Home Buyer FAQ — Toronto & GTA
Clear, honest answers to the questions GTA buyers ask most. Whether you're just starting to think about buying or you've been searching for months, you'll find useful answers here.
Ask a Question DirectlyGetting Started
How do I know if I'm ready to buy a home?
You're ready when: (1) you have a stable income and employment, (2) you've saved for a down payment plus closing costs, (3) your credit score is 650+ (680+ preferred for best rates), and (4) your total monthly debt payments (including the new mortgage) won't exceed 44% of gross income. If any of these aren't there yet, I can help you build a plan to get there.
Do I need a real estate agent as a buyer in Ontario?
You're not legally required to have one — but you'd be negotiating alone against an agent who represents the seller's interests. A buyer's agent costs you nothing (the seller pays the commission) and provides market expertise, negotiation support, access to off-market listings, and legal document preparation. It's one of the clearest no-brainer decisions in a home purchase.
What credit score do I need to buy a home in Ontario?
Most lenders require a minimum score of 620–650 for mortgage approval. However, to qualify for the best rates and terms, aim for 680 or higher. If your score is below 650, I can connect you with a mortgage broker who specializes in credit rebuilding strategies that can get you ready within 6–12 months.
Down Payments & Financing
Can I buy a home with less than 20% down in Ontario?
Yes. The minimum down payment in Canada is 5% for homes under $500,000. For homes between $500,000 and $999,999, it's 5% on the first $500K and 10% on the remainder. However, anything less than 20% requires CMHC mortgage insurance (a premium of 2.8%–4% added to your mortgage). Most GTA buyers aim for 10–20% to reduce this cost.
Can I use a gift from a family member as my down payment?
Yes — most lenders accept gifted down payments from immediate family members (parents, grandparents, siblings). You'll need a signed gift letter stating the money is non-repayable and 90 days of bank statements showing the funds. The gift cannot be a loan — it must be a true gift with no repayment expectation.
What is the Home Buyers' Plan (HBP) and how does it work?
The HBP allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free to use toward a home purchase. Couples can each withdraw $35,000 for a combined $70,000. You must repay the amount over 15 years, or the outstanding balance is added to your income. You must have owned the RRSP for at least 90 days before withdrawal.
Making an Offer
What is an offer to purchase in Ontario?
An offer to purchase (formally an Agreement of Purchase and Sale) is a legally binding contract that sets out the price, deposit, conditions (financing, inspection), closing date, and inclusions (appliances, chattels). Once both parties sign and all conditions are met or waived, the deal is "firm" and both sides are legally committed.
What deposit do I need when making an offer?
Deposits in the GTA typically range from 2–5% of the purchase price and are due within 24 hours of offer acceptance (sometimes at the time of the offer for competitive situations). The deposit is held in trust and applied to your down payment at closing. If you back out without legal cause after the deal firms, you forfeit the deposit.
What does "waiving conditions" mean and is it risky?
Waiving conditions means making an unconditional offer with no financing or inspection clauses. It's common in highly competitive GTA markets and makes your offer more attractive to sellers. The risk is real: if your financing falls through or the inspection reveals major issues, you have no legal way out and could lose your deposit. I advise on when this is acceptable and how to mitigate the risks.
What is a bully offer?
A bully offer (also called a pre-emptive offer) is an offer submitted before the seller's scheduled offer review date. It's usually a strong, often firm offer designed to get the seller to accept before competing buyers have a chance to bid. I can advise when a bully offer makes sense and how to structure one that sellers are likely to accept.
GTA-Specific Questions
Is it better to buy a condo or a house in Toronto?
Condos offer lower entry prices, urban locations, and low maintenance — but you pay condo fees and give up space. Houses offer more space, land, and no monthly fees — but higher purchase prices and maintenance costs are your responsibility. For first-time buyers with limited budgets in Toronto proper, condos often make sense. Buyers open to the 905 (Mississauga, Oakville, Burlington, Milton) can often afford detached homes for similar budgets.
How competitive is the GTA market right now?
The GTA market fluctuates by area and price point. Entry-level condos ($500K–$800K) and move-in ready semi-detached homes ($900K–$1.3M) in desirable Toronto neighbourhoods tend to see the most competition. Etobicoke, Mississauga, and Oakville remain strong for family buyers. Milton and Burlington offer more value per square foot. I monitor market activity daily and can give you an honest read on conditions in your target area.
What is land transfer tax in Ontario and how much will I pay?
Ontario charges land transfer tax on all property purchases: 0.5% on the first $55,000, 1% on $55,001–$250,000, 1.5% on $250,001–$400,000, and 2% on amounts over $400,000 (2.5% for residential over $2M). Toronto adds a matching municipal LTT. First-time buyers receive rebates of up to $4,000 (Ontario) and $4,475 (Toronto). On a $900K Toronto home, expect roughly $26,000–$28,000 in combined LTT before rebates.
Still Have Questions? Let's Talk.
Every buyer's situation is different. Book a free consultation and I'll give you personalized answers based on your specific goals, budget, and timeline.