THE ONTARIO FIRST-TIME HOMEBUYER GUIDE
Buying your first place should be exciting, not a guessing game. Here's what to know about your down payment, government programs, paperwork and the steps that come next.
01 / FIRST THINGS FIRST
The minimum is based on the home's price, not whether you're buying for the first time. Some lenders or property types require more. You'll also need money for closing costs.
Example: $450,000 home → $22,500 minimum.
5% of the first $500,000, then 10% of the portion above $500,000.
Default-insured mortgages generally aren't available at these prices.
Try a purchase price to see the basic minimum required.
Less than 20% down normally means mortgage default insurance is needed.
Calculate monthly payments and Ontario closing costs Planning estimate only. This does not determine mortgage qualification or required cash to close.One thing buyers often miss: your down payment and closing costs are two different buckets. Land transfer tax, legal fees, adjustments and other expenses can add up, especially within Toronto.
02 / MAKE YOUR SAVINGS WORK HARDER
Both can help qualified buyers with a down payment. The big difference? With an FHSA, qualifying withdrawals generally don't need to be repaid. RRSP Home Buyers' Plan withdrawals do.
Qualified buyers generally get up to $8,000 of new contribution room for each year after opening the account, to a $40,000 lifetime maximum, with limited unused room carryforward. Eligible contributions are generally tax-deductible, and qualifying home withdrawals are tax-free.
The HBP lets eligible buyers withdraw up to $60,000 from their RRSPs to buy or build a qualifying home without the withdrawal normally being taxed at that time.
An eligible buyer can make a qualifying FHSA withdrawal and an HBP withdrawal for the same purchase. That can provide meaningful down payment funds, but the RRSP amount is borrowed from your own retirement savings and must eventually be repaid. The accounts are savings tools, not government cash rebates.
See the CRA's rules ↗03 / GETTING HELP FROM FAMILY
Family support is common, and many mortgage programs accept a genuine, non-repayable gift from an eligible relative. Just make sure we structure and document it the right way before the funds move.
The funds generally can't be a secret loan that you're expected to repay. The lender or insurer will have its own rules about acceptable family relationships.
Lenders typically ask the giver to confirm the amount, relationship to the buyer, and that repayment is not required. A lender-specific gift letter may be needed.
Be prepared to provide account statements and evidence of transfer/deposit. Requirements and how long money must be documented vary by lender.
My advice: speak with me before your parents or other relatives send the money. It's easier to document the down payment correctly from the beginning than to fix a missing paper trail days before closing.
04 / KEEP MORE OF YOUR MONEY
Not every incentive is a cheque you receive on closing day. Some reduce transaction costs; others affect income tax or a qualifying new-build purchase. Eligibility isn't identical across programs.
Refund for eligible first-time purchasers of qualifying Ontario properties.
Separate municipal land transfer tax rebate, where eligible.
Some buyers may qualify for new-home GST/HST rebates. Builder agreements and program conditions matter.
Important: To qualify for Ontario's first-time land transfer tax refund, you generally must never have owned a home or an interest in one anywhere in the world, and there are additional age, occupancy, citizenship/permanent-residency and spouse requirements. This differs from the FHSA and RRSP HBP definitions, which can permit some former homeowners to requalify after a specified period.
05 / BEFORE YOU START HOUSE HUNTING
Here's a practical starting checklist for a conversation about a pre-approval. Your lender may request more depending on your situation.
Valid photo identification for each applicant.
Recent pay stubs, employment details and possibly T4s, tax returns or NOAs.
Savings/investment statements, FHSA or RRSP records, or a gift letter where applicable.
Existing loans, lines of credit, support payments and other obligations.
06 / QUICK ANSWERS
Potentially, for a home costing $500,000 or less. Above that, the minimum rises in tiers. Homes of $1.5 million or more generally need at least 20% down. Approval, mortgage insurance and property requirements still apply.
Yes, if you meet each program's eligibility rules, you may make a qualifying FHSA withdrawal and an RRSP Home Buyers' Plan withdrawal for the same home. FHSA withdrawals normally don't need repayment; HBP withdrawals do.
Often yes. Non-repayable gifts from eligible relatives can be accepted with a signed gift letter and proof of funds. The exact relationship and documentation rules depend on the lender and insurer.
No. The FHSA lets eligible buyers save and invest their own money with tax advantages. $8,000 is the usual initial annual participation room, not a government payment or guaranteed tax refund.
It depends which program you mean. Ontario's land transfer tax refund generally does not allow requalification after prior ownership. Some federal savings/withdrawal programs use a lookback period and may let you qualify again. Always check your exact history and circumstances.
Under current federal rules, eligible first-time home buyers and buyers of qualifying newly built homes may have access to a 30-year insured amortization. This can lower scheduled payments but may increase total interest and mortgage insurance costs compared with shorter amortizations.
No. A pre-approval can help with budget planning, but a firm lender approval depends on updated financial information, the specific property, appraisal where required, and all lender conditions being satisfied.
YOU DON'T HAVE TO FIGURE IT OUT ALONE
If you're thinking about buying, tell me where you're at. I'll help you understand your budget, down payment sources and next steps without drowning you in mortgage jargon.
About this guide: Reviewed October 2026. This information is general and is not financial, legal or tax advice. Eligibility, lender requirements and government programs can change. Get personal advice before relying on any estimate or making a withdrawal.
Official references: FCAC down payments · CMHC · CRA FHSA · CRA HBP · Ontario rebate · Toronto rebate.
