Buying your first home is one of the biggest decisions you'll ever make. This guide walks you through every step — from saving your down payment to getting the keys — with Ontario-specific rules, costs, and programs explained clearly.
In Ontario, the minimum down payment depends on the purchase price. The bigger your down payment, the lower your mortgage — and if you hit 20%, you avoid mandatory mortgage insurance entirely.
Aim to save a bit above the minimum — having extra funds for closing costs and moving expenses prevents stressful surprises. Budget at least an extra 2–4% of the purchase price beyond your down payment.
Contribute up to $8,000/year, tax-deductible like an RRSP, grows tax-free, and withdrawals for a qualifying home purchase are also tax-free. Opened after April 1, 2023. One of the best tools available to first-time buyers.
Withdraw up to $60,000 from your RRSP ($120,000 for couples) tax-free toward your first home purchase. Must repay over 15 years, or it counts as income. Can be combined with FHSA. Limit increased from $35,000 effective April 16, 2024.
Two big changes took effect December 15, 2024: (1) The insured mortgage cap rose from $1M to $1.5M, meaning buyers can now purchase homes up to $1.5M with less than 20% down. (2) 30-year amortizations are now available to all first-time buyers on insured mortgages — not just new builds — reducing monthly payments compared to the standard 25-year term.
A mortgage pre-approval tells you exactly how much a lender will lend you — and locks in your interest rate for 90–120 days. In competitive Ontario markets, sellers often won't consider offers without one.
2 years of T4s or NOAs (Notice of Assessment from CRA), recent pay stubs, employment letter. Self-employed? You'll need 2 years of tax returns.
Lenders want to see where your down payment is coming from and that your savings are real (not a day-old transfer from a gift).
You'll need a minimum score of ~680 for most lenders. Check yours free at Borrowell or Credit Karma before applying. Pay off high-balance cards first.
Car loans, student loans, lines of credit, and credit card minimums all count toward your Total Debt Service (TDS) ratio, which affects how much you qualify for.
In Canada, you must qualify at the higher of your contract rate + 2%, or 5.25%. This applies to all mortgages, even renewals at a new lender.
A pre-qualification is a quick estimate with no verification. A pre-approval is a conditional commitment from a lender after verifying your documents. Always get a proper pre-approval before making offers.
With pre-approval in hand, the real search begins. Working with a buyer's agent costs you nothing — the seller pays all commissions in Ontario. Your agent gets you MLS access, writes your offer, and negotiates on your behalf.
Commute, school district, number of bedrooms, parking, and property type. Be honest about what you truly need vs. what you want.
Freehold detached, semi-detached, townhouse, and condo all come with different maintenance responsibilities and costs. Condos have monthly fees and condo corporation rules.
In hot markets, homes sell within days. Set up MLS alerts and be ready to move quickly. Don't attend 40 homes — visit the 4–5 that truly fit your criteria.
Visit at different times of day and week. Check Google Maps for nearby schools, transit, and amenities. Look at the city's official plan for future development.
As of December 2023, Ontario requires all buyer's agents to have a signed Buyer Representation Agreement (BRA) before showing you homes. This simply formalizes who represents you — it's standard and protects your interests.
Ontario now requires all offers to be disclosed to other buyers. Open bidding is more common — you may know what competing offers look like, making your decision clearer.
Your agent will prepare an Agreement of Purchase and Sale (APS) — the legal contract that outlines your price, deposit, conditions, and closing date. This is where strategy matters.
In competitive markets, buyers sometimes waive conditions ("firm offer") to win. This is risky — if your financing falls through or the home has hidden problems, you can lose your deposit. As a first-time buyer, try to keep your conditions whenever possible.
Your agent presents to listing agent. Seller has 24–48 hrs to respond.
Seller accepts, counters, or declines. Back-and-forth is normal.
You complete inspection and confirm financing. Can walk away if conditions not met.
Conditions waived in writing. Deal is legally binding. Lawyers get involved.
A certified home inspector gives you an independent, unbiased assessment of the property's condition — roof, foundation, electrical, plumbing, HVAC, and more. In Ontario, always include this condition if you can.
Look for inspectors accredited by the Ontario Association of Home Inspectors (OAHI) or the Canadian Association of Home and Property Inspectors (CAHPI).
A good inspector walks you through everything in person — it's 2–3 hours well spent. You'll learn more about your home's systems than any report will tell you.
You'll receive a detailed written report with photos. Focus on "major deficiencies" — structural, water damage, electrical safety issues are the critical ones.
Major issues found? You can ask the seller to repair, reduce the price, or provide a credit — or walk away entirely (if your condition is in writing).
When buying a condo in Ontario, your lawyer reviews the Status Certificate — a document showing the condo's financial health, reserve fund, bylaws, and any special assessments. Your lawyer's review is usually a separate condition.
Standard inspections don't include WETT (chimney/fireplace), asbestos testing, mould/air quality, or septic systems. Ask your inspector if these apply to the property and add them if needed.
Ontario has some of the highest closing costs in Canada, primarily due to the provincial Land Transfer Tax. Budget 1.5–4% of the purchase price on top of your down payment — these costs are due on closing day.
| Cost Item | Estimated Amount (on $700K home) |
|---|---|
| Ontario Land Transfer Tax Provincial tax on all Ontario purchases | ~$8,475 |
| Toronto LTT (if in Toronto) City of Toronto buyers pay double | ~$8,475 additional |
| Legal fees Real estate lawyer, title registration | $1,500 – $2,500 |
| Title insurance Protects against title defects, fraud | $200 – $400 |
| Home inspection | $400 – $700 |
| CMHC mortgage insurance If down payment is under 20% | 2.8% – 4% of mortgage |
| Property tax adjustment Reimbursing seller for prepaid taxes | Varies |
| Moving costs | $500 – $3,000+ |
| Estimated Total (excl. Toronto LTT & CMHC) | $11,000 – $15,000 |
* Amounts are estimates for a $700,000 purchase in Ontario (outside Toronto). Actual amounts will vary.
First-time buyers in Ontario get a full rebate on the provincial LTT up to $4,000 — which means no LTT at all on homes up to $368,000, and a partial rebate on more expensive homes.
Toronto first-time buyers also get a separate rebate on the City of Toronto Land Transfer Tax, on top of the provincial rebate. Toronto purchases still typically cost more overall due to the double LTT above the rebate thresholds.
Claim the $10,000 Home Buyers' Amount on your federal tax return in the year of purchase. This non-refundable tax credit saves first-time buyers up to $1,500 on their taxes.
Closing day is when ownership officially transfers. You don't usually visit the property — your lawyer handles everything. By end of day, you'll get a call that the keys are ready.
Your lender sends mortgage documents to your lawyer. You sign everything at your lawyer's office.
Do a walkthrough to confirm the home is in the same condition as when you made your offer and that all included items are still there.
Your lawyer provides the exact amount needed. Wire the balance of down payment + closing costs to your lawyer's trust account.
Your lawyer registers the deed and mortgage at the Ontario Land Registry. Funds transfer to the seller's lawyer.
Your agent or lawyer confirms the deal is registered. Keys are released — usually from a lockbox on the property or your agent picks them up.
Your mortgage lender requires proof of home insurance before they release funds on closing day. Shop around at least 2 weeks before closing — premiums vary significantly between insurers. Older homes and oil furnaces often cost more to insure.
There are several programs designed specifically to help first-time buyers in Ontario. Many can be combined — talk to your mortgage broker and accountant about stacking them.
Tax-deductible contributions, tax-free growth, tax-free withdrawal for a qualifying home. $8,000/year max. Best savings tool for aspiring homeowners.
Withdraw from your RRSP tax-free for a first home purchase. Repay over 15 years or it counts as income. Can combine with FHSA — use both.
First-time buyers get a full rebate on provincial LTT up to $4,000. Applied automatically when your lawyer registers the title.
Toronto first-time buyers receive an additional rebate on the City's Land Transfer Tax. Combined with provincial rebate, saves up to $8,475 in Toronto.
Claim $10,000 on your tax return the year you buy. Non-refundable credit worth up to $1,500 at tax time. Easy to claim on your T1.
Questions I hear most often from first-time buyers in Ontario.
Every buyer's situation is different. I'll walk you through the process step by step — from getting pre-approved to negotiating your offer and closing day. As a buyer, working with me costs you nothing.
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