First-Time Home Buyer Guide
Everything you need to know about buying your first home in Canada. From saving for a down payment to getting the keys, we'll guide you through every step.
Get Pre-ApprovedThe Home Buying Journey
Get Pre-Approved
Know exactly how much you can afford before you start shopping.
Find Your Home
Work with a realtor to find a home that fits your needs and budget.
Make an Offer
Submit your offer and negotiate the terms of your purchase.
Close & Move In
Finalize your mortgage, sign papers, and get your keys!
Understanding Down Payments
In Canada, the minimum down payment depends on your home's purchase price.
For homes under $500,000, you need just 5% down. On a $400,000 home, that's $20,000.
5% on first $500K + 10% on the remainder. A $750K home needs $50,000.
Homes $1M and over require 20% minimum. No mortgage insurance available.
First-Time Buyer Programs
Take advantage of government programs designed to help first-time buyers.
First Home Savings Account (FHSA)
Save up to $40,000 tax-free for your first home. Contributions are tax-deductible like an RRSP, and withdrawals for a home purchase are tax-free like a TFSA.
RRSP Home Buyers' Plan
Withdraw up to $60,000 from your RRSP tax-free for your first home. You have 15 years to repay the amount back into your RRSP.
First-Time Home Buyer Tax Credit
Claim up to $10,000 on your tax return for a non-refundable tax credit of up to $1,500 to help with closing costs.
Land Transfer Tax Rebates
Many provinces offer rebates on land transfer tax for first-time buyers. In Ontario, you can save up to $4,000.
Closing Costs to Budget For
Land Transfer Tax
Provincial tax based on purchase price. First-time buyers may get rebates.
Legal Fees
Lawyer/notary fees for title search, document preparation, and registration.
Home Inspection
Professional inspection to identify potential issues before closing.
Appraisal Fee
Required by lender to confirm home value. Sometimes waived.
Title Insurance
Protects against title defects and fraud. Usually required by lender.
Moving Costs
Professional movers or truck rental, plus supplies and setup.
Common Questions from First-Time Buyers
How much income do I need to buy a home?
Lenders use debt service ratios to determine affordability. Generally, your housing costs shouldn't exceed 32% of gross income (GDS), and total debts shouldn't exceed 40% (TDS). Use our affordability calculator for a personalized estimate.
What credit score do I need?
Most A-lenders require a minimum score of 620-650 for the best rates. A score above 700 will give you access to the most competitive rates and terms. If your score is lower, we can explore B-lender options.
What is the mortgage stress test?
The stress test requires you to qualify at either your actual rate plus 2%, or the Bank of Canada's qualifying rate (currently around 5.25%), whichever is higher. This ensures you can handle potential rate increases.
Should I get pre-approved before house hunting?
Absolutely! Pre-approval tells you exactly what you can afford, locks in a rate for 90-120 days, and shows sellers you're a serious buyer. It's free and gives you confidence when making offers.
Fixed or variable rate - which is better?
It depends on your risk tolerance and the current rate environment. Fixed rates offer payment certainty, while variable rates have historically saved money over time. We can help you analyze the best choice for your situation.
Ready to Buy Your First Home?
Get personalized guidance from our first-time buyer specialists. We'll help you navigate every step of the process and find the best mortgage for your situation.