Are you looking for First-Time Home Buyer Programs in Ontario? – Here is the Complete Guide to Buying Your First Home.

Buying your first home is exciting—but it can also feel overwhelming.

If you’re a first-time home buyer in Ontario, you probably have questions like:

• How much down payment do I need?

• What government programs can help me?

• How do I qualify for a mortgage?

• What are my monthly costs going to look like?

This page is a simple, step-by-step guide to first-time home buyer programs, closing costs, and the process from pre-approval to getting your keys.

Who Counts as a First-Time Home Buyer?

Most first-time home buyer programs in Canada and Ontario look at:

• You have never owned a home anywhere in the world; or

• You haven’t lived in a home you or your spouse owned in the last few years (for some programs, usually the last 4 years – confirm with your accountant or lawyer);

• You’re planning to live in the home as your primary residence, not as a rental or flip.

If you’re not sure whether you qualify as a first-time buyer, it’s always best to ask your realtor, mortgage broker, or lawyer to double-check before applying.

Main First-Time Home Buyer Programs (Canada + Ontario)

 Home Buyers’ Plan (HBP) – Use Your RRSP for Down Payment

• Lets you withdraw from your RRSP to help with your down payment.

• You don’t pay tax on the withdrawal if you follow the rules.

• You must pay it back over time (usually over 15 years) to your RRSP.

• You must be a first-time home buyer and intend to live in the property as your main home.

This is helpful if you have RRSP savings but not enough cash in your bank for the down payment.

First Home Savings Account (FHSA)

• A newer program that lets you save for your first home with tax advantages.

• Money you put into an FHSA may be tax-deductible, and growth inside the account can be tax-free when used for a qualifying home purchase.

• You must be a first-time home buyer and a Canadian resident.

Many first-time buyers now use FHSA + RRSP (HBP) together to boost their down payment.

First-Time Home Buyers’ Tax Credit

• Federal non-refundable tax credit you can claim when you file your taxes.

• Designed to help with closing costs like legal fees and land transfer tax.

• You must be eligible as a first-time buyer and have bought a qualifying home.

Ontario Land Transfer Tax Rebate

If you’re buying in Ontario:

• First-time buyers may qualify for a rebate on provincial land transfer tax (up to a set maximum).

• You must be at least 18, never owned a home anywhere in the world, and intend to live in the home as your principal residence.

If you buy in a city that also charges a municipal land transfer tax (e.g., Toronto), there may be an additional local rebate.

CMHC / Insured Mortgages for Low Down Payments

If you have less than 20% down:

• You may qualify for an insured mortgage (often called “CMHC mortgage,” though there are a few insurers).

• Minimum down payment in Canada is typically:

  • 5% on the first portion of the price

  • plus a bit more on the remaining balance above a certain amount

• You pay a mortgage insurance premium, but it allows you to buy with a smaller down payment.

This is how most first-time buyers get into the market sooner instead of waiting years to save 20%.

Step-by-Step: How First-Time Home Buyers Should Start

Step 1 – Check Your Budget & Credit

• Review your income, debts, and monthly expenses.

• Check your credit score (higher score = better mortgage options).

• Decide what monthly payment you’re comfortable with, not just what the bank says you qualify for.

Step 2 – Get Pre-Approved for a Mortgage

A mortgage pre-approval will:

• Show you how much the lender is willing to lend you.

• Lock in an interest rate for a short time (usually 60–120 days).

• Help you shop with confidence and avoid falling in love with a home you can’t afford.

Step 3 – Use First-Time Buyer Programs to Boost Your Down Payment

Talk to your realtor, mortgage broker, or financial advisor about:

• Using RRSPs through the Home Buyers’ Plan

• Opening/using an FHSA if you qualify

• Planning for the tax credit and land transfer tax rebate

The goal is to reduce your cash out-of-pocket while staying safe and within the rules.

Step 4 – Work With a Local Realtor Who Understands First-Time Buyers

A good first-time buyer agent will:

• Explain each step clearly (no pressure, no jargon)

• Help you understand the offer conditions (financing, inspection, status certificate, etc.)

• Guide you through viewing homes, making offers, and negotiating

• Connect you with trusted mortgage brokers, lawyers, and home inspectors

Step 5 – Plan for Closing Costs

Many first-time buyers forget closing costs. Budget for:

• Legal fees and disbursements

• Land transfer tax (minus any first-time buyer rebate)

• Home inspection (if applicable)

• Title insurance

• Property tax adjustments

• Moving costs and utility setup

A safe estimate is often 1.5%–4% of the purchase price, depending on your situation.

Common Questions First-Time Home Buyers Ask

How much down payment do I really need?

• Minimum is usually 5% (for homes under a certain price point).

• More down payment = smaller mortgage and lower monthly payment.

• First-time buyer programs can help you reach your down payment amount faster.

Can I buy a home with just one income?

Yes, it’s possible, depending on:

• Your income and debts

• Credit score

• Down payment amount

• Property taxes and condo fees (if any)

A pre-approval and budget review will show what’s realistic for you.

Should I buy a condo, townhouse, or detached home first?

It depends on:

• Your budget

• Your lifestyle (commute, kids, parking, yard, etc.)

• How long you plan to stay in the home

Many first-time buyers start with a condo or townhouse, build equity, then move up to a detached home later.

What if interest rates go up after I buy?

• Your pre-approval can protect you for a short time.

• You can choose fixed or variable rate mortgages based on your risk comfort.

• A good mortgage advisor will run different payment scenarios so you don’t over-stretch.

Why Work With a First-Time Home Buyer Specialist?

As a first-time buyer, you’re not supposed to know everything. That’s what your team is for.

A dedicated first-time home buyer realtor will:

• Break down each step in simple language

• Help you understand all the programs and rebates you qualify for

• Protect your interests during showings, offers, and inspections

• Make sure you never feel rushed or pressured into a bad decision

Call to Action – Get Your Free First-Time Home Buyer Consultation

If you’re a first-time home buyer in Ontario and you want clear answers about programs, down payment options, and what you can afford:

• Get a free, no-obligation first-time buyer consultation

• Review your budget and eligibility for RRSP withdrawals, FHSA, tax credits, and rebates

• Get a simple roadmap from renting to owning your first home

Call/Text: 416-953-0547
Email: hsangha@live.ca
Serving: Brampton, Caledon, Mississauga, GTA, Oakville, Burlington, Woodbridge, Orangeville, Guelph, Vaughan, King City