Buy a Resale Home in Ontario: A Step-by-Step Guide for Ottawa-Area Buyers

Buying a resale home in Ontario follows a defined legal sequence, and understanding each step before you start is what separates a smooth purchase from a costly one. For buyers in Ottawa, Orléans, and the corridor running toward Brockville, the process is the same province-wide, but local market conditions shape how every step actually plays out. This guide walks through the full resale purchase process under Ontario's current rules, including TRESA and the Agreement of Purchase and Sale, so you know what to expect at each stage.

Step 1: Confirm Your Financing Before You Search

Getting a written mortgage pre-approval is the foundation of the entire purchase process. A pre-approval from a mortgage professional confirms your borrowing ceiling, locks in a rate hold, and tells you exactly where you stand on debt service ratios before you walk into a single showing. Without it, you are choosing between homes you may not be able to buy.

Use the mortgage calculator on this site to get a working sense of your monthly payments before you meet with a lender.

Down payment minimums in Canada are set federally and apply across Ontario:

• 5% on the first $500,000 of the purchase price
• 10% on the portion from $500,001 to $1,500,000
• 20% on any purchase above $1,500,000

When your down payment is under 20%, your mortgage requires default insurance through CMHC or a comparable insurer. The insurance premium is added to your mortgage amount, but the Ontario PST on that premium (8% of the premium) must be paid in cash on closing day. It cannot be rolled into the mortgage.

The mortgage stress test applies to all new mortgages in Ontario. You must qualify at whichever is higher: your contract rate plus 2%, or the floor rate of 5.25% (OSFI, confirmed January 29, 2026). One exception worth knowing: buyers switching lenders at renewal, without increasing their loan amount or changing their amortisation term, have been exempt from the stress test since November 21, 2024 (OSFI).

Once you have a pre-approval, treat your financial profile as frozen until closing. New debt, a job change, or large credit purchases can all change your debt service ratios enough to unwind a mortgage approval, even after an offer is accepted.

Step 2: Budget for Closing Costs, Not Just the Down Payment

Closing costs in Ontario are a separate set of real cash obligations, due on the same day as your down payment. Treating your down payment and your total purchase cost as the same number is one of the most common mistakes buyers make. Budget for the following before you start touring.

Ontario Land Transfer Tax (LTT): The provincial LTT is a marginal tax applied to the purchase price on a graduated scale. (Ontario Ministry of Finance, Land Transfer Tax)

First-time buyers receive a provincial rebate of up to $4,000, which covers the full LTT on purchases up to $368,333. Above that threshold, the full rebate applies and the buyer pays the LTT on the balance above that amount. Buyers in Ottawa pay the provincial LTT only, without a municipal layer. The Toronto municipal land transfer tax does not apply to purchases outside the City of Toronto.

Legal fees: Every Ontario resale purchase requires a real estate lawyer. Budget $1,500–$2,500 in legal fees plus disbursements, which vary by transaction.

Title insurance: Arranged through your lawyer, typically $200–$400 for a one-time premium.

Property tax adjustment: If the seller has prepaid property taxes past your closing date, you will reimburse them for the overlap at closing. The amount varies by closing date and municipal tax billing cycle.

Home moving costs and utility deposits: These are not paid at the lawyer's office but land in the same financial window.

For a mid-range detached home in Orléans or Barrhaven, total closing costs outside the down payment generally fall in the 1.5%–2.5% range of the purchase price.

Step 3: Understand Your Representation Under TRESA

Under TRESA Phase 2, in effect since December 1, 2023, you have two options when working with a registered real estate agent: signing a Buyer Representation Agreement, which entitles you to fiduciary-level advocacy, or proceeding as a self-represented party, which does not. Knowing the difference before your first appointment matters.

Buyer Representation Agreement (BRA): This is the written contract between you and the brokerage. It sets out the services provided, the geographic area and property type covered, the term of the agreement, and the commission structure. Once signed, the brokerage owes you fiduciary duties: they must act in your interest, maintain confidentiality about your financial position and motivations, and disclose any conflict of interest.

Self-represented parties: If you choose not to sign a BRA, you become a self-represented party. The agent assisting you has no legal obligation to protect your interests, recommend conditions, or advise on price strategy. They can provide information, not representation. For most buyers navigating an Agreement of Purchase and Sale, that distinction carries real financial consequences.

Designated representation: Under TRESA's designated representation model, if your brokerage also represents the seller, your agent serves as your designated representative while the seller gets their own, separate designated representative. Your confidential information does not cross.

Step 4: Search With a Strategy

An effective property search starts by defining your non-negotiables before your first showing. Community, commute, school catchment, and property type all influence long-term value in ways that are harder to weigh objectively once you are emotionally engaged with a specific home.

In the Ottawa area, conditions in mid-2026 are giving buyers more room than they have had in several years. According to the Ottawa Real Estate Board, active listings reached 4,678 units in July 2026, up 9.3% from July 2025, while months of inventory sat at 3.5, consistent with balanced-market conditions. The MLS® composite benchmark price was $634,000 in July 2026, edging down 0.5% year-over-year, while the single-family benchmark held steadier at $725,000, up 0.6% year-over-year. (Ottawa Real Estate Board, July 2026)

Conditions vary meaningfully by submarket. OREB's July 2026 data shows Ottawa Suburb West recorded the firmest absorption among the three suburban submarkets, with a sales-to-new-listings ratio of 56.2% and 3.0 months of inventory. Ottawa Suburb South stood out with sales rising 8.0% year-over-year and new listings falling 6.6%, pushing its sales-to-new-listings ratio to 55.7%. Ottawa Suburb East also remained within balanced conditions, with a 54.3% ratio and 3.0 months of inventory. Ottawa Centre carried softer conditions, with sales down 8.3% year-over-year, a 39.6% sales-to-new-listings ratio, and 5.6 months of inventory. The apartment benchmark sat at $385,500 in July 2026, down 5.2% year-over-year, with the downtown condo segment carrying the most supply relative to demand.

For practical search strategy:

• View enough properties to calibrate your expectations. Understanding what your budget buys in Orléans versus Barrhaven versus Nepean takes comparison, not guesswork.
• Understand local differences. Established neighbourhoods in Nepean or Barrhaven differ from newer subdivisions in east Orléans in character, lot size, age of mechanical systems, and typical price per square foot.
• Know which property type you are shopping. Townhouse and apartment benchmarks have moved in a different direction from single-family homes; your price planning depends on which category fits your budget and needs.

For buyers considering the corridor from Ottawa toward Brockville, conditions along the Highway 416 route and into communities like Kemptville, Prescott, and the Brockville area are generally more relaxed than suburban Ottawa. Selling times tend to be longer, there is more room for negotiation, and the price-per-square-foot picture looks quite different from what the same budget buys in Orléans or Barrhaven. Rural properties and acreage along this corridor attract buyers relocating out of the city, and the purchasing process is the same, though rural-specific considerations around well, septic, and lot characteristics add a layer of due diligence worth discussing with your agent before you start searching.

Residential listings from Ottawa to Brockville can help you understand what is available at your price point before you commit to showings.

Step 5: Agreement of Purchase and Sale

When you find the right property, your REALTOR® will help you draft an Agreement of Purchase and Sale (APS). This is the legally binding contract that governs the purchase. Every line in it is enforceable. Items that matter to you, including appliances, light fixtures, rental items such as hot water heaters, and any representations from the seller, must be captured in the APS in writing. Verbal assurances from showings are not binding.

The APS covers:

• Offer price, informed by a comparative market analysis
• Deposit, typically 5%–10% of the purchase price, due within 24 hours of acceptance by certified cheque or bank draft, held in trust by the listing brokerage
• Conditions, which are your legal exit ramps if due diligence surfaces a problem
• Closing date, when title transfers and you receive keys
• Inclusions and exclusions, spelling out exactly what stays with the property

In the current Ottawa market, with homes selling at an average of 97.8% of list price and a median of 28 days on market as of July 2026 (all property types combined; the median for condominiums was 41 days), buyers generally have room to include conditions without losing the property. (Ottawa Real Estate Board, July 2026)

Step 6: Conditions That Protect You

Conditions are not signs of weakness. They are the legal mechanism that lets you exit a firm deal if due diligence surfaces a problem. Once all conditions are waived and the deal goes firm, you are legally obligated to close. There is no exit without forfeiting your deposit and potentially facing further legal action.

Financing condition: Even with a pre-approval, your lender needs to approve the specific property. A financing condition, typically five to ten business days, gives you that window. If your mortgage is declined during the conditional period and you have this condition in place, you can walk away and recover your deposit.

Status certificate condition (condos only): If you are purchasing a condominium, this condition gives your lawyer at least three business days to review the condo corporation's financials, reserve fund, meeting minutes, by-laws, and any outstanding litigation. Reviewing the status certificate is not optional for condo buyers.

The length of conditional periods is negotiated, not fixed by law. Giving yourself too short a window can mean rushing due diligence on one of the largest financial decisions you will make.

Step 7: Your Lawyer Closes the Transaction

Once your deal goes firm, your real estate lawyer takes over the final stage. In Ontario, a lawyer is legally required to complete a residential purchase, and their role goes well beyond signing documents.

They handle:

• Title search and off-title searches (outstanding work orders, easements, encumbrances)
• Mortgage registration
• Review of the Statement of Adjustments, confirming the financial settlement between buyer and seller at closing
• Coordinating the transfer of certified funds on closing day
• Confirming title registration before keys are released

Keys are typically available in the afternoon of closing day, once title registration is confirmed. Do not schedule movers for closing day itself. Delays in fund transfers and registration are not uncommon, and having your move lined up for the following day removes a significant source of stress.

What Changes If You Are a First-Time Buyer

First-time buyers in Ontario have access to several programmes that reduce the upfront cost of purchasing. The three most relevant for resale buyers are the provincial LTT rebate, the First Home Savings Account (FHSA), and the RRSP Home Buyers' Plan. They work differently and stack in specific ways worth understanding before your offer goes in.

To qualify for the provincial LTT rebate, you must be at least 18 years of age, have never owned a home anywhere in the world, have a spouse who has not owned a home while being your spouse, and intend to occupy the home as your principal residence within nine months of closing. The first-time buyer designation under Ontario's LTT rules is stricter than the federal definition used for programmes like the RRSP Home Buyers' Plan. How these programmes interact depends on your specific financial situation, so confirm the details with your mortgage professional before you finalise your down payment plan.

The first-time home buyer resources on this site cover how these programmes apply to the Ottawa-area market.

The Ottawa Market in Mid-2026

Ottawa's resale market was broadly balanced in July 2026, though conditions diverged significantly by area and property type. The suburban submarkets absorbed demand steadily and accounted for more than 70% of all sales in July 2026, per the Ottawa Real Estate Board. Ottawa Centre and the condominium segment carried more inventory and longer selling times than the suburban average.

The townhouse benchmark came in at $542,500 in July 2026, down 5.1% year-over-year, reflecting a pocket of the market with more buyer leverage than the headline composite number suggests. Buyers who have been watching from the sidelines had more time and more choice than the market offered two or three years ago, but how much leverage you carry into an offer depends heavily on the specific neighbourhood, price range, and property type you are targeting.

For buyers considering a move out of Ottawa toward Kemptville, Prescott, or Brockville, the corridor offers a different set of trade-offs: more land, lower price points, and a pace of purchase that typically allows more time for due diligence. It suits buyers relocating out of the city who are weighing the balance between commute distance and what their budget can buy. (Ottawa Real Estate Board, July 2026)

Frequently Asked Questions

• Do I need a real estate lawyer to buy a resale home in Ontario?

Yes. A real estate lawyer is legally required to complete a residential purchase in Ontario. Your lawyer handles the title search, off-title searches, mortgage registration, Statement of Adjustments, and the transfer of funds on closing day. Legal fees typically run $1,500–$2,500 plus disbursements. Budget for this as a separate line item from your down payment.

• What is the difference between the deposit and the down payment?

The deposit is the portion of the down payment paid immediately after offer acceptance, typically within 24 hours by certified cheque or bank draft. It is held in trust by the listing brokerage and becomes part of your total down payment at closing. The remaining down payment funds are delivered to your lawyer shortly before the closing date. They are not the same payment made at different times; the deposit is a subset of the down payment.

• Does HST apply when buying a resale home in Ontario?

No. HST does not apply to resale homes in Ontario. It applies to newly built homes and substantially renovated properties. When you purchase a previously owned home, no HST is charged on the purchase price. This is one of the practical advantages of buying resale rather than pre-construction.

• What happens if my financing falls through after my offer is accepted?

If you include a financing condition in your Agreement of Purchase and Sale and your mortgage is declined during the conditional period, you can walk away and recover your deposit. If you waived the financing condition and your mortgage falls through, you remain legally obligated to close. You could lose your deposit and face legal action from the seller. This is why including a financing condition, even in a slower market, is generally the right approach.

• What is the Buyer Representation Agreement and do I have to sign one?

A Buyer Representation Agreement (BRA) is a written contract between you and a real estate brokerage that formalises the brokerage's obligation to act in your interest. Under TRESA, effective December 1, 2023, this agreement must be in place before any registered agent can provide you with real estate advice or advocacy. You can choose to be a self-represented party without signing, but in that case the agent has no legal obligation to protect your interests or recommend conditions. For most buyers, representation is the more protected position.

• How long does the home buying process take in Ontario?

From financial preparation to keys in hand, the typical Ontario home purchase takes roughly ten to twenty weeks. Financial preparation and pre-approval take two to four weeks. The search phase varies widely, from a matter of days to several months. Once an offer is accepted, the conditional period plus closing typically runs six to ten weeks combined. First-time buyers should plan toward the longer end of this range.

• As a buyer, do I pay the REALTOR's commission?

Commission structures in Ontario are negotiated between the seller and the listing brokerage, and are set out in the listing agreement. In most resale transactions, the seller's brokerage agrees to a co-operating commission for the buyer's agent. Your Buyer Representation Agreement will set out how compensation works in your arrangement. Review it carefully and ask your agent to walk you through it before signing.

• Is the buying process different along the Ottawa-to-Brockville corridor?

The legal steps are identical province-wide. What differs is the market context. Communities along the Highway 416 corridor, including Kemptville, Prescott, and the areas approaching Brockville, tend to see longer average selling times and more room for negotiation than suburban Ottawa. Rural and acreage properties in that stretch add property-specific due diligence considerations around well systems, septic, and lot characteristics that are less common in urban or suburban purchases. The Brockville to Ottawa buyer guide on this site covers what that corridor looks like in practice.