Question 1

How much do I need for a down payment in Ontario?

Accepted Answer

The minimum down payment in Canada is 5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $999,999, and 20% on anything at or above $1 million. So for an $800,000 home, your minimum down payment is $55,000 (5% of $500K plus 10% of $300K). If you put down less than 20%, you'll pay CMHC mortgage insurance, which gets added to your mortgage rather than paid upfront. Most first-time buyers in the GTA put down somewhere between 5% and 10%. The First Home Savings Account lets you contribute up to $8,000 a year and withdraw it tax-free for your down payment.

Question 2

What are closing costs in the GTA, and what should I budget for?

Accepted Answer

Plan for roughly 2 to 4 percent of the purchase price on top of your down payment. The biggest line item is land transfer tax. Ontario charges a provincial land transfer tax on every home purchase. Toronto layers on a municipal land transfer tax of its own, so buying in Toronto costs roughly double what buying in Mississauga or Markham does at the same price. First-time buyers get a rebate on both. Other typical closing costs include legal fees (usually $1,500 to $2,500), title insurance ($300 to $500 one-time), home inspection ($400 to $700), and any adjustments owed to the seller for prepaid property tax or utilities.

Question 3

How do bidding wars actually work in Toronto?

Accepted Answer

When a listing attracts multiple offers, the listing agent usually sets an offer presentation date a few days after the home goes live. All offers are submitted by a specific time. The seller and their agent review them in private and either accept one, counter one, or reject everything. As a buyer, you don't know what other buyers are offering. Most agents try to read the room (number of showings, list price relative to the neighbourhood, how aggressively the seller is pricing). The hard part is staying disciplined on price. A buyer's agent who knows the area should be able to tell you the realistic range you're competing in.

Question 4

What's a conditional offer, and should I use one?

Accepted Answer

A conditional offer says "I'll buy this home if certain things check out within a deadline." The most common conditions are financing (your lender approves the mortgage), home inspection (no major defects), and status certificate review (for condos, your lawyer reviews the building's financials and rules). Conditions protect you, but they also make your offer less competitive in a hot market. Sellers usually prefer firm offers. In a bidding war on a popular property, conditional offers often lose. In a slower market or on a less-competitive listing, conditions are normal and expected.

Question 5

How long does it take to sell a home in the GTA right now?

Accepted Answer

It varies by neighbourhood, price point, and time of year. In a balanced market, expect 30 to 60 days from listing to firm sale. Hot pockets can move in days. Cooler segments (luxury, older condos, certain suburbs) can sit for months. The number to watch is days on market for comparable homes in your specific neighbourhood, not the GTA average. Your agent should give you a real number from recent sales rather than a guess.

Question 6

What's the commission, and who pays it?

Accepted Answer

In Ontario, the seller pays the total commission, which is then split between the listing brokerage and the buyer's brokerage. The total varies. A common split is 4 to 5 percent of the sold price, with 2 to 2.5 percent going to the buyer's side. Commission is negotiable and depends on the property, the brokerage, and the level of service. Some discount brokerages charge less but offer less marketing or representation. Ask any agent for a written breakdown of what their commission covers.

Question 7

Should I stage my home before listing it?

Accepted Answer

For most homes, yes. Staged homes generally sell faster and for more. Buyers struggle to picture themselves in cluttered, heavily decorated, or under-furnished rooms. Staging can be as light as decluttering and a fresh coat of paint, or as involved as full furniture rentals. The right level depends on your home and price point. A condo at the median price might just need a deep clean and neutralizing. A luxury detached home benefits from professional staging. Talk to your agent about what return you'll actually get.

Question 8

What deposit can my landlord legally ask for?

Accepted Answer

In Ontario, landlords can collect first and last month's rent at lease signing. That's the only deposit allowed under the Residential Tenancies Act. No security deposit, no damage deposit, no key deposit beyond the actual cost of the key. Pet deposits are not legal in Ontario, even if the landlord says they are. If you've paid one and the landlord refuses to return it, you can apply to the Landlord and Tenant Board to recover it.

Question 9

How much can my rent increase each year?

Accepted Answer

Ontario sets a yearly rent increase guideline that applies to most existing tenancies. For 2025 the guideline is 2.5 percent. Your landlord can only raise the rent once every 12 months, and they have to give you 90 days written notice using Form N1. Increases above the guideline require approval from the Landlord and Tenant Board and are usually tied to documented capital expenses on the building. Newly built or first-occupied units after November 15, 2018 are exempt from the guideline.

Question 10

My landlord wants me out so a family member can move in. What are my rights?

Accepted Answer

This is called personal use. Your landlord (or their immediate family) can give you 60 days notice to vacate using Form N12, with the termination date at the end of a rental period. They have to pay you one month's compensation, and the family member has to actually move in and stay for at least 12 months. If you suspect the eviction is in bad faith, you can challenge it at the Landlord and Tenant Board. Landlords who file false N12s face serious penalties.

Question 11

What's the difference between a fixed and variable mortgage?

Accepted Answer

Fixed means your rate is locked for the term (most people choose 5 years). Your payment is the same every month regardless of what rates do in the market. Variable means your rate moves with the Bank of Canada's policy rate. Your payment might stay the same and the principal-to-interest split shifts, or your payment might float, depending on the lender. Variable rates have historically been a bit cheaper than fixed over time, but they carry more uncertainty. The right choice depends on how much rate stress you can stomach and where rates are headed.

Question 12

What's the mortgage stress test?

Accepted Answer

Every federally regulated lender has to qualify you at a "stress test" rate that's higher than the rate you're actually offered. As of 2024 the stress test rate is the greater of the Bank of Canada's qualifying rate (currently 5.25 percent) or your contracted rate plus 2 percent. So if you're offered 4.5 percent, you'll be qualified at 6.5 percent. This caps how much you can borrow and is the single biggest reason mortgage approvals get reduced. Credit unions don't have to apply the test, which is why some buyers finance there instead.

Question 13

How early should I get pre-approved before house hunting?

Accepted Answer

Right at the start. A pre-approval gives you a real budget, locks in a rate for up to 120 days (which protects you if rates rise), and signals to sellers that you're serious. Without one, you might end up in a bidding war on a home you can't actually afford. Talk to a mortgage broker rather than just your bank. Brokers shop multiple lenders and often find better rates and terms than a single bank can offer.

Question 14

Which Toronto neighbourhoods are still relatively affordable?

Accepted Answer

"Affordable" is relative. Compared to the city's median, neighbourhoods further from the subway lines tend to be more accessible (parts of Scarborough, north Etobicoke, the Junction-area pockets). For first-time buyers, the surrounding GTA cities like Pickering, Ajax, Brampton, and Hamilton typically offer more home for the budget than central Toronto. The trade-off is usually a longer commute or fewer walkable amenities. Browse current listings by neighbourhood and price range on hombek.com to see what's actually available in your range right now.

Question 15

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

Accepted Answer

Detached homes stand alone on their own lot. Semi-detached share one wall with a neighbour. Townhouses (also called row homes or freehold townhomes) share walls on both sides; freehold townhouses include the land they sit on, while condo townhouses are part of a condominium corporation. Condos can be apartments or townhouses where you own the unit but share common areas (lobby, hallways, amenities) with other owners through monthly condo fees. Detached commands the highest price per square foot, condos the lowest.

Question 16

What's a status certificate, and why do I need one for a condo?

Accepted Answer

A status certificate is a package of documents about a condominium corporation that you (or your lawyer) review before firming up a condo purchase. It includes the building's financial statements, reserve fund status, current and upcoming special assessments, bylaws, and any pending lawsuits. The whole point is to catch problems before you're committed. A weak reserve fund or a pending lawsuit can mean special assessments down the road. Your agent should always include a status certificate review as a condition of any condo offer.

Question 17

What's Tarion warranty, and what does it cover on a new build?

Accepted Answer

Tarion is Ontario's statutory warranty for new homes. Every newly built home in the province (freehold or condo) gets a "1-2-7" warranty. One year of coverage on defects in work and materials. Two years on plumbing, electrical, heating, and water penetration. Seven years on major structural defects. The builder is responsible for honouring it, and Tarion steps in if they don't. New-build buyers should understand the warranty before closing and know how to file a claim. Tarion.com has the full details.

Question 18

Can I see sold prices on hombek.com?

Accepted Answer

Yes, once you sign in. PROPTX and TRREB's VOW rules require a brief sign-in step before you can browse sold prices. The process takes about a minute and lets you see the actual closing prices, days on market, and final outcomes for recently sold homes across the GTA. Without signing in, you'll see listings as "Sold" but the price is hidden. The /sold page lets you filter by city, date range, and price.

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