First-time home buyer mortgages in Ontario, explained step by step

Buying your first home in Toronto or the GTA takes a clear strategy for your down payment, mortgage rules and closing costs. As a Level 2 Mortgage Agent with Mortgage Intelligence, I walk you through each step, compare 55+ lenders and help you use the FHSA, Home Buyers' Plan and tax rebates to lower your upfront costs.

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What rules and advantages apply to first-time buyers?

Down payment tiers
Minimum 5% on the first $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% for homes priced at $1.5 million or higher.
First Home Savings Account (FHSA)
Tax-deductible contributions up to $8,000 per year ($40,000 lifetime) that can be withdrawn tax-free toward your purchase.
Home Buyers' Plan (HBP)
Withdraw up to $60,000 tax-free from your RRSP toward your home purchase.
Land transfer tax rebates
Up to $4,000 in Ontario, plus up to $4,475 more if you buy within the City of Toronto.
Extended amortizations
First-time buyers can qualify for up to 30-year amortizations on insured mortgages, which lowers the monthly payment.

Run your numbers

See the minimum down payment, your monthly cost, the land transfer tax and the closing costs for a first home.

How do we work together?

Initial assessment
We review your income, savings and credit profile to find your true maximum purchasing budget.
Program integration
We structure your down payment using the tax-free savings tools available and calculate exact closing costs, so there are no surprises.
Market search and pre-approval
We hold a competitive rate while you shop, which gives you confidence when you make an offer.
Final approval to closing
We submit your documents to the chosen lender and manage the process through to completion.

Questions, answered

Do I need 20% down to buy my first home in Ontario?

No. For homes priced up to $1.5 million, the minimum is 5% on the first $500,000 and 10% on the remainder. Any down payment under 20% requires default insurance from CMHC, Sagen or Canada Guaranty.

What additional closing costs should I plan for?

Plan for land transfer tax, legal fees, title insurance and a home inspection. Closing costs add up to a few percent of the purchase price, and buyers in the City of Toronto pay a second land transfer tax. I send you an exact estimate with your pre-approval.