Buyer questions, answered

At least 5% of the first $500,000 and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need 20% down.

Plan for about 2% of the purchase price on top of your down payment. Most of it is Ontario land transfer tax (about $22,500 on a $1.3 million home in Vaughan), plus legal fees, title insurance, a home inspection and adjustments for property tax the seller prepaid. Toronto buyers also pay the municipal land transfer tax, which roughly doubles the tax.

Yes. Ontario refunds up to $4,000 of the provincial land transfer tax, and the City of Toronto refunds up to $4,475 of its municipal tax, so a first-time buyer in Toronto can save up to $8,475. You must never have owned a home anywhere in the world and must move in within nine months. Your lawyer claims the refund at closing.

In most cases, sell first, or line up both closings for the same day. Selling first tells you exactly how much you can spend and avoids carrying two homes. Buying first gives you time to find the right home but can force a rushed sale; if you do, ask your lender about a bridge loan to cover the gap.

When a seller sets an offer date, every buyer sends their best offer by that date and the seller can accept, sign back or turn down any of them. Since December 1, 2023, sellers in Ontario may choose to share the details of competing offers, but many still do not. To compete, come in with a strong price, a solid deposit and as few conditions as possible, with your financing and inspection sorted before the offer date.

It depends on when you need to move. Resale lets you move in within months, see exactly what you are buying and avoid construction delays. Pre-construction spreads out the deposit and gets you a brand-new home, but closings can be delayed for years and you may pay extra development charges at closing. Buyers who need a home soon usually do better with resale.

Most buyers take one to three months to find the right home, then 30 to 90 days to close. Getting pre-approved before you start saves time, and a firm deal can close in about 30 days if your lender and lawyer are ready.

Yes, for almost every resale home. An inspection usually costs $400 to $700 in the GTA and takes two to three hours. When there is an offer date, buyers often inspect before it so they can make a firm offer.

A package from a condo corporation showing its finances, reserve fund, rules and any lawsuits. Buyers usually make their offer conditional on their lawyer reviewing it.

In the GTA, a deposit of about 5% of the price is common, usually due within 24 hours of your offer being accepted. It is held in trust by the listing brokerage and counts toward your down payment on closing.

About $26,475. Ontario charges 0.5% on the first $55,000, 1% up to $250,000, 1.5% up to $400,000 and 2% up to $2 million. First-time buyers can get up to $4,000 of that refunded. In Toronto you also pay a municipal land transfer tax of about the same amount.

Not once the deal is firm. Resale homes have no cooling-off period, so your conditions (financing, inspection, status certificate) are your way out, and only until their deadlines. New condos bought from a builder are the exception, with a 10-day cooling-off period.

Lenders check that you could still afford your payments at a higher rate: currently the greater of 5.25% or your mortgage rate plus 2%. It lowers how much you can borrow, so get pre-approved before you start looking.

Usually nothing out of pocket. In most sales, the seller's brokerage offers to pay the buyer's brokerage from the sale proceeds. Since December 1, 2023, buyers sign a written buyer representation agreement that sets the commission, and if the seller offers less than that amount, the buyer may owe the difference. Michael goes through this with you before you see a single home.