Loan Programs / First-Time Buyer
First-Time Home Buyer Mortgages in Ontario
Buying your first home? I'll line up every program, incentive and dollar of down-payment help you qualify for.
Get my personalized quote
You deal directly with Kuljinder — no call centre, no handoffs.
Your first mortgage shouldn't feel like a maze. As an independent broker I compare 88+ lenders and stack every first-time-buyer advantage — from the tax-free FHSA and RRSP Home Buyers' Plan to the Ontario Land Transfer Tax rebate — so you get into your home for less, with a rate the big banks won't advertise.
WHY IT WORKS
What you get
HOW IT WORKS
Simple, from first call to close
Who counts as a first-time buyer
The definition changes by program, which trips people up. For the Ontario land transfer tax rebate, you must never have owned a home anywhere in the world, and neither may your spouse while you have been together. For the Home Buyers’ Plan and the FHSA, the test is softer: generally you qualify again if you have not owned a home you lived in during the current year or the previous four calendar years.
That four-year rule means plenty of people who owned before — after a divorce, after years renting — are first-time buyers again without realizing it.
The money stack most buyers only half use
Four separate things can be combined, and most people leave at least one on the table:
- FHSA — contribute up to $8,000 a year to a $40,000 lifetime maximum. Deductible going in, tax-free coming out for a home. The single best account for this purpose.
- Home Buyers’ Plan — withdraw up to $60,000 from your RRSP, repayable over 15 years.
- Land transfer tax rebates — up to $4,000 in Ontario, plus up to $4,475 inside Toronto.
- 30-year amortization on insured mortgages, available to first-time buyers on newly built homes — lower payment, larger approval, more interest across the life of the loan.
Note that the federal First-Time Home Buyer Incentive was discontinued in 2024. Plenty of articles still promote it. It is gone.
How much down payment you actually need
Canada’s minimums are tiered, not a flat percentage. 5% on the first $500,000, 10% on the portion between $500,000 and $1.5 million, and 20% above $1.5 million. On a $700,000 home that works out to $45,000, not $35,000 — a difference that has surprised more than a few buyers mid-search.
Under 20% down your mortgage is insured, adding a premium that is normally added to the loan. In Ontario the provincial sales tax on that premium must be paid in cash at closing, on top of your down payment. The closing cost calculator shows the real cash-to-close figure.
What breaks first-time buyer approvals
The same handful of things, every time. Financing a car between pre-approval and closing — a $600 payment can remove roughly $100,000 of borrowing power. Changing jobs mid-process, especially into probation or self-employment. Moving the down payment between accounts without a paper trail, when lenders trace 90 days. And buying above your pre-approval, assuming it can be stretched.
Everything on that list is avoidable, which is why the first-time buyer checklist exists — print it before you start looking, not after.
FAQ
Common questions
How much down payment do I need as a first-time buyer in Ontario?
A minimum of 5% on the first $500,000 of the price and 10% on any portion between $500,000 and $1.5M. Below a $1.5M purchase price you can use insured (high-ratio) financing.
What credit score do I need for a first-time buyer mortgage?
Most A-lenders look for a score around 680+, but I work with lenders who approve lower scores. A pre-approval tells us exactly where you stand — with no impact from a soft check.
Can I use my RRSP for a down payment?
Yes. The Home Buyers' Plan lets you withdraw up to $60,000 tax-free (per person) from your RRSP, and the FHSA lets you save and withdraw tax-free for your first home.
How long does pre-approval take?
Often the same day. It's free, there's no obligation, and it holds your rate while you shop.
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