First home. Done right.
Affordability, FHSA, HBP, Land Transfer Tax rebates, and the mistakes every first-time buyer wishes they had avoided.
How much can you afford?
Most Ontario lenders allow your total housing costs (mortgage + property tax + heat + 50% of condo fees) to reach up to ~32% of your gross household income. Total debt servicing tops out around 40%.
- · Income $120K → ~$580K – $700K purchase range
- · Income $180K → ~$870K – $1.05M purchase range
- · Income $250K → ~$1.2M – $1.45M purchase range
Assumes 20% down, 5.5% stress-test rate, no other debt. Zara can model your exact situation.
5%
Min down (under $500K)
20%
Down to avoid CMHC
$100K
FHSA + HBP combined
$8,475
Max LTT rebate (Toronto)
First-time buyer rebates & programs
Money you might already be entitled to. Stack them strategically.
FHSA — First Home Savings Account
Contribute up to $8K/year, $40K lifetime. Tax-deductible going in (like RRSP), tax-free coming out (like TFSA). Combined with HBP if you wish. Must be a first-time buyer to open.
HBP — RRSP Home Buyers' Plan
Withdraw up to $60K from your RRSP tax-free for a down payment. Repay over 15 years starting Year 2 after the year of withdrawal. Combined with FHSA = up to $100K liquidity.
Land Transfer Tax rebate
Ontario refunds up to $4,000 of provincial LTT for first-time buyers. If you're buying in Toronto, you also get up to $4,475 of municipal LTT back. Total: up to $8,475 saved.
GST / HST New Housing Rebate
If you're buying new construction under $450K, you may qualify for a federal GST/HST rebate up to $24K. Higher thresholds in some provinces; Ontario stacks an additional rebate.
What first-time buyers regret
The five most common “I wish someone had told me” moments. Avoid them.
- 1
Buying before you're pre-approved
Without pre-approval you don't know your real budget. Brokers won't take your offers seriously and sellers will pick a pre-approved buyer over you in multiple-offer situations.
- 2
Skipping the inspection in a hot market
FOMO costs more than the inspection. We've seen $50K+ surprise repairs (knob & tube wiring, asbestos, hidden water damage) found by inspectors. Always condition on inspection unless you've already toured with a pro.
- 3
Forgetting about closing costs
1.5% – 4% of the purchase price disappears into LTT, lawyer, title insurance, and inspection. Budget it from day one or you'll be cash-tight on possession day.
- 4
Changing jobs or buying a car before closing
Lenders re-verify your employment + debt-to-income ratio days before funding. A new car loan or job change can blow up your final approval.
- 5
Trusting the listing agent's price
The listing agent works for the seller. Always run a Zara strategy brief or get your own broker's analysis. The listing price is a starting position, not a target.
Personal numbers, in your language.
Run an affordability scenario in seconds. Zara handles 50+ languages, factors in your income, debts, down payment, rebates, and current Ontario rates.