Making an Offer on a House Over $1 Million in Stoney Creek and Hamilton
An offer on a house over $1 million works the same way as any other offer. What changes is how hard the house is to value, how much cash is at stake if the lender disagrees, and how much has to be written down.
This guide covers those differences only. The basics are in our general guide to offers, conditions and deposits.
Pricing a house with few comparable sales
A typical house can be priced against several recent sales of similar houses. A larger or unusual house often cannot. There are fewer buyers, fewer sales, and no two custom houses or lakefront lots are alike.
An opinion of value starts with recent sales of the nearest equivalents, then adjusts for the lot, location, size and condition. Each adjustment is a judgment, and with few comparable sales two careful people can land further apart than on a typical house.
A REALTOR's comparative market analysis is an opinion of the likely selling price, prepared to help you decide what to offer. An appraisal is prepared for your lender, who is the appraiser's client, and the lender uses it to decide how much to lend. The lender is not bound by the first.
The appraisal gap
Lenders usually lend against the purchase price or the appraised value, whichever is lower. If the appraisal comes in below your price, you cover the difference in cash. This illustrative example assumes a lender that lends 80% of the lower figure.
| Illustrative example | As planned | After a low appraisal |
|---|---|---|
| Purchase price | $1,500,000 | $1,500,000 |
| Value the lender uses | $1,500,000 | $1,400,000 |
| Mortgage at 80% | $1,200,000 | $1,120,000 |
| Cash needed toward the price | $300,000 | $380,000 |
| Extra cash | $0 | $80,000 |
A $100,000 gap means $80,000 more cash, the 80% of the gap the lender would have funded. A financing condition is the usual protection. It gives time for the appraisal before you are committed.
Conditions that matter more at this price
- Financing. It covers the appraisal as well as your approval (see down payment and mortgage rules over $1 million). RECO, Ontario's real estate regulator, warns that pre-qualifying does not safely remove the need for it.
- Inspection. Allow enough days for specialists. See inspecting a larger house.
- Sale of your current house. A seller may refuse, or accept with an escape clause: if another offer arrives, you get a short period to go firm or step aside. See our guide to bridge financing.
- Insurance. Time to confirm the house can be insured, and at what cost.
- Well and septic. On a rural lot, time for water testing and a septic inspection.
- Planned changes. Time to confirm an addition, pool or second building with the planning agencies. See escarpment, lakefront and conservation rules.
The deposit
There is no set amount or fixed percentage for a deposit in Ontario. It is negotiated, held in a brokerage trust account (usually the seller's brokerage) and credited toward the purchase price on closing.
A buyer who walks away from a firm agreement will usually lose the deposit, and the seller may sue for further losses.
RECO's consumer deposit insurance covers deposits in a brokerage trust account against brokerage theft, fraud or insolvency, up to $200,000 per claim and $4 million per event (as of October 2026). A deposit at this price can exceed that limit.
Competing offers and representation
Under Ontario's Trust in Real Estate Services Act (TRESA), in force since December 1, 2023, a buyer who has made a written offer is entitled to know the number of competing offers. The contents of offers stay private unless the seller directs in writing that they be shared. Personal or identifying information cannot be shared.
TRESA separates clients from self-represented parties. The seller's agent cannot give a self-represented party services, opinions or advice. A brokerage must give you the RECO Information Guide before it provides services or assistance.
What is included, and when you close
The general position in Ontario is that fixtures (attached to the house) stay and chattels (movable items) leave with the seller, unless the agreement says otherwise. At this price the list is long, so write each item in: appliances, wall-mounted televisions and brackets, built-in audio, automation hubs, pool equipment and robotic cleaners, window coverings, generators and outdoor kitchens.
Closing and possession dates are negotiated. If yours must line up with the sale of your current house, plan the two dates together before you offer.
Who should be careful
- Buyers dropping the financing condition on a hard-to-value house. A low appraisal means finding the extra cash, with the deposit at risk if you cannot close.
- Buyers offering before their own house is sold. A firm purchase then depends on a sale price and date you do not yet know.
Your real estate lawyer reviews the agreement, ideally before it is firm.
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Frequently Asked Questions
What happens if the appraisal comes in lower than my offer?
The lender usually lends against the lower figure, so you need more cash to close.
How much deposit do I need on a million-dollar house in Ontario?
There is no set amount. It is negotiated, and credited toward the purchase price on closing.
Can I see the other offers on a house in Ontario?
You are entitled to know how many there are. You see their contents only if the seller directs in writing that they be shared.
Do wall-mounted TVs stay with the house in Ontario?
A bracket fixed to the wall is generally treated as a fixture and the television as a movable item. Name both in the agreement.
Can I make my offer conditional on selling my current house?
Yes, if the seller agrees. Some sellers refuse, and others accept with an escape clause.
Want to talk through an offer on a specific house? Get in touch and we will go through it with you.
This guide is general information, not legal, mortgage or insurance advice. Rules and limits change, so confirm details with your lawyer, lender and insurance broker.