The Ultimate First-Time Home Buyer Checklist for Ontario

The TL;DR Takeaway

Pre-Approval is Non-Negotiable: Don't look at houses until you have a hard pre-approval.
Max Out the FHSA First: It gives you a tax deduction AND tax-free withdrawals.
HST Rebate Rules: Most builder prices include the rebate already. Know your true base price.

Buying your first home in Ontario is likely the largest financial transaction of your life. This guide breaks down the three phases of successfully navigating the market.

Phase 1: Financial Readiness

Open an FHSA immediately. Even if you only put $100 in, it starts the clock on your contribution room. Secure a rate hold for 120 days to protect yourself from volatility.

Phase 2: Due Diligence

When buying pre-construction, ensure your lawyer caps development charges. These can range from $5,000 to $20,000 if left uncapped.

Frequently Asked Questions

What is the first step to buying a home in Ontario as a first-time buyer?

The first step is obtaining a formal mortgage pre-approval — not an online estimate, but a hard pre-approval from a lender or broker who has verified your income, credit, and assets. A hard pre-approval includes a rate hold of 90–120 days, locks in your borrowing ceiling, and gives you the credibility to make firm offers. Simultaneously, open a First Home Savings Account (FHSA) even if you can only deposit $100 — the 5-year eligibility clock starts the day the account is open, not the day you max it out.

How much do I need for a down payment to buy a home in Ontario in 2026?

Minimum down payment requirements in Ontario are: 5% on the first $500,000 of the purchase price, 10% on the portion from $500,001 to $999,999, and 20% on any home priced at $1,000,000 or more. First-time buyers can combine FHSA withdrawals (up to $40,000 tax-free per person) with RRSP Home Buyers' Plan withdrawals (up to $60,000 per person) to build a larger, tax-efficient down payment — a couple can combine for up to $200,000 in registered funds.

What does a real estate lawyer review during the pre-construction cooling-off period?

During the 10-day statutory cooling-off period on a pre-construction purchase in Ontario, your real estate lawyer reviews the full Agreement of Purchase and Sale — typically 40–120 pages — to: identify and negotiate caps on development charges and education levies (often $20,000–$50,000 uncapped), confirm the HST rebate assignment clause and its accuracy, verify Tarion warranty enrollment, review the occupancy fee structure during interim occupancy, and confirm your assignment and leasing rights during the build period. This review is the single most financially consequential step in a pre-construction purchase.

How long does pre-construction take from signing to final closing in Ontario?

Pre-construction timelines in Ontario typically span 2–5 years from the Agreement of Purchase and Sale to final closing, depending on the project stage at time of signing and municipal permitting velocity. The process includes: interim occupancy (when you receive keys and pay an occupancy fee to the builder before legal title transfers), followed by final closing (when the condominium or subdivision registers, title transfers, your mortgage activates, and land transfer tax is paid). Your real estate lawyer can advise you on Tarion-protected occupancy delay rights if the builder misses milestone dates.