Buying your first home is one of the most exciting milestones in life; however, it can also feel overwhelming, especially if you’re unfamiliar with the mortgage process. As a first time home buyer in Ontario, you’ll encounter new terminology, financial commitments, and legal requirements.
The good news? You’re not alone.
That’s why this guide will walk you through the most important things you need to know—step by step—so that you feel both confident and informed when buying your first home in Ontario.
Why Being a First Time Home Buyer Is an Advantage
In Canada, first time home buyers have access to exclusive programs and benefits that can help reduce upfront costs and make homeownership more affordable.
Some of the key benefits include:
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Land Transfer Tax Refund: Ontario offers a land transfer tax rebate of up to $4,000 for eligible first time buyers.
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Home Buyers’ Plan (HBP): You can withdraw up to $35,000 from your RRSP (tax-free) to put toward your down payment.
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First-Time Home Buyer Incentive: A federal shared equity program that contributes 5%–10% of the home’s purchase price to help reduce your mortgage.
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GST/HST Housing Rebate: Applicable for new builds or substantially renovated homes.
Working with a qualified mortgage broker in Ontario ensures you can take full advantage of these opportunities.
How Much Can You Afford as a First Time Home Buyer?
Before you begin house hunting, it’s equally important to get a realistic understanding of how much you can afford. In particular, this includes both your mortgage pre-approval amount and your ongoing monthly expenses.
Here’s what lenders consider:
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Your income
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Your credit score
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Debt-to-income ratio
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Down payment amount
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Employment history
Getting pre-approved not only gives you a clear budget—it also makes you a more attractive buyer in competitive markets like Toronto, Mississauga, or Hamilton.
How Much Do You Need for a Down Payment?
Your down payment depends on the home’s purchase price:
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5% on the first $500,000
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10% on the portion between $500,000–$999,999
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20% minimum if the purchase price is $1 million or more
If your down payment is less than 20%, you’ll be required to purchase mortgage default insurance (CMHC insurance), which protects the lender and is added to your monthly mortgage payment.
As a first time home buyer, saving for your down payment is one of the most critical steps—and many buyers use RRSP withdrawals or gifted funds to reach their goal.
Understanding Mortgage Options
Choosing the right mortgage is just as important as finding the right home. As a mortgage broker, we help you navigate these options with clarity.
Common mortgage types include:
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Fixed-Rate Mortgage: Your interest rate stays the same for the full term.
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Variable-Rate Mortgage: Your interest rate can fluctuate with the prime rate.
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Closed Mortgage: Lower rates but limited prepayment flexibility.
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Open Mortgage: Higher rates but more flexibility to pay it off early.
Your mortgage broker will assess your financial goals, risk tolerance, and term preferences to recommend the best solution for your situation as a first time home buyer.
Closing Costs: What to Expect
Many first time home buyers overlook the additional costs that come at closing. These can total between 1.5%–4% of the purchase price and include:
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Legal fees
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Land transfer tax (minus rebate)
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Title insurance
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Appraisal fees
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Home inspection fees
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Property tax adjustments
Budgeting for these costs in advance can help you avoid surprises and ensure a smoother closing process.
Why Choose a Mortgage Broker?
As a first time home buyer, working with a mortgage broker gives you access to:
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A wide range of lenders (including those not available to the public)
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Competitive interest rates
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Unbiased guidance tailored to your needs
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Streamlined paperwork and application support
Instead of navigating everything on your own, we act as your mortgage partner—advocating for your best interests every step of the way.
Final Thoughts: Your First Home Starts with the Right Advice
Becoming a first time home buyer is a major life event—but with the right advice, preparation, and guidance, it doesn’t have to be stressful.
Whether you’re buying in Toronto, Ottawa, or anywhere across Ontario, a professional mortgage broker helps ensure your mortgage journey is clear, confident, and cost-effective.
Ready to take the first step toward homeownership?
Let us help you explore your mortgage options and unlock your first home with confidence.