How do I make an offer on a house in Canada?

Your real estate agent prepares an Agreement of Purchase and Sale (or Contract of Purchase and Sale in BC, Promise to Purchase in Quebec) with your offer price, deposit amount, conditions (financing, inspection), included items (appliances, fixtures), and closing date. The offer is submitted to the seller's agent. The seller can accept, reject, or counter your offer. If accepted, you enter the conditional period and work toward making the deal firm.

How much deposit do I need to make an offer in Canada?

In Canada, there is no legal minimum deposit, but the standard is 3–5% of the purchase price in most markets. In competitive Toronto and Vancouver markets, deposits of 5% or even 10% are common to demonstrate seriousness. The deposit is held in trust by the listing brokerage or the buyer's agent's brokerage and applied toward your down payment at closing. If the deal falls through due to an unfulfilled condition, the deposit is returned.

Can I back out of an offer on a house in Canada?

If your offer includes conditions (financing, inspection) and those conditions are not satisfied within the agreed timeframe, you can walk away with your deposit returned. Once you waive all conditions or submit a firm offer, the agreement is legally binding. Backing out after going firm can result in forfeiting your deposit and the seller suing you for any losses, such as the difference if they sell for less to another buyer.

How to Make an Offer on a House in Canada: Step-by-Step Guide

Making an offer on a house is the moment the home buying process gets real. The decisions you make in your offer — price, conditions, deposit, closing date — directly affect whether you win the home and how much you ultimately pay for it. Here is how the process works across Canada.

Before you make an offer

Step	What to Do	Why
Confirm pre-approval	Verify your pre-approval is current and the amount covers this purchase price + closing costs	Ensures you can actually finance the home
Review comparable sales	Ask your agent for recent sales of similar homes in the area (last 3–6 months)	Sets your offer price based on market data, not emotion
Review days on market	How long the listing has been active	Longer days on market = more negotiating room
Research the seller’s situation	Motivated sellers (relocation, estate sale, divorce) may accept lower offers	Adjusts your negotiation strategy
Set your maximum price	Decide your walk-away number BEFORE making the offer	Prevents bidding higher than you can afford in the heat of competition

What goes into an offer

The Agreement of Purchase and Sale (APS) in Ontario — or its equivalent in other provinces — includes:

Component	Details
Purchase price	Your offered amount
Deposit	Amount and when it is due (usually within 24 hours of acceptance)
Conditions	Financing, inspection, status certificate (condo), sale of buyer’s property
Condition timelines	Number of days for each condition to be satisfied
Closing date	When possession transfers to you
Irrevocability period	How long the seller has to respond before your offer expires
Included items	Appliances, fixtures, window coverings, shelving that you want included
Excluded items	Anything the seller is taking that might normally stay
Chattels vs fixtures	Clarifies what stays and what goes
Special clauses	Survey requirements, tenant situations, rental equipment assumptions

Deposit: How much and when

Market Conditions	Typical Deposit	Notes
Balanced or buyer’s market	3–5% of purchase price	Standard — shows good faith
Hot seller’s market (Toronto, Vancouver)	5–10%	Larger deposits signal serious intent
Rural or slow market	1–3%	Smaller deposits are normal
New construction (pre-build)	Staged deposits totaling 15–20%	Typically 5% at signing, 5% at 30 days, 5% at 90 days, etc.

Example: On a $600,000 home in Toronto, a typical deposit is $30,000–$60,000 (5–10%).

Important deposit facts:

The deposit is NOT a separate cost — it is applied toward your down payment at closing
It is held in a trust account by the listing brokerage (not given directly to the seller)
It is returned in full if the deal collapses due to an unfulfilled condition
It is at risk if you default on a firm (unconditional) deal

Conditions to include in your offer

Condition	What It Does	Typical Timeline	When to Include
Financing	Confirms mortgage approval for this specific property	5–10 business days	Always (unless you are paying cash)
Home inspection	Allows professional inspection and negotiation on deficiencies	5–10 days	Always on resale homes
Status certificate (condos)	Reviews condo corporation financial health	10 days to receive + review	Always on condos
Appraisal	Confirms property value supports the mortgage	Included in financing condition	Usually covered by financing condition
Sale of buyer’s property	Gives you time to sell your current home	30–90 days	Only if you need to sell first
Title search	Confirms clean ownership	Runs in background — not usually a formal condition	Your lawyer handles this automatically

When conditions are waived

Waiving conditions makes your offer stronger in a competitive situation but adds significant risk:

Condition Waived	Risk Level	Financial Exposure
Financing waived	Very High	$20,000–$100,000+ (deposit forfeiture + damages)
Inspection waived	High	$10,000–$100,000 in undiscovered repair costs
Status certificate waived	High	$5,000–$50,000 in special assessments or undisclosed issues
All conditions waived (firm offer)	Maximum risk	Full exposure — no ability to walk away

How to set your offer price

In a balanced or buyer’s market

Strategy	When to Use
5–10% below asking	Home has been listed 30+ days, minimal interest, no competing offers
At asking price	Fairly priced based on comparables, some interest but no bidding war expected
Asking price with conditions	Strong position — conditions protect you while price attracts the seller
Asking price minus seller credits	Ask for closing cost credits or included repairs instead of a lower price

In a seller’s market (multiple offers)

Strategy	When to Use
At or slightly above asking	Low competition (2–3 offers), asking price seems fair
5–15% above asking	High competition, underpriced listing strategy, 5+ competing offers
Your maximum with strong terms	After comparables analysis, best offer you can make while still being comfortable with the price
Clean offer (minimal conditions)	Only if you have safeguards in place (pre-inspection, strong pre-approval, cash reserves)

Never bid more than you can afford. Winning at a price that causes financial stress for 25 years is worse than losing the bidding war.

The offer process step by step

Step 1: Prepare the offer with your agent

Your agent drafts the APS with your offer terms. Review every section carefully — especially:

The purchase price
Deposit amount and due date
All conditions and their deadlines
The closing date
What is included (check appliances, fixtures, window coverings)

Step 2: Sign and submit

You sign the offer and your agent submits it to the listing agent (seller’s agent). You set an irrevocability deadline — typically 12–24 hours — giving the seller time to respond.

Step 3: Seller responds

Seller Response	What Happens Next
Accepts your offer	Deal is conditional. You proceed to satisfy conditions.
Counters your offer	Seller changes one or more terms (usually price or closing date). You can accept, counter back, or walk away.
Rejects your offer	No deal. Your agent can ask why and determine if a revised offer would be considered.
No response before irrevocability expires	Offer is dead. You can submit a new one or move on.

Step 4: Counter-offer negotiation

Counter-offers go back and forth until both parties agree or one walks away. Each counter creates a new irrevocability period.

Negotiation Tip	How It Helps
Counter on price but not conditions	Shows flexibility while maintaining your protection
Offer a shorter closing date	Attractive to sellers who want to move quickly
Increase deposit slightly	Signals commitment without changing purchase price
Include a personal letter (cautiously)	Some sellers are swayed by knowing who is buying their home. Not effective or appropriate in all markets — and illegal in some US states (not Canada).

Step 5: Acceptance and conditional period

Once both parties sign, the deal is conditional. The clock starts on satisfying your conditions:

Day	What Happens
Day 0	Offer accepted. Submit deposit (usually within 24 hours).
Day 1–2	Submit formal mortgage application if not already done. Book home inspection.
Day 3–5	Home inspection completed. Review report with your agent.
Day 5–8	Mortgage commitment received from lender.
Day 7–10	Request and receive status certificate (condos). Lawyer reviews.
Condition deadline	All conditions met → waive in writing. OR condition not met → exercise the condition and cancel.

Multiple-offer situations (bidding wars)

What to Expect	How to Handle It
The listing agent announces a specific “offer date”	Prepare your best offer by that date and time
You will not see competing offers (blind bidding)	Base your offer on comparable sales data, not guesswork
The seller may ask for “highest and best”	Your single best offer — you may not get a second chance
The seller can accept any offer (not necessarily the highest)	Clean offers with fewer conditions and larger deposits can win over higher prices
Escalation clauses	Some markets allow escalation clauses ("$X above the highest offer, up to $Y") — not permitted everywhere and not always effective

Bidding war self-protection rules

Set your maximum price before the bidding starts. Write it down. Do not exceed it.
Base your maximum on comparable sales, not the emotional value of the home.
Include a financing condition if at all possible. If you must waive, have a written backup approval from your lender.
Do not waive the inspection unless you have done a pre-offer inspection.
Walk away if the price exceeds your comfort zone. Another home will come.

Province-specific offer differences

Province	Offer Form	Key Differences
Ontario	Agreement of Purchase and Sale (OREA form)	Irrevocability period, standard conditions wording, deposit held by listing brokerage
British Columbia	Contract of Purchase and Sale	“Subjects” (not conditions), subject removal deadline, deposit typically within 24 hours of subject removal
Quebec	Promise to Purchase (Promesse d’achat)	Notarized closing, no land transfer tax rebate for first-time buyers, different legal framework
Alberta	Residential Purchase Contract (AREA form)	No land transfer tax, conditions similar to Ontario
Atlantic provinces	Agreement of Purchase and Sale (varies by province)	Generally similar to Ontario forms