First-Time Home Buyer Guide Ontario
Updated: February 2026
Written by the Keith and Françoise Real Estate Team, Ontario Realtors®, working with first-time buyers across the Greater Toronto Area and Niagara Region.
Takeaway
Buying your first home in Ontario involves more than saving a down payment. Financing approval, incentive eligibility, offer conditions, and closing costs all affect affordability and risk. This guide explains what first-time buyers need to understand before writing an offer.
How does the first-time home buying process work in Ontario?
First-time home buyers in Ontario typically begin with mortgage pre-approval, followed by property selection, a written Agreement of Purchase and Sale, conditional review periods, and a lawyer-led closing. Each step carries legal and financial consequences.
For a full overview of how the buying process works from start to finish, refer to our cornerstone guide on buying a home in Ontario.
What first-time buyers should understand before starting their search
Before viewing homes, first-time buyers should understand their financing range, expected closing costs, and eligibility for government programs. These factors determine not only what you can buy, but how competitive and flexible your offer can be.
Many buyers focus on purchase price and overlook costs that arise between offer acceptance and closing. Understanding what happens on closing day helps reduce last-minute surprises.
What financing mistakes do first-time buyers commonly make?
The most common financing mistake first-time buyers make is treating pre-approval as a guarantee. Pre-approval sets an estimated range, but final approval still depends on the property, appraisal, lender policies, and borrower documentation at the time of funding.
- Assuming pre-approval guarantees final approval
- Not accounting for interest rate changes before closing
- Overlooking lender rules tied to property type
We see these issues most often when financing is addressed too late in the process. Our article on mortgage financing for Ontario homebuyers breaks this down in more detail.
What incentives are available to first-time home buyers in Ontario?
Ontario first-time buyers may qualify for several programs that reduce upfront costs, but eligibility depends on income, purchase price, and buyer history. These programs can help, but they do not replace the need for proper financing.
- First Home Savings Account (FHSA): Allows up to $40,000 in tax-deductible contributions toward a first home purchase.
- Home Buyers’ Plan (HBP): Permits eligible buyers to withdraw up to $35,000 from RRSPs to purchase a first home.
- Ontario land transfer tax rebate: Eligible first-time buyers may receive a rebate of up to $4,000.
For a detailed breakdown of eligibility and how these programs actually apply in real transactions, see our guide to Ontario home buyer incentives.
What offer conditions protect first-time buyers the most?
For first-time buyers, conditions are a key form of protection. The most common conditions include financing, home inspection, and, for condominiums, status certificate review.
- Financing condition: Protects the buyer if mortgage approval is not secured.
- Home inspection condition: Allows professional review of major defects.
- Status certificate condition: Allows legal review of a condominium’s financial health and rules.
Condo purchases require a status certificate review, which summarizes the condominium corporation’s finances, rules, reserve fund, and any ongoing legal issues. For Ontario-specific information about condominium documents and buyer considerations, see the Condominium Authority of Ontario.
Is buying your first home different in the GTA versus Niagara?
The legal buying process is consistent across Ontario, but first-time buyer experiences vary by region. Pricing pressure, competition, and property types differ significantly between the GTA and Niagara.
- GTA: Entry-level homes may still attract competition, particularly in transit-accessible areas.
- Niagara: Buyers often encounter older housing stock and more variation in neighbourhood conditions.
For practical search and strategy differences, see GTA vs Niagara home search tips for buyers.
What happens on closing day for first-time buyers in Ontario?
On closing day, your lawyer completes the transfer of title, registers the property, and coordinates funds with your lender. Buyers receive keys only after the transaction is fully completed.
This process is explained in more detail in our article on what first-time buyers should expect on closing day.
Why this guide reflects real first-time buyer experience
Experience behind this guide
This guide reflects our experience helping first-time buyers across the GTA and Niagara Region prepare for financing, evaluate incentives, structure protected offers, and navigate closing timelines. The issues highlighted here come from real Ontario transactions, not theoretical examples.
This page supports our broader guide on buying a home in Ontario and focuses specifically on first-time buyer decision points.
Frequently Asked Questions
Yes. A real estate lawyer is required to complete the purchase, transfer title, register ownership, and handle funds on closing.
Minimum down payment requirements depend on purchase price and lender rules. Buyers should also budget for closing costs in addition to the down payment.
No. Incentives depend on eligibility criteria such as income, purchase price, and buyer history. Not all buyers qualify for every program.
They can, but it increases risk. First-time buyers should only waive conditions after understanding financing approval, property condition, and legal implications.
Common costs include land transfer tax, legal fees, title insurance, adjustments, and sometimes an inspection. Toronto buyers may also pay municipal land transfer tax on top of the provincial tax.
The most common programs are the First Home Savings Account (FHSA), the Home Buyers’ Plan (HBP), and the Ontario Land Transfer Tax rebate. Toronto buyers may also qualify for an additional municipal rebate.
You’re not required to work with an agent, but most first-time buyers choose to. A Realtor helps with neighbourhood insights, offer strategy, negotiations, and reviewing potential issues in a property before you make a decision.
Often yes. Most lenders require a signed gift letter and a clear paper trail. Have the funds documented early so your mortgage approval doesn’t get delayed.
Get Clear Answers Before You Buy Your First Home
Buying your first home is a major step. Understanding how Ontario rules apply in real situations helps you avoid mistakes that can follow you for years. We help first-time buyers across the GTA and Niagara Region make confident decisions from planning through closing.
Market conditions, pricing strategies, and buyer competition can vary by location, property type, and timing. This guide reflects our experience working with first-time buyers across Ontario, particularly in the GTA and Niagara Region. For advice tailored to your situation, speak with a qualified real estate professional before making decisions.