Your first home starts here.
An all-in-one guide for first-time buyers in Ontario — the incentives you can claim, the mortgage basics you need, the land transfer tax you'll pay, and every step from pre-approval to keys. Written in plain English, no jargon.
Programs designed to help you buy your first home
Ontario first-time buyers can stack several federal, provincial, and municipal programs. Here's a plain-English overview of the big ones.
First Home Savings Account (FHSA)
A registered account that combines the best of an RRSP and TFSA. Contributions are tax-deductible, growth is tax-free, and withdrawals for a first home are also tax-free — up to $8,000 per year.
Home Buyers' Plan (HBP)
Withdraw from your RRSP tax-free to buy or build a first home. You then repay yourself over 15 years. Couples can each withdraw, potentially unlocking $120,000 combined.
First-Time Home Buyers' Tax Credit
Also called the Home Buyers' Amount. A non-refundable tax credit you claim on your income tax return the year you buy your first qualifying home.
Ontario Land Transfer Tax Refund
First-time buyers in Ontario get a refund on the provincial Land Transfer Tax, reducing or eliminating it entirely on lower-priced homes.
Toronto Municipal LTT Rebate
If you buy within the City of Toronto you also pay a municipal LTT — but first-time buyers get a separate rebate on top of the provincial one.
GST/HST New Housing Rebate
Buying a newly built or substantially renovated home? You may qualify for a partial rebate of the GST/HST paid, based on the purchase price.
Note: Program amounts, eligibility rules, and repayment terms change from time to time. This is general information, not financial, legal, or tax advice — always confirm current details with a qualified professional or the official government source.
The mortgage basics, in plain English
Financing is where most first-time buyers get overwhelmed. Here are the essentials — enough to walk into a lender's office feeling confident.
Pre-qualification vs. Pre-approval
A pre-qualification is a rough estimate based on info you share. A pre-approval is a formal review of your income, credit, and down payment — with a rate hold, usually 90–120 days. Get pre-approved before you shop so you know your real budget.
Down payment minimums
In Canada: 5% on the first $500,000, and 10% on the portion between $500,000 and $1.5M. Homes priced over $1.5M require 20% down. Higher down payments reduce or eliminate mortgage default insurance.
Mortgage default insurance (CMHC)
If you put down less than 20%, your lender requires default insurance (CMHC, Sagen, or Canada Guaranty). The premium is added to your mortgage — protecting the lender, not you.
Fixed vs. variable
Fixed rates lock in your payment for the term (typically 3 or 5 years). Variable rates move with the Bank of Canada. Fixed = predictability; variable = potential savings if rates drop.
Amortization
The total time to pay off your mortgage — typically 25 years for insured mortgages, up to 30 years for uninsured or eligible first-time buyer situations. Longer amortization = smaller payments but more interest overall.
Get pre-approved first
Before you fall in love with a home, a pre-approval tells you what you can actually borrow, locks a rate, and makes your offer stronger. It costs nothing.
Estimate your provincial (and Toronto) LTT in seconds.
Link coming soon — my trusted partner for first-time buyers.
The Everyday Costs That Add Up
Your mortgage payment is only part of the picture. These recurring monthly expenses affect both your real budget and, in some cases, how much a lender will approve you for.
Utilities
Hydro, gas, water, and internet/cable. Often $200–$500+/month and not included in your mortgage payment.
Memberships & Subscriptions
Gym, streaming, software, and other recurring auto-payments that quietly add up each month.
Childcare
Daycare, before/after-school care, or nanny costs — one of the largest monthly line items for young families.
Financial Contributions
Money you send to family, dependents, or support payments each month.
Loan & Debt Payments
Car loans, student loans, lines of credit, and credit-card minimums — these directly affect your mortgage approval.
Transportation
Car insurance, gas, parking, transit passes, and maintenance — the cost of getting around every day.
Home Upkeep
Condo/maintenance fees, property tax, home insurance, and a repairs/maintenance buffer.
Phone & Insurance
Mobile plans plus life and health insurance premiums that come out of your monthly budget.
Tip: Add these up before you get pre-approved. Knowing your true monthly commitments helps you set a comfortable budget — not just the maximum a lender will hand you.
What is LTT — and why Toronto is different
Every home buyer in Ontario pays Land Transfer Tax when a property changes hands. It's calculated on a sliding scale based on the purchase price.
Ontario LTT
A provincial tax paid on every real estate purchase in Ontario, calculated in tiers from 0.5% up to 2.5% depending on price.
Toronto's second LTT
Buy inside the City of Toronto? You pay a second municipal LTT on top of the provincial one — effectively doubling the LTT bill.
First-time buyer refunds
First-time buyers get up to $4,000 back provincially, and up to $4,475 back on Toronto's municipal LTT.
Estimate your provincial LTT (and Toronto's municipal LTT if you're buying in the city) in seconds — including your first-time buyer refund. Opens in a new tab on Ratehub.
From pre-approval to keys, step by step
Every first-time buyer follows roughly the same path. Here's what actually happens, in the order it happens, in plain English.
- 1Step 1
Mortgage Pre-Approval
Meet with a mortgage broker or lender to confirm your budget, get a rate hold (typically 90–120 days), and understand your maximum purchase price. This step tells you what's actually possible before you fall for a home you can't afford.
- 2Step 2
Find an Agent & Start Touring
Partner with a buyer's agent who works for you (not the seller). Tour homes, refine your must-haves vs. nice-to-haves, and learn the market in your target neighbourhoods. This is often the most fun — and most educational — stage.
- 3Step 3
Making an Offer
When you find the right home, your agent prepares an Agreement of Purchase and Sale. Key terms include the offer price, deposit (typically 5% of the price, held in trust), closing date, and any included chattels or fixtures.
- 4Step 4
Conditions in the Offer
Offers can be conditional or firm. Common conditions that protect you: a Financing condition (final lender approval on this specific property), a Home Inspection condition, and — only if the property is a condo — a Status Certificate review condition. The status certificate reveals the condo corporation's finances, reserve fund health, rules, and any pending legal issues.
- 5Step 5
Home Inspection
A licensed inspector spends 2–3 hours checking the roof, foundation, electrical, plumbing, HVAC, insulation, and more. You get a written report. This protects you from surprise repairs and, if needed, gives you room to renegotiate or walk away.
- 6Step 6
Firming Up the Deal
Once every condition is either satisfied or formally waived, the deal becomes firm and binding. From this moment on, both sides are legally committed and your deposit is at risk if you back out without cause.
- 7Step 7
From Firm to Closing
Between the firm date and closing day there's usually 30–90 days. Use this window to finalize your mortgage, arrange home insurance (required by your lender), and hire a real estate lawyer to handle title search, land transfer, and closing paperwork.
- 8Step 8
Closing Day
Your lawyer registers the title transfer, funds move to the seller, and the Land Transfer Tax is paid. You budget for closing costs — typically legal fees, LTT, title insurance, and adjustments for prepaid utilities or property tax. Then you get the keys. Welcome home.