciting and nerve-wracking. In Ontario, your offer must be in writing and will form the Agreement of Purchase and Sale (APS). The APS is a legally binding document which contains:

The price you are prepared to pay
The amount of your deposit (usually 5% of the purchase price, due within 24 hours after the offer is accepted)
Closing date (the date you take possession)
Inclusions you want (eg. washer / dryer, big screen TV)
Conditions that need to be met for the deal to go through

Once your agent has submitted the offer, the Seller can accept it, reject it or sign back a counteroffer. During these back-and-forth negotiations, you may need to compromise on small things, but a great realtor will work hard to get you what you want.

house figurine in the foreground and real estat agent in the background holfing keys on a table and pen, with a paper document on the table

6 - Conditions and Deposit

Conditions are prerequisites outlined in the APS that must be satisfied for the sale to proceed. If you’re a first-time buyer, you might have included conditions such as a financing clause, a condition permitting your lawyer to scrutinize the property’s legal aspects, a status certificate review condition ( for condos), and/or a home inspection condition. Additionally, you’ll be required to submit a deposit, typically up to 5% of the purchase price, which will be held in trust until the closing. Once all the conditions are met, the APS becomes “firm” and it’s simply a matter of patiently awaiting your closing date. And, of course, packing!

wooden house pen with keys on top a paper contract

7 - Closing On Your Home!

You’re just about to become a homeowner! The closing marks the moment when property ownership and possession shift from the seller to you. This transition occurs once all the legal and financial commitments have been fulfilled. Closing the purchase is a collaborative effort, with not only yourself but also your lawyer and lender actively participating in bringing the deal to a successful conclusion.

Looking for an agent experienced in working with first-time home Buyers? Get in touch with us!

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