Your Guide to Buying Your First Home
Buying your first home is one of the most exciting milestones of your life — and one of the most significant financial decisions you'll make. We're here to guide you every step of the way.
Step 1: Know Your Budget
Before you start searching, understand how much you can afford. Factor in your down payment, monthly mortgage payments, property taxes, insurance, and maintenance costs. As a first-time buyer in Ontario, you may qualify for the First-Time Home Buyer Incentive and a Land Transfer Tax rebate of up to $4,000.
Step 2: Get Pre-Approved
A mortgage pre-approval tells you exactly how much a lender will give you and locks in your interest rate for 90–120 days. It also signals to sellers that you are a serious buyer.
Step 3: Understand Your Down Payment Options
- 5% minimum for homes under $500,000
- 5% on first $500K + 10% on the remainder for homes between $500K–$999,999
- 20% required for homes $1,000,000 and over (no CMHC insurance)
Down payments below 20% require CMHC mortgage insurance — use our calculator below.
Step 4: Work with a REALTOR®
A buyer's agent represents your interests at no cost to you (the seller pays the commission). They help you find the right property, negotiate the price, and navigate the entire closing process.
Step 5: Make an Offer
Once you find the right home, your agent will help you craft a competitive offer, including conditions for home inspection and financing. Be prepared for potential counter-offers.
Step 6: Home Inspection
Always hire a certified home inspector before finalizing the purchase. They will identify any issues with the property that could affect its value or your safety.
Step 7: Closing Costs
Budget an additional 1.5%–4% of the purchase price for closing costs, including:
- Land Transfer Tax (provincial + Toronto municipal if applicable)
- Legal fees and disbursements ($1,500–$2,500)
- Home inspection ($400–$600)
- Title insurance (~$300)
- Moving costs
First-Time Buyer Programs
- Home Buyers' Plan (RRSP) — Withdraw up to $35,000 ($70,000 per couple) from your RRSP tax-free for your first home.
- First Home Savings Account (FHSA) — Save up to $40,000 tax-free specifically for your first home purchase.
- Ontario Land Transfer Tax Rebate — Up to $4,000 back for first-time buyers.
- Toronto Land Transfer Tax Rebate — Up to $4,475 additional rebate for Toronto properties.