Buying your first home
in Ontario.
You've saved some money. You want to buy. Five government programs stack for first-time buyers — the trick is knowing which apply to your file and how they interact. That's a 15-min conversation with a broker, not a Google rabbit hole.
- ✓ A real qualification number — not "up to $X"
- ✓ Every applicable rebate + tax program stacked on your file
- ✓ The right amortization + down-payment mix for you
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$60k
per person RRSP Home Buyers' Plan withdrawal (2026)
$4k
Ontario FTHB land transfer tax rebate (+ $8,475 Toronto)
5%
min down payment on first $500k of purchase price
The 6 FTHB Levers
Most first-time buyers use two. You should use four.
RRSP Home Buyers' Plan (HBP)
Withdraw up to $60k per person from your RRSP tax-free for a down payment (raised from $35k in Budget 2024). Couple can pull $120k. Repay over 15 years starting year 5 after purchase (repayment grace extended in Budget 2024 for withdrawals 2022–25).
First Home Savings Account (FHSA)
Newer than RRSP. Contribute up to $8k/yr, $40k lifetime. Tax-deductible on the way in AND tax-free on the way out for a first home. Can be combined with HBP.
FTHB Land Transfer Tax rebates
Ontario: up to $4,000 back on land transfer tax. Toronto: additional $4,475 municipal. Combined savings on a $600k Toronto home: ~$8,475.
FTHB Tax Credit (federal)
$1,500 non-refundable tax credit on your income tax return the year of purchase. Small but automatic.
Insured mortgage (5%–19.99% down)
Under 20% down = CMHC / Sagen / Canada Guaranty insured. Cheaper interest rate (25–50 bps less than uninsured) because the insurer covers lender risk. Cap: $1.5M purchase price (as of Dec 2024).
30-year amortization on insured (2025+)
FTHBs buying new-build homes qualify for 30-year insured amortization (up from 25-year cap). Lower monthly, more lifetime interest. Trade-off worth modelling.
Broker Coverage by City
Where you're buying matters more than you think
Rebate amounts, insured mortgage caps, and lender appetite vary by city. Check your local page:
Questions you probably have
How much down do I actually need in Ontario?+
5% on the first $500,000 of purchase price. 10% on the portion between $500k and $1.5M. 20% on anything above $1.5M (uninsured territory — cannot get CMHC/Sagen insurance). Example on a $700k home: 5% × $500k + 10% × $200k = $45,000 minimum down.
Can I use my RRSP + FHSA + gifted money together?+
Yes. Common stack: withdraw $60k from RRSP HBP (raised from $35k in Budget 2024), withdraw $40k from FHSA (both tax-free), receive $20k gift from parents (with a gift letter). Total: $120k down, from three sources. Lender needs source-of-funds documentation for each — 90 days of statements.
What's the difference between insured and uninsured mortgages?+
Insured (5–19.99% down, under $1.5M): CMHC/Sagen/Canada Guaranty covers the lender if you default. Cheaper rate for you (25–50 bps discount), but you pay the insurance premium (2.8–4% of mortgage, added to the balance). Uninsured (20%+ down, or over $1.5M): no premium, but slightly higher rate. Over the term, insured is usually cheaper — but you're paying the premium up front.
What does the stress test do to my qualification?+
Every mortgage in Canada is qualified at the greater of (a) contract rate + 2%, OR (b) 5.25%. Example: contract rate 4.29% → qualifying rate 6.29%. This is what determines your maximum loan, not the contract rate you actually pay. Impact: you'll qualify for 15–20% less than a naive payment calculator suggests.
What credit score do I need?+
A-lender: 660+ minimum, 720+ for best pricing. 620–659: alt-A / B-lender territory (rate premium 100–200 bps). Below 620: private lender or credit rebuild before buying. If you're under 660 and buying in the next 90 days, we can often coach specific credit tweaks that lift you into A-lender range.
Should I get pre-approved before making offers?+
Yes — but understand the pre-approval isn't a rate hold or a guarantee. It's a lender saying "based on your income + credit + down payment, we're prepared to lend up to $X at today's rates, subject to property review." When you make an offer, the lender re-checks everything and specifically underwrites the property. Pre-approval just tells you the ceiling and lets your realtor write conditional-financing offers with confidence.
Related situations
Might also fit your file
Newcomer + first-time buyer
Newcomer programs stack with FTHB programs — same broker call routes both angles at once.
Open playbook →
Bank turned you down?
FTHBs with self-employed income or bruised credit often need the alt-A path — same broker, different lender.
Open playbook →
Thinking of a rental down the line?
How you structure the first mortgage affects what you can qualify for on rental #2 — plan ahead.
Open playbook →
Buying your first home isn't just about the rate.
It's about stacking programs, timing amortization, and picking the right lender for your income type. Get 15 minutes with a broker who does this every day.
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