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By the Keith & Françoise Real Estate Team, Ontario Realtors® with eXp Realty Brokerage. We help first-time buyers across the Greater Toronto Area and Niagara Region understand the process, protect themselves with the right conditions, and move forward with confidence.
Buying your first home in Ontario involves more than saving a down payment. Mortgage pre-approval, the right conditions, government incentives, and closing costs all affect how much you can afford and how protected you are. The December 2024 mortgage rule changes expanded what first-time buyers can access. This guide walks you through every stage from financing to keys in hand, with advice grounded in real GTA and Niagara transactions.
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Ontario has specific programs, rules, and market conditions that shape every first-time purchase differently from other provinces. This guide gives first-time home buyers in Ontario a clear, honest picture of the process. It covers everything from your first financing conversation to the day your lawyer hands over the keys.
For a full overview of the buying process from start to finish, visit our complete guide on buying a home in Ontario. When you’re ready to move from research to action, our Ontario first-time home buyer checklist gives you a step-by-step reference for every stage.
Before You Search: Five Things to Confirm First
Most first-time buyers start with online listings. That’s understandable, but it’s the wrong first step. The right starting point is understanding your true budget, not just what a mortgage calculator suggests.
Answer these questions before viewing a single property: What is your verified financing range? Do you have enough for a down payment and closing costs? Which government incentives do you qualify for? What property types and locations fit within that budget?
Buyers who skip this stage often fall in love with a home they can’t comfortably afford, or worse, write an offer before they fully understand their obligations.
Getting Mortgage Pre-Approval Right
Pre-approval is not a guarantee of financing. It’s an estimate based on your income, credit profile, and debt load at the time of application. Final approval depends on the specific property, a satisfactory appraisal, and your financial situation remaining stable until closing.
Common mistakes at the pre-approval stage
Taking on new debt between pre-approval and closing is the most common way transactions fall apart. A car loan, a new line of credit, or even a large purchase on an existing card can change your debt service ratios enough to affect final approval. Changing jobs before the mortgage funds is equally risky. If you move to a new employer, even for more money, lenders may treat you as being on probation and decline to fund.
How the mortgage stress test affects first-time buyers
Canada’s federal stress test requires all buyers to qualify at the higher of their contracted mortgage rate plus 2%, or the benchmark floor of 5.25%. Because most current mortgage rates exceed 5.25%, most buyers are effectively stress tested at their contract rate plus 2%. This affects how much you can borrow even if you have strong income. Confirm your qualifying rate with a mortgage professional before building your budget.
For a detailed breakdown of how financing works in Ontario including fixed vs variable, CMHC insurance, and lender types, see our guide to mortgage financing for Ontario buyers. CMHC’s home buying resources also provide independent guidance on mortgage eligibility and insurance requirements.
Down Payment Requirements in Ontario
Minimum down payment rules in Ontario are set federally and are based on purchase price. On the first $500,000, the minimum is 5%. On the portion between $500,000 and $1,499,999, the minimum is 10% of that portion. For homes priced at $1.5 million or more, a full 20% down payment is required and CMHC insurance is not available.
If your down payment is less than 20%, you are required to purchase CMHC mortgage default insurance. The premium ranges from 2.80% to 4.00% of the insured mortgage amount and is typically added to your mortgage balance. In Ontario, you also pay provincial sales tax on that premium at closing, in cash.
The December 2024 rule change: what it means for first-time buyers
As of December 15, 2024, first-time buyers can access 30-year amortizations on insured mortgages for any property, including resale homes. This is a significant change from the previous rule which restricted 30-year amortizations to new builds only. Spreading repayment over 30 years lowers monthly payments, which increases the mortgage amount you can qualify for. On a $600,000 mortgage at current rates, the difference between a 25 and 30-year amortization is roughly $250 to $300 per month.
The insured mortgage limit also increased to $1.5 million, meaning first-time buyers can purchase homes up to $1.5 million with less than 20% down. Previously the cap was $1 million.
Saving your down payment faster
The First Home Savings Account (FHSA) is the most tax-efficient savings tool available to first-time buyers in Canada right now. Contributions are tax-deductible like an RRSP. Qualifying withdrawals are completely tax-free like a TFSA, with no repayment required. You can contribute up to $8,000 per year to a lifetime maximum of $40,000.
The Home Buyers’ Plan lets eligible buyers withdraw up to $60,000 from their RRSP without immediate tax consequences. The amount must be repaid to your RRSP over 15 years. Eligible couples can each withdraw up to $60,000, for a combined total of $120,000. Both programs can be used together for the same purchase, which is one of the most underused strategies among Ontario first-time buyers.
See the full breakdown of how these programs work in our guide to Ontario home buyer incentives.
Closing Costs First-Time Buyers Often Miss
Down payment is only part of what you need on closing day. Closing costs are real, significant, and non-negotiable. First-time buyers who don’t budget for them often face a stressful scramble in the final weeks before closing. Budget 1.5% to 4% of the purchase price for closing costs. The range depends on whether the property is in Toronto and whether CMHC insurance applies.
What to plan for
Land transfer tax (provincial): Calculated on a tiered scale. On a $750,000 purchase, provincial land transfer tax is approximately $11,475. First-time buyers may qualify for a rebate of up to $4,000.
Toronto municipal land transfer tax: Toronto buyers pay a second land transfer tax on top of the provincial amount. First-time buyers purchasing in Toronto may qualify for an additional rebate of up to $4,475.
Legal fees and disbursements: Budget $1,500 to $2,500 for a real estate lawyer. Disbursements including title insurance, registration, and searches are typically additional.
Home inspection: Usually $400 to $600, payable before the conditional period ends.
CMHC PST: If your mortgage is insured, Ontario charges provincial sales tax on the insurance premium at closing. This must be paid in cash and cannot be added to the mortgage.
Adjustments: If the seller has prepaid property taxes or utilities, you’ll reimburse them at closing.
For a complete walk-through of what to expect on closing day, see our guide on closing day in the GTA. Your lawyer will also conduct a title search before closing. See our guide to title search in Ontario for what this protects you from.
Government Incentives for First-Time Home Buyers in Ontario
Several programs exist to reduce the cost of buying your first home in Ontario. Not everyone qualifies for all of them, and eligibility rules can change, so review current requirements carefully before counting on any program.
First Home Savings Account (FHSA)
Opened through a financial institution, the FHSA lets eligible buyers contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions reduce your taxable income. Qualifying withdrawals are completely tax-free with no repayment required. This is currently the most powerful savings tool available to first-time buyers in Canada.
Home Buyers’ Plan (HBP)
If you have RRSP savings, you can withdraw up to $60,000 per eligible buyer toward a first home purchase. The amount must be repaid to your RRSP over 15 years. Couples can each withdraw up to $60,000 for a combined total of $120,000. Funds must have been in your RRSP for at least 90 days before withdrawal.
Ontario Land Transfer Tax Rebate
Ontario first-time buyers may qualify for a rebate of up to $4,000 on provincial land transfer tax. On most homes under $368,000, this eliminates the provincial tax entirely. On higher-priced homes, it offsets a portion of the cost. To qualify, you must never have owned a home anywhere in the world.
Toronto First-Time Home Buyer Rebate
Toronto buyers may also qualify for a rebate of up to $4,475 on the municipal land transfer tax, in addition to the provincial rebate. Your lawyer applies both at closing.
First-Time Home Buyers’ Tax Credit (HBTC)
A federal non-refundable tax credit worth up to $1,500 in federal tax relief. Claimed on your personal income tax return in the year you purchase. Both partners in a couple can split the claim as long as the combined total does not exceed $10,000.
For full eligibility requirements and current limits, see our dedicated guide to Ontario home buyer incentives. Returning buyers should see our guide to Ontario home buyer programs for returning buyers.
Offer Conditions That Protect First-Time Buyers
Conditions in an Agreement of Purchase and Sale protect your deposit and give you the right to exit the deal if something critical fails. For first-time buyers especially, the right conditions can mean the difference between a sound purchase and an expensive mistake. The Real Estate Council of Ontario (RECO) outlines buyer rights and what to expect when working with a registered Realtor®.
Financing condition
This condition gives you a defined period, typically five to ten business days, to confirm your mortgage approval on the specific property at the agreed price. If your lender declines due to a low appraisal, property type, or a change in your financial circumstances, you can exit the deal and recover your deposit. Waiving this condition should only happen after a direct conversation with your mortgage professional and a clear-eyed assessment of the risk.
Home inspection condition
A qualified home inspector examines the structure, roof, electrical, plumbing, HVAC, and other major systems. Inspections don’t guarantee a property is problem-free, but they surface issues that could affect your decision, your offer price, or your future repair budget. In competitive GTA markets, some buyers waive this condition to strengthen their offer. We address the strategy behind that in our guide on winning offers in the GTA.
Status certificate condition (condominiums)
If you’re buying a condo, a status certificate condition is essential. The status certificate is a package of documents from the condo corporation including financial statements, the reserve fund study, board minutes, by-laws, and any ongoing legal proceedings. Your real estate lawyer reviews this package and flags anything that could affect your ownership. You typically have three business days to review after receiving the certificate.
We’ve Seen This Play Out
We had a first-time buyer in Mississauga, a police officer, who found a condo he genuinely loved. Great layout, newer building, priced well. We put in an offer conditional on the lawyer reviewing the status certificate. When our lawyer reviewed it, he flagged that the overwhelming majority of units in the building were owned by investors, not owner-occupants. That matters for two reasons. Buildings with high investor concentration tend to have constant tenant turnover, which affects how common areas are maintained. They also tend to see concentrated selling when investors exit at the same time, which pushes values down across the whole building.
Our client did not buy that unit. He found a better building a few weeks later. The status certificate condition is what gave him the time and the information to make that call. Without it, he would have owned a condo in a building with structural ownership problems he had no way of seeing from a showing.
For more on condo-specific considerations, see our full guide on buying a condo in the GTA.
Can a First-Time Buyer Actually Afford a Home in Ontario Right Now?
This is the question every first-time home buyer in Ontario is really asking, and it deserves a straight answer.
In early 2026, condo apartments are the most realistic entry point for GTA first-time buyers. The average GTA condo apartment sold for approximately $627,000 in February 2026, according to TRREB data, down from its peak and with significantly more inventory than buyers have seen in years. Sellers are negotiating. That is a meaningfully different environment than 2021 or 2022.
Freehold townhouses in Brampton or Mississauga typically start in the $750,000 to $850,000 range. Detached homes in most GTA markets are largely out of reach for single-income first-time buyers without significant family support.
In the Niagara Region, first-time buyers generally find more purchasing power. Detached homes in St. Catharines and Niagara Falls are available in the $480,000 to $600,000 range, particularly for buyers willing to consider older housing stock or properties that need some updating.
Why there is no honest single income number
Your qualifying amount depends entirely on your personal financial picture: your gross household income, your existing debt load, the size of your down payment, the mortgage rate you are offered, the property taxes on the specific home, and condo fees if applicable. The only way to know your real ceiling is to sit down with a mortgage broker who can review your complete financial profile.
Buying in the GTA vs the Niagara Region
The legal process for buying a home is consistent across Ontario, but the market experience is not. First-time buyers in the GTA and those looking at Niagara face meaningfully different conditions.
GTA: Brampton, Mississauga, Etobicoke, Toronto
In early 2026, condo apartments are where most GTA first-time buyers start. Market conditions are genuinely in their favour right now. Inventory is elevated, prices have softened from their peak, and buyers have more negotiating room than they have seen in years.
Three areas deserve particular attention from first-time buyers in 2026. Vaughan Metropolitan Centre near Highway 400 has seen price corrections after an oversupply of investor-focused product, but the subway connectivity is complete and long-term employment hub planning is serious. Buyers targeting owner-occupant buildings with units in the 700 to 950 square foot range are finding real value. Mimico in Etobicoke continues to offer strong value with waterfront access, GO train connectivity, and less speculative activity than other corridors. Mississauga City Centre near Square One has significant new inventory and real negotiating room, with price per square foot that compares well to Toronto product.
Freehold townhouses remain the next step up for buyers with a larger down payment or a dual income. Detached homes in most GTA markets remain largely out of reach for first-time buyers today without significant family support.
Niagara Region: St. Catharines, Niagara Falls
First-time buyers relocating from the GTA to Niagara often find they can access a detached home at a price point that would buy a condo in Brampton. St. Catharines has a range of established neighbourhoods with detached homes and solid amenities. That said, Niagara has more variation in housing stock and neighbourhood condition than many GTA buyers expect. Due diligence matters here as much as anywhere.
Buyers relocating from the GTA should factor in the lifestyle adjustment honestly. Niagara is not a suburb of Toronto. It is a different community with its own pace and market norms. For a side-by-side comparison of both markets, see our guide on GTA vs Niagara home search tips for buyers.
Closing Day: What First-Time Buyers Need to Prepare
Closing day is the legal transfer of ownership. Your real estate lawyer handles the mechanics, but there is preparation on your end too.
In the days leading up to closing, confirm the exact amount needed with your lawyer, transfer certified funds to their trust account, complete a pre-closing walkthrough if agreed in your offer, and arrange utilities, insurance, and move-in logistics. Title registration in Ontario typically happens in the afternoon. Keys are released once registration is confirmed, sometimes not until late in the day. Plan your movers accordingly.
A Warning We Give Every Buyer
Pre-approval is not a green light to carry on with life as normal. We had a buyer in Hamilton who was fully pre-approved and well on her way to closing. We sat down with her beforehand and walked through exactly what not to do: no large purchases, no new credit, nothing that could change her debt service ratios before the lender did their final checks. A few days before closing, her bank ran a credit check and found she had financed a car. Everything unravelled almost immediately. The only reason that deal closed was because our mortgage broker stepped in and restructured the financing. Most buyers are not that lucky.
We have also had a client change jobs a month before closing without telling us or the mortgage broker. When the lender called to confirm employment, they were told the buyer was on probation at a new company. Between pre-approval and closing, treat your financial profile as frozen. If something in your life changes during that period, call your mortgage broker the same day.
For the full closing day breakdown, see our guide on what buyers should expect on closing day in the GTA.
First-Time Home Buyer Ontario: Your Questions Answered
Do I still qualify as a first-time home buyer in Ontario if I owned a home before?
It depends on the program. For the Ontario Land Transfer Tax Rebate, you must never have owned a home anywhere in the world. For the FHSA and HBP, you may re-qualify if neither you nor your partner has owned a principal residence in the current year or the four preceding calendar years.
Can my partner’s past homeownership disqualify me from first-time buyer programs?
Yes, for some programs. For the Ontario Land Transfer Tax Rebate, if your spouse or common-law partner has ever owned a home anywhere in the world, neither of you qualifies. For the HBP and FHSA, both partners must independently pass the four-year rule.
Can first-time buyers get a 30-year amortization in Ontario?
Yes. As of December 15, 2024, all first-time buyers can access 30-year amortizations on insured mortgages for any property, including resale homes. This expanded from the previous rule which only allowed 30-year amortizations on new builds. A 30-year amortization lowers your monthly payment but increases total interest paid over the life of the mortgage.
What is the difference between the FHSA and the Home Buyers’ Plan?
The FHSA is a dedicated savings account where contributions are tax-deductible and qualifying withdrawals are completely tax-free with no repayment required. The HBP lets you borrow from existing RRSP savings up to $60,000 per eligible buyer, but the full amount must be repaid over 15 years. Both can be used together for the same purchase.
What credit score do I need to buy a home in Ontario?
Most federally regulated lenders require a minimum score of 600 to 620 for an insured mortgage. A score of 680 or higher gives you access to better rates and more lender options. Check your credit report well before applying and avoid taking on new debt in the months leading up to your purchase.
Do I pay HST when buying a home in Ontario?
Not on resale homes. HST applies to newly built homes, though the GST/HST New Housing Rebate may offset part of the cost. Confirm with your lawyer and builder before closing on a new build.
How much do I need saved before I start looking at homes?
At minimum, your down payment plus 1.5% to 4% of the purchase price for closing costs. On a $650,000 purchase, that means your down payment plus roughly $10,000 to $26,000 in closing costs. Having both amounts confirmed and accessible before you start searching puts you in a much stronger position when you find the right property.
What happens if my financing falls through after the offer is accepted?
If you included a financing condition and your lender declines, you can exit the deal within the conditional period and your deposit is returned. If you waived the financing condition or the conditional period has expired, you are legally bound to complete the purchase. Walking away at that point means losing your deposit and potentially facing a lawsuit for damages.
Keith & Françoise Real Estate Team
eXp Realty Brokerage · GTA & Niagara Region
We’re Françoise Pollard and Keith Goldson, Realtors® with eXp Realty Brokerage, working with buyers across the Greater Toronto Area and Niagara Region. We work with first-time buyers regularly, helping them understand their financing options, work through competitive markets, and protect themselves with the right conditions. This guide reflects what we see in real Ontario transactions, not textbook theory. Learn more at francoisepollard.com.
Market conditions, pricing strategies, and buyer competition vary by location, property type, and timing. This guide reflects our experience working with buyers and sellers across Ontario, particularly in the GTA and Niagara Region. For advice specific to your situation, speak with a qualified real estate professional before making decisions.