First-Time Home Buyer Guide Ontario (2025 Edition)
Buying your first home in Ontario is a major financial step. From down payments to rebates, there are many rules and costs first-time buyers need to prepare for. This guide breaks everything down into clear steps so you can buy your first home with confidence.
📥 Free Resource: Download our First-Time Home Buyer Checklist to track savings, paperwork, and closing tasks.
What does it mean to be a first-time home buyer in Ontario?
A first-time buyer in Ontario is someone who has never owned property, or in some cases, someone who hasn’t owned in the past four years.
This definition matters because it determines whether you qualify for rebates like the Ontario Land Transfer Tax Refund or the First Home Savings Account (FHSA).
👉 More details here: Ontario Home Buyer Incentives 2025.
How much money do I need to buy my first home in Ontario?
At minimum, you’ll need 5% for your down payment and 2-4% for closing costs. Many buyers save closer to 8–10% of the purchase price.
Minimum Down Payment in Ontario (2025)
| Home Price | Minimum Down Payment | Notes |
|---|---|---|
| $400,000 | $20,000 (5%) | Insured mortgage required |
| $700,000 | $45,000 (5% of first $500k + 10% of remainder) | Insured mortgage required |
| $1,200,000 | $70,000 (5% of first $500k + 10% of remainder) | Insured mortgage required |
📌 External resource: CMHC – Mortgage Loan Insurance.
Example: Buying a $700,000 GTA Home
- Down payment: $45,000
- Closing costs (2%): $14,000
- Total upfront needed: $59,000
👉 Related guide: Mortgage Financing Simplified for Ontario Home Buyers.
What programs are available for first-time buyers in Ontario?
First-time buyers may qualify for the Home Buyers’ Plan, FHSA, land transfer tax rebate, and tax credits.
- Home Buyers’ Plan (HBP): Withdraw up to $60,000 from RRSPs, repay over 15 years.
- First Home Savings Account (FHSA): Save up to $40,000 tax-free.
- Land Transfer Tax Refund: Up to $4,000 provincially (and $4,475 if buying in Toronto).
- First-Time Home Buyers’ Tax Credit: A $10,000 non-refundable federal credit.
🔗 Full breakdown: Ontario Home Buyer Incentives.
How do I get a mortgage as a first-time buyer?
The first step is a mortgage pre-approval, which shows how much you can afford and locks in a rate. You can apply through banks, credit unions, or mortgage brokers, each with different advantages.
Fixed vs. Variable Mortgages
- Fixed rate: Stability, easier to budget.
- Variable rate: May save money if rates drop, but less predictable.
How much can I qualify for?
Your lender applies the mortgage stress test at the greater of your rate + 2% or the benchmark rate. This ensures you can afford payments even if rates rise.
📌 External link: Government of Canada – Mortgage Stress Test.
What happens on closing day in Ontario?
On closing day, your lawyer transfers funds, registers the property in your name, and releases the keys, usually between 1–6 p.m.
You’ll need proof of insurance, photo ID, and a certified cheque for closing costs. Utility accounts should be set up in advance.
👉 See our full article: Closing Day in the GTA: What to Expect.
How long does it take to buy a first home?
Most buyers take 1–3 months to find a home, with 30–90 days between offer and closing.
Delays can happen if you’re saving for a larger down payment, or in competitive markets like the GTA where bidding wars are common.
FAQs About Buying Your First Home in Ontario
Q. What qualifies you as a first-time home buyer in Ontario?
A. You’re a first-time buyer if you’ve never owned property. For some programs, like the First Home Savings Account (FHSA) and certain rebates, you may also qualify if you haven’t owned a home in the last four years.
Q. Do first-time buyers pay land transfer tax in Ontario?
A. Yes. However, eligible first-time buyers can receive an Ontario rebate up to $4,000, and if purchasing in Toronto, an additional municipal rebate up to $4,475. Learn more in our guide to Ontario Home Buyer Incentives.
Q. What happens on closing day?
A. Your lawyer transfers the funds, registers the property in your name, and confirms completion with the seller’s lawyer. The seller’s lawyer then provides the lockbox code to your lawyer, who releases it to you or your REALTOR® for access. When possible, Keith and I attend in person to hand you the keys, though this isn’t always standard industry practice. For a detailed breakdown, see Closing Day in the GTA: What to Expect.
Q. What is the minimum down payment in Ontario?
A. It’s 5% on the first $500,000, plus 10% on the portion between $500,000 and $1,499,999. For homes of $1,500,000 or more, the minimum down payment is 20%. Insured mortgages are available on homes under $1.5M when your down payment is less than 20%. Get the full breakdown in Mortgage Financing Simplified for Ontario Home Buyers.
Ready to buy your first home?
We’ve worked with first-time buyers across the GTA and Niagara Region. Whether you need mortgage advice or help finding the right property, we’re here to guide you.
📥 Download your Free First-Time Buyer Checklist or contact us today to start your homeownership journey.