First-Time Home Buyer Mortgage

First-time home buyer mortgage: your first home, without the stress.

Every Canadian first-time buyer program, stacked: 5% down, tax-free FHSA savings, your RRSP Home Buyers' Plan, and the Ontario + Toronto land transfer tax rebates. One advisor, start to finish.

Canada-wide5% down paymentTax-free FHSA savingsRRSP Home Buyers' Plan30-year amortizationLand transfer tax rebateCMHC-insuredFederal stress test

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Written by the Mortgage Squad Advisors Editorial Team · Reviewed by Surrayya Afzal, Principal Broker, FSRA #M14001433 · Updated September 2026

Example 5-yr fixed

4.14%

rate as of Oct 15, 2026 · illustrative, not a quote

First-time buyer example · estimated payment

$2,846/mo

30-yr amortization · semi-annual compounding

5.8% down · 30-yr amortization · incl. $23,730 CMHC premium (4.20%)

Property value$600,000

Down payment$35,000

Get pre-approved What can I afford?

Maya · AI · 24/7

Tell me about first-time buyer mortgages

FSRA #13737| 15+ languages

100+ lenderscompared on one application

FSRA #13737licensed Ontario brokerage

15+ languagesspoken by our advisors

No credit pullto start your pre-approval

The hardest part of buying your first home isn’t finding it — it’s the maze: stress test, FHSA, HBP, land transfer rebates, CMHC premiums, qualifying rate vs contract rate. Most banks walk you through one of those. We walk you through all of them, stack the rebates, and make sure you never overpay on a programme you didn’t know existed.

Two people signing mortgage documents beside a set of house keys

From your first conversation to closing day, we layer every Canadian first-time buyer programme you qualify for: FHSA, RRSP Home Buyers’ Plan, Ontario + Toronto FTHB land transfer rebates, CMHC-insured pricing at 5% down. Same advisor end-to-end. We’ll model the math at the stress-test rate before you ever make an offer — so the only surprise on closing day is how fast it happened.

Instant check · no credit pull

Are you down-payment ready?

Check the minimum down for your price, then we'll line up FHSA, RRSP HBP and first-time programs.

Target home price$Down payment saved$

$40,000

Minimum down required

Yes — within reach

You're ready?

FHSA + RRSP HBP + first-time rebates

Boosters

Ask Maya about this Get pre-approved free Estimates only — a licensed advisor confirms your file. FSRA #13737.

Or ask Maya directly:

Do I qualify for a first-time buyer mortgage?What documents will I need?How fast can this close?

FHSA vs. RRSP Home Buyers' Plan vs. the discontinued FTHBI

Two of these are live and stack with each other. The third is gone — and is still the most common thing first-time buyers ask us about, because it is still all over the internet.

Canadian first-time home buyer programs compared by contribution or withdrawal limit, tax treatment, repayment obligation, and current availability.
Program	Limit	Tax treatment	Repayment	Status
FHSA — First Home Savings Account	$8,000/year, $40,000 lifetime, per person	Deductible going in, tax-free coming out — the only Canadian account that does both^CRA	None	Live — open one in any tax year you are a Canadian resident
RRSP Home Buyers' Plan (HBP)	$60,000 withdrawal, per person	Deductible going in; the withdrawal itself is tax-free^CRA	Repaid to your RRSP over 15 years	Live — and it stacks with the FHSA
First-Time Home Buyer Incentive (FTHBI)	Was 5% or 10% of the purchase price, as government shared equity	Not a tax program — the government took a stake in the home	Repaid at 25 years or on sale, indexed to the home's value	Discontinued — closed to applications March 21, 2024; no approvals after March 31, 2024^CMHC
30-year amortization (first-time buyers)	Insured purchases up to a $1.5M price cap	Not a tax program — lowers the monthly payment, raises total interest	None — it is a mortgage term, not a loan	Live since December 15, 2024^{Finance Canada}

Both the FHSA and the HBP are individual accounts, so two spouses can each use both. Nothing replaced the FTHBI one-for-one; the 30-year amortization and the $1.5M insured cap are separate reforms introduced since. We model the optimal order to draw on your accounts before you withdraw a dollar.

On this page

Where Canadian first-time buyers actually stand in 2026
How do I stack the FHSA and the RRSP Home Buyers’ Plan?
How much down payment do I actually need in Canada?
What does the stress test mean for what I can afford?
What are the full first-time costs beyond the down payment?
Insured vs uninsured — and why does a broker beat the branch?
FAQ

Where Canadian first-time buyers actually stand in 2026

Saving the down payment is the long part, and it is getting longer. CMHC's 2026 Mortgage Consumer Survey — fielded in January 2026 with more than 4,100 Canadians — found buyers took an average of 4.4 years to save a down payment, up from 3.4 years in 2025, and that first-time buyers rented for 7.6 years on average before purchasing, up from 6.3 years^CMHC. Family help is common but not universal: 27% of first-time buyers received a gift, down from 34%, with a median gift of $30,000^CMHC.

The practical reading of those numbers: the gap between renting and owning is closing more slowly than the price of waiting, and the buyers who close it fastest are the ones using the tax-advantaged accounts from the first year they are eligible rather than the last. That is what the table above is for — and it is why we model the FHSA and HBP sequence at pre-approval, not at closing.

How do I stack the FHSA and the RRSP Home Buyers’ Plan?

These two accounts are the backbone of a tax-smart down payment, and they stack — you do not have to choose. The First Home Savings Account lets you contribute up to $8,000 per year to a $40,000 lifetime maximum. Contributions are deductible against your income like an RRSP, and qualifying withdrawals come out completely tax-free like a TFSA. That dual benefit is unique to the FHSA.

The RRSP Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP for a first home, repaid interest-free over 15 years. A common move is to contribute to your RRSP, claim the deduction, then withdraw it through the HBP — effectively a deductible top-up to your down payment.

Because both accounts are individual, two spouses can each max out both. Sequencing matters for taxes and repayment, so we model your exact order before you withdraw a dollar. Get pre-approved and we will map your stack.

How much down payment do I actually need in Canada?

The federal minimums are tiered by purchase price. You need 5% on the first $500,000, then 10% on the portion between $500,000 and $1.5 million^CMHC. At $1.5 million or more, default insurance isn’t available, so you need 20% of the whole price. On a $700,000 home that math is 5% of $500,000 plus 10% of $200,000 — $45,000, not a flat 5%.

Anything under 20% down is a high-ratio purchase and legally requires default insurance through CMHC, Sagen, or Canada Guaranty. The premium is a percentage of the loan, financed into your mortgage rather than paid up front. It is not a fee for nothing: it is what unlocks 5%-down access and the sharpest insured rates on the market.

We price your file across all three insurers and both insured and uninsured structures, because the lowest rate is not always the lowest lifetime cost. Run the numbers first with our CMHC premium calculator.

What does the stress test mean for what I can afford?

Every federally regulated lender must qualify you at the greater of your contract rate plus 2%, or 5.25%^OSFI. So if your offered rate is an illustrative 4.39%, you are not approved on 4.39%; you are tested as though you were paying 6.39%. That qualifying rate, not your real rate, sets your maximum mortgage.

This is why the bank’s pre-approval number and your real comfortable payment can diverge. Lenders also apply debt-service caps — broadly a GDS around 39% and TDS around 44% of gross income at that qualifying rate. Those two ceilings, not your gut feel, decide the file.

We simulate your file at the qualifying rate before you ever write an offer, so you shop inside a number that will actually fund. Some credit unions and provincial lenders are not bound by the federal test — when it helps your story, we shop those too. Try our stress test calculator first. If you or your co-buyer are on parental leave, many lenders qualify you on your return-to-work salary — see how a maternity leave mortgage is documented.

What are the full first-time costs beyond the down payment?

First-timers are most often blindsided by the gap between the down payment and the true cash-to-close. Plan for the whole stack. If you put under 20% down, the default insurance premium is added to your loan (and in some provinces the premium is subject to provincial sales tax payable at closing).

Next is land transfer tax. In Ontario you pay provincial LTT, and inside Toronto a second municipal LTT on top. The good news: as a first-time buyer you can claim the Ontario rebate (up to $4,000)^Ontario and the Toronto rebate (up to $4,475)^Toronto, which together can erase the tax on a modestly priced home. Where you buy changes that bill: outside the City of Toronto boundary there is no municipal LTT at all, so a first-time buyer in a Halton market such as Burlington pays the provincial tax only, and the $4,000 rebate covers a proportionally larger share of it. A mortgage broker in Burlington can price the whole closing stack against local values before you write an offer. We handle the rebate paperwork so nothing is left on the table.

Then come closing costs — legal fees, title insurance, a home inspection, appraisal, and adjustments for prepaid property tax. Budget roughly 1.5% to 4% of the price. Model your provincial bill with our Ontario land transfer tax calculator.

Insured vs uninsured — and why does a broker beat the branch?

Your file usually runs one of two paths. Insured (under 20% down) carries a premium but typically earns the lowest available rates because the lender’s risk is covered. Uninsured (20%+ down, no insurance) frees you from the premium but often prices slightly higher and can face a tighter qualifying standard. Neither is universally better — the right path depends on your price point, amortization, and how long you will hold the mortgage.

A branch can only offer you that one bank’s products and that one bank’s answer to your income story. We are an FSRA-licensed brokerage (#13737) with access to 100+ lenders, so we place your file with the lender most lenient on your specific situation — newcomer income, self-employment, gifted funds, thin credit. Buying your first home in a regulated profession? There are dedicated programs that qualify you on projected or contract income: see the doctor mortgage, the dentist mortgage, or — if you are still in training — the resident & new-grad program that approves you on your signed contract.

There is no fee to you on standard A-lender files; the lender pays us, and any fee on a specialized file is disclosed in writing before you commit. We advise in 15+ languages, so nothing about your biggest purchase gets lost in translation. Start your pre-approval free.

What you get

Why Canadians choose Mortgage Squad Advisors.

Pre-approval in as little as 24 hours, no bureau pull to begin

Rate holds of up to 120 days with many lenders: lock a rate, then find the home

Down payment from 5% on insured purchases (CMHC, Sagen, Canada Guaranty)

FHSA + RRSP HBP stacked — up to $100K tax-advantaged down payment per spouse

Ontario + Toronto FTHB land transfer tax rebates handled (up to $8,475 combined)

30-year insured amortization for all first-time buyers, in force since December 15, 2024. Choosing it adds a 0.20% surcharge to your CMHC premium, so budget for it in your cash-to-close

Stress test simulation before you offer: qualify at the greater of contract rate +2% or 5.25%

100+ lender network — the lender most lenient on YOUR income story

Multilingual advisors: English, Punjabi, Mandarin, Cantonese, Arabic, French + more

Maya, our AI assistant, available 24/7 between calls with your advisor

How it works

Three simple steps, no pressure.

Start your pre-approval

5-minute intake, no credit pull to begin. When you’re ready for a formal pre-approval, the lender does one credit check. We confirm your stress-tested maximum, lock today’s rate, map your down-payment stack (FHSA, HBP, gifted funds, savings).

House hunt with confidence

Search inside your real budget, not the inflated bank one. Your advisor is on speed-dial when an offer goes in and conditions need to clear in 48 hours.

Close — and start tracking

Lawyer-ready package, condition coordination, lender follow-through. After funding, the in-app tracker shows your equity grow and pings you 120 days before renewal.

Start your pre-approval — 5 min

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FAQ

Common questions, answered.

Don’t see yours? Ask Maya — instant answer, any time.

How much down payment do I need as a first-time buyer in Canada?

Minimums: 5% on the first $500,000 of the purchase price and 10% on the portion from $500,000 to $1.5M. At $1.5M or more, default insurance isn’t available, so you need 20% of the whole price^CMHC. Below 20% means a CMHC, Sagen, or Canada Guaranty premium financed into the mortgage. We model both insured and uninsured paths for every file — sometimes the insured option saves more in lifetime interest than 20% would.

Is the First-Time Home Buyer Incentive still available?

No. The federal First-Time Home Buyer Incentive — the shared-equity program where the government took a 5% or 10% stake in your home — was discontinued. CMHC stopped accepting new and resubmitted applications at midnight on March 21, 2024 and granted no new approvals after March 31, 2024. Nothing replaced it one-for-one. What did change in first-time buyers’ favour since: the FHSA (introduced 2023), and, effective December 15, 2024, 30-year insured amortizations for all first-time buyers plus an insured price cap of $1.5 million. Existing FTHBI holders keep their agreements and still repay on sale or at 25 years.

What is the FHSA and should I use it?

The First Home Savings Account is the most powerful first-time-buyer programme Canada has introduced in a generation. Contribute up to $8,000/year (max $40,000 lifetime), get a tax deduction like an RRSP, and withdraw tax-free for a qualifying first home like a TFSA. For most first-time buyers in their working years it’s the single best down-payment vehicle.

Can I combine the FHSA with the RRSP Home Buyers' Plan?

Yes — they stack. The HBP allows you to withdraw up to $60,000 from your RRSP for a first home, repaid over 15 years tax-free. Two spouses can each use both, so the household can pull up to $200,000 of tax-advantaged down payment. We’ll model the optimal sequence (which account to deplete first) for your tax situation.

What is the Canadian stress test?

Federally regulated lenders qualify you at the greater of your contract rate + 2% or 5.25%^OSFI. For example, an illustrative 4.39% offered rate qualifies you at 6.39%. We model your file at the qualifying rate before you commit. Some provincially regulated credit unions set their own qualifying rate, and we shop both paths.

How long does a pre-approval and rate hold last?

Most lenders hold rates for 90 to 120 days. If rates drop during your hold, many lenders will honour the lower rate, and if yours won't, we can re-shop the file. Float-down policies differ by lender. If rates rise, your hold protects you. Pre-approvals can be re-issued if you go beyond the window.

Will pre-approval hurt my credit?

Pre-qualification with us is a soft inquiry with no credit impact. A formal pre-approval adds one hard inquiry. It stays on your credit report for years (about 3 years at Equifax and up to 6 at TransUnion, per the FCAC^FCAC), but its effect on your score is usually small and fades within months. Mortgage inquiries made while rate-shopping within a short window are generally scored as one. Keep in mind a pre-approval is not a final approval: the lender re-checks your income, credit and the property before funding, which is why some buyers are denied after pre-approval.

Pre-qualified vs. pre-approved — what's the difference?

Pre-qualified = an estimate based on what you tell us — useful to know your range. Pre-approved = a lender has reviewed your file (credit + documents) and committed in writing (subject to property). Real-estate agents and sellers take pre-approvals seriously; pre-qualifications less so.

What if I'm self-employed or new to Canada?

We have specialized lenders and programs for both. Self-employed files use full-document, insured business-for-self or stated-income paths. Newcomers can use lender newcomer programs that accept international employment history and limited Canadian credit. See our self-employed mortgage and new to Canada mortgage pages.

What's the difference between insured, insurable, and conventional mortgages?

Insured = under 20% down, premium paid by you, financed into the loan; typically lowest rates. Insurable = 20%+ down but the lender insures themselves to lower their cost of capital — they pass some savings to you. Conventional = 20%+ down with no insurance; lender absorbs all credit risk; rates may be slightly higher than insurable. Your advisor checks all three.

How much can I afford on my income?

Lenders cap your housing costs at roughly 39% of gross income (GDS) and all debts at roughly 44% (TDS), calculated at the stress-test qualifying rate. Your down payment and existing debts shift the result. Run our affordability calculator for an estimate, and the stress test calculator for the binding number.

First-time buyer mortgage by city

Lender appetite, property values and timelines differ from market to market. Each page below applies this product to one city’s own sourced price data and local lending picture.

First-time buyer mortgage in Montreal

Related guides

Go deeper on this topic.

First-Time Buyer Mortgage Requirements in Canada Minimum Down Payment for First-Time Buyers in Canada Joint vs Sole Mortgage in Canada First-Time Home Buyer Checklist for Canada (2026)10 First-Time Home Buyer Mistakes in Canada (and How to Avoid Them) (2026)7 Government Programs Every First-Time Home Buyer in Canada Should Know (2026)5 Best Ways to Save a Down Payment in Canada (2026)The FHSA Playbook: Canada's First Home Savings Account

Sources & references

Figures on this page are sourced below and re-checked each quarter. Rates, insurer rules and lender policies change — confirm anything you plan to act on with a licensed advisor.

1. Canada Mortgage and Housing Corporation (CMHC), 2026 Mortgage Consumer Survey Results (Surveyed January 2026 · accessed August 2026) — Buyers took an average of 4.4 years to save a down payment (up from 3.4 in 2025); first-time buyers rented 7.6 years on average before purchasing (up from 6.3); 27% of first-time buyers received a gift (down from 34%), median $30,000. Survey of 4,100+ Canadians fielded January 2026.
2. Canada Mortgage and Housing Corporation (CMHC), First-Time Home Buyer Incentive (Accessed August 2026) — The First-Time Home Buyer Incentive is no longer accepting applications: the deadline for new and resubmitted applications was midnight EST on March 21, 2024, and no new approvals were granted after March 31, 2024.
3. Department of Finance Canada, Government announces mortgage reform details to ensure Canadians can access lower monthly mortgage payments by December 15 (Published September 2024 · accessed August 2026) — Effective December 15, 2024, 30-year insured amortizations are available to all first-time home buyers and to all buyers of new builds, and the price cap for insured mortgages rose from $1 million to $1.5 million.
4. Canada Revenue Agency, First Home Savings Account (FHSA) (Accessed August 2026) — FHSA contributions are deductible up to $8,000 per year to a $40,000 lifetime limit, and qualifying withdrawals for a first home are non-taxable — the account is both deductible on the way in and tax-free on the way out.
5. Canada Revenue Agency, What is the Home Buyers' Plan (HBP)? (Accessed August 2026) — The Home Buyers' Plan allows a withdrawal of up to $60,000 from an RRSP to buy or build a qualifying first home, repayable to the RRSP over 15 years.
6. Government of Ontario, Land Transfer Tax Refunds for First-Time Homebuyers (Accessed August 2026) — Ontario refunds provincial land transfer tax to eligible first-time homebuyers up to a maximum of $4,000.
7. City of Toronto, Municipal Land Transfer Tax (MLTT) Rebate Opportunities (Accessed August 2026) — The City of Toronto rebates municipal land transfer tax to eligible first-time purchasers up to a maximum of $4,475, separately from and in addition to the Ontario provincial refund.
8. Canada Mortgage and Housing Corporation (CMHC), What are the general requirements to qualify for homeowner mortgage loan insurance? (Accessed September 2026) — Minimum down payment of 5% on the first $500,000 and 10% on the remainder; the purchase price must be below $1,500,000 for CMHC-insured homeowner loans.
9. Office of the Superintendent of Financial Institutions (OSFI), Minimum qualifying rate for uninsured mortgages (Accessed September 2026) — Uninsured borrowers qualify at the greater of the contract rate plus 2% or 5.25%; insured mortgages use the same formula under federal mortgage insurance rules.
10. Financial Consumer Agency of Canada, How long information stays on your credit report (Accessed September 2026) — Credit inquiries by lenders stay on your Equifax credit report for 3 years and on your TransUnion credit report for 6 years.

Ready when you are.

No obligation, and no credit pull to begin. A licensed advisor reviews your file with you, and Maya, our AI assistant, can answer quick questions any time.

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First-time buyer help by city

FHSA and the RRSP Home Buyers’ Plan work the same everywhere. What doesn’t is the number you need — the tiered minimum down payment against your local price band, the land transfer tax you’ll owe on closing, and how much of it the first-time-buyer rebate actually covers where you’re buying.