First Time Home Buyer Ontario 2026

First-Time Home Buyer Guide for Ontario

Buying your first home in Ontario comes with programs that can help and rules you need to understand. This guide walks you through the programs, the down payment, and the steps, in plain language, so you can plan with confidence.

We are an FSRA-licensed Ontario mortgage brokerage, not a lender. We help first-time buyers get pre-approved and move forward, subject to qualification.

Written by the HB Mortgage Centre team. Reviewed by Hardeep Batoo, Principal Broker (licence M13002408). HB Mortgage Centre is an FSRA-licensed brokerage (#13449). Last updated: June 23, 2026.

Talk to a broker Call (647) 542-6100

FSRA Brokerage #13449Â·Hardeep Batoo, Broker Licence #M13002408Â·Ontario-wideÂ·Pre-approval with multiple lenders

The basics

First-time buyer programs in Ontario

The following programs may help if you qualify. Eligibility and amounts are subject to the rules in force at the time, so confirm your own situation before relying on them.

→First Home Savings Account (FHSA). A registered account that lets eligible first-time buyers save toward a home with tax advantages. You may contribute up to $8,000 per year, to a $40,000 lifetime limit, if eligible.(Source: CRA)
→Home Buyers’ Plan (HBP). Lets eligible buyers withdraw up to $60,000 per person from an RRSP toward a first home, repaid over 15 years.(Source: CRA)
→Ontario land transfer tax refund. Eligible first-time buyers may qualify for a refund of up to $4,000 on provincial land transfer tax (Source: Ontario.ca). In Toronto, eligible first-time buyers may also qualify for a municipal land transfer tax rebate of up to $4,475.(Source: Toronto.ca)
→GST first-time home buyers’ rebate on certain new homes. Eligible first-time buyers may qualify for a rebate of up to 100% of the GST, to a maximum of $50,000, on a new home valued at or below $1,000,000. The rebate is reduced for homes valued between $1,000,000 and $1,500,000, and is not available at or above $1,500,000.(Source: CRA, updated 2026-03-13)
→Other federal or Ontario incentives. Other programs may apply depending on the rules in force at the time, so ask us what is current before relying on any one of them.

Who it's for

First-time buyer situations we help with

Every first-time buyer situation is different. The programs available and the right lender depend on your income, down payment source, and the property.

You're pre-approved in principle but want a confirmed rate hold before you start bidding

Your down payment is coming from an FHSA, RRSP Home Buyers' Plan, or a gifted amount

You're self-employed and your bank declined your mortgage based on documented income

You want to understand CMHC insurance costs before committing to less than 20% down

You're a new permanent resident and want to know which lenders consider your situation

You want to compare rates across multiple lenders without running multiple credit checks

You're purchasing with a partner or family member and want to understand how co-signing works

You're considering a less-than-perfect-credit situation and want to know your options

Rates & costs

How much down payment you need

In Canada, the minimum down payment scales with the purchase price. You may need at least 5% on the first $500,000, 10% on the portion from $500,000 to $1,500,000, and 20% at or above $1,500,000 (Source: Canada.ca / CMHC). Default insurance is not available at or above $1,500,000.

Down payment calculator →

If your down payment is below 20%, your mortgage generally requires default insurance. CMHC premiums are charged as a percentage of the mortgage: 2.80% for an 80.01 to 85% loan-to-value, 3.10% for 85.01 to 90%, and 4.00% for 90.01 to 95%; in Ontario, 8% PST applies to the premium and is payable at closing (Source: CMHC). A larger down payment lowers your payment and may avoid insurance, subject to eligibility. All amounts are estimates. Confirm current rates, CMHC premium tables, and rebate eligibility with your real estate lawyer.

What it costs

Down paymentMinimum 5% (under $500K) to 20% (over $1M) of purchase price
CMHC insurance premium2.80%–4.00% of the mortgage (plus 8% Ontario PST at closing) if under 20% down
Land transfer taxOntario + Toronto (if applicable) — first-time refund/rebate may apply
Legal feesTypically $1,500–$2,500 for a straightforward purchase
Home inspectionRecommended — typically $400–$700
Title insuranceRequired by most lenders — typically $200–$400

How it works

What are the steps to buying your first home?

Talk to a broker and get pre-approved.

Set up the programs that fit (for example an FHSA), if eligible.

Shop within your budget.

Make an offer and submit the full application.

Close with your lawyer, applying any refunds or rebates you qualify for.

Pre-approval matters

A verbal pre-approval is not the same as a confirmed rate hold

Many first-time buyers are told 'you should be fine' based on a quick review. A proper pre-approval with a written rate hold - submitted to a lender and confirmed - protects your rate for 90–120 days and tells you exactly what you qualify for. Don't start bidding without one.

Start your pre-approval →

Why a broker

How can a broker help first-time buyers?

We explain the programs in plain language, get you pre-approved, and shop your mortgage across lenders. Everything is subject to qualification and lender review. We do not guarantee affordability or approval.

Since December 2021 we have arranged more than $1 billion in mortgage funding across more than 50 lenders, which matters when your first file needs the right match, not just the nearest branch.

We don't earn more for recommending one lender over another. Our job is to find the right product for your situation.

Our lender network →

FAQ

Frequently Asked Questions - First Time Home Buyer Ontario

What programs help first-time home buyers in Ontario?+

Programs may include the FHSA, the Home Buyers' Plan, the Ontario and Toronto land transfer tax refunds, and the GST first-time home buyers' rebate on certain new homes, subject to eligibility (Sources: CRA, Ontario.ca, Toronto.ca).

What is the FHSA and how does it work?+

A registered account that lets eligible first-time buyers save toward a home with tax advantages. You may contribute up to $8,000 per year, to a $40,000 lifetime limit, if eligible (Source: CRA).

How much down payment do I need?+

You may need at least 5% on the first $500,000, 10% on the portion from $500,000 to $1,500,000, and 20% at or above $1,500,000. Below 20%, your mortgage generally requires default insurance, which is not available at or above $1,500,000 (Source: Canada.ca / CMHC).

What is the Ontario land transfer tax refund?+

Eligible first-time buyers may qualify for a refund of up to $4,000 on provincial land transfer tax, and in Toronto a further municipal rebate of up to $4,475 (Sources: Ontario.ca, Toronto.ca).

Do I have to pass the stress test as a first-time buyer?+

Yes, in most cases. You qualify at the greater of your contract rate plus 2% or 5.25% (Source: OSFI).

What does a mortgage broker cost a first-time buyer?+

On most standard purchases, the lender pays the broker, so the advice and pre-approval typically cost you nothing. If a file ever involves a fee, it is disclosed in writing before you commit.

How long does pre-approval take?+

Often within a few business days once your documents (income, down payment, ID) are in, though timing varies by lender and file. Starting early gives you a realistic budget before you shop.

Start your first home the right way

Talk to a broker and we will walk you through the programs you qualify for and get you pre-approved. No cost, no obligation.

What happens next: First, a short call about your income, savings, and timeline, free and without pressure. Second, we map the programs you may qualify for and submit your pre-approval. Third, the same broker stays on your file through to closing. Pre-approval is not a guarantee of final approval.

Apply Call (647) 542-6100

Program details are subject to change. Confirm all programs and eligibility with qualified tax and legal advisors. O.A.C. E.&O.E.

FSRA Brokerage #13449 Â· Hardeep Batoo, Broker Licence #M13002408 Â· Ontario-wide

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