First-Time Home Buyer Guide Ontario (2025-2026 Edition)
Updated: November 2025
Answer Box
First-time home buyers in Ontario need three things to get started: mortgage pre-approval, proof of down payment, and a plan for closing costs. This guide explains down payment rules, monthly payments, incentives, and what to expect when buying in the GTA, Hamilton, or Niagara Region.
Buying your first home in Ontario involves many moving parts. You’re comparing neighbourhoods, learning financing rules, and trying to make sense of what’s realistic in today’s market. Most first-time buyers don’t need more noise — they need clear guidance that helps them focus on the steps that matter.
Keith and I help first-time buyers across the GTA, Hamilton, and the Niagara Region, and we see the same questions come up every week. This guide brings those answers together so you can understand the process, set expectations confidently, and move toward a purchase that supports your long-term goals.
First-time buyer resources
Get the presentation and summary before you start touring homes
See the full path from first meeting to closing, including key steps, costs, and incentives for buyers in the GTA, Hamilton, and Niagara Region. Use these tools to prepare before you book showings.
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Use these resources to organize your budget, understand incentives, and plan your first purchase in the GTA, Hamilton, and Niagara Region.
Table of Contents
- What It Means to Be a First-Time Buyer in Ontario
- Step 1: Secure Mortgage Pre-Approval
- Step 2: Build Your Down Payment
- Step 3: Understand Closing Costs
- First-Time Buyer Incentives
- Choosing the Right Area
- Home Search Across the GTA, Hamilton, and Niagara
- Case Example
- What Happens on Closing Day
- FAQs
What It Means to Be a First-Time Buyer in Ontario
You are considered a first-time buyer if you have never owned a home anywhere in the world. If you owned a home before, even outside Canada, you may not qualify for first-time buyer incentives. You can still purchase with a small down payment if you qualify for mortgage insurance through CMHC, Sagen, or Canada Guaranty.
Start with a written pre-approval. It sets your budget, locks a rate, and helps you move fast on the right home.
Step 1: Secure Mortgage Pre-Approval
A written mortgage pre-approval helps you understand your budget, interest rate, and what monthly payments will look like. Lenders review your income, credit history, down payment, and existing debts to determine what you can safely afford.
What lenders review during pre-approval
- Income and employment history
- Down payment source
- Credit score and payment history
- Existing debts and monthly obligations
- Projected mortgage carrying costs
Once your information is verified, your lender issues a written pre-approval with an interest rate hold. Rate holds typically last 90 to 120 days, giving you time to search confidently.
Why pre-approval matters
- You understand your true budget before touring homes.
- You can act quickly when a suitable property becomes available.
- Sellers take your offer more seriously.
- Your search becomes more focused and realistic.
Step 2: Build Your Down Payment
Your down payment determines how much you can borrow and whether you need mortgage insurance. In Ontario, most first-time buyers qualify with a minimum down payment of 5 percent on homes under one million dollars.
Minimum down payment rules in Ontario
- 5% on the first $500,000
- 10% on the portion from $500,001 to $999,999
- 20% on homes priced at $1 million or more
Example
For a home priced at $650,000:
| 5% of first $500,000 | $25,000 |
| 10% of remaining $150,000 | $15,000 |
| Total minimum down payment | $40,000 |
Down payment sources lenders may accept
- Personal savings
- RRSP funds through the Home Buyers’ Plan
- First Home Savings Account (FHSA) withdrawals
- Gifted funds from an immediate family member
- Sale of an asset (must be documented)
Important Note
Lenders require a 90-day history of your down payment. Any large deposits must be explained and documented to comply with anti-money-laundering rules.
Step 3: Understand Closing Costs
Closing costs are the additional expenses you pay on top of your down payment. In Ontario, most first-time buyers should budget 3 to 4 percent of the purchase price for closing costs, depending on location and lender requirements.
Typical closing costs for first-time buyers
| Cost | Estimated Amount |
|---|---|
| Land Transfer Tax (Ontario) | Varies by price (rebate available) |
| Toronto Municipal Land Transfer Tax | Additional tax for Toronto purchases |
| Legal Fees & Disbursements | $1,500–$2,500 on average |
| Title Insurance | $300–$500 |
| Home Inspection (optional) | $400–$600 |
| CMHC Insurance Premium (if under 20% down) | Added to your mortgage amount |
Land Transfer Tax Rebates for First-Time Buyers
Ontario offers a rebate of up to $4,000 for eligible first-time buyers. Toronto buyers may also qualify for an additional rebate for properties purchased within the city.
To learn how rebates work, visit our blog on how to apply for the Land Transfer Tax rebate.
Calculate your Land Transfer Tax and rebate amount using this tool from TRREB
What your lawyer handles on closing day
- Reviewing your purchase agreement
- Coordinating with your lender
- Transferring funds
- Registering the property in your name
- Providing your final closing statement
Tip for First-Time Buyers
Many buyers underestimate closing costs. Starting with a 3 to 4 percent buffer reduces stress and keeps your budget realistic.
First-Time Buyer Incentives in Ontario
Ontario offers several programs to help first-time buyers increase their down payment and reduce closing costs. These incentives can make a meaningful difference in your budget and monthly carrying costs.
Ontario’s Most Common First-Time Buyer Programs
How to combine incentives
Many first-time buyers use both the FHSA and HBP to build a stronger down payment. You can also claim the Ontario and Toronto rebates when applicable, which reduces your closing costs.
Choosing the Right Area
Location has the biggest impact on what you can afford as a first-time buyer. Many clients start their search in the GTA, then compare opportunities in Hamilton and the Niagara Region to see how pricing, lifestyle, and space differ across each area.
Comparing popular regions for first-time buyers
Neighbourhood features that matter to first-time buyers
- Transit access and commute times
- Safety and community feel
- Local schools and walkability
- Future developments that may affect value
- Property type availability (condos, towns, semis)
Many first-time buyers begin with a broad search, then narrow to a few communities after reviewing budget, commute preferences, and lifestyle goals.
Local Insight
Buyers relocating from the GTA are often surprised by how far their budget can stretch in St. Catharines, Niagara Falls, Welland, or Thorold. Detached homes at first-time buyer price points are far more accessible compared with Mississauga, Brampton, Vaughan, or Toronto.
Home Search Across the GTA, Hamilton, and Niagara
The home search looks different across Ontario depending on the area, property type, and your budget. Most first-time buyers start by touring a few homes in the GTA, then explore options in Hamilton and the Niagara Region to compare space, condition, and value.
How the search process usually works
- Define your must-haves and nice-to-haves. This helps narrow the search and keeps you focused.
- Tour a small sample of homes in different areas. Seeing properties in person helps clarify what’s realistic.
- Compare property types across regions. Condos may be ideal in the GTA, while towns or semis become accessible in Hamilton or Niagara.
- Review carrying costs. Property taxes, utilities, and condo fees vary significantly across the province.
What first-time buyers often notice during showings
- Condos in Mississauga, Toronto, and Vaughan offer convenience but may have higher fees.
- Hamilton often provides larger homes with character and walkability near Locke Street and St. Clair.
- Niagara communities like St. Catharines, Welland, and Thorold provide more space at first-time buyer price points.
- Detached homes in Niagara are often similar in price to one-bedroom condos in parts of the GTA.
How we support your home search
We preview listings, identify potential issues, review neighbourhood trends, and ensure you understand the pros and cons of each property. Our goal is to help you feel confident about your options, whether you’re focused on the GTA, Hamilton, or considering a move toward a quieter lifestyle in Niagara.
Helpful Resource
To compare neighbourhoods more closely, visit our GTA vs Niagara home search insights for examples and real-world observations from buyers we’ve helped.
Case Example: What a First-Time Buyer Budget Looks Like Across Ontario
This example shows how a typical first-time buyer budget changes depending on the region. These numbers are based on recent market activity in the GTA, Hamilton, and the Niagara Region.
Buyer Profile
- Combined income: $150,000
- Down payment savings: $45,000
- Pre-approved purchase price: Up to $650,000
- Goal: Find a home with enough space to grow while staying within budget
How the same budget performs in different regions
What buyers usually learn from this comparison
- The GTA is ideal if transit access and proximity to work are top priorities.
- Hamilton offers good balance between urban amenities and affordability.
- Niagara provides the most space and long-term value, especially for buyers planning ahead.
Local Insight
Clients moving from the GTA often choose Niagara because their budget allows them to transition from condo living to a freehold property without stretching financially. Many see this as a strategic first step toward long-term homeownership.
Cost Snapshot — estimates only
| Location | Property Type | Approx. Price | Est. Monthly Carry |
|---|---|---|---|
| Mississauga | Condo Townhouse | $650,000 | $3,300 to $3,800 |
| Hamilton Mountain | Freehold Townhouse | $675,000 | $3,200 to $3,700 |
| St. Catharines | Detached Bungalow | $650,000 | $3,100 to $3,600 |
Estimates only. Confirm with a mortgage professional.
Need help understanding down payment and closing costs?
We will build a personalized budget and show you homes that match your price range in the GTA, Hamilton, or Niagara.
What Happens on Closing Day
Closing day is when the home officially becomes yours. Your lawyer, lender, and the seller’s lawyer coordinate behind the scenes to transfer funds, register the property, and release the keys. For most first-time buyers, the process is straightforward, and your lawyer will guide you through each step.
What to expect on closing day
- Your lawyer receives your mortgage funds from the lender.
- Your down payment balance is transferred to the lawyer’s trust account.
- Closing documents are signed and reviewed.
- Property title is registered in your name.
- Keys are released once everything is finalized.
Lawyers typically finalize closings between 12 p.m. and 5 p.m. If your move-in requires an elevator booking or scheduled delivery, plan for later afternoon to avoid delays.
Your lawyer will provide a final closing statement
This statement outlines:
- The purchase price
- Your down payment
- Mortgage details
- Closing costs and adjustments
- Legal fees and disbursements
How we help on closing day
We stay available to coordinate with your lawyer, answer questions, and assist with any last-minute details. You’ll also receive a reminder checklist covering utilities, home insurance, and local service providers.
FAQs
Most lenders require at least 5 percent down for homes under $500,000 and suggest budgeting 1.5 to 4 percent of the purchase price for closing costs, depending on location and mortgage type.
Inspections help avoid expensive surprises. A pre-offer inspection is ideal for competitive homes. Others complete it after conditions are accepted.
Yes. Many lenders allow gifted down payments from immediate family. You will need a signed gift letter confirming the funds are a true gift.
Most buyers should budget 3 to 4 percent of the purchase price for closing costs. These may include land transfer tax, legal fees, title insurance, and adjustments for property taxes or utilities.
You can explore renewal or refinancing options. Rates change often. Review scenarios with a mortgage professional.
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.
Condos are often the most affordable entry point in the GTA, while Hamilton and the Niagara Region offer more freehold options within first-time buyer budgets. The right choice depends on commute, lifestyle, and long-term plans.
Ready to Start Planning
We help first-time buyers across the GTA, Hamilton, and Niagara purchase condos, townhouses, semis, and detached homes. Together we will review your budget, timing, and preferred areas, then build a clear plan from pre-approval to closing.
About Keith & Françoise
Keith Goldson is a Broker and Françoise Pollard is a REALTOR® with eXp Realty. They help first-time buyers, downsizers, and investors in the GTA, Hamilton, and Niagara Region. Their listings include professional staging, photography, videography, open houses, pricing strategy, and legal coordination.