Brampton, ON L6S 0E2, Canada
Buying a home in Ontario involves more costs, conditions, and moving parts than most people expect. These are the questions Gaurang hears most often from buyers across Brampton, Mississauga, and the GTA in that first conversation — before any paperwork is signed. Honest answers, specific to Ontario.
More than most people budget for. The down payment is only part of it.
Ontario’s minimum down payment is 5% on homes up to $500,000, 5% on the first $500,000 plus 10% on the remainder for homes up to $999,999, and 20% on homes priced at $1,000,000 or more. On top of that, set aside 2% to 4% of the purchase price for closing costs — land transfer tax, legal fees, title insurance, and home inspection. On a $700,000 home in Brampton, that is $14,000 to $28,000 in cash required at closing, separate from your down payment. Closing costs cannot be rolled into your mortgage.
The closing cost that surprises buyers most is the Ontario Land Transfer Tax. On a $700,000 home, it is approximately $9,475. First-time buyers receive a rebate of up to $4,000, bringing the out-of-pocket amount to around $5,475. If you are purchasing in Toronto, a second municipal land transfer tax applies — with a separate first-time buyer rebate of up to $4,475. Both are applied at closing by your real estate lawyer.
Not necessarily — and this is one of the most commonly misunderstood questions for buyers in the GTA, particularly newcomers.
For the Ontario Land Transfer Tax rebate, you qualify only if you have never owned a home anywhere in the world. If you owned property in another country before immigrating, you may be disqualified — and the same applies to a spouse or partner purchasing with you. This catches many Brampton and Mississauga buyers off guard.
The rules differ for federal programs. Under the Home Buyers’ Plan, you qualify if you have not owned and lived in a home in the current year or the four preceding calendar years — meaning someone who sold a home years ago and has been renting since may qualify again. Confirm your specific eligibility with a mortgage broker before making any RRSP withdrawals. The tax consequences of an ineligible withdrawal are significant and difficult to undo.
Several programs exist. Most buyers have heard of them but are unclear on how they work.
The First Home Savings Account (FHSA) lets you contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, and qualifying withdrawals for a home purchase are tax-free. Open one as early as possible — contribution room accumulates even before you are ready to buy.
The Home Buyers’ Plan (HBP) allows eligible first-time buyers to withdraw up to $60,000 per person from existing RRSP savings toward a down payment. The amount must be repaid to the RRSP over 15 years beginning the second year after withdrawal. The FHSA and HBP can be used together. The First-Time Home Buyers’ Tax Credit is a federal non-refundable credit worth up to $1,500, claimed on your return the year after closing.
Yes — and there are mortgage programs specifically designed for buyers without an established Canadian credit history. CMHC, Sagen, and Canada Guaranty all offer newcomer programs that allow lenders to accept alternative documentation such as international credit reports, bank references, or rental payment history in place of a Canadian credit file.
One important clarification: previous home ownership outside Canada does not disqualify you from buying here, but it may affect eligibility for certain rebates — particularly the Ontario Land Transfer Tax first-time buyer rebate. Review your ownership history carefully with a mortgage broker before assuming you qualify. If you hold temporary immigration status, confirm your exposure to the Non-Resident Speculation Tax (NRST) with a real estate lawyer before making an offer.
A pre-qualification is an informal estimate based on information you provide — no documents are verified, no lender has committed to anything. It gives you a rough sense of your range but carries no weight with sellers.
A pre-approval is a written commitment from a lender based on verified income, a credit check, and a full mortgage application. It locks in a rate for 90 to 120 days and confirms the actual amount a lender will advance. It does not guarantee final approval — the specific property must still be appraised — but it confirms your buying capacity before you make any offers. In a competitive GTA market, making offers without a pre-approval is a significant risk. Get it in writing before you begin viewing properties.
The GTA market in 2026 has more inventory than buyers have seen in years, and prices in many Brampton and Mississauga segments have adjusted from their 2022 peaks. That is real buyer leverage. At the same time, economic uncertainty, interest rates, and job market pressure are legitimate reasons for hesitation — not just noise.
What history shows is that trying to time the GTA market precisely is almost never the outcome buyers achieve. The more useful question is whether your income is stable, your down payment and closing costs are covered, your payment is manageable if rates rise modestly, and you plan to stay in the property for at least three to five years. If the answer to those is yes, the timing question matters less than it feels right now.
One conversation with a broker and an agent who knows your target neighbourhoods will give you a clearer picture of what buying looks like for your specific situation than any general market commentary.
An offer in Ontario is written on a standard Agreement of Purchase and Sale. Most first-time buyer offers include two conditions: a financing condition giving you a set number of days to confirm mortgage approval, and a home inspection condition allowing you to exit if the inspector finds issues you are not comfortable with.
If conditions are not satisfied or waived within the agreed timeframe, the deal collapses and your deposit is returned. Once conditions are waived — or if you make a firm offer with no conditions — the agreement is binding on both parties. Exiting a firm deal carries serious legal and financial consequences. Never waive conditions under pressure without fully understanding what you are giving up.
Your agent should explain the offer process before you set foot in a property, not the night you want to submit.
For resale homes, Ontario sellers must disclose all known material latent defects — hidden problems not visible on a reasonable inspection, such as past flooding, foundation issues, or structural deficiencies. A seller who knowingly conceals a latent defect is exposed to legal liability after closing. This is why a home inspection condition and a thorough inspection matter — they are your best protection before you close, not after.
Title insurance, purchased through your lawyer at closing, protects against title fraud, errors in public records, and ownership disputes that were not detected before purchase. Most lenders require it. For new construction in Ontario, Tarion provides a statutory warranty covering defects in work and materials over one, two, and seven year periods. Tarion registration fees are a mandatory closing cost on new builds.
The first step is a conversation — no obligation, no buyer representation agreement to sign.
Gaurang will walk you through what buying realistically looks like for your specific situation — your income, your savings, your timeline, and your goals.
At Team Shah, we’re committed to providing exceptional real estate services with a personal touch.
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