Is Now the Best Time to Buy Your First Home in the GTA? A Guide for First-Time Buyers and Newcomers to Canada (2026)

By Mudit Chhura  |  Co-Founder, IndiBrick  |  Read Time: 12 Mins

Buying your first home in Canada is one of the biggest financial decisions you will ever make, and it can feel overwhelming. Between mortgage rules, down payments, closing costs, lawyers, realtors, and a market that changes by the month, it is easy to feel like everyone else knows something you do not. That is even truer if you are new to Canada and still building a credit history, learning the process, and trying to figure out who you can trust.

So here is the honest version. Nobody can perfectly time a housing market, and anyone who promises you they can is selling something. But the numbers in the Greater Toronto Area right now show a rare combination of conditions that first-time buyers and newcomers have not had in years: lower prices than a year ago, more choice including plenty of assignment sales, mortgage rates well below their recent peak, and more government and lender support than ever.

This guide walks through exactly what is happening, what programs you may be able to use, what to watch out for, and how the team at IndiBrick works with you from your first call to the day you get your keys. You can also check your affordability with our free calculator at any point while you read.

Five Reasons This Market Is Working in Buyers' Favour

Indicator	Latest Reading
GTA average selling price, August 2026	$993,410, down 2.7% from a year earlier
GTA home price index (typical home), August 2026	Down 4.5% year over year
GTA condo apartment average price, year to date	$627,735, down 6.7%
GTA townhouse average price, year to date	$831,569, down 6.4%
New GTA listings, August 2026	Down 14.1% year over year, so choice is tightening
Bank of Canada policy rate	2.25%, less than half its 2023 peak of 5%

Market figures from the Toronto Regional Real Estate Board (TRREB) August 2026 Market Watch and the Bank of Canada. Figures change monthly.

1. Prices are lower than a year ago

The GTA's average selling price dropped below $1 million in January 2026 for the first time in about five years, and it has been below that mark again this summer. Condos, townhouses, semis and detached homes are all down year to date. To be clear, this is not a collapse and it is not a guarantee prices will keep falling. It is simply a more reachable starting point than buyers had in 2022 and 2023.

2. Mortgage rates are well below their recent peak, but they can change quickly

The Bank of Canada's policy rate has held at 2.25% for about a year. That is a big step down from the 5% peak that squeezed buyers in 2023. But rates are not locked in place. Inflation is sitting at the top of the Bank's target range, energy prices are elevated, and markets are openly debating whether the Bank's next move could be a hike rather than a cut. Fixed rates tend to rise ahead of the Bank because they follow bond yields.

The practical takeaway for a first-time buyer is simple: a rate hold can protect you while you shop. As of October 5, 2026, our lowest 5 year fixed rate is 4.05%, an IndiBrick exclusive, while most major lenders start at 4.40%. You can always see today's lowest mortgage rates on our rates page, and if you want to understand the fixed versus variable decision in plain English, we break it down in our guide to whether the Bank of Canada will raise rates.

3. More choice, including assignment sales

A large number of pre-construction buyers across the GTA are looking to sell their contracts before closing, which means there are plenty of assignment sales available right now. We cover how these work, and what to watch out for, in the next section.

4. Stronger first-time buyer programs

Federal and provincial programs now stack in ways that can save first-time buyers tens of thousands of dollars, from tax-free savings accounts to longer amortizations to rebates on new homes. We list the main ones below.

5. Lender programs built for first-time buyers and newcomers

Many lenders and mortgage insurers have programs designed for people who are new to Canada or buying for the first time, including options that look at foreign income and limited Canadian credit history. These programs are one of the biggest reasons newcomers are buying sooner than they expected.

Assignment Sales: The Opportunity and What to Know First

An assignment sale happens when someone who bought a pre-construction home or condo sells their purchase agreement to a new buyer before the building is finished. The new buyer steps into the original contract, usually taking over the price and the closing date. Because many original buyers bought at higher prices and cannot or do not want to close, there are currently plenty of assignment sales up for grabs across the GTA.

For first-time buyers they can be attractive, but they come with details that catch people off guard. This is exactly where having a team around you matters.

• Builder consent: most agreements require the builder's approval of the assignment, and some charge a fee
• Closing date: you inherit the existing closing timeline, so your financing has to be ready on schedule
• Deposits and the price gap: you may need to pay the seller what they have already put in, on top of the remaining balance
• Taxes and rebates: HST treatment and first-time buyer rebates can differ on assignments, so get advice before you sign
• Legal review: always have a lawyer review the agreement and the original contract before you commit

First-Time Home Buyer Programs You May Be Able to Use in Ontario

These programs can be combined in many cases. Eligibility rules and limits change, so always confirm the current details before relying on any of them.

Program	What It Does
First Home Savings Account (FHSA)	Contribute up to $8,000 a year, up to $40,000 in total, and withdraw tax-free for a first home
RRSP Home Buyers' Plan (HBP)	Withdraw up to $60,000 from your RRSP toward a down payment, repaid over time
30 year amortization	Available to first-time buyers on insured mortgages, lowering monthly payments
Federal GST rebate on new homes	A rebate of up to $50,000 for first-time buyers of eligible new homes, with the full rebate on homes up to $1 million
Ontario land transfer tax refund	Up to $4,000 back for eligible first-time buyers
Toronto land transfer tax rebate	Up to $4,475 more for eligible first-time buyers purchasing in the City of Toronto
First-Time Home Buyers' Tax Credit	A federal non-refundable tax credit worth up to $1,500 at tax time

Programs, limits and eligibility rules are set by governments and lenders and can change. Eligible new builds may also qualify for temporary provincial HST relief, so confirm current rules and dates before relying on it. This is general information, not tax or legal advice.

Buying Your First Home as a Newcomer to Canada

If you have recently arrived in Canada, you may have been told you need years of Canadian credit history before you can buy. That is often not the case. A number of lenders and mortgage insurers offer newcomer programs that recognize your situation: a stable job, savings you brought with you, and a strong track record from home that does not show up on a Canadian credit report.

Requirements vary by lender and by how long you have been in Canada, but a newcomer application typically looks at the following.

• Your immigration status and documents, such as permanent residency or a valid work permit
• Proof of employment and income, including an offer letter or recent pay stubs
• Your down payment and where it came from, including funds transferred from abroad
• Any Canadian credit you have started building, such as a credit card, phone plan or car loan, plus alternative proof like rent payments
• Your overall debts and monthly budget, so the lender can see you can carry the payments comfortably

Start building your Canadian credit now

Even if you are a year or more away from buying, there are simple habits that help: keep a credit card with a low balance and pay it in full each month, set up your bills on time, and avoid opening several new accounts at once. A short conversation with a mortgage advisor can tell you exactly where you stand and what to do next. When you are ready, speak with an IndiBrick advisor and we will map out your timeline.

The Challenges First-Time Buyers and Newcomers Face, and How We Solve Them

The Challenge	How IndiBrick Helps
"I do not know what I can afford."	We review your real income, savings and debts and show you a clear budget before you look at a single home
"I have no Canadian credit history."	We match you with lenders and programs that are built for newcomers and first-time buyers
"I am self-employed or my income is not a standard T4."	We work with lenders that assess income through bank statements and business documents
"Everyone gives me different advice."	One team, one plan: your mortgage advisor, realtor and lawyer work together instead of working separately
"I am scared of hidden costs."	We walk you through closing costs, taxes, rebates and legal fees up front, so there are no surprises on closing day
"I do not know who to trust."	We explain every option in plain language, including when waiting is the better choice

Why IndiBrick Is Your One-Stop Shop

Most first-time buyers end up stitching their home purchase together from separate people who have never met: a mortgage broker in one place, a realtor in another, a lawyer found at the last minute. Each of them sees only their piece. That is how deadlines get missed, financing falls through, and buyers end up stressed at the worst possible moment.

At IndiBrick we do it differently. We work together as one team, from your realtor to your lawyer, so the whole purchase is coordinated from the first conversation to closing day.

• Mortgage advisors who compare lenders for you, including major banks, B-lenders and newcomer programs, and hold your rate while you shop
• Realtors who understand your budget and your financing before they book a single showing, including assignment sales and new builds
• Real estate lawyers who review your agreement, handle title and closing, and are already in sync with your mortgage timeline
• Cashback options on eligible purchases, so you can put more money toward closing costs and moving in (ask us what is available for your situation, conditions apply)
• Technology that keeps you updated, so your file never sits untouched and you always know what comes next

Your First Home Roadmap: From First Call to Keys

1. Run your numbers. Use the affordability calculator and speak with an advisor about your income, savings, and credit.
2. Get preapproved and hold your rate. This sets your budget and protects you from rate increases while you shop.
3. Line up your savings and programs. Check your FHSA, RRSP Home Buyers' Plan, and any rebates you may qualify for.
4. Search with your realtor. Resale homes, new builds, or assignment sales, all shortlisted against your real budget.
5. Make your offer with conditions that protect you. Your realtor and lawyer review the terms together.
6. Finalize your mortgage. Your advisor submits the final documents to the lender and keeps the file on track.
7. Close and get your keys. Your lawyer handles title, taxes and funds, and you walk into your new home.

Frequently Asked Questions

Is now a good time to buy a house in the GTA?

For many first-time buyers, conditions are favourable: the average GTA price was down about 2.7% year over year in August 2026, the typical home price was down 4.5%, and mortgage rates are well below their 2023 peak. At the same time, new listings are falling and rates could rise, so whether it is the right time for you depends on your finances and plans. Running your numbers with an advisor is the best way to decide.

How much down payment do I need as a first-time buyer in Canada?

For homes up to $1.5 million with an insured mortgage, the minimum is 5% of the first $500,000 and 10% of the portion above that. On a $700,000 home, that is $25,000 plus $20,000, or $45,000. At least 5% must come from your own resources, and the rest can sometimes be gifted from immediate family, depending on the lender.

Can a newcomer get a mortgage in Canada without Canadian credit history?

Often, yes. Several lenders and mortgage insurers have newcomer programs that look at your immigration status, employment, savings, and any credit you have started building, instead of requiring years of Canadian history. Requirements vary by lender and by how long you have been in Canada.

What is an assignment sale, and is it a good idea for a first-time buyer?

An assignment sale is when a pre-construction buyer sells their purchase agreement to someone else before the home is finished. It can offer more choice and sometimes a better price, but you take on the existing closing date, may need builder consent, and should have a lawyer review the agreement and tax treatment before committing.

What first-time home buyer programs are available in Ontario?

The main ones include the First Home Savings Account (up to $40,000 lifetime), the RRSP Home Buyers' Plan (up to $60,000), 30 year amortizations on insured mortgages, a federal GST rebate on eligible new homes, the Ontario land transfer tax refund of up to $4,000, and an additional Toronto rebate of up to $4,475. Eligibility and limits change, so confirm current details.

Will mortgage rates go up?

Nobody knows for certain. The Bank of Canada has held its rate at 2.25%, but inflation is at the top of its range and markets are debating a possible hike. The next decisions are scheduled for October 28 and December 9, 2026. A rate hold lets you lock in today's rate while you shop. See current rates on our rates page.

What closing costs should I budget for?

Plan for land transfer tax (less any first-time buyer refund), legal fees, title insurance, adjustments for property tax and utilities, and possibly an appraisal or home inspection. A common rule of thumb is to budget a few percent of the purchase price beyond your down payment. Your IndiBrick team will give you a clear estimate up front.

Do I need a mortgage broker to buy my first home?

You do not have to use one, but a broker can compare multiple lenders for you, including programs for first-time buyers, newcomers, and self-employed borrowers, and help you hold a rate while you shop. This is especially valuable if your situation does not fit a single bank's standard approval box.

What cashback options does IndiBrick offer?

We have multiple cashback options available on eligible purchases, which can help cover closing costs or moving expenses. Availability and conditions depend on your situation and the lender, so speak with an advisor to see what you qualify for.

The Bottom Line

You do not need to know everything to buy your first home. You need a clear picture of what you can afford, an honest read on the market, and a team that works together so nothing falls through the cracks. Right now, GTA prices are below where they were a year ago, rates are well below their peak, assignment sales offer more choice, and first-time buyer and newcomer programs are strong.

None of that lasts forever. The first step costs nothing: find out what you can afford, check today's rates, and let us show you what is possible.

---

Rates as of October 5, 2026 and subject to change without notice and to qualification. Cashback options are subject to conditions. Program details, limits and eligibility are set by governments and lenders and may change. This article is general information and not financial, tax or legal advice.