The programs exist. Most buyers leave thousands on the table.
Between the FHSA, RRSP Home Buyers’ Plan, land transfer rebates, and insured mortgage pricing — the first purchase comes with more tailwind than most people realize.
What the brochures skip
Your bank will quote a rate. They rarely walk you through all the government programs you qualify for simultaneously, how to stack the FHSA with the HBP, or how insured mortgage pricing sometimes leads to a lower total cost of borrowing than a 20% down conventional. Getting this right at the start saves years of interest.
Buying for the first time — in Ontario
- Have not owned a principal residence in the last 4 years (CRA definition)
- Saving for a down payment or already have 5%+
- Employed T4, or early in self-employment (options exist)
- Household income qualifies at stress-test rate
- Planning to occupy as primary residence
- Purchase price under $1.5M (insured mortgage ceiling)
Numbers that matter
- 5% minimum down payment for homes under $500K
- 5% on first $500K + 10% on remainder for $500K–$999K
- 20% required for properties $1M–$1.5M (new rules 2024)
- Stress test: qualify at contract rate + 2% or 5.25%, whichever is higher
- GDS ≤39%, TDS ≤44% of gross qualifying income
- Minimum credit score 600 (some lenders 580 with strong file)
Stack these — they’re not mutually exclusive
First Home Savings Account (FHSA)
$8,000/year, $40,000 lifetime contribution room. Tax-deductible going in, tax-free coming out for a qualifying first home. The single best savings tool for first-time buyers.
RRSP Home Buyers’ Plan
Withdraw up to $60,000 per person ($120K couple) from RRSP, tax-free. You can use HBP AND FHSA on the same purchase — combining them is powerful.
Ontario Land Transfer Tax Rebate
Up to $4,000 back on provincial LTT. Toronto buyers also get up to $4,475 from the municipal LTT rebate — $8,475 in total for qualifying Toronto purchases.
First-Time Home Buyers’ Tax Credit
Federal non-refundable tax credit of $10,000 on your income tax return in the year of purchase — worth up to $1,500 in actual tax savings.
GST/HST New Housing Rebate
Buying new construction? Recover a portion of HST paid on homes under $450K. Partial rebate available up to $1M for primary residences.
CMHC Insured Pricing Advantage
Insured mortgages (under 20% down) often access lower rates than conventional ones. In many cases the premium is recovered in interest savings within 3–4 years.
Employment Confirmation
Employer letter, 2 recent pay stubs, 2 years T4s. Probationary employees need a note; most lenders are fine with permanent employment under 3 months.
Down Payment Proof
90-day history of savings accounts showing no large unexplained deposits. Gift letter from family if applicable (must be a true gift, not a loan).
FHSA / RRSP Documentation
HBP request form (T1036), RRSP withdrawal receipt. FHSA participation room confirmation from CRA.
Property Details
Accepted purchase agreement, MLS listing, confirmation of property address for lender appraisal.
Credit Bureau Consent
Signed authorization. Most lenders accept 620+; some programs go lower with compensating factors.
ID & Compliance
Two pieces of ID (one photo). Required for FINTRAC (anti-money-laundering) compliance on every mortgage in Canada.
First-time buyers need a plan, not just a rate
I walk through every rebate and plan you qualify for — not just the mortgage itself.
I model your actual qualifying income correctly before you make an offer — no surprises at the lender.
Your bank sees one shelf. I see the full market, including mono-lines that only sell through brokers.
No charge to you. I’m compensated by the lender after funding. The advice starts the moment we talk.
First-Time Home Buying in Ontario: What Nobody Tells You
The short version — and you can always call for the full picture.
Prefer it explained in plain English?
In a short, no-obligation call I’ll walk you through exactly how this works for your situation — no jargon, no pressure.
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