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Your first home starts with a clear plan. We can help.

Buying your first home is exciting. It can also feel like everyone else got a manual you somehow missed. This guide breaks down the big pieces, from down payment to pre-approval to closing day, so you can move forward with more clarity.

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Who is considered a first-time homebuyer in Ontario?

 A first-time home buyer in Ontario is generally someone buying their first home, but rules vary by program, credit, or refund. For the Ontario land transfer tax refund, you usually need to be at least 18, be a Canadian citizen or permanent resident, live in the home as your principal residence, and have never owned an eligible home anywhere in the world. Programs like the FHSA and RRSP Home Buyers’ Plan have their own rules, so check what you qualify for before you buy. 

How much mortgage can I afford? Start with the numbers, not the listings.

Before you buy your first home in Ontario, start with the numbers behind the purchase. Your mortgage amount, down payment, closing costs, monthly payment, property taxes, and future home costs all help define what you can comfortably afford.

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Know what fits your budget

It is easy to start with listings. It is smarter to start with your numbers. A clear budget helps you look at homes that fit your life, not just your search filters.

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Plan for more than the down payment

Your down payment matters, but it is not the only cash you will need. Closing costs, moving costs, taxes, and home setup costs can add up quickly.

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Get ready before the right home shows up

When you find a home you like, things can move fast. Pre-approval helps you avoid starting from zero when you are ready to make an offer.

Home buying guide: Six simple steps for buying your first home or property

Buying your first home in Ontario can feel like one big decision, but it gets easier when you break the home-buying process into clear steps. From building your budget and saving your down payment to getting mortgage pre-approval, making an offer, and closing, each step helps you move forward with more confidence.

  • Get clear on your budget


    Step 1
    Review your income, debts, savings, monthly costs, and how much room you want after the mortgage payment, so your first-home budget feels realistic. 

  • Save your down payment


    Step 2
    Build your down payment using savings, eligible registered plans, gifts, or other accepted sources, then check how the amount affects your mortgage options.

  • Get mortgage pre-approved


    Step 3
    A mortgage pre-approval helps estimate how much you may be able to borrow, your possible payment, rate options, and a clearer shopping range.

  • Start comparing homes


    Step 4
    Compare homes against your budget, wish list, commute, property taxes, house condition, and future repair costs, so the right choice fits real life.

  • Make an offer


    Step 5
    Once you find the right home, your real estate agent will submit your offer. This happens while your lender prepares to review the property and application.

  • Get approved and close


    Step 6
    Final mortgage approval comes after lender review. Then your lawyer completes the closing, funds are transferred, and the keys become yours.

Mortgage calculators to plan your first home

Estimate how much home you can afford or calculate your mortgage payments before you buy. Pick a calculator and run the numbers.

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What is mortgage insurance?

Mortgage insurance, more accurately called mortgage default insurance, is usually required in Canada when your down payment is less than 20%. You may hear it called CMHC insurance, though there are other mortgage insurers too. It protects the lender, not the borrower, but helps eligible buyers purchase a home with a smaller down payment. The premium is usually added to your mortgage and repaid over time.

 

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Turning your savings into a down payment for your first home

Saving for a down payment is one of the biggest steps toward buying your first home. First-time home buyers can use accounts and programs like an FHSA, RRSP Home Buyers’ Plan, TFSA, or high-interest savings account to build their down payment and prepare for other home-buying costs.

  • First Home Savings Account

    A First Home Savings Account, or FHSA, is designed to help eligible first-time home buyers save for a qualifying first home. Contributions may be tax-deductible, and qualifying withdrawals can be tax-free.

  • RRSP Home Buyers’ Plan

    The Home Buyers’ Plan, or HBP, lets eligible first-time home buyers withdraw funds from their RRSP accounts to purchase or build a qualifying home. The withdrawal must be repaid over time.

  • Tax-Free Savings Account

    A TFSA can be useful for flexible home savings. Withdrawals are generally tax-free, and you can use the money for your down payment or closing costs.

  • High-interest savings account

    A high-interest savings account can be useful for money you want to keep safe and accessible while you get closer to buying.

Should I use my FHSA or RRSP?

Commonly asked questions

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