First-Time Buyer Guide in Ontario

Minimum down payment rules remain:

• 5% on the first $500,000

• 10% on the portion between $500,000 and $999,999

• 20% for homes $1,000,000+

First-time buyers often use a combination of:

• Personal savings

• RRSP withdrawals

• Family gifts (with documentation)

Land Transfer Tax Rebate

Eligible first-time buyers may receive:

• Up to $4,000 back on Ontario Land Transfer Tax

• Up to $4,475 additional rebate if buying in Toronto

This can significantly reduce upfront costs.

RRSP Home Buyers’ Plan (HBP)

You can withdraw up to $35,000 per person from your RRSP (up to $70,000 per couple) to use toward your purchase.

• Must be repaid over time

• Interest-free if repaid on schedule

First Home Savings Account (FHSA)

The FHSA continues to be one of the most powerful tools for first-time buyers.

Key benefits:

• Contributions are tax-deductible

• Withdrawals for a first home are tax-free

• Annual and lifetime contribution limits apply

Used properly, it can accelerate your buying timeline.

First-time buyers often underestimate closing costs.

Typical costs include:

• Land transfer tax (minus rebates)

• Legal fees and disbursements

• Title insurance

• Property tax adjustments

• Home inspection

Rule of thumb: Budget 1.5%–4% of the purchase price for closing costs, depending on location and property type.

First-time buyers in Ontario typically consider:

Condos

• Lower purchase price

• Monthly maintenance fees

• Good for urban and transit-oriented lifestyles

Townhomes

• Balance between price and space

• Lower fees (or none) in freehold options

• Strong resale demand

Detached Homes

• Highest entry cost

• More maintenance

• Greater long-term flexibility

The “right” choice depends on lifestyle, not just price.

Here’s how the process usually unfolds:

1. Get mortgage pre-approval

2. Finalize your budget and must-haves

3. Start viewing homes

4. Make an offer (with conditions if needed)

5. Complete inspections and financing

6. Firm up the purchase

7. Close and get the keys

In 2026, buyers tend to move more thoughtfully — but when value is clear, decisions still happen quickly.

• Buying at the top of your approval range

• Ignoring property taxes and ongoing costs

• Skipping inspections to “win”

• Underestimating condo fees or future increases

• Not understanding resale potential

Education protects you from expensive mistakes.

For many first-time buyers, 2026 offers:

• More balanced conditions than previous years

• Less emotional competition

• Better opportunity to negotiate

• Greater focus on value rather than speed

Timing the market perfectly is less important than buying the right home at the right price for your situation.

Buying your first home is a major milestone — and it’s okay to ask questions, take your time, and get clarity before committing.

The best first purchases happen when buyers:

• Understand their full costs

• Feel confident in their decisions

• Buy with a long-term mindset

If you’re planning to buy your first home in 2026 and want a clear, no-pressure plan tailored to your budget and goals, I’m happy to help.

Whether you’re just starting to explore or ready to take the next step, having the right information early makes the entire process smoother.