When most newcomers think of starting their life in Canada, Ontario is often the first destination that comes to mind and for good reason. It’s Canada’s most populous province, home to the nation’s economic hub, Toronto, and one of the most diverse, opportunity-rich regions in the world.
From high-rise condos overlooking Lake Ontario to family homes in growing cities like Ottawa, London, or Kitchener-Waterloo, Ontario offers a vast range of housing options. But before you dive in, it’s crucial to understand how Ontario’s real estate market works from regional price differences to specific legal and tax rules for buyers.
Why Focus on Ontario?
Ontario attracts over 40% of all newcomers to Canada each year, thanks to its job opportunities, education, and infrastructure. It also has one of Canada’s most active real estate markets, [1] offering both opportunity and competition.
As of mid-2025, the average home price in Ontario was about $852,000, higher than the national average of $691,000. [2] But that number tells only part of the story, the province’s housing market varies dramatically by region:
Toronto (GTA): The average price sits around $1.1 million, making it one of the priciest markets in North America. Condos range from $600K - $800K, while detached homes in central Toronto easily surpass $1M.
Ottawa: Canada’s capital offers better affordability, with an average price near $695,000, and a stable market driven by the public sector.
Mid-Sized Cities: Areas like Hamilton, London, and Kitchener-Waterloo are popular among newcomers seeking more space and value averaging $700K - $800K.
Northern Ontario: Regions such as Sudbury or Thunder Bay offer homes between $300K - $500K, making them ideal for buyers prioritizing affordability and lifestyle over proximity to big cities.
Unique Ontario Considerations for Homebuyers
1. Land Transfer Tax (LTT)
Ontario charges Land Transfer Tax on every property purchase, and Toronto adds an additional municipal LTT.
Example: On a $600,000 home in Toronto, you’d pay about $8,475 (provincial) and $8,115 (municipal).
Good news:
First-time buyers who are permanent residents (PRs) or citizens can receive:
Up to $4,000 rebate on the provincial tax
Up to $4,475 rebate on the Toronto tax [3]
If you’re not yet a PR, you’ll need to wait or apply later once eligible, timing your purchase wisely can save thousands.
2. Non-Resident Speculation Tax (NRST)
Ontario applies a 25% NRST on properties purchased by non-PRs or non-citizens in the Greater Golden Horseshoe region (which includes the GTA, Niagara, and surrounding cities). [4] Newcomers who become PRs within four years of buying may qualify for a rebate. It’s a significant expense on a $500K home, this tax equals $125,000, so check your residency status before buying.
3. Working with REALTORS
In Ontario, all real estate agents (REALTORS) must be licensed by the Real Estate Council of Ontario (RECO). [5]
A licensed REALTOR ensures:
Full transparency during transactions
Professional ethics compliance
Access to the Multiple Listing Service (MLS) for real-time property data
Newcomers should always verify that their agent is RECO-licensed. Experienced REALTORS can also guide you through “offer nights,” a common Ontario practice where homes receive multiple bids on the same evening.
4. Closings, Lawyers, and Legal Protections
In Ontario, real estate lawyers handle all closings, they verify ownership, register your title, and ensure taxes and fees are settled.
Lawyers also process Land Transfer Tax rebates automatically at closing. Choose a real estate lawyer (not a general lawyer) familiar with first-time buyer programs and newcomer exemptions.
For condo purchases, the Ontario Condo Act provides a 10-day “cooling-off period” when buying directly from a developer. [6] During this time, you can cancel your purchase without penalty, a valuable protection for first-time buyers.
Practical Tips for Buying in Ontario
Get mortgage pre-approval before starting your home search.
Always do a home inspection, especially for older homes in cold regions, check insulation, windows, and heating.
Be prepared for bidding wars in the GTA; patience is key.
Look beyond Toronto cities like London, Guelph, and Windsor are seeing growth and affordability.
Explore energy-efficiency rebates through Ontario programs to cut long-term costs.
The Takeaway
Ontario is where many newcomers plant their first roots and for good reason. It combines economic opportunity, cultural diversity, and real estate potential like few places in the world. While competition can be fierce, informed buyers who understand the province’s rules, taxes, and rebates can make confident, financially smart decisions.
Whether it’s a condo in downtown Toronto or a family home in Waterloo, owning property in Ontario is a milestone worth aiming for and achievable with the right guidance.
And remember, you don’t have to do it alone, we are here to help you navigate every step of the way.