First-Time Home Buyer Guide: Ontario 2026 (Step by Step)

Buying your first home in Ontario feels like a maze of rules, acronyms, and numbers. It doesn't have to. This is the whole journey laid out in order — what to do, in what sequence, and which programs put real money back in your pocket. Work through it and you'll know exactly where you stand.

The short answer

To buy your first home in Ontario: save your down payment (minimum 5% on the first $500,000), get pre-approved so you know your budget, pass the mortgage stress test, and use first-time-buyer programs — the FHSA, the RRSP Home Buyers' Plan, the land transfer tax rebate, and the Home Buyers' Amount — to cut your costs. A broker ties it together at no cost to you. See first-time buyer mortgage options.

Step 1 — Know your down payment

In Canada the minimum down payment is 5% on the first $500,000 of the price and 10% on the portion from $500,000 to $1.5 million. Under 20% down means you'll pay CMHC mortgage insurance (which can be added to the mortgage). Full details in how much down payment you need, and estimate the insurance with our CMHC calculator.

Step 2 — Supercharge your savings with the FHSA

The First Home Savings Account is the best tool a first-time buyer has: contributions are tax-deductible and withdrawals for a first home are tax-free. You can also borrow up to $60,000 from your RRSP under the Home Buyers' Plan. Which to use? See FHSA vs. RRSP Home Buyers' Plan.

Step 3 — Get pre-approved

Before you shop, get pre-approved so you know your real budget and can lock a rate. It also makes your offer stronger. Here's how pre-approval works. Ballpark your number first with the affordability calculator.

Step 4 — Pass the stress test

Every insured mortgage in Canada must qualify at the greater of your contract rate plus 2% or the 5.25% benchmark — proof you could handle higher payments. It's why your approved amount is lower than the rate alone suggests. Check yours with the stress-test calculator.

Step 5 — Claim your rebates and credits

Ontario first-time buyers get a land transfer tax rebate (up to $4,000 provincially, with an extra municipal rebate in Toronto) and the federal Home Buyers' Amount tax credit. Don't leave this money on the table — see first-time buyer incentives and rebates and budget land transfer tax with our LTT calculator.

Step 6 — Make an offer and close

Once you're pre-approved and have found the home, your offer goes in (ideally with a financing condition), the lender finalizes approval and appraisal, and a real estate lawyer handles closing. Budget for closing costs — legal fees, title insurance, adjustments — with the closing costs calculator.

What about 2026's market?

With the economy in a mild slowdown and rates stable (prime 4.45%, Bank of Canada at 2.25%), first-time buyers may find less competition and predictable budgeting — but don't assume rate cuts are coming. See the 2026 outlook and decide fixed vs. variable deliberately.

Frequently asked questions

How much do I need to buy my first home in Ontario?

At minimum, 5% of the first $500,000 of the price (10% on the portion above that, up to $1.5M), plus closing costs of roughly 1.5–4%. Under 20% down adds CMHC insurance.

Who counts as a first-time home buyer?

Generally someone who hasn't owned a home they lived in (in the relevant period) — the exact definition varies by program (FHSA, HBP, LTT rebate), so check each. A broker confirms which you qualify for.

Does it cost money to use a mortgage broker?

No — on standard residential deals the lender pays the broker, so expert guidance is free to you while you get access to many lenders at once.

What credit score do I need to buy my first home?

Prime lenders generally want about 680+. If you're below that, alternative options exist, and you can rebuild — see rebuilding credit for a mortgage.

Ready to start? Talk to us or read the full buying a home in Canada guide — we'll map your down payment, programs, and budget in one conversation.