First-Time Home Buyer Guide Ontario (2025-2026 Edition)
Updated: November 2025
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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 carrying costs, incentives, and what to expect when buying in the GTA, Hamilton, or Niagara Region.
Steps, costs, incentives, and real examples for buyers in the GTA, Hamilton, and Niagara Region.
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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.
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
Most lenders need proof of income, a credit check, down payment verification, and employment status. A written pre-approval confirms your maximum purchase price and the rate you qualify for. It helps you avoid viewing homes outside your budget, make stronger offers, and lock in a rate while you search.
Step 2: Build your down payment
Ontario follows Canada’s national down payment rules:
- First $500,000 requires 5 percent
- The portion from $500,000 to $1,000,000 requires 10 percent
- Homes at $1,000,000 or more require 20 percent
First-time buyers often use RRSP withdrawals through the Home Buyers’ Plan, savings in a First Home Savings Account, and gifted funds from immediate family. Mortgage insurance is added to the mortgage amount and increases as the down payment decreases.
Step 3: Understand typical closing costs
Closing costs are separate from the down payment. Most buyers should budget 1.5 to 4 percent of the purchase price. Common items include land transfer tax, lawyer fees, title insurance, property tax adjustments, CMHC insurance if applicable, appraisal, and home inspection. Buyers in Toronto pay both provincial and municipal land transfer tax. Buyers outside Toronto pay only the provincial tax.
First-time buyer incentives that lower costs
Ontario and federal programs can reduce upfront costs and monthly carrying costs for first-time buyers.
We’ve organized every major program on one page with eligibility rules, refund amounts, and how to claim.
- Ontario Land Transfer Tax refund
- Toronto Land Transfer Tax refund
- First Home Savings Account
- Home Buyers’ Plan using RRSPs
- GST or HST New Housing Rebate
- HST Rebate Program
- CMHC mortgage insurance information
Choosing the right area
GTA
Condos and condo townhouses are common entry points. Popular areas include Mississauga City Centre, Etobicoke’s Waterfront, and Milton. Carrying costs are higher while transit access is strong.
Hamilton
More detached and semi-detached homes at lower price points. First-time buyer areas include Stoney Creek Mountain, Waterdown, and East Hamilton. Commutes can be shorter than Niagara for GTA workers.
Niagara Region
Lower purchase prices and larger backyards. St. Catharines, Thorold, and Welland offer strong value for first-time buyers. Many clients relocate from the GTA for affordability and lifestyle.
Home search for first-time buyers in Ontario across the GTA, Hamilton, and Niagara
Touring entry-level homes in these regions is the best way to compare value, monthly carrying costs, and neighbourhood features. During a home tour we look at the age of major systems, the condition of the roof and windows, parking, storage, and any condo fees.
Viewing a range of homes across different areas helps first-time buyers make confident decisions about price, size, and long-term fit. After each showing we sit down in the home, or back at our office, to review pros and cons so you can move forward without second-guessing.
On a typical tour with first-time buyers we:
- Walk through the layout to see how it functions for your daily life.
- Point out positive features and highlight any issues that might be present.
- Discuss schools, transit options, parks, and commute times in each neighbourhood.
- After the tour, review recent nearby sales back at our office so you understand value before offering.
Case example
A first-time buyer purchased a renovated three-bedroom townhouse in Stoney Creek for $695,000. Down payment was 5 percent at $34,750. Mortgage insurance was added to the loan. All-in monthly carrying cost was about $3,400 including mortgage, taxes, and utilities.
Takeaway: Many first-time buyers can skip condo living and own a freehold home by looking outside Toronto and Mississauga.
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
Your lawyer confirms the mortgage, title search, and insurance. The bank transfers funds. Your lawyer releases keys. The property becomes legally yours. Many closings use e-signing with a final key pickup at the lawyer’s office.
FAQs
Most lenders require 5 percent down and 1.5 to 4 percent for closing
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.
Yes. Many buyers house-hack. Rental income can help reduce carrying costs and may improve mortgage qualification.
You can explore renewal or refinancing options. Rates change often. Review scenarios with a mortgage professional.
Ready to start planning
We help first-time buyers across the GTA, Hamilton, and Niagara purchase condos, townhouses, semis, and detached homes.
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.