10 Tasks to Do Now if You Plan to Buy a Home in 2026

If 2026 is your year to buy in the Greater Toronto Area, start today. The buyers who feel calm at the offer table are the ones who spent the year before building a realistic budget, tuning their credit, locking in tax-efficient savings, and learning the rules that actually move affordability. The landscape has shifted in 2024–2025—insured mortgage caps, rebates, and stress-test rules all matter—and a few smart moves now can translate into tens of thousands saved by closing day. This guide lays out ten concrete tasks you can do right away, so you hit January 2026 with clarity, confidence, and options.

1) Get crystal-clear on your numbers (the real ones)

Start by sizing your budget the way lenders do. In Canada, you must qualify using the mortgage stress test at the greater of 5.25% or your contract rate + 2%—even if your actual rate will be lower. Lenders also look at debt-service ratios: GDS 39% and TDS 44% are typical maximums, and they must be calculated using that same stress-test rate. Use the federal mortgage qualifier to model different scenarios with today’s inputs.

Don’t forget closing costs. In Ontario—especially in Toronto where municipal and provincial land transfer taxes both apply—plan for ~1.5%–4% of the purchase price to cover legal fees, title insurance, land transfer tax, and adjustments.

2) Build a tax-efficient down-payment plan

Open a First Home Savings Account (FHSA) if you haven’t already. Contributions are tax-deductible, growth is tax-free, and qualifying withdrawals for your first home are tax-free. Limits are $8,000/year up to $40,000 lifetime, with unused room carrying forward.

Layer in the Home Buyers’ Plan (HBP): as of 2025, you can withdraw up to $60,000 per person from your RRSP (tax-free) and repay it over time, which can meaningfully boost your down payment for a 2026 purchase. Couples can combine limits.

Know the current minimum down payment ladder: 5% up to $500,000, 10% on the portion from $500,000 to under $1.5 million, and 20% at $1.5 million+. Homes at or above $1.5M are not eligible for default insurance.

3) Check—and tune—your credit now

Order your free credit reports from Equifax and TransUnion, review them line by line, and dispute any errors. Small fixes (like reducing revolving balances before statement dates) can move you into a better rate tier by next spring. For insured mortgages, at least one borrower typically needs a 600+ credit score, evaluated alongside your GDS/TDS.

4) Understand what changed in 2024–2025 (it affects your affordability)

Policy updates matter. Ottawa raised the maximum home price eligible for mortgage insurance to under $1.5M (from $1M), and expanded 30-year amortizations for first-time buyers of newly built homes—changes designed to improve affordability and spur construction.

If you are buying new construction as a first-time buyer, track the new federal GST relief on new homes (with price caps and conditions). This is separate from the HST New Housing Rebate rules, which still apply in Ontario.

The federal foreign-buyer ban remains in force through 2027, and Ontario’s Non-Resident Speculation Tax is 25% province-wide. Toronto also has a 10% Municipal NRST layered on top for applicable purchases. If you’re a non-resident or planning to add a non-resident co-buyer, get advice early on exemptions and residency tests.

5) Map your financing timeline to 2026

A typical pre-approval rate hold lasts up to 120 days at major lenders. If you want to buy in spring or summer 2026, you’ll likely refresh pre-approvals more than once to keep your file current, your documents up to date, and your rate options open. If you’re purchasing pre-construction, ask specifically about long-term rate-lock options and their trade-offs.

6) Toronto & GTA market context: build your plan around real data

Through late 2025, TRREB data show lower sales year-over-year and more choice for buyers versus 2024, with average prices negotiated down in several segments—conditions that favour prepared buyers. Keep watching months of inventory and your target neighbourhood’s micro-trends; preparation lets you move quickly when the right home appears.

7) If you’re eyeing pre-construction, learn the rules now

In Ontario, new condo buyers get a 10-day cooling-off period to rescind after receiving required documents. Tarion protects deposits on new homes—generally up to $60,000 for freehold homes ≤$600,000, and 10% up to $100,000 above that. For condos, deposits are held in trust and covered by statutory protections. Beginning January 2026, timely buyer registration impacts maximum deposit coverage—add that reminder to your checklist.

Also understand HST on new homes and assignments. The Ontario and federal rebates have specific eligibility tests tied to primary residence use, and assignments can have GST/HST implications—speak to a lawyer and accountant before you sign.

8) Plan for land transfer tax (and claim every rebate)

If you’re buying outside Toronto, budget for Ontario Land Transfer Tax and, if you’re a first-time buyer, claim the provincial refund up to $4,000. Buying in the City of Toronto? You’ll pay both the provincial and the Municipal Land Transfer Tax; first-time buyers can claim the City’s MLTT rebate up to $4,475. These are big line items—build them into your closing-cost fund early.

9) Assemble your A-team and your documents

Strong files close faster. Line up your mortgage advisor, real estate lawyer, home inspector, and a full-time buyer’s agent who knows your micro-markets block by block. Start assembling documents now: recent pay stubs and T4s, two years of NOAs or T1s (especially if self-employed), down-payment proof, and a simple “sources and uses” budget that shows where every dollar for closing will come from. Lenders will underwrite you using the stress-test rate and those GDS/TDS limits, so packaging matters.

10) Pressure-test your plan before you shop

Run three versions of your budget: base case, +1% rate case, and –1% rate case, and then layer in your preferred amortization and down-payment mix (FHSA, HBP, cash). Remember: insured mortgages under the current framework can go up to just under $1.5M, while homes at $1.5M+ require 20% down and are uninsurable—this can shift both your rate and your monthly payment. Build the plan that still works if rates or prices wiggle between now and your 2026 closing.

The bottom line

Buying in 2026 is absolutely within reach if you treat 2025 as your runway: get your stress-tested budget right, supercharge the down payment with FHSA and HBP, tune your credit, and learn the policy levers that affect affordability in Ontario and Toronto. When you’re ready to translate this plan into viewings and offers, work with a local team that lives and breathes these rules every day.

The Johnson Team is one of the GTA’s top-performing real estate teams, led by Jeff and Liz Johnson. We pair deep market knowledge with creative, data-driven strategies, and we never lose sight of your goals. Whether you are buying your first condo, upsizing to a family home, or selling and buying in the same market, we’ll help you secure the right property, negotiate from strength, and navigate every step—from financing and inspections, to closing and keys. Start a conversation with an agent today, and let’s build your 2026 purchase plan together.