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Your First Time Home Buyer Guide - Buying Your First Home

First Time Home Buyer Guide Canada | Mortgage Tips

January 01, 1970•5 min read

First-Time Home Buyer Guide Canada | Everything You Need to Know

Buying your first home in Canada is one of the most significant financial decisions you'll make — and the process has real complexity: stress tests, down payment rules, closing costs, and competitive markets in most major cities. The good news is that first-time buyers have access to powerful programs including the RRSP Home Buyers' Plan, the First Home Savings Account (FHSA), and the First-Time Home Buyer Incentive. This guide walks you through what to expect, what you need, and what your realistic options look like.

Realistic Expectations:

The average home price in Ontario is $850,000+, which requires substantial mortgages and larger down payments. Align your expectations with this reality for a focused and motivated approach.

Your Down Payment and Overall Finances:

Canada’s mortgage lending rules require a minimum 5% down payment on homes priced under $500,000, with the minimum increasing for higher-priced properties. As your mortgage agent, I will assess your affordability, provide pre-approval, and offer financial strategies.

Minimum down payment requirements based on purchase price:
$500,000 or less
5% of the purchase price*
$500,000 to $999,999
5% of the first $500,000*
10% of the portion above $500,000*
$1 million or more
20% of the purchase price
Mortgage Pre-approval, Mortgage Pre-approval, Mortgage Pre-approval!
(Yes, it is that important to state it 3x)

A mortgage pre-approval is the most critical thing for first-time homebuyers to think about, so they can understand what they can afford and be approved for. This knowledge will make the entire homebuying experience more accessible and less stressful.

Ensure you work with a mortgage broker who will review all of your documents so that you know how much purchasing power you have. There is a distinct difference between getting pre-qualified and a mortgage pre-approval, and it is important to understand the difference.

Many first-time home buyers forget to consider the importance of incorporating closing costs into the first-time home buying equation, and a good mortgage agent will coach you through this.

It’s essential to have a mortgage pre-approved to know precisely how much you can afford before you start looking. That way, if you find the right home, you can place an offer immediately.

Local Real Estate Agent Expertise:

Connect with a seasoned local real estate agent for insights into recent sales, market competitiveness, growth potential, and realistic pricing. A trustworthy agent keeps it honest, preparing you emotionally and strategically for your first home purchase.

Explore First-Time Home Buyer Programs:

While not game-changers for affordability, several programs will help you to chip away at homeownership costs:

Ontario Land Transfer Tax Refund: Eligible first-time buyers can receive a refund, which is particularly beneficial for homes under $368,000.

First-Time Purchaser Rebate (Toronto only): Additional tax relief for first-time buyers in Toronto, complementing Ontario’s rebate program.

Local Homeownership Programs:

Region of Waterloo: Eligible residents can secure a 5% loan for a down payment on properties worth $506,000 or less.

Simcoe County’s Homeownership Program: Offers a forgivable loan of up to 10% of the purchase price, forgiven after 20 years.

Grey County: The homeownership program offers up to 5% for those with a gross household income of $82,300 or less.

Kingston or the County of Frontenac: Renters earning below $94,000 can apply for a forgivable loan of up to 10% of the purchase price.

Affordable Homeownership program in Chatham-Kent: Offers 10% of the purchase price (up to $25,000) as a 20-year, interest-free loan.

Dufferin County, Brantford and the District of Muskoka have provided similar programs to fund down payments. A quick search of your local government website may reveal opportunities for you.

Consider Federal Housing Programs:

The Canadian federal government provides three programs for increased purchasing power:

First Homes Savings Account

It is a registered tax-free savings account designed to help future homeowners save for their first home purchase. Buying your first home is a substantial financial achievement, and an FHSA is an excellent first step to getting there! First Home Savings Account (FHSA) guide.

Home Buyers’ Plan (HBP): Allows tax-free withdrawal of up to $60,000 from an RRSP for a down payment. Using your RRSP Home Buyers' Plan.

Home Buying Tax Credits
Home Buyer’s Amount (HBA)

The Home Buyers’ Amount (HBA) is a non-refundable income tax credit of $5,000 for a qualifying home acquired during the year.

GST/HST Rebate

You may qualify for a rebate of part of the GST or HST that you paid on the purchase price or cost of building your new house, on the cost of substantially renovating or building a significant addition to your existing home, or on converting a non-residential property into a house.

Navigating the first-time home buyer landscape is undoubtedly challenging, but armed with realistic expectations and professional insights, you can confidently enter the market. Whether tapping into local incentives or federal programs, these strategies can ease your path to homeownership. Remember, the key is perseverance—don’t be discouraged by market fluctuations. Now, let’s turn those homeownership dreams into reality!

You don’t have to go it alone! In fact, you shouldn’t!

Reach out to set up a 30-minute Discovery Call to discuss your first-time homebuyer plans, and we will create a strategy to help you. I’m here to help!

Buying your first home in Ontario means navigating mortgage pre-approvals, stress tests, down payment programs, and lender options that no single bank will ever lay out for you in full.

Colin has spent years helping first-time buyers in Oakville, Burlington, and across Ontario cut through the complexity and know exactly what they qualify for and why.

He works with over 60 lenders, which means the mortgage your bank quotes you is rarely the best one available for your situation.

Buying your first home in Ontario and want to make sure you’re set up properly before you start shopping? Book a discovery call and let’s walk through your numbers together.

Colin Ballantyne is a Mortgage Agent Level 2
About the Author

licenced with BRX Mortgage (FSRAO Licence 13463, Licence ID M22000539), serving first-time home buyers across Oakville, Burlington, Milton, Mississauga, and Ontario-wide.

Colin Ballantyne

Colin Ballantyne is a Mortgage Agent Level 2 licensed with BRX Mortgage, serving homeowners and buyers across all of Ontario. With over 25 years of hands-on real estate experience, including rental properties, flips, BRRRs, and property management, Colin understands the full lifecycle of a real estate decision, not just the transaction that kicks it off. Before moving into mortgage advisory, he spent his career in digital marketing, strategy, and project management, which shapes how he works: analytical, structured, and focused on the long game. Most people come to Colin with a mortgage question. They leave with a plan.