Government Incentives

Ontario first-time buyers can stack several federal, provincial, and municipal programs. Here's a plain-English overview of the big ones.

First Home Savings Account (FHSA) — Up to $40,000 lifetime

Federal. A registered account combining the best of an RRSP and TFSA. Contributions are tax-deductible, growth is tax-free, and withdrawals for a first home are also tax-free — up to $8,000/year.

Home Buyers' Plan (HBP) — Up to $60,000 from your RRSP

Federal. Withdraw from your RRSP tax-free to buy or build a first home, repaid over 15 years. Couples can each withdraw — potentially $120,000 combined.

First-Time Home Buyers' Tax Credit — Up to $1,500

Federal. Also called the Home Buyers' Amount — a non-refundable tax credit claimed the year you buy your first qualifying home.

Ontario Land Transfer Tax Refund — Up to $4,000

Ontario. First-time buyers get a refund on the provincial Land Transfer Tax, reducing or eliminating it entirely on lower-priced homes.

The Mortgage Basics, in Plain English

Financing is where most first-time buyers get overwhelmed. Here are the essentials — enough to walk into a lender's office feeling confident.

Pre-qualification vs. Pre-approval

A pre-qualification is a rough estimate. A pre-approval is a formal review of income, credit, and down payment, with a rate hold (usually 90–120 days). Get pre-approved before you shop.

Down Payment Minimums

5% on the first $500,000, and 10% on the portion between $500,000–$1.5M. Homes priced over $1.5M require 20% down. Higher down payments reduce or eliminate mortgage default insurance.

Mortgage Default Insurance (CMHC)

Required if you put down less than 20% (CMHC, Sagen, or Canada Guaranty). The premium is added to your mortgage, protecting the lender.

Fixed vs. Variable, and Amortization

Fixed rates lock your payment for the term (3–5 yrs); variable moves with the Bank of Canada. Amortization is typically 25 years (insured) up to 30 years (uninsured/eligible first-time buyers) — longer means smaller payments but more interest overall.

Your mortgage payment is only part of the picture. These recurring monthly expenses affect your real budget and, in some cases, how much a lender will approve you for.

Utilities & Subscriptions

Hydro, gas, water, internet/cable, gym, and streaming often add $200–500+/month, none of it included in your mortgage payment.

Childcare and Financial Contributions

Daycare, before/after-school care, or nanny costs, plus money you send to family or dependents each month — some of the largest line items for young families.

What is LTT — and Why Toronto is Different

Every home buyer in Ontario pays Land Transfer Tax when a property changes hands, calculated on a sliding scale based on purchase price.

Ontario LTT

A provincial tax paid on every real estate purchase in Ontario, calculated in tiers from 0.5% up to 2.5% depending on price.

Toronto's Second LTT

Buy inside the City of Toronto and you also pay a municipal LTT on top of the provincial one — effectively doubling the LTT bill.

First-Time Buyer Refunds

First-time buyers get up to $4,000 back provincially, and up to $4,475 back on Toronto's municipal LTT.

GST/HST New Housing Rebate

Buying a newly built or substantially renovated home? You may qualify for a partial rebate of the GST/HST paid, based on purchase price.

The Home Buying Process

1–2. Before You Shop

Mortgage Pre-Approval: meet a broker or lender to confirm your budget and get a rate hold (90–120 days). Find an Agent & Start Touring: partner with a buyer's agent who works for you and tour homes in your target neighbourhoods.

3–5. Making the Deal

Your agent prepares an Agreement of Purchase and Sale. Add financing, inspection, and (for condos) status-certificate conditions to protect you. A licensed inspector then checks the home top to bottom.

6–8. To the Finish Line

We know that buying or selling your home is a big life transition, and our team is here to help you at every step of the way. We're innovative and passionate about what we do, adapting quickly to an ever-changing market to get the very best result for you and your family. Strong relationships are the foundation of our success and fuel our growth for excellence.

Frequently Asked Questions

How much do I actually need saved to buy?

Plan for your down payment (starts at 5%), closing costs (~1.5–4% of the purchase price for legal fees, LTT, and adjustments), and a small buffer for moving and immediate repairs. Toronto buyers should budget extra for the municipal LTT.

Can I use the FHSA and the Home Buyers' Plan together?

Do I have to pay my real estate agent as a buyer?

What credit score do I need?

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