1. Know your numbers
Before you look at a single listing, know three numbers: your down payment, your closing costs, and the monthly payment you’re comfortable with (which may be less than what a bank will lend you).
Minimum down payment in Canada
| Homes up to $500,000 | 5% |
| $500,000 to $1.5 million | 5% of the first $500k + 10% of the rest |
| $1.5 million and up | 20% |
Example: on a $750,000 home the minimum is $25,000 + $25,000 = $50,000. With less than 20% down you’ll pay mortgage default insurance (CMHC or similar), which is added to your mortgage.
Don’t forget closing costs
Set aside about 1.5% to 4% of the price for land transfer tax, legal fees, title insurance, a home inspection and adjustments. First-time buyers get a land transfer tax refund, which helps a lot.
Try it: the affordability calculator shows your maximum price under the stress test, and the closing cost calculator works out your land transfer tax and refunds.
2. Programs that help first-time buyers
These can add up to tens of thousands of dollars. Most people qualify for more than one, and couples can often each use them.
First Home Savings Account (FHSA)
Save up to $8,000 a year ($40,000 lifetime). Contributions are tax-deductible like an RRSP, and withdrawals for your first home are tax-free like a TFSA.
RRSP Home Buyers’ Plan
Borrow up to $60,000 from your RRSP tax-free ($120,000 for a couple), then pay it back to your RRSP over 15 years.
Ontario land transfer tax refund
First-time buyers get up to $4,000 back on Ontario land transfer tax. On homes up to about $368,000 that covers all of it.
Toronto land transfer tax rebate
Buying in the City of Toronto? You pay a second, municipal land transfer tax, and first-time buyers get up to $4,475 of it back.
Home Buyers’ Amount (tax credit)
Claim $10,000 on your tax return the year you buy, worth up to $1,500 in federal tax savings.
Longer amortization
First-time buyers can take a 30-year amortization even with less than 20% down, which lowers the monthly payment.
Buying a newly built home? First-time buyers can also get GST relief of up to $50,000 on new homes up to $1 million (partial relief up to $1.5 million), and Ontario has announced matching HST relief. Rules and dates change, so ask me for the latest before you sign.
“First-time buyer” usually means you (and often your spouse) haven’t owned and lived in a home in the last four years, but each program has its own definition. Amounts as of November 2026.
3. Get pre-approved
A pre-approval tells you how much a lender will lend and holds an interest rate for usually 90 to 120 days. It also makes your offer stronger.
- Bring: ID, two recent pay stubs, a job letter, your last two years of T4s or Notices of Assessment, and 90 days of bank statements showing your down payment.
- The stress test: you have to qualify at the higher of your rate + 2% or 5.25%, even though you’ll pay the actual rate.
- Don’t open new credit, finance a car or change jobs between pre-approval and closing.
A mortgage broker can shop many lenders at once. I’m happy to introduce you to people I trust.
4. Find the right home
Write down your must-haves (bedrooms, commute, schools) and your nice-to-haves. Then we tour, compare recent sales, and look past the staging.
- Condo vs. townhouse vs. semi vs. detached: condos cost less to buy but have monthly fees. Semis and towns often give the best space for the money.
- Look at the area, not just the house: GO train access, Highway 401, schools and future development all affect value.
- Think ahead: could the basement become a rental unit one day? That can help with your mortgage.
5. Make an offer
When you find the one, I’ll pull comparable sales so we offer the right price, not just the asking price. In Ontario, an offer is an Agreement of Purchase and Sale and usually includes:
- Price and deposit: the deposit (often 2.5% to 5%) is usually due within 24 hours of acceptance and goes toward your down payment.
- Conditions: financing and home inspection conditions protect you. In a competitive market some buyers go “firm”, which is riskier, so we do the inspection and financing homework first.
- Closing date: usually 30 to 90 days out.
6. Closing day
Your lawyer handles the title search, registers the property, and pays the seller. A few days before closing you’ll sign documents and send your down payment and closing costs to your lawyer. On closing day the keys are yours.
Set up home insurance (your lender will need proof), book movers, and transfer utilities ahead of time.
Your first-home checklist
Tick things off as you go. Your progress is saved in this browser.
Frequently asked questions
How much do I need to save to buy my first home?
Your minimum down payment plus 1.5% to 4% for closing costs. On a $650,000 home that’s a $40,000 minimum down payment plus roughly $10,000 to $20,000 for closing costs, before any first-time buyer refunds.
Can I use both the FHSA and the RRSP Home Buyers’ Plan?
Yes. You can use both for the same purchase, which means one person could put up to $100,000 from these accounts toward a first home, and a couple up to $200,000.
Should I wait for interest rates to drop?
Nobody can time rates perfectly. What matters most is whether the payment works for your budget today. You can renew or refinance later if rates fall, but you can’t go back and buy at today’s price. Let’s look at your numbers together.
Do I pay a realtor to help me buy?
In most Ontario purchases the buyer’s agent is paid from the commission the seller offers. We’ll go over exactly how it works in our buyer representation agreement before we start, so there are no surprises.
What if I’m self-employed or new to Canada?
You can still buy. Self-employed buyers usually need two years of tax returns, and many lenders have programs for newcomers with a shorter credit history. The right mortgage professional makes a big difference here.
Ready to start?
Book a free first-time buyer consultation. No pressure, just a plan.