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Summary: Buying your first home in Ontario follows a clear sequence: prepare before you make an offer (mortgage pre-approval, an agent, your deposit, and closing-cost savings), make and negotiate your offer through the Agreement of Purchase and Sale, retain a lawyer once it is accepted, prepare for closing, complete closing day when ownership transfers, and handle a few final steps after. Budget about 1.5% to 4% of the price for closing costs on top of your down payment.
Buying your first home is one of the biggest achievements of your life, so why does the process feel like rocket science? Most first-time buyers know a few pieces: you need a mortgage, you will make an offer, and there is something called closing day. But the journey from starting the search to getting the keys is not obvious. We built a First Time Home Buyer Checklist that lays out the whole process step by step, and this guide walks through how it actually works.
What are the steps to buy your first home?
Here is the whole process at a glance before the detail:
Stage | What you do | What your lawyer does |
1. Prepare | Get pre-approved, choose an agent, ready your deposit and closing-cost savings | Not involved yet |
2. Make an offer | Submit the Agreement of Purchase and Sale with your conditions | Not involved yet |
3. Offer accepted | Retain a lawyer, send the agreement, finalize financing | Title search, review, mortgage instructions |
4. Prepare for closing | Send closing funds, sign documents, confirm your move | Statement of adjustments, closing prep |
5. Closing day | Stay reachable | Registers ownership and mortgage, sends funds, releases keys |
6. After closing | Update your address, set up tax payments, settle in | Confirms the transaction is closed |
How do you prepare before making an offer?
A few basics make everything smoother once you start shopping:
Get mortgage pre-approval. A lender reviews your finances and tells you roughly how much you can borrow, which gives you a clear budget and signals to sellers that you are serious.
Work with a trusted real estate agent. A good agent helps you find homes, book showings, advise on pricing, and prepare and submit your offer.
Prepare your deposit. The deposit is money you send shortly after your offer is accepted to show the seller you are serious; it is usually held in trust and applied to your down payment at closing. Deposits are often due quickly, so keep the funds easy to access (a chequing or savings account, or somewhere you can wire or draft from fast) rather than tied up in investments.
Plan for closing costs. A rule of thumb is to set aside about 1.5% to 4% of the purchase price for the costs of legally transferring ownership, such as land transfer tax, legal fees, and title insurance. See our guide to first-time home buyer incentives in Ontario for programs that can offset some of this.
What happens when you make an offer?
Once you find the home, your agent prepares the Agreement of Purchase and Sale (APS), which sets out the price and any conditions. Before submitting, review your conditions carefully:
Financing condition gives you time to confirm your lender will approve the mortgage for the property.
Home inspection condition lets you check the home for major issues before committing.
Status certificate review (for condos) lets your lawyer review the condo corporation's documents for problems.
The seller can accept, reject, or counter. Once both sides sign, the offer is accepted, and you will usually need to submit your deposit quickly per the agreement. One of the most important steps here is contacting a real estate lawyer: retaining one as soon as your offer is accepted helps the closing run smoothly.
What happens after your offer is accepted?
Once the deal is firm, the legal closing process begins. You will typically send your APS to your lawyer, finalize your mortgage approval, give your lawyer's details to the lender, arrange a home inspection if applicable, shop for property insurance, and start planning your move.
Behind the scenes, your lawyer does the work that protects you: reviewing the agreement, conducting a title search to confirm the seller owns the property free of unexpected liens, reviewing the status certificate for condos, completing the lender's mortgage instructions, and preparing your closing documents.
How do you prepare for closing?
As closing day nears, your lawyer provides a final statement of adjustments that sets out exactly what you need to bring. The total may include land transfer tax, legal fees and disbursements, title insurance, and adjustments for property taxes, utilities, or condo fees the seller prepaid. Before closing, you will also send your closing funds to your lawyer, review and sign your closing documents, and confirm your moving arrangements.
What actually happens on closing day?
Closing day is when ownership officially transfers to you. From your side, the main job is to stay reachable in case anything needs your attention. Your lawyer handles the rest: registering your ownership and mortgage, sending the purchase funds to the seller's lawyer, notifying the municipality of the ownership change, and confirming the transaction with your agent. Once the funds are transferred and ownership is registered, the deal is closed and your lawyer tells you how to pick up the keys, often from a lockbox at the property. Then the home is officially yours.
What should you do after closing?
A few practical items remain once the home is yours: update your address with your bank and service providers, set up property tax payments if they are not included in your mortgage, and settle in. Then take a moment to celebrate your first home.
Frequently asked questions
What are the steps to buy your first home in Ontario?
Prepare (pre-approval, agent, deposit, closing-cost savings), make an offer through the Agreement of Purchase and Sale, retain a lawyer once it is accepted, prepare for closing, complete closing day when ownership transfers, and handle a few post-closing steps like updating your address.
What is the difference between a deposit and a down payment?
The deposit is a smaller amount you send shortly after your offer is accepted to show you are serious; it is held in trust and applied toward your down payment at closing. The down payment is the larger sum you put toward the purchase price, with the rest covered by your mortgage.
How much are closing costs for a first-time buyer?
A common rule of thumb is about 1.5% to 4% of the purchase price, covering land transfer tax, legal fees and disbursements, and title insurance, plus adjustments. Your lawyer calculates the exact amount in the statement of adjustments before closing.
When should you hire a real estate lawyer?
As soon as your offer is accepted. Retaining a lawyer early gives them time to review the agreement, run the title search, complete the lender's mortgage instructions, and prepare your documents so closing day goes smoothly.
What does a buyer do on closing day?
Mostly stay reachable. Your lawyer registers ownership and the mortgage, sends funds to the seller's lawyer, notifies the municipality, and arranges key pickup. Once registration is complete, the home is officially yours.
About the author
Joel Fox is a co-founder and COO at Ownright. He works on Ontario residential closings and writes to give first-time buyers a clear roadmap of what happens at each stage, from pre-approval to keys in hand.
At Ownright, we help buyers through every step of the closing process, coordinating with lenders and agents, preparing the legal documents, and completing the transaction accurately and on time. You can start your closing online or get in touch with any questions. For the bigger picture, see our complete guide for first-time home buyers in Ontario.
Important note: This article is for general information only and is not legal or financial advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate professional advice.
