How to Make an Offer on a House in Ontario (Step-by-Step, 2026)

Making an offer on a house is one of the most consequential things you will do as a buyer — and one of the most misunderstood. Ontario's offer process is more formal and contract-heavy than many buyers expect. One misstep on a condition, the deposit timeline, or the irrevocable period can cost you thousands, or the deal entirely.

This guide covers everything you need to know about the purchase offer process in Ontario in 2026: the legal form you sign, every step from search to acceptance, which conditions to include (and which can be dangerous to skip), how deposits work, and what to expect in a multiple-offer situation. Updated for current TRESA rules and March 2026 market data.

What Is an Agreement of Purchase and Sale (APS) in Ontario?

In Ontario, every residential offer to purchase is written on the OREA Agreement of Purchase and Sale (APS) — a standardized form produced by the Ontario Real Estate Association. This is the legal document that, once signed by both parties, creates a binding contract for the sale of a home.

The APS covers:

• The purchase price and deposit amount
• The closing (completion) date
• Any conditions (financing, home inspection, status certificate, etc.)
• What is included with the home — fixtures, chattels, and exclusions
• The irrevocable period (the window during which the offer cannot be withdrawn)
• Representations and warranties by the seller

Additional terms that don't fit the main form are added in a Schedule B — a supplementary schedule where your agent writes custom clauses specific to your deal. This is where detailed condition language, unique seller representations, or special arrangements are spelled out.

Step-by-Step: How the Offer Process Works in Ontario

Here is how making an offer on a house in Ontario works from start to finish. Each step matters — skipping or rushing any one of them is where buyers get into trouble.

What Price Should You Offer? How to Decide in a Buyer's Market

In March 2026, the GTA's sale-to-list price ratio averaged approximately 97% — meaning homes are selling for roughly 3% below asking on average. In some segments, particularly the condo market and higher-price freehold, that gap is wider. This data tells you there is negotiating room right now, but sellers are still transacting.

Buyer's Market vs. Seller's Market Offer Strategy

In the current buyer's market, buyers can realistically offer 3–8% below asking, depending on days on market and comparable sales. A home listed at $899,000 that has sat for 30+ days with no price reduction is a different conversation than a fresh listing priced at fair market value.

In Durham Region freehold, where seller's market conditions still emerge for well-priced detached homes, offer nights (where the seller sets a specific date to review all offers) remain common — sometimes 1–2 days after listing. In those situations, offering below asking is unlikely to win.

Your agent should pull sold comparables (comps) within the last 60–90 days — same neighbourhood, similar size, similar condition. The comps are your anchor, not the asking price. Ask your agent for an automated home evaluation or use the tools at realtorjeroldmorena.pages.dev to get a starting data point.

What Else Affects Your Offer Price

• Days on market: Longer days on market generally mean more flexibility on price.
• Price history: A listing that has already been reduced once signals a motivated seller.
• Competing offers: Even in a buyer's market, a well-priced listing can attract multiple offers. Ask your agent to check for registered offers before you submit.
• Closing date flexibility: Offering the seller their preferred closing date can sometimes be worth as much as 1–2% on price in negotiations.
• Condition-heavy vs. clean offer: A conditional offer with a longer condition period is less attractive to a seller than a clean offer — which is why pricing matters more in a multiple-offer situation if you need conditions.

Conditions to Include in Your Offer (And Which to Never Skip)

A condition gives you a defined period to verify something before your deal becomes firm. If the condition is not met or waived by the deadline, either party can walk away (depending on how the condition is written — most are buyer-benefit conditions, meaning only the buyer can waive or void them).

Here are the most common offer conditions in Ontario, with typical timeframes:

Condition	Typical Timeframe	Purpose	When to Include
Financing	3–5 business days	Confirms your lender approves the specific property and finalizes the mortgage commitment	Almost always — even with pre-approval, lenders must approve the property itself
Home Inspection	5–7 business days	Allows a licensed home inspector to assess the property's condition and identify material defects	Every resale purchase, especially older homes, detached, or semi-detached
Status Certificate (Condos)	10 business days	Lawyer reviews condo corporation financials, reserve fund, special assessments, and rules	Every condo purchase — non-negotiable
Sale of Buyer's Property	Negotiated (often 30–60 days)	Protects buyer if they need to sell their current home to fund the purchase	When buying before selling; note — sellers often insert a 72-hour escape clause
Lawyer Review	2–3 business days	Allows buyer's lawyer to review the APS for unusual or unfavourable terms	Complex deals, new builds, or first-time buyers
Insurance	2–3 business days	Confirms the property is insurable (matters for older homes, oil tanks, knob-and-tube wiring)	Homes with known issues or age concerns

The Risk of Waiving Your Home Inspection

In competitive markets — or when buyers try to make a "cleaner" offer — the home inspection condition is frequently waived. This is one of the most consequential decisions a buyer can make. A qualified home inspector can identify foundation issues, aging HVAC systems, roof problems, and moisture damage that are not visible to the naked eye.

Without an inspection condition, you have no legal recourse if major defects are discovered after closing (unless you can prove the seller actively concealed them — a very high legal bar). If you are in a multiple-offer situation and feel pressure to waive the inspection, consider hiring an inspector to do a pre-offer walkthrough before offer night so you have some professional eyes on the property regardless.

The Deposit: How Much and When Does It Need to Be Paid?

The deposit is a show of good faith. It is not the down payment — it is a portion of funds submitted after acceptance that demonstrates you are a serious, committed buyer.

How Much Is the Deposit?

In Ontario, the standard deposit is 5% of the purchase price. On a $700,000 home, that is $35,000. On a $1.2 million home, that is $60,000. There is no legal minimum, but low deposits can signal lack of commitment to a seller — especially in a competitive situation. Some buyers in higher-end markets offer 10% to strengthen their offer.

When Is the Deposit Due?

The deposit is due within 24 hours of acceptance of the offer. This is not a business-day window — it is 24 clock hours. The funds must be in the form of a certified cheque, bank draft, or wire transfer. Personal cheques are generally not accepted. Make sure your funds are accessible before you submit an offer.

Where Does the Deposit Go?

The deposit is held in trust by the seller's brokerage — it is not given to the seller directly. It sits in a regulated trust account until closing, at which point it is applied to your purchase price. If the deal closes normally, the deposit counts toward your down payment. If you back out of a firm deal without legal cause, you risk losing the deposit entirely.

What Happens After You Submit an Offer?

Once your offer is submitted to the listing agent, here is what can happen during the irrevocable period:

Scenario A: Offer Accepted As Written

The seller signs the offer without any changes. You now have a conditional deal (if you included conditions). Both parties receive a fully executed copy. You have 24 hours to deliver your deposit. You then work through your condition periods — booking your home inspector, confirming mortgage approval with your lender — and waive conditions before the deadlines pass.

Scenario B: Seller Counter-Offers

The seller crosses out specific terms (most commonly the price or closing date), initials the changes, and returns the offer to you with a new irrevocable deadline. This counter is now a brand-new offer — you are the one deciding within the new window. You can accept the counter, counter back again, or let it expire. Each round of changes creates a new legally binding offer document.

Scenario C: Offer Rejected or Ignored

The seller rejects the offer outright or simply does not respond before the irrevocable time passes. Your offer is no longer valid. No deposit is owed. You can resubmit a new offer, negotiate through your agent informally, or move on to the next property.

After the Deal Goes Firm

Once all conditions are waived in writing (your agent prepares a "waiver" or "notice of fulfillment of condition"), the deal is firm and binding. From here, your real estate lawyer takes the lead — conducting title searches, reviewing the transfer documents, coordinating with the lender, and preparing for the closing date. Make sure your lawyer is engaged early, ideally before you submit the offer.

Multiple Offer Situations: How to Win Without Overpaying

Even in a 2026 buyer's market, multiple-offer situations still occur on well-priced, well-presented homes — especially in Durham Region freehold. Here is how to navigate them strategically.

Understand the Offer Night Process

When a seller sets an offer date, they are asking all interested parties to submit their best offer by a specific time. Your agent will find out how many offers are registered (though agents cannot disclose the amounts of competing offers). You submit once — the seller reviews all offers simultaneously and picks the one that works best for them.

Strategies for Competing Effectively

• Price based on value, not fear. Use comps to determine the home's market value and bid what it is actually worth to you — not just "enough to beat the other guy." Overpaying in a bidding war is a common and expensive mistake.
• Larger deposit signals commitment. Moving from 5% to 10% deposit can make your offer stand out without affecting your purchase price.
• Offer the seller's preferred closing date. Ask the listing agent what closing date the seller wants — matching it shows flexibility and can tip a close decision your way.
• Minimize conditions where possible — but not at all costs. A financing condition is almost always worth keeping. If you are pre-approved and your lender has already seen the property type, you may be able to shorten the financing condition to 3 business days. As noted above, consider a pre-offer inspection to allow you to keep — or at least feel informed about — the inspection condition.
• Write a personal letter (optional). In some cases, a brief personal letter from buyer to seller can humanize the offer. Not all sellers respond to this, and it is never a substitute for price — but in a close race, it can matter.

Common Offer Mistakes That Cost Ontario Buyers Money

These are the errors that come up most often — and most expensively — in the Ontario offer process.

• Missing the deposit deadline. The 24-hour deposit window after acceptance is hard. Many buyers do not have certified funds ready. Ensure your money is accessible before you submit an offer — not after acceptance.
• Setting too short a condition period. A 3-business-day financing condition sounds like a reasonable concession, but if your lender needs a property appraisal, that alone can take 2–3 days. Build in enough time to actually complete the condition.
• Not reading the APS line by line. The chattels list (what is included) and exclusions (what the seller is taking) are often where surprises hide. Verify that the washer, dryer, fridge, light fixtures, and anything else you expect to stay are explicitly listed.
• Confusing the closing date with possession date. In Ontario, the closing date and possession date are the same unless otherwise specified in the APS. Make sure both parties understand this.
• Ignoring the irrevocable clause timing. If your irrevocable expires at 11:59 PM on a Sunday and the seller's agent is unreachable, your offer may expire before you can negotiate. Your agent should confirm the listing agent's availability and set a realistic window.
• Not having a lawyer retained before closing. Your lawyer needs time to do title searches and review documents. Engage a real estate lawyer as soon as your deal goes conditional — not the week of closing.
• Skipping the status certificate review for condos. The 10-business-day status certificate condition exists for a reason. Condo corporations with underfunded reserve funds or looming special assessments can become your financial burden the moment you own the unit. Always have your lawyer review the full status certificate package.

For a complete breakdown of what to budget beyond your offer price, see the Ontario Closing Costs Guide — land transfer tax, legal fees, title insurance, and adjustments add up faster than most buyers expect.

First-time buyers should also read the First-Time Home Buyer Guide for Ontario for a full overview of the purchase process, FHSA accounts, and OHOSP rebates available in 2026.

If you are trying to time your purchase or understand whether this is the right moment to buy, the 2026 Ontario Buyer's Market Guide covers current conditions across the GTA and Durham Region in detail.

Frequently Asked Questions