Buying a House in 2027 in Ontario: Step-by-Step Guide

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 11 min read — The eight steps to buying a house in Ontario in 2027, in order, with real GTA prices, down payments, taxes and the rules that apply.

This guide is for anyone planning to buy a house or condo in Ontario in 2027, especially in Toronto and the GTA. You will get the eight steps in order, the real numbers behind each one as of November 2026, and the mistakes I see buyers make at each stage.

Is 2027 a good year to buy a house in Ontario?

Prices are lower than a year ago, but borrowing costs have started to rise again. That mix decides how you should approach 2027.

• Prices: TRREB reported an average GTA selling price of $1,024,108 in October 2026, down 2.7% from October 2025. The MLS Home Price Index composite benchmark was down 4.3% year over year.
• Sales: 5,603 homes sold in October 2026, down 7.9%. New listings were down 11.9%, so there is less to choose from than a year ago, but still more than in the busy years.
• Rates: The Bank of Canada raised its policy rate to 2.50% on 28 October 2026, its first hike in more than three years. Big-bank prime rose to 4.70%. The Bank said it could need to raise rates again and expects inflation to average about 3% in 2027. Its next decision is 9 December 2026.

TRREB’s chief information officer said GTA buyers have had substantial negotiating power over the past year. In my view, that is still true going into 2027, but the edge is smaller if rates keep rising. Nobody can promise where prices go next. If you want the forecasts in one place, read my GTA housing market forecast for 2027.

Step 1: How much house can I afford in 2027?

Start with what a lender will approve, then decide what you are comfortable paying each month. Those are two different numbers.

The lender’s two ratios

CMHC’s homebuying guide sets out two rules of thumb. Your housing costs (mortgage payment, property tax, heating and half of any condo fee) should be no more than 32% of your gross monthly income. Your total debt payments, including car loans and credit cards, should be no more than 40%. For an insured mortgage, CMHC caps these at 39% and 44%.

The stress test

You must qualify at a higher rate than the one you will pay. For uninsured mortgages, OSFI sets the minimum qualifying rate at the greater of your contract rate plus 2 points, or 5.25%. Insured mortgages face a similar federal test. With rates rising in late 2026, the stress test bites harder, so get your number checked early. My guide to the mortgage stress test in Canada walks through the maths.

Step 2: How much down payment do I need to buy a house in Ontario?

The minimum down payment in Canada is 5% of the first $500,000 and 10% of the part between $500,000 and $1.5 million. At $1.5 million and above, you need 20%. Under 20% down, your mortgage must be insured, and CMHC says insurance is not available on homes of $1.5 million or more.

Here is what that means at the average October 2026 GTA prices for each home type.

Source: TRREB Market Watch, October 2026 (average prices, all TRREB areas). Down payment and tax calculated by me from the federal minimum down payment rules and Ontario’s land transfer tax rates, before any first-time buyer refund. Inside the City of Toronto, the municipal land transfer tax roughly doubles the tax column.

Mortgage insurance on top

With 5% to 10% down, the CMHC premium is 4.00% of the loan. On the average condo apartment above, that is about $23,370, added to the mortgage. CMHC notes that in Ontario the provincial sales tax on the premium cannot be added to the loan, so it is paid in cash at closing. First-time buyers and buyers of newly built homes can get a 30-year amortization on an insured mortgage; most others are limited to 25 years.

Where the down payment can come from

• FHSA: $8,000 of contribution room a year, up to $40,000 over your lifetime. Unused room carries forward, to a maximum of $8,000.
• RRSP Home Buyers’ Plan: you can withdraw up to $60,000. For a first withdrawal made from 2026 to 2028, the 15-year repayment period starts in the fifth year after the withdrawal.
• Gifts from family: lenders usually want a signed gift letter and proof the money is in your account.

Step 3: How do I get pre-approved for a mortgage?

Bring your lender or mortgage broker your ID, recent pay stubs, a job letter, notices of assessment if you are self-employed, and statements showing your down payment. The pre-approval tells you a price range and usually holds a rate for a set period.

A pre-approval is not a final approval. CMHC’s guide says so plainly, and RECO warns that pre-qualifying does not remove the need for a financing condition. The lender still has to approve the actual property, often with an appraisal. I explain the gaps in what a mortgage pre-approval actually guarantees.

Ask the lender three questions: how long the rate hold lasts, whether it covers a fixed and a variable rate, and what happens if your income or debts change before closing.

Step 4: How do I choose a real estate agent and a lawyer?

Your agent

RECO recommends interviewing at least three agents. Check each one on RECO’s public register, ask what areas and home types they have worked in recently, and ask how they will search and negotiate for you. Every agent in Ontario must be registered with RECO.

When you become a client, you sign a buyer representation agreement. RECO says it must be in writing and should set out the services, what you will pay, how long it lasts and how it can end. Two points catch buyers out:

• Who pays your agent: a seller might not offer anything toward your brokerage’s fee. If that happens, the agreement decides what you owe, which can change how much you can offer.
• Holdover clause: you may owe a fee if you buy a home your agent showed you, even after the agreement ends.

Your lawyer

Choose a real estate lawyer before you make an offer, not after. They review conditions, search title, arrange title insurance, handle your funds and register the transfer. Get a quote for fees and disbursements in writing.

Step 5: How do I choose the right area and home?

Pick the area before the house. Prices across the GTA differ by hundreds of thousands of dollars for the same home type. Using TRREB MLS data via REALM for January to October 2026, the median detached home sold for $950,000 in Brampton, $1,225,000 in Mississauga, $1,420,000 in Markham and $1,625,000 in Oakville. Condo apartment medians ran from $340,500 in Oshawa to $558,000 in Markham. These are city-wide medians, not neighbourhood prices.

Then decide between resale and new:

• Resale: you can inspect it and move in on a set date. Ontario has no cooling-off period on a resale home.
• New or pre-construction condo: you get 10 days to cancel after receiving the signed agreement, the disclosure statement and the condo buyers’ guide.
• New freehold home: a 10-day cooling-off period has been announced, but Tarion says its start date is now 1 January 2028, so it does not apply in 2027.
• HST rebate on new homes: CRA says Ontario’s enhanced new housing rebate covers agreements signed from 1 April 2026 to 31 March 2027. Read my guide to the Ontario HST rebate on new homes and confirm eligibility with your lawyer.

Step 6: How do I make an offer on a house in Ontario?

Your agent drafts the offer with you. It sets the price, deposit, closing date, what is included (appliances, light fixtures) and any conditions. RECO’s buyer checklist suggests making your offer conditional, where you can, on financing, a home inspection, the sale of your existing home or anything else that matters to you.

If other buyers are bidding

In Ontario, the seller’s agent must tell every buyer who has made a written offer how many competing offers there are. The seller decides whether any other details are shared. RECO warns against waiving the inspection just to win. Set your top price and must-have conditions before the offer night and stick to them. My list of mistakes buyers make in multiple offers covers the traps.

Step 7: What happens after my offer is accepted?

You deliver your deposit, usually within 24 hours, and the conditional period starts. In that window:

• Home inspection: Ontario says inspections typically cost $350 to $600. Inspectors are not licensed in Ontario, so check training, insurance and sample reports. Go to the inspection yourself.
• Condo status certificate: the condo corporation can charge up to $100, including tax, and must provide it within 10 days. Have your lawyer read it.
• Financing: your lender confirms the property, often with an appraisal.

When each condition is met, you sign a waiver and the deal is firm. If a condition is not met by the deadline, the deal usually ends and the deposit comes back, depending on the wording.

Step 8: What happens on closing day?

A few days before closing, your lawyer sends a statement of adjustments. You pay the rest of your down payment and closing costs to your lawyer. CMHC says closing costs typically run 1.5% to 4% of the price.

First-time buyers can reduce the land transfer tax. Ontario refunds up to $4,000, so there is no provincial tax on the first $368,000. Toronto’s first-time buyer rebate is up to $4,475. On a $1,000,000 Toronto home, a first-time buyer would pay about $24,475 in combined land transfer tax instead of $32,950. My guide to buyer closing costs in Ontario for 2027 lists every other fee.

On closing day, the lender sends the mortgage funds, your lawyer pays the seller and registers the transfer, and you get the keys. Book a final walk-through before closing and arrange home insurance; the lender will need proof of it.

What to do next

1. Work out your budget with the affordability tool on this page, then get a full mortgage pre-approval.
2. Open an FHSA now if you are a first-time buyer, so you start building contribution room before you buy.
3. Interview at least three agents and choose a real estate lawyer before you view homes.
4. Compare city-wide prices by home type, then shortlist two or three areas.
5. Write your offer with financing and inspection conditions, and plan your cash for closing.

Frequently asked questions

Sources

• TRREB Market Watch, October 2026
• Bank of Canada: policy rate decision, 28 October 2026
• CMHC: Homebuying Step by Step guide
• CMHC: Mortgage loan insurance cost
• OSFI: Minimum qualifying rate for uninsured mortgages
• RECO: Signing a contract with a real estate brokerage
• Government of Ontario: What to know before buying a home
• Ontario: Land transfer tax refunds for first-time homebuyers

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?