First Time Home Buyer

Your First-Time Home Buying Roadmap in Ontario

Buying your first home in Ontario doesn't have to feel complicated.
This step-by-step roadmap breaks down the entire process, from planning your budget to closing your first home, so you know exactly what to expect at every stage.

Step 1

Budget & Down Payment in Ontario

Understand how much you can afford
before buying your first home in Ontario.

Down Payment Rules

Mortgage Pre-Approval

Credit, Debt & Income

Home Affordability

Hidden Costs

Q: How do I figure out how much home I can afford in Ontario?+−

A: Determining how much home you can afford requires looking at four numbers: your gross household income, existing monthly debts, available down payment, and estimated closing costs.

Your total housing costs should not exceed 32% of gross monthly income (GDS). All debts combined should not exceed 44% of gross monthly income (TDS). The mortgage stress test requires qualifying at ~2% higher than your actual rate.

Q: What are the minimum down payment rules?+−

A: Up to $500K: 5%. $500K-$1M: 5% on first $500K + 10% on remainder. $1M+: 20%. Buyers with less than 20% down need CMHC insurance.

Q: What is CMHC insurance?+−

A: Mandatory insurance for down payments under 20%. Premiums range from 2.8%-4%. Ontario charges 8% PST on the premium at closing.

Q: How much should I save?+−

A: Save for: 1) Down payment, 2) Closing costs (1.5%-4% of price), 3) Post-closing reserve for repairs and moving.

Q: Acceptable down payment sources?+−

A: Personal savings, RRSP (HBP), FHSA, family gifts, sale proceeds, inheritance, or approved borrowed down payment programs.

Q: What credit score is needed?+−

A: Minimum 600 for CMHC-insured mortgages. Most lenders prefer 650+. Higher scores get better rates.

Q: What hidden costs are overlooked?+−

A: PST on CMHC, inspection fees, tax adjustments, utility deposits, moving, locks, cleaning, repairs, appliances, condo fees, home insurance, first mortgage payment.

Q: Can I use Zero Down Program?+−

A: Yes, qualifying buyers may use borrowed down payment financing through approved lenders, subject to income, credit, and lender approval.

A clear understanding of your budget helps you avoid surprises and move forward with confidence.

Step 2

Mortgage Pre-Approval in Ontario

Getting pre-approved helps you understand your budget, lock in a rate, and compete in the GTA market.

Q: What is pre-approval?+−

A: Pre-approval estimates your budget, locks a rate for 90-120 days, and signals to sellers you're financially ready. Lenders review income, credit, debts, and down payment.

Q: What documents are needed?+−

A: 2 pieces of ID, employment letter, 2 recent pay stubs, T4s (2 years), Notices of Assessment (2 years), 90 days bank statements, gift letter (if applicable), debt/loan info, RRSP/investment statements.

Q: Fixed vs variable rates?+−

A: Fixed stays the same for the term. Variable fluctuates with Bank of Canada rates. Fixed offers certainty; variable can save money but carries more risk.

Q: What is the stress test?+−

A: All buyers must qualify at the higher of the Bank of Canada benchmark rate or contract rate +2%. A 5% rate requires qualifying at 7%, reducing purchasing power significantly.

Q: How does pre-approval help?+−

A: 1) Shows sellers you're financing-ready, 2) Lets you act fast in competitive markets, 3) Locks a rate for 90-120 days. Unapproved buyers lose to better-prepared competitors.

Get pre-approved to know your budget and strengthen your offer in the GTA market.

Book a Free Consultation

Step 3

First-Time Buyer Programs & Rebates

Reduce upfront costs with government programs and rebates.

Q: What programs are available?+−

A: FHSA, HBP (RRSP withdrawal), HBTC ($1,500 tax credit), Ontario LTT rebate (up to $4,000), Toronto LTT rebate (up to $4,475), HST rebates (up to $130,000), CMHC-insured mortgages (5% down).

Q: What is FHSA?+−

A: Save up to $8K/year ($40K lifetime). Contributions are tax-deductible (like RRSP), withdrawals for first home are tax-free (like TFSA). Unused room carries forward.

Q: What is HBP?+−

A: Withdraw up to $60K from RRSP for first home ($120K/couple). Repay over 15 years starting 2 years after withdrawal. Funds must be in RRSP 90+ days.

Q: What is HBTC?+−

A: $10,000 non-refundable tax credit = $1,500 federal tax savings. Claim on tax return for year of purchase. Must be first-time buyer (no home owned in past 4 years).

Q: What are LTT rebates?+−

A: Ontario: up to $4,000 (full rebate up to $368,333). Toronto: up to $4,475. Combined max in Toronto: $8,475. Applied at closing through lawyer.

Q: What HST rebates exist in 2026?+−

A: P1 (all buyers): up to $24K. P2 (first-time, APS Mar 2025-Dec 2030): up to $50K. P3 (first-time, APS Mar 2025-Dec 2030): up to $80K. P4 (all buyers, APS Apr 2026-Mar 2027): up to $130K. First-time buyers get greater of P3 or P4, not both.

Step 4

Home Search in Ontario & the GTA

Search based on your pre-approved budget and market conditions.

Q: How to start searching?+−

A: Start after pre-approval. Define priorities: location, property type, bedrooms/bathrooms, schools, amenities, commute, long-term goals. Understand market conditions (sale prices, days on market, sale-to-list ratios).

Q: GTA vs other Ontario cities?+−

A: GTA (Toronto, Mississauga, Brampton, Markham) is more competitive and expensive with multiple offers. Other markets (Hamilton, Kitchener, London, Barrie) offer more affordability and negotiating room.

Q: Why understand market trends?+−

A: Trends affect pricing, negotiation, and timing. Key factors: Bank of Canada rates, inventory, new construction, immigration, employment, buyer demand. Know if it's a buyer's, seller's, or balanced market.

Q: How to choose a neighbourhood?+−

A: Consider: commute, schools, transit/GO access, safety, amenities, parks, future development, appreciation potential, demographics. Neighbourhood affects lifestyle and resale value.

Q: Why work with an agent?+−

A: Agents provide market expertise, MLS access, negotiation skills, transaction guidance. They help with pricing, offers, conditions, deadlines, and coordination with brokers, lawyers, inspectors. Critical in competitive GTA markets.

A well-planned search finds the right property at the right value.

Book a Free Consultation

Step 5

Making an Offer in Ontario

Submit a competitive offer to secure your home.

Q: How to make an offer?+−

A: Submit a legally binding APS (Agreement of Purchase and Sale) with price, deposit, closing date, included items, and conditions. Prepared by your agent using OREA forms. Seller can accept, reject, or counter.

Q: What's in a standard offer?+−

A: Purchase price, deposit (held in trust), closing date, conditions (financing, inspection, status certificate), chattels included, irrevocability period. Once conditions are waived, deal is firm and binding.

Q: What deposit is required?+−

A: Deposits are part of down payment, not extra. GTA norms: competitive freehold 5% within 24hrs, standard resale 5% within 1-3 days, pre-construction 15-20% staged, condos 5% subject to status certificate.

Q: What conditions to include?+−

A: Common: financing (3-5 days), inspection, status certificate (condos), sale of existing home. In competitive markets, some waive conditions to compete, but this increases risk.

Q: Why are negotiation strategies important?+−

A: Strategy affects whether you win, price paid, conditions protected. Seller's market: price at/above asking, minimize conditions, strong deposit, flexible closing. Buyer's market: price below asking, include conditions, request credits.

The right offer strategy wins homes in Ontario's competitive market.

Step 6

Closing Costs in Ontario

Budget 1.5%-4% of purchase price for closing costs.

Q: What are closing costs?+−

A: Expenses payable at closing, separate from down payment. Budget 1.5%-4% of price. On $700K: $10,500-$28,000 additional to down payment.

Q: What specific costs to expect?+−

A: LTT (~$9,475 on $700K, first-time rebate up to $4K), Toronto LTT (up to $4,475 rebate), legal fees ($1,500-$2,500), title insurance ($300-$500), inspection ($400-$600), CMHC PST (8%), tax adjustment, moving ($1K-$3K), utilities ($300-$500).

Q: Are LTT rebates available?+−

A: Yes. Ontario: up to $4,000 (full up to $368,333). Toronto: up to $4,475. Requires first-time buyer status, Canadian citizen/PR, 18+, occupy within 9 months.

Q: What post-closing costs?+−

A: Repairs, appliances, furniture, window coverings, lawn equipment, emergency fund, condo fees, property tax installments, home insurance ($1,200-$2,500/year).

Understanding costs upfront prevents stress when buying your first home.

Book a Free Consultation

Step 7

Close & Move In

Complete final steps and take ownership.

Q: What happens after acceptance?+−

A: Deal moves to conditional/firm closing. Satisfy conditions (financing, inspection, status certificate). Once waived, lawyer, lender, agent, insurer prepare for closing.

Q: What is final approval?+−

A: Lender confirms financing for specific property. Reviews APS, property details, appraisal, income, down payment, credit. Required even if pre-approved.

Q: What does lawyer do?+−

A: Handles legal transfer, title search, confirms mortgage, calculates costs, arranges title insurance, prepares documents, receives funds, registers transfer on closing day.