First-Time Home Buyer Guide
Everything you need to know about buying your first home in Ontario, from pre-approval to closing day.
Understanding Your Down Payment
In Canada, the minimum down payment depends on the purchase price of the home:
| Purchase Price | Minimum Down Payment |
|---|---|
| Up to $500,000 | 5% of the purchase price |
| $500,001 - $999,999 | 5% on first $500K + 10% on the remainder |
| $1,000,000+ | 20% of the purchase price |
The Home Buying Process: Step by Step
Assess Your Financial Readiness
- Review your credit score and address any issues
- Calculate your total monthly debt obligations
- Determine how much you have saved for a down payment
- Understand the difference between what you can borrow and what you can afford
Get Pre-Approved
- A pre-approval shows sellers you are a serious, qualified buyer
- It locks in an interest rate for 90-120 days
- You will know exactly how much home you can afford
- I handle the entire pre-approval process at no cost to you
Find Your Home and Make an Offer
- Work with a licensed real estate agent to find properties
- Submit an offer with your pre-approval letter for credibility
- Include appropriate conditions (financing, inspection, etc.)
- Negotiate terms that work for your situation
Finalize Your Mortgage
- I submit your full application to the best-matched lender
- The lender orders a property appraisal if required
- Once approved, you receive a mortgage commitment letter
- Your conditions are waived and you move toward closing
Close and Get Your Keys
- Your real estate lawyer handles the legal transfer
- You sign mortgage documents and provide closing funds
- The title is transferred to your name
- You receive the keys to your new home
Government Programs for First-Time Buyers
First Home Savings Account (FHSA)
A registered plan allowing first-time buyers to save up to $40,000 tax-free for a home purchase. Contributions are tax-deductible and withdrawals for a qualifying home purchase are tax-free.
Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSP to put toward your first home purchase. The amount must be repaid over 15 years.
First-Time Home Buyer Tax Credit
A non-refundable tax credit of up to $1,500 (based on $10,000 at the lowest personal tax rate) to help offset closing costs.
Ontario Land Transfer Tax Rebate
First-time buyers in Ontario may receive a refund of up to $4,000 on the provincial land transfer tax. Toronto buyers may also qualify for a municipal rebate up to $4,475.
Ready to Take the First Step?
Getting pre-approved is the best way to start your home buying journey. It costs nothing and takes just a few minutes.
Regulatory Disclosure: Michael Noble Green, Mortgage Agent Level 1 (Licence #M21002443), operating under 8Twelve Mortgage Corp. (Brokerage Licence #13390). Regulated by FSRA under the MBLAA. This guide is for informational purposes only and does not constitute financial advice or a commitment to lend. All mortgage products subject to lender approval, O.A.C. Government programs referenced are subject to eligibility requirements and may change.