The Ontario real estate transaction feels chaotic if you are unprepared. Understanding the exact sequence of events is the best way to eliminate anxiety. Here is the chronological timeline of purchasing your first home (specifically focusing on a resale purchase timeline).
Step 1: The Accumulation Phase (Years 1 to 5)
You open a First Home Savings Account (FHSA) immediately. Over the next few years, you consistently max out the $8,000 annual FHSA limit, and funnel subsequent tax refunds into your RRSP Home Buyers' Plan.
Step 2: The Pre-Approval (120 Days Out)
You approach a mortgage broker. They lock in a rate for 120 days and run you through the stress test, providing you a hard budget limit. Now you engage a Realtor.
Step 3: The Offer & Conditions (Day 1 - 5)
You find an ideal property and submit an Agreement of Purchase and Sale, making sure to include conditions for Financing and Home Inspection. If accepted, you deliver a 5% deposit cheque to the listing brokerage's trust account within 24 hours.
Step 4: Firming Up (Day 5 - 10)
Your home inspector clears the house. Your lender officially approves the property appraisal. You sign a waiver lifting all conditions. The home is officially sold conditionally, now turning into a Firm Sale.
Step 5: Legal & Administrative (2 Weeks Out)
You hire a real estate lawyer. They conduct title searches. You provide your bank with proof of down payment (submitting your FHSA RC720 withdrawal forms) and organize home insurance, which the lender requires proof of.
Step 6: Closing Day (Day 60 - 90)
You bring a bank draft to your lawyer covering your down payment remainder, land transfer tax, and legal fees. Your lender wires the mortgage funds to your lawyer. The lawyer transfers the funds to the seller, registers the deed in your name via Teraview, and hands you the keys.