Phase 1
Check your finances before you start
Before you look at a single listing, you need to know what you can actually afford. That means running the GDS and TDS numbers yourself. Use the affordability calculator on this site: enter your household income, your existing monthly debts, and estimated property tax and heating costs. The result tells you your maximum mortgage under CMHC's qualifying ratios.
Then run the stress test. You won't qualify at your contract rate — you'll qualify at your contract rate plus 2%, or 5.25%, whichever is higher. [verify current figures with a licensed agent or at realtor.ca] A mortgage broker can tell you exactly what you qualify for, but running the numbers yourself first means you walk into that conversation informed.
Also establish your down payment position. Are you using an FHSA? You can contribute $8,000 per year up to a $40,000 lifetime limit, and the withdrawals are tax-free when used for a first home purchase. Using the RRSP Home Buyers' Plan? Since April 2024, you can withdraw up to $60,000 per person ($120,000 for a couple) from your RRSP with no tax hit at withdrawal — though you repay it over 15 years. Combining both programs is legal and common for first-time buyers. GoHouses.ca has a plain-English guide for first-time buyers covering FHSA, HBP, and every closing cost you'll face.
Phase 2
Get mortgage pre-approval
A pre-approval letter from a lender tells sellers you're a qualified buyer. It locks in an interest rate for 90–120 days while you search (if rates rise, you're protected; if they fall, you get the lower rate). Getting pre-approved requires: two years of Notice of Assessment from the CRA, recent pay stubs, bank statements showing your down payment, and a full credit check.
You have two options: go directly to a bank, or use a mortgage broker. Banks show you their own products only. A broker shops your file to 20–30 lenders including credit unions and trust companies that don't advertise to the public, and brokers are paid by the lender, not you. For most buyers — especially first-timers or anyone with a more complex financial picture — a broker typically gets you a better rate and better terms. The exception is if you have a long-standing banking relationship with generous private banking rates.
Get pre-approved before you put in an offer. In competitive markets, sellers don't take offers seriously without one. Pre-approval is not the same as a commitment letter: the lender still needs to approve the specific property you buy, verify the purchase price against an appraisal, and confirm nothing has changed in your finances between pre-approval and closing.
Phase 3
Hire a buyer's agent
In most Canadian provinces, buyer's agents are compensated through the commission split from the seller's side of the deal. This means you get professional representation at no direct cost to you. The agent who represents you has a fiduciary duty to you — they must act in your interest, not the seller's.
Hire an agent who works primarily in your target area. Local market knowledge — knowing which streets are noisy, which buildings have special assessments pending, which sellers are motivated — is worth more than brand name or ad spend. Interview two or three agents. Ask how many buyers they represented last year, what their average time-to-close was, and whether they've written offers on the property types and price ranges you're targeting.
If you're buying a loft, use a loft specialist. LoftExperts.ca has guides specific to loft purchases in Toronto, where zoning history, conversion status, and ceiling height documentation matter in ways a generalist agent may miss. For condos, CondosExpert.ca covers the status certificate review process in detail — the document that tells you the financial and legal health of the condo corporation you're buying into.
Phase 4
Search and view properties
Your agent will set up an MLS search that sends you listings matching your criteria. In active markets, new listings in popular neighbourhoods go fast — sometimes within 24–48 hours of listing. Check new listings every day. When you see something that fits, see it within a day or two. In slower markets you'll have more time, but letting good properties sit while you "think about it" is how buyers end up losing homes they regret.
When you view a property, look past the staging. Check the basics: water pressure (turn on two taps simultaneously), electrical panel age and capacity, signs of water intrusion (staining on basement walls, paint bubbling near windows), attic or crawlspace access, and HVAC system age. Your job at the viewing is to assess whether the property warrants the cost of a full inspection, not to fall in love or out of love based on paint colours.
For Toronto listings, search live Toronto listings on TorontoProperty.ca — the full MLS feed updated daily. Search by neighbourhood, price, and property type.
Phase 5
Make an offer
In Canada, offers are made using the Agreement of Purchase and Sale (APS). Your agent drafts it based on your instructions. Key elements: purchase price, deposit amount, closing date, and conditions. Common conditions include financing (giving you time to get your mortgage approved) and home inspection (giving you time to have the property professionally inspected and to negotiate or withdraw if serious defects are found).
The deposit — typically 5% of the purchase price — is paid within 24 hours of offer acceptance and held in trust until closing. It forms part of your down payment. If you back out after conditions are removed (firm sale), you risk losing your deposit and being sued for additional damages.
In competitive markets, sellers set offer presentation dates, and multiple buyers submit offers at the same time. Competing offers increase price pressure. Your agent will advise on strategy: whether to go over asking, whether to waive conditions (understood risk), and what closing date gives you an edge. Never waive conditions under pressure without understanding exactly what you're giving up. A home inspection condition costs $400–$600; the problems it catches can cost tens of thousands to fix.
Phase 6
Due diligence — inspections and review
Once your offer is accepted with conditions, you have a defined window — typically 5–10 business days — to satisfy them. Use every day. A licensed home inspector checks structural elements, roofing, electrical, plumbing, heating, and visible signs of moisture intrusion. They produce a written report with photos. Read the whole report, not just the summary. Ask the inspector directly: if this were your home, would any of these findings change your decision?
For condos, the equivalent due diligence is the status certificate review. You have 10 business days from receipt. Your lawyer reviews the financials: reserve fund balance and plan, any pending special assessments, active litigation, building rules and restrictions. A reserve fund that's underfunded or a special assessment of $10,000–$40,000 per unit changes the economics of the purchase significantly.
Other due diligence depending on property type: well water test (rural properties), septic inspection (rural, older properties), oil tank search (older homes), survey review, and title search. Your lawyer handles title search. Everything else you arrange through your agent.
Phase 7
Secure your mortgage
Once conditions are removed and the sale is firm, your lender needs to formally approve the mortgage on the specific property. They'll order an appraisal if the purchase price is above a threshold or if they want to verify value. The appraisal is paid by you (typically $300–$500) and takes 2–5 business days. If the appraisal comes in below the purchase price, your lender may reduce the approved mortgage amount, leaving you to cover the gap from your own funds — or to renegotiate with the seller.
Arrange home insurance before closing. Lenders require proof of insurance. Get quotes from two or three insurers and confirm coverage starts on your closing date. If the property has a wood-burning fireplace, older electrical, or a flat roof, some insurers may decline or add conditions.
Phase 8
Closing
Your lawyer handles closing. You meet with them (or sign via e-signing services) a few days before the closing date to review and sign the mortgage documents, deed transfer, and closing statement. The closing statement shows the exact breakdown of all funds: purchase price, deposit already paid, mortgage funds advanced, land transfer tax, legal fees, and any adjustments (property taxes prepaid by the seller, condo fees, utility deposits).
You transfer the closing funds via bank draft or wire transfer to your lawyer's trust account. On closing day, the lawyer registers the transfer of title and releases funds to the seller's lawyer. When that's done, you get the keys. The whole chain happens in about 4–6 hours on a typical closing day. You won't usually be sitting at a desk watching — your agent or lawyer will call when it's done.