Your Complete Guide to Buying Your First Home in Ontario
Everything you need to know about purchasing your first home, from saving for a down payment to getting the keys.
Understanding Down Payments
Your down payment is the initial amount you pay toward your home purchase. In Canada, the minimum down payment depends on the purchase price:
| Purchase Price | Minimum Down Payment |
|---|---|
| Up to $500,000 | 5% of purchase price |
| $500,001 to $999,999 | 5% of first $500K + 10% of remainder |
| $1,000,000+ | 20% minimum (no CMHC insurance available) |
Important Note
With less than 20% down, you'll need mortgage default insurance (CMHC). While this adds to your costs, it allows you to enter the market sooner and often comes with lower interest rates.
Government Programs & Incentives
First Home Savings Account (FHSA)
A registered account that combines benefits of RRSPs and TFSAs. Contributions are tax-deductible, and withdrawals for a home purchase are tax-free.
- Annual contribution limit: $8,000
- Lifetime contribution limit: $40,000
- Unused room carries forward (max $8,000)
- Must be used within 15 years of opening
Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSPs tax-free to buy your first home. If buying with a partner, you can each withdraw $60,000 for a total of $120,000.
- Must repay within 15 years (1/15 per year)
- Minimum $100/year repayment or it becomes taxable income
- Must be a first-time buyer (no home ownership in past 4 years)
Ontario Land Transfer Tax Rebate
First-time buyers in Ontario can receive a rebate of up to $4,000 on provincial land transfer tax. Toronto buyers get an additional municipal rebate of up to $4,475.
Maximum savings in Toronto: up to $8,475
Home Buyers' Tax Credit
A non-refundable federal tax credit of $10,000, resulting in up to $1,500 in tax savings when you file your return for the year you purchased your home.
The Pre-Approval Process
Getting pre-approved is one of the most important steps in the home buying process. It tells you how much you can afford and shows sellers you're a serious buyer.
Gather Your Documents
Collect ID, proof of income, employment letter, bank statements, and tax documents.
Submit Your Application
Complete a mortgage application with your broker. This includes a credit check.
Receive Your Pre-Approval
Get a pre-approval letter stating your maximum purchase price and estimated rate.
Rate Hold (90-120 days)
Your rate is typically locked in for 90-120 days while you shop for a home.
Mortgage Default Insurance
If your down payment is less than 20%, you'll need mortgage default insurance (commonly called CMHC insurance). The premium is added to your mortgage and protects the lender if you default.
| Down Payment | Insurance Premium |
|---|---|
| 5% - 9.99% | 4.00% of mortgage amount |
| 10% - 14.99% | 3.10% of mortgage amount |
| 15% - 19.99% | 2.80% of mortgage amount |
| 20%+ | No insurance required |
*Rates shown are standard CMHC premiums for traditional down payment sources. Premium-based on loan-to-value ratio.
Closing Costs Explained
Budget 1.5% to 4% of the purchase price for closing costs. These are separate from your down payment.
Land Transfer Tax
Provincial tax based on purchase price (rebate available for first-time buyers)
Legal Fees
Lawyer fees for reviewing documents and registering the title
Title Insurance
Protects against title defects and fraud
Home Inspection
Professional assessment of the property condition
Appraisal Fee
May be required by lender to confirm property value
Property Tax Adjustment
Reimburse seller for prepaid property taxes
Moving Costs
Moving company, utility setup, etc.
Step-by-Step Buying Process
Check Your Credit & Save
Review your credit report, pay down debts, and save for your down payment and closing costs.
Get Pre-Approved
Work with a mortgage broker to get pre-approved. This determines your budget and locks in your rate.
Find a Real Estate Agent
Choose a buyer's agent who knows your target neighbourhoods and can negotiate on your behalf.
House Hunt & Make an Offer
View properties, make offers with conditions (financing, inspection), and negotiate.
Conditions & Inspections
Complete your home inspection, finalize financing, and satisfy all conditions.
Final Mortgage Approval
Submit final documents to your lender. They'll confirm the property value and issue approval.
Meet with Your Lawyer
Review closing documents, sign the mortgage, and arrange your down payment transfer.
Closing Day
Your lawyer registers the title, funds are transferred, and you get the keys to your new home!
Speak with a Professor
Schedule a complimentary 30-minute consultation with our team. We'll review your situation, walk you through the options, and outline a path forward — no obligation.
Or call 647-955-9400
Loading scheduling...