Down payments, the stress test, how offers and conditions work, deposits, bidding wars and what happens after you sign — the questions buyers actually ask about Toronto and the GTA, answered with the 2026 rules.
Money: down payment and qualifying
How much down payment do I need to buy a home in Ontario?
The minimum is 5% of the first $500,000 of the price and 10% of the portion from $500,000 up to $1.5 million; at $1.5 million or more you need 20%. That is $25,000 on a $500,000 home, $35,000 on $600,000, $55,000 on $800,000 and $75,000 on $1,000,000. With less than 20% down the mortgage must carry default insurance.
Full guide: Minimum down payment in OntarioTry it: GTA affordability calculatorSource: FCAC: down payment
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much do I need to earn to buy a home in Toronto?
It depends on the price, your debts and the rate you are tested at, not the rate you pay. Lenders qualify you at the greater of your contract rate plus 2 points or 5.25%, and cap housing costs at 39% of gross income and total debt payments at 44%, counting property tax, heat and half of any condo fee. Run your own numbers rather than trusting a rule of thumb.
Full guide: Income needed to buy a home in each GTA cityTry it: GTA affordability calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is the mortgage stress test in Canada in 2026?
You must qualify at the greater of your contract rate plus 2 percentage points or 5.25%. At a 4.0% contract rate you are tested at 6.0%. The test applies to new purchases and refinances; since 21 November 2024 it no longer applies when an uninsured mortgage simply switches to a new lender at renewal with no increase in the amount or amortization.
Full guide: The mortgage stress test in 2026Try it: GTA affordability calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
Do I have to pass the stress test again if I switch lenders at renewal?
Not for a straight switch. Since 21 November 2024, OSFI no longer requires federally regulated lenders to re-apply the stress test to an uninsured mortgage that moves to a new lender at renewal without increasing the loan or extending the amortization. Borrowing more, or extending, brings the test back.
Full guide: Switching lenders at renewal
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can first-time buyers get a 30-year mortgage in Canada?
Yes. Since 15 December 2024, every first-time buyer — and anyone buying a newly built home — can take a 30-year amortization on an insured mortgage. It lowers the monthly payment but adds a 0.20% surcharge to the CMHC premium and more interest over the life of the loan.
Full guide: First-time home buyer checklist for OntarioTry it: Mortgage calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I get an insured mortgage on a home over $1 million?
Yes, up to just below $1.5 million. Since 15 December 2024 the price cap for mortgage default insurance has been under $1,500,000, so a home priced at exactly $1.5 million or more needs at least 20% down. Some older articles still quote the previous $1 million cap.
Full guide: Minimum down payment in OntarioTry it: GTA affordability calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much is CMHC mortgage insurance?
On a standard 25-year insured purchase the premium is 2.80% of the loan at 80% to 85% loan-to-value, 3.10% at 85% to 90% and 4.00% at 90% to 95%, plus 0.20% if you amortize over more than 25 years. The premium is added to the mortgage, but Ontario’s 8% sales tax on it is paid in cash on closing.
Full guide: Minimum down payment in OntarioTry it: GTA affordability calculatorSource: CMHC: premium information
Last reviewed October 2026 · Jatin Dua, Broker of Record
Is a mortgage pre-approval a guarantee?
No. A pre-approval holds a rate for a period and confirms the lender’s view of your income on paper, but the lender still has to approve the specific property, its appraisal and your file at the time you buy. That is why buyers keep a financing condition unless they have a firm commitment for that home.
Full guide: What a pre-approval does and does not guarantee
Last reviewed October 2026 · Jatin Dua, Broker of Record
Should I use a mortgage broker or my bank?
Compare both. A bank offers only its own products and may reward existing relationships; a licensed mortgage broker shops many lenders, including credit unions and monoline lenders, and is usually paid by the lender. The best choice depends on your file — self-employed or credit-bruised buyers often gain the most from a broker.
Full guide: Mortgage broker vs bank in Ontario
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can my parents gift me the down payment?
Yes. Lenders accept a gift from immediate family toward the down payment, usually with a signed gift letter confirming it never has to be repaid and statements showing the money landing in your account. A loan dressed up as a gift is a different thing and can change how you qualify.
Full guide: Gifted down payments and the gift letter
Last reviewed October 2026 · Jatin Dua, Broker of Record
Offers, conditions and deposits
How does making an offer on a house work in Ontario?
Your agent drafts an Agreement of Purchase and Sale with your price, deposit, closing date and any conditions, and it is presented to the seller, who can accept, reject or sign it back with changes. Once both sides sign and the acceptance is communicated, it is a binding contract; any conditions then run on their deadlines until they are waived or fulfilled and the deal goes firm.
Full guide: How to buy a house in Toronto, step by step
Last reviewed October 2026 · Jatin Dua, Broker of Record
What conditions should I put in an offer in Ontario?
The common three are financing, a home inspection and — for a condo — the lawyer’s review of the status certificate; others include the sale of your current home or a lawyer review. Each condition needs a clear deadline. In a competitive market sellers favour firm offers, so some buyers do inspections and financing work before the offer date instead.
Full guide: What conditions to put in an offer
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much deposit do you pay when you buy a house in Ontario?
There is no fixed rule; on a resale home it is commonly around 5% of the price, negotiated in the offer. Under the standard Ontario form, a deposit marked “upon acceptance” is due within 24 hours of acceptance and is held in trust by the listing brokerage. The deposit counts toward your down payment on closing.
Full guide: Deposit vs down payment
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can a buyer back out of an accepted offer in Ontario?
Only through an unfulfilled condition in the agreement, or by mutual release. Once an offer is firm, resale buyers have no cooling-off period, and walking away risks losing the deposit and being sued for the seller’s losses if the home resells for less. New condos from a builder are different: the Condominium Act gives a 10-day cooling-off period.
Full guide: Can a buyer back out of an accepted offer?
Last reviewed October 2026 · Jatin Dua, Broker of Record
How long does a conditional offer last in Ontario?
As long as the deadline written into each condition — often five business days for financing and inspection, though anything can be negotiated. If the condition is not waived or fulfilled in writing by the deadline, the agreement usually becomes null and void and the deposit is returned, depending on how the clause is drafted.
Full guide: How long a conditional offer lasts
Last reviewed October 2026 · Jatin Dua, Broker of Record
How much over asking should I offer in Toronto?
Base it on recent sales of comparable homes, not on the list price. Across the GTA, homes sold for an average of about 97% of list in August 2026 according to TRREB, so most homes were not selling over asking — but deliberately underpriced homes holding offer dates still can. Your agent should pull the last three months of comparable sales before you set a number.
Full guide: How much over asking to offer in 2026Try it: What did my neighbour sell for?
Last reviewed October 2026 · Jatin Dua, Broker of Record
What is a bully offer?
A bully offer, or pre-emptive offer, is an offer made before a seller’s scheduled offer date, usually firm and with a short deadline, to win the home before competing buyers can bid. The seller can accept it, reject it or tell every interested buyer and move the offer date up.
Full guide: How to win a bidding war
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can a seller tell other buyers what my offer is in Ontario?
Since TRESA took effect on 1 December 2023, a seller can choose an open-offer process and let the brokerage disclose the details of competing offers, though personal information stays private. If the seller has not chosen that process, the details of your offer stay confidential.
Full guide: TRESA: who your agent works for
Last reviewed October 2026 · Jatin Dua, Broker of Record
Inspections and due diligence
Should I get a home inspection in Toronto?
Yes — either as a condition of your offer or before the offer date. An inspection is visual and non-invasive, so it will not see inside walls or guarantee there are no hidden defects, but it flags the expensive items: roof, foundation, wiring, plumbing, heating and signs of water.
Full guide: What a home inspection does not cover
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I negotiate the price after a home inspection?
Yes, if your offer is conditional on inspection: you can ask for a lower price, a credit on closing or repairs before closing, and the seller can agree, counter or refuse. Once the inspection condition is waived you lose that leverage, so negotiate before the deadline.
Full guide: Negotiating after a home inspection
Last reviewed October 2026 · Jatin Dua, Broker of Record
Does a seller have to disclose problems with a house in Ontario?
Ontario follows buyer beware for defects you could find on a reasonable inspection, but a seller must disclose known latent defects that make a home dangerous or unfit to live in, and cannot hide or misrepresent problems. The Seller Property Information Statement is optional, and any answer the seller gives must be true.
Full guide: Seller disclosure: latent vs patent defects
Last reviewed October 2026 · Jatin Dua, Broker of Record
How do I find out what a house sold for in Toronto?
Sold prices come from MLS data that registered agents can share with clients, and from the land registry after a sale closes. Public portals show some sold data, but an agent can pull full comparable sales, days on market and sale-to-list ratios for any street.
Full guide: How to find sold prices in TorontoTry it: What did my neighbour sell for?
Last reviewed October 2026 · Jatin Dua, Broker of Record
Closing and after you buy
What happens on closing day when you buy a house in Ontario?
Your lawyer sends the balance of the down payment and the mortgage funds to the seller’s lawyer, registers the transfer and the mortgage electronically, and confirms the deal has closed — then the keys are released, usually through the listing brokerage. You do not attend a closing meeting in Ontario; you sign with your lawyer in the days before.
Full guide: What happens on closing dayTry it: Land transfer tax calculator
Last reviewed October 2026 · Jatin Dua, Broker of Record
What if the seller doesn’t move out on closing day?
Do not close until you have vacant possession unless your lawyer advises otherwise; your lawyer can delay closing, hold back funds or negotiate a per-day amount. A seller who stays past closing without an agreement is in breach of the contract, and you may have a claim for your costs.
Full guide: If the seller does not move out
Last reviewed October 2026 · Jatin Dua, Broker of Record
I’m buying a house with a tenant in it. Can I get them out?
Not automatically. The tenancy survives the sale, so you take over as landlord on the existing lease. If you or a close family member genuinely intend to move in, the seller can serve an N12 notice on your behalf once the deal is firm, with the notice period and compensation the Residential Tenancies Act requires; if the tenant does not leave, the matter goes to the Landlord and Tenant Board. Using an N12 in bad faith exposes you to serious penalties.
Full guide: The N12 notice for landlord’s own use
Last reviewed October 2026 · Jatin Dua, Broker of Record
Can I buy a home before I sell mine?
Yes, with bridge financing to cover the gap between the two closings, a conditional offer on the sale of your home, or enough equity to carry both. Buying first gives you the home you want but carries the risk of selling for less than planned; selling first removes that risk but may mean renting in between.
Full guide: Bridge financing: buying before selling
Last reviewed October 2026 · Jatin Dua, Broker of Record
Is it a good time to buy a house in Toronto?
For buyers, 2026 has been a negotiating market: in August 2026 TRREB recorded 5,057 GTA sales at an average of $993,410, down 2.7% from a year earlier, with homes selling for about 97% of list after 35 days on average. Whether it is a good time for you depends on how long you will stay, your job security and whether the payment works at today’s rates.
Full guide: Is now a good time to buy?Try it: Monthly market report
Last reviewed October 2026 · Jatin Dua, Broker of Record
Didn’t find your question?
Ask me directly and I’ll answer it properly — including when the honest answer is to wait. Call or text 833-330-1925, book a 15-minute call, or try Ask JD, the AI concierge on this site.
Jatin Dua · Broker of Record · RE/MAX Quantum Realty · Toronto and the GTA