Question 1

How much money do I need to buy a house in Ontario?

Accepted Answer

You need a down payment (minimum 5% on the first $500,000, 10% on the portion between $500,000 and $1.5M, and 20% on homes $1.5M and above), closing costs (roughly 1.5% to 4% of the purchase price), and a reserve fund for moving and first-month expenses. On a $700,000 home, a realistic minimum total cash needed is roughly $55,000 to $70,000 including down payment, legal fees, land transfer tax, title insurance, and a small buffer.

Question 2

What are all the closing costs when buying a home in Ontario?

Accepted Answer

Typical closing costs include: land transfer tax (the biggest one), legal fees ($1,800 to $2,500), title insurance ($250 to $500), home inspection ($400 to $700), status certificate if you are buying a condo ($100 to $300), adjustments for prepaid property tax and utilities, and mortgage default insurance (CMHC) if your down payment is under 20%. Budget 1.5% to 4% of the purchase price on top of your down payment, depending on whether you are in Toronto (which has a second municipal land transfer tax) and whether you are a first-time buyer.

Question 3

What is land transfer tax in Ontario and who pays it?

Accepted Answer

Land transfer tax is paid by the buyer to the Province of Ontario on closing day. It is calculated on a sliding scale based on the purchase price. In the City of Toronto you also pay a second municipal land transfer tax on top of the provincial one, which can roughly double the total. First-time buyers can claim a rebate of up to $4,000 provincial and up to $4,475 municipal in Toronto. You can run the exact number for any price on hassann.ca's [land transfer tax calculator](/land-transfer-tax-calculator).

Question 4

Am I a first-time home buyer for the rebate?

Accepted Answer

For the Ontario first-time home buyer land transfer tax rebate you must be 18 or older, a Canadian citizen or permanent resident, occupy the home as your principal residence within 9 months of closing, and have never owned a home or had an interest in a home anywhere in the world. Your spouse must also have never owned a home while you were married or cohabiting. If both you and your spouse qualify you can claim the full rebate; if only one qualifies you can claim the proportional share.

Question 5

What is a Buyer Representation Agreement (BRA)?

Accepted Answer

A Buyer Representation Agreement (BRA) is a written contract between you and your real estate brokerage that sets out the terms of your working relationship: what geographic area is covered, what property types, how long the agreement runs, and how commission is handled if the seller's side does not offer enough. As of TRESA (Trust in Real Estate Services Act, 2002) changes, Ontario agents must have a written agreement before showing you property. Read it carefully, ask questions, and feel free to negotiate the term length and the cancellation terms.

Question 6

What is the difference between a pre-qualification and a pre-approval?

Accepted Answer

Pre-qualification is a rough estimate from a lender or mortgage broker based on what you tell them about your income, debts, and down payment. It takes five minutes and is not binding. Pre-approval is a more formal review where the lender actually checks your credit, verifies income documents, and holds a rate for you (usually 90 to 120 days). Sellers take pre-approved buyers much more seriously. Always get a real pre-approval before you start shopping, and don't treat a pre-qualification like it's a loan commitment.

Question 7

What is the mortgage stress test in Canada?

Accepted Answer

The mortgage stress test is a Canadian rule that requires lenders to qualify you at a higher interest rate than the one you will actually pay, to make sure you can still afford your payments if rates rise. You must qualify at the greater of (a) the Bank of Canada's 5-year benchmark rate or (b) your contract rate plus 2%. This is why two people with the same income can be approved for very different loan amounts depending on the rate environment. Run your numbers through a real mortgage broker, not a bank's online tool, for an accurate pre-approval.

Question 8

What is CMHC mortgage insurance and do I have to pay it?

Accepted Answer

CMHC mortgage default insurance is required by law in Canada when your down payment is less than 20% of the purchase price on homes up to $1.5 million. It protects the lender (not you) if you default. The premium is typically 2.8% to 4% of the loan amount and is usually added to your mortgage balance. Homes priced at $1.5M or higher cannot be purchased with a high-ratio (under 20%) mortgage at all, so you must put at least 20% down.

Question 9

What is a conditional offer vs a firm offer?

Accepted Answer

A conditional offer to purchase is one where the deal depends on certain conditions being met within a defined period (typically 5 to 10 business days), such as financing, home inspection, lawyer review of the status certificate for condos, or sale of your existing home. If any condition is not waived or fulfilled in time, the deal is dead and your deposit is returned. A firm offer has no conditions and is fully binding the moment the seller accepts. Firm offers often win in competition but carry much more risk, so only go firm when you have already satisfied everything that would otherwise be a condition.

Question 10

Do I need a home inspection when buying a home?

Accepted Answer

A home inspection is not legally required in Ontario, but it is strongly recommended, especially on resale homes and anything older than 25 years. An inspection runs $400 to $700 and takes two to three hours. The inspector walks you through the home and produces a written report covering the roof, foundation, electrical, plumbing, HVAC, and structural condition. In hot markets with multiple offers, some buyers skip the condition entirely by pre-inspecting the home before the offer date (usually with the listing agent's permission), which is safer than blind-firm.

Question 11

What is a status certificate and do I need one for a condo?

Accepted Answer

A status certificate is a package of documents produced by a condo corporation that tells you everything about the building's financial and legal health: reserve fund balance, any planned special assessments, litigation, current budget, declaration, bylaws, and rules. In Ontario, your lawyer should review it before your offer becomes firm, so your offer should be conditional on satisfactory lawyer review of the status certificate. The document costs around $100 to $300 (usually paid by the seller), and the review typically takes 2 to 5 business days. Never waive this condition without your lawyer actually reading it.

Question 12

What is title insurance and should I get it?

Accepted Answer

Title insurance is a one-time premium (usually $250 to $500) paid at closing that protects you and your lender against problems with the title of your home: boundary disputes, unknown liens, survey defects, fraud, and identity theft related to the property. In Ontario, title insurance has largely replaced the old requirement to order a new land survey, and most lawyers strongly recommend it or require it. It is not a substitute for your lawyer's title search, but it is cheap insurance against things the search might not catch.

Question 13

Can I back out of a real estate offer after signing?

Accepted Answer

Once both parties sign, the Agreement of Purchase and Sale is a binding legal contract. You can only back out if one of the conditions in the offer is not satisfied or waived by the condition deadline. If you try to back out of a firm offer (no conditions), you can lose your deposit and the seller can sue you for any losses they incur, which in a falling market can be significant. If you are truly considering backing out, talk to your real estate lawyer immediately. Do not rely on a forum post or a chatbot for this.

Question 14

How long does it take to close on a house in Ontario?

Accepted Answer

Closing typically happens 30 to 90 days after an accepted offer. 60 days is the most common. Shorter closings (under 30 days) are possible but require everything to line up quickly: your lender, lawyer, home inspector, and the seller's side all need to move fast. Longer closings (90+ days) give you more time but also more risk of something going wrong on the lender's side. On closing day itself, you typically sign at your lawyer's office in the morning and pick up keys in the afternoon once funds have changed hands.

Question 15

What credit score do I need to buy a home in Canada?

Accepted Answer

Most A-lenders (big banks and major credit unions) want a credit score of 680 or higher to offer their best rates. Scores between 600 and 680 can usually still get approved but at slightly higher rates, and you may need a larger down payment or a co-signer. Below 600, you are typically looking at alternative or B-lenders with meaningfully higher rates and stricter terms. If your score needs work, a licensed mortgage broker can help you plan a 6 to 12 month path to improve it before you start shopping.

Question 16

What's the difference between a detached, semi-detached, and townhouse?

Accepted Answer

A **detached** home stands alone with no shared walls, on its own lot. A **semi-detached** shares one common wall with one neighbour and typically sits on a narrower lot. A **townhouse** shares walls with neighbours on both sides (except end units) and can be freehold (you own the land) or condominium (you own the interior and pay common element fees). Prices generally run detached > semi-detached > freehold townhouse > condo townhouse. Each type has tradeoffs in privacy, maintenance, lot size, and appreciation potential.

Question 17

When is the best time of year to sell a house in the GTA?

Accepted Answer

Spring (March to May) is historically the busiest selling season in the GTA, with the highest buyer demand and typically the strongest prices. Early fall (September to early November) is the second-best window, after families are back from summer and before the holidays. December and January tend to be slower. That said, a well-priced, well-prepared home in any month will outperform a badly marketed one in peak season. The right answer for you depends on your personal timeline and the specific inventory in your neighbourhood.

Question 18

How long does it take to sell a house in the GTA?

Accepted Answer

In a balanced GTA market, the median time from listing to accepted offer is typically 15 to 25 days, with another 30 to 90 days between accepted offer and closing. In hot markets this can compress to under a week. In slower markets, 45 to 90 days on market is normal. Condition, price, presentation, and location are the biggest variables. A home priced at fair market value with professional drone, photography, video, and a 360 walkthrough almost always sells faster than one priced optimistically.

Question 19

What fees do I pay when selling my home in Ontario?

Accepted Answer

Typical selling costs include: real estate commission (total commission is commonly around 4% to 5% of sale price, shared between the listing and cooperating brokerages, and fully negotiable), legal fees ($1,200 to $2,000), HST on the commission, any outstanding mortgage discharge or penalty, and moving costs. You may also invest in touch-up painting, decluttering, and minor repairs (typically $500 to $3,000 depending on the property). With Hassan, professional drone photography, video, 360 walkthrough, and floorplan are all included in the listing commission. On a $900,000 sale, plan for roughly $45,000 to $55,000 in total selling costs before your mortgage payoff.

Question 20

What is a listing agreement?

Accepted Answer

A listing agreement is the written contract between you and the listing brokerage that authorizes them to market and sell your home. It sets out the commission structure, the listing period (commonly 90 days, negotiable), what services the brokerage will provide, the list price, any exclusions, and how any holdover period works after expiry. Under Ontario's TRESA rules, all listing agreements must be in writing. Read it carefully before signing and ask for anything that is not clear to be explained in plain English.

Question 21

Should I price my home high and leave room to negotiate?

Accepted Answer

Pricing strategy depends on the specific market, neighbourhood, and property. In a buyer's market, overpricing is one of the most common mistakes, because the longest-sitting listings often sell for less than if they had been priced sharply from day one. In a competitive seller's market, slight underpricing with an offer date can drive multiple bids above asking. There is no one-size-fits-all rule, which is why a comparative market analysis (CMA) of recent similar sales is the first step any good listing agent should run.

Question 22

What kind of marketing and photography is included with a listing?

Accepted Answer

With Hassan, every listing includes the full pro media package at no extra cost: aerial drone photography, professional photographer with HDR and twilight shots when the property calls for it, a 60 to 90 second cinematic walkthrough video, a 360 virtual walkthrough buyers can explore from any device, a professional floorplan with room dimensions, a dedicated property website with its own URL, MLS and realtor.ca placement, paid Instagram and Facebook ads, targeted Google ads, and an email blast to Hassan's active buyer database. No premium tiers, no upgrades, no surprise add-ons at signing. Industry research consistently shows that listings with professional drone, video, and 3D walkthroughs sell faster and for more than listings with iPhone photos.

Question 23

Do I need to make repairs or renovate before selling?

Accepted Answer

Big renovations rarely pay back 100% of their cost at sale. Small, high-ROI fixes usually do: fresh neutral paint, minor drywall and trim touch-ups, deep cleaning, updated light fixtures, fresh caulking in bathrooms and kitchens, landscaping and curb appeal, and professional carpet cleaning or replacement. Major projects (full kitchen or bath reno, new roof, basement finishing) should only be undertaken if the item is genuinely worn out or broken. A listing agent doing a pre-listing walkthrough should tell you exactly what to fix and what to leave alone.

Question 24

What is a CMA (Comparative Market Analysis)?

Accepted Answer

A Comparative Market Analysis (CMA) is a report your listing agent prepares that estimates the likely selling price of your home based on recent sales of comparable properties (similar size, age, condition, and neighbourhood), active listings you would be competing with, and recently expired listings. A good CMA uses sold data from the last 60 to 90 days and adjusts for differences between your home and the comparables. It is not a formal appraisal (which costs around $400 to $600 and is typically ordered by a lender), but it is the standard starting point for pricing a listing.

Question 25

What happens if I get multiple offers?

Accepted Answer

In a multiple-offer situation, your listing brokerage will set out a review process: whether offers are being reviewed on a specific date, how offer registration works, and how you will be informed of competing offers (under Ontario rules, you know the number of competing offers but not their terms unless those buyers disclose). You and your listing agent will review each offer's price, deposit, conditions, irrevocable period, and closing date. The highest price is not always the best offer: a lower firm offer with a larger deposit and flexible closing can be worth more than a higher conditional one that might collapse.

Question 26

What happens on closing day when I sell my home?

Accepted Answer

On closing day, your lawyer confirms that the buyer's funds have been received in trust, discharges your existing mortgage, pays any outstanding property tax or utility adjustments, deducts legal fees and the real estate commission, and deposits the net proceeds into your account (usually the same day or the next business day). You hand over keys (typically through the listing brokerage or via lockbox at the time agreed in the Agreement of Purchase and Sale) and the transaction is officially done. Your lawyer sends a final statement of adjustments showing every line item.

Question 27

What is a holdover period in a listing agreement?

Accepted Answer

A holdover clause says that if your listing expires and then you sell (within a defined holdover window, typically 60 to 90 days) to a buyer who was introduced to the property during the original listing period, you still owe the original listing brokerage their commission. The purpose is to prevent sellers from cancelling a listing just before an obvious buyer submits an offer. Holdover periods are negotiable, and well-written agreements limit the clause to buyers who were actually shown the property, not anyone who happened to see the MLS listing.

Question 28

What is the difference between list price and sold price?

Accepted Answer

List price is what you and your listing agent decided to advertise the property for when it went on the market. Sold price is what the buyer actually paid in the accepted offer. In balanced markets they are usually within a few percent of each other. In strong seller's markets, sold prices commonly exceed list prices when multiple offers come in. In slower markets, sold prices often come in below list after some negotiation. What matters most for comparables is the sold price, not the list price, because list is aspirational and sold is real.

Question 29

What is the difference between a REALTOR® and a real estate agent?

Accepted Answer

All REALTORS® are licensed real estate agents, but not all licensed real estate agents are REALTORS®. A REALTOR® is a licensed agent who is also a member of the Canadian Real Estate Association (CREA) and its provincial and local boards (in Ontario, typically TRREB for the GTA), which binds them to the CREA Code of Ethics and gives them access to MLS®. In practice, almost every active agent in the GTA is a REALTOR®. The REALTOR® trademark and the MLS® mark are controlled by CREA.

Question 30

What is RECO and what does it do?

Accepted Answer

The Real Estate Council of Ontario (RECO) is the government-delegated regulator that licenses and oversees every real estate salesperson, broker, and brokerage in Ontario. RECO enforces the Trust in Real Estate Services Act, 2002 (TRESA), investigates complaints, and administers the insurance fund that protects consumers in the event of broker fraud. If you ever have a serious concern about how an agent or brokerage handled your transaction, RECO is the body you would contact.

Question 31

What is TRESA?

Accepted Answer

TRESA, the Trust in Real Estate Services Act, 2002, is the Ontario law that governs how real estate professionals can work with consumers. It replaced the older REBBA legislation and introduced important changes including mandatory written agreements before showings, clearer disclosure rules for designated representation, and new information guides that agents must walk every client through. Every licensed real estate professional in Ontario is required to operate under TRESA and can be disciplined by RECO for violations.

Question 32

How do I choose a real estate agent?

Accepted Answer

Look for three things: (1) recent, verified experience in your specific city and price range (ask to see their last five sales), (2) how they communicate (you want plain English, not jargon, and honest answers including when the answer is 'I don't know'), and (3) a written explanation of exactly what services they will provide. Ask for references from past clients. Avoid anyone who promises a specific price they will get you, pressures you to sign without thinking, or refuses to show you the agreement in advance. A 30-minute no-pressure consultation is standard and free.

Question 33

What is MLS® and how does it work?

Accepted Answer

MLS® stands for Multiple Listing Service®. It is a database of property listings maintained by local real estate boards (in the GTA, that is TRREB, the Toronto Regional Real Estate Board). Listing agents upload their listings to MLS®, and cooperating agents from other brokerages can then show those listings to buyers and submit offers. The public-facing version of MLS® data is realtor.ca, which shows a subset of listings; the full broker-only version contains much more detail and is what your agent accesses on your behalf.

Question 34

Is it better to rent or buy in the GTA?

Accepted Answer

It depends on how long you plan to stay and your local rent-to-price ratio. As a general rule, if you plan to stay in the same home for at least 5 to 7 years and your monthly carrying costs (mortgage, tax, insurance, maintenance) are within a reasonable range of renting the same place, buying usually wins on a total-cost basis once you include building equity. If you might move in under 3 years, renting often wins because transaction costs (land transfer tax, legal, commission on the eventual sale) eat up early equity. The hassann.ca [rent vs buy calculator](/rent-vs-buy-calculator) does the full math including opportunity cost.

Question 35

What is the property transfer tax in Ontario called?

Accepted Answer

In Ontario it is called **Land Transfer Tax** (LTT), paid by the buyer to the Province of Ontario on closing. If the property is inside the City of Toronto there is an additional Municipal Land Transfer Tax (MLTT) on top of the provincial one. Both are calculated on a sliding scale based on purchase price. First-time buyers can claim rebates of up to $4,000 on the provincial LTT and up to $4,475 on the Toronto MLTT. Use the [land transfer tax calculator](/land-transfer-tax-calculator) for an exact number on any purchase price.

Question 36

What is an open house and should I go to one?

Accepted Answer

An open house is a scheduled time (usually a weekend afternoon) when a listing is open for any interested buyer to walk through without an appointment. They are useful for: getting a feel for a neighbourhood, seeing a property you are only mildly curious about without a formal showing, and meeting listing agents. Serious buyers should also book private showings through their own buyer's agent, because you can take more time, ask more pointed questions, and see the home without other buyers in the room. Always bring a pre-approval letter if you think you might offer.

Question 37

What does "sold conditionally" or "sold firm" mean?

Accepted Answer

In the MLS® system, a listing marked "sold conditionally" (or SC) means an offer has been accepted but the deal still has active conditions (financing, inspection, lawyer review, sale of buyer's home, etc.) that have not yet been satisfied. If any condition falls through, the listing can come back on the market. A listing marked "sold firm" means all conditions have been waived and the deal is legally binding on both sides pending closing. Until a listing is sold firm, well-informed buyers sometimes put in backup offers in case the primary deal collapses.

Question 38

What is an escape clause or kick-out clause?

Accepted Answer

An escape clause (sometimes called a kick-out clause) is a specific condition a seller can add when accepting an offer that is conditional on the buyer selling their existing home. It gives the seller the right to keep marketing the property and, if another buyer makes a firm offer, to give the original buyer a short window (typically 48 to 72 hours) to either waive their sale-of-home condition and go firm, or walk away. It protects sellers from being locked into a conditional deal indefinitely while still keeping the door open to other offers.

Answers to the questions people actually ask about Ontario real estate

Buying a home

Selling a home

General real estate

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