The Toronto home buyer checklist

1. Before you start looking: get your money ready

• Decide what you're comfortable paying each month, before a lender tells you what you qualify for. Your approval is a ceiling, not a budget. Afford vs. approved
• Get pre-approved through a mortgage broker or your bank. It shows your price range and holds a rate while you search. Pre-approval
• Work out your minimum down payment and where it's coming from. Below $1.5 million you can put down less than 20% with mortgage insurance; at $1.5 million and up you need 20%. Down payment in Toronto
• Line up your savings accounts and any family gift. Check your FHSA and Home Buyers' Plan room, and have a gift letter ready if family is helping. FHSA + Home Buyers' Plan · Gifted down payment
• Run your numbers in the cash-to-close calculator. In Toronto you pay land transfer tax twice, and closing costs usually come to about 3% of the price on top of your down payment. Cash-to-close calculator
• Set aside a cushion for the unexpected. Plan on about $5,000 to $10,000 for a condo and $10,000 to $15,000 for a house.
• Have your deposit ready as cash. It's usually about 5% of the price, due within 24 hours of an accepted offer, and it counts toward your down payment.

2. While you're looking: learn the market first

• Choose your agent and understand the buyer representation agreement. We offer every buyer two outings before signing, and the agreement is always in writing before any offer. Buyer representation agreement
• Spend 3 to 5 outings (10 to 15 homes) learning the market before you narrow the search. Seeing a range of homes is what lets you recognize a good one quickly when it appears.
• Settle on condo or freehold, and on the type of house. Each comes with different costs, rules and resale. Condo vs. freehold · Semi, detached or townhouse
• Shortlist your neighbourhoods. Walk them at different times of day, and read our East End neighbourhood guide.
• Pick your real estate lawyer now, not after your offer is accepted. You'll want them ready for searches and conditions on short notice.
• Treat every listing description as a claim to verify. Square footage, parking, legal units and "steps to" distances all need checking. Listing claims to verify
• Watch for red flags in photos, price history and the visit itself. Repeated price drops, relistings and "as is" sales deserve a closer look. Listing red flags

3. Before you make an offer: check the home, not just the listing

• Walk through the home in person. We never offer on a home we haven't seen, starting outside, then the smell, then the corners and the basement.
• Run the due diligence checks. We look at permits, open work orders, property records and past listings before you commit. The checks we run before you commit
• Get your own inspection, or read the seller's report with care. A seller-provided inspection is a useful start, but the inspector's contract is with the seller, not with you.
• In an older home, check the big systems. Roof, foundation, wiring, plumbing and the water service line are where the large bills come from. Older East End homes
• For a condo, review the status certificate with your lawyer. It shows the building's finances, the reserve fund and any special assessments.
• Ask your lawyer to run searches when time is short. A quick title and records search before offer night can catch problems early.
• Get a home insurance quote. Some older features, like knob-and-tube wiring, can make insurance hard to get or expensive.
• Set your price from recent comparable sales. Know your walk-away number before the offer date. How offer nights work
• Decide what conditions you need. Know the trade-off between a conditional and a firm offer, and confirm your deposit and financing are in place. Conditional vs. firm

4. Once your offer is accepted: firm it up

• Deliver your deposit on time. It's usually due within 24 hours, by bank draft or wire to the listing brokerage's trust account.
• Send the signed agreement to your lawyer and your mortgage broker the same day. Both need it to start their work.
• Finish each condition before its deadline. Financing, inspection and status certificate review each have a date, and missing one can end the deal.
• Give the lender what it asks for, quickly. Expect requests for pay stubs, an employment letter, account statements and the gift letter, plus an appraisal booked by the lender.
• Waive or fulfil your conditions in writing. Once every condition is cleared, the deal is firm.
• Arrange home insurance that starts on closing day. Your lender won't release the mortgage without proof of coverage.
• Book your movers and plan your utilities. Set up hydro, gas, water and internet in your name from the closing date.

5. Before and on closing day: get the keys

• Meet your lawyer to sign the closing documents, usually in the week before closing. Bring photo ID, and ask how the land transfer tax rebates are being claimed.
• Send your closing funds to your lawyer a few days early. That's the rest of your down payment plus closing costs, by wire or bank draft, exactly as your lawyer instructs.
• Use your pre-closing visit (buyer's visit) to check the home. Confirm that what's included in the sale is still there and nothing has changed since you made your offer.
• Be reachable on closing day. Your lawyer registers the sale and releases the funds, and the keys usually arrive in the afternoon.
• After you move in, change the locks and update your address. Make sure the property tax and utility accounts are in your name. Our moving checklist covers the move itself, week by week.
• Keep your closing package somewhere safe. You'll need the documents when you refinance, renovate or sell.

Questions buyers ask

How long does it take to buy a home in Toronto? Most first-time buyers take about 1.5 to 3 months from the first meeting to an accepted offer, and then usually 30 to 90 days to close. Upsizers often take longer because they're selling at the same time.

How much cash do I need besides my down payment? Plan on closing costs of about 3% of the price in Toronto, where you pay land transfer tax to both the province and the city. Add a cushion of $5,000 to $10,000 for a condo or $10,000 to $15,000 for a house. The cash-to-close calculator adds it all up for your price.

When should I hire a real estate lawyer? Before you make an offer. A lawyer who already knows you can run searches on short notice, review a status certificate during the condition period and prepare for closing without a rush.

Do I need a home inspection if the seller already has one? A seller-provided report is a good start, but the inspector's contract is with the seller. Read it closely, check who wrote it and when, and get your own if anything is unclear or the home is older.

What can I skip on this checklist? Very little. Some steps are quick, like getting an insurance quote, but each one exists because skipping it has cost a buyer money.