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BuyFirst-time buyer in Ontario

First home. Done right.

Coldwell Banker Summit Realty, Brokerage · Updated October 2026

Affordability, FHSA, the Home Buyers' Plan, land transfer tax refunds, and the mistakes first-time buyers most often wish they had avoided.

Talk to a buyer agentThe buying process

Quick rule of thumb

How much can you afford?

Most Ontario lenders let your housing costs (mortgage, property tax, heat and half of any condo fee) reach up to 39% of gross household income, and all your debts up to 44% under CMHC limits. Lenders qualify you at the greater of 5.25% or your contract rate plus 2 percentage points. Try your own numbers in the stress test calculator.

Minimum down
5%
On the first $500,000 of the price
Down to skip mortgage insurance
20%
FHSA + HBP together
$100K
Per person, at the limits
Maximum eligible LTT refund in Toronto
$8,475
Provincial + municipal

Programs

First-time buyer rebates and programs

Money you may already be entitled to. Plan the order you use them in.

  • Savings

    FHSA — First Home Savings Account

    Contribute up to $8,000 a year, $40,000 lifetime. Deductible going in (like an RRSP), tax-free coming out (like a TFSA). You can combine it with the HBP. You must be a first-time buyer to open one: you have not lived in a home you or your spouse or common-law partner owned this year or in the previous four years. Unused room carries forward up to $8,000, allowing up to $16,000 in a year. The account ends after 15 years or at the end of the year you turn 71. Source: CRA, October 2026.

  • Savings

    HBP — RRSP Home Buyers' Plan

    Withdraw up to $60,000 from your RRSPs to buy or build your first home. You repay it over 15 years; any year you miss, that year's repayment is added to your taxable income. Repayments normally start in the second year after the withdrawal (fifth year for withdrawals made in 2022 to 2025). Source: CRA. Together with an FHSA, that can mean up to $100,000 toward your purchase.

  • Tax refund

    Land transfer tax refund

    Ontario refunds up to $4,000 of provincial land transfer tax for first-time buyers. Buying in Toronto, you can also get up to $4,475 of the municipal tax back: up to $8,475 in all. You must be 18 or older, never have owned a home anywhere in the world, and move in within nine months. Citizenship or permanent-residency requirements apply; confirm eligibility with Ontario and Toronto before claiming.

  • New homes

    GST / HST new housing rebates

    Buying a newly built home to live in? First-time buyers can get back up to $50,000 of the 5% GST on a new home: in full up to $1 million, reduced on a sliding scale to zero at $1.5 million (agreements signed from March 20, 2025 to the end of 2030). Source: CRA, October 2026. Ontario’s temporary enhanced rebate applies to qualifying agreements signed April 1, 2026 to March 31, 2027: up to $80,000, including a flat maximum from $1 million to $1.5 million, phasing out by $1.85 million. Outside that program, the standard provincial rebate is up to $24,000. Your lawyer confirms eligibility; provincial rebates do not simply stack. Source: CRA Notice 346, checked October 6, 2026.

Common pitfalls

What first-time buyers regret

Five “I wish someone had told me” moments, and how to avoid them.

  1. Buying before you're pre-approved

    Without pre-approval you don't know your real budget, and in multiple offers a seller will usually pick a pre-approved buyer.

  2. Skipping the inspection in a hot market

    An inspection can surface costly problems such as old wiring, asbestos or hidden water damage. Make your offer conditional on one unless a professional has already walked the home with you.

  3. Forgetting about closing costs

    Budget about 1.5% to 2.5% outside Toronto and 3% to 4% in Toronto, where two land transfer taxes apply. Use the closing cost calculator for your situation.

  4. Changing jobs or buying a car before closing

    Lenders re-check your employment and debts before funding. A new car loan or job change can undo your final approval.

  5. Trusting the listing agent's price

    The listing agent works for the seller. Get your own agent's analysis or a Zara strategy brief: the asking price is a starting position, not a target.

Buyer guides

Keep going

All of Buy

Zara, your virtual agent · 24/7

Personal numbers, in your language

Run an affordability scenario in seconds. Zara factors in your income, debts, down payment, rebates and current Ontario rates.

Try the AVM on a specific home

Coldwell Banker Summit Realty, Brokerage (905) 553-8500

Updated October 7, 2026 · Coldwell Banker Summit Realty, Brokerage

Reviewed by Waqar Afzal, Broker of Record ·

Brokerage services, representation, fees and disclosures. Mortgage, tax and legal information links to official sources and requires advice from the appropriate professional.

Down payment and amortization

An insured mortgage is available below a $1.5 million purchase price. At $1.5 million or more, at least 20% down is required. Eligible first-time buyers can use a 30-year insured amortization under the rules effective December 15, 2024.

Official source

Home Buyers’ Amount

Eligible buyers can claim the $10,000 Home Buyers’ Amount, for a federal tax credit of up to $1,500.

Official source

Toronto closing example

For an $850,000 purchase, Ontario and Toronto land transfer taxes total $26,950 before eligible refunds. The combined maximum $8,475 first-time refund leaves $18,475, before other closing costs.

Learn more