6 Steps to Buying Your First Home
Check Your Financial Readiness
Review your credit score, savings, and debt-to-income ratio. Most lenders want a credit score of 680+ for the best rates. Calculate how much you can comfortably afford for monthly payments.
Get Pre-Approved for a Mortgage
A pre-approval locks in your rate for 90–120 days and shows sellers you're serious. Compare rates from banks, credit unions, and mortgage brokers. Don't just go with your main bank.
Calculate Your Full Costs
Beyond the purchase price, budget for land transfer tax, legal fees ($1,500–$2,500), home inspection ($400–$600), title insurance ($300–$500), and moving costs.
Research Neighbourhoods
Use HouseIndex.ca to explore neighbourhoods across the GTA. Compare prices, transit access, schools, and amenities. Set up alerts for new listings in your target areas.
Work with a Buyer's Agent
A buyer's agent represents your interests and is typically paid by the seller. They help with negotiations, conditions, and navigating the complex offer process.
Make an Offer & Close
Your agent will help craft a competitive offer with appropriate conditions (financing, inspection). After acceptance, complete your mortgage, do your inspection, and prepare for closing day.
Ontario First-Time Buyer Programs & Incentives
Take advantage of these programs to save thousands on your first home purchase.
First Home Savings Account (FHSA)
Up to $40K tax-freeSave up to $8,000/year (lifetime max $40,000) tax-free for your first home. Contributions are tax-deductible (like RRSP) and withdrawals for home purchase are tax-free (like TFSA).
Home Buyers' Plan (HBP)
Up to $60K from RRSPWithdraw up to $60,000 from your RRSP tax-free for a down payment. Must repay within 15 years starting 2 years after withdrawal.
Ontario Land Transfer Tax Rebate
Up to $4,000 rebateFirst-time buyers get a rebate of up to $4,000 on Ontario's land transfer tax. For homes up to $368,000, you pay zero provincial land transfer tax.
Toronto Municipal LTT Rebate
Up to $4,475 (Toronto only)If buying in Toronto, first-time buyers also get up to $4,475 rebate on the municipal land transfer tax (in addition to the provincial rebate).
First-Time Home Buyers' Tax Credit
Up to $1,500 tax creditClaim a $10,000 non-refundable tax credit on your federal income tax return, resulting in up to $1,500 in tax savings.
GST/HST New Housing Rebate
Up to $6,300 (new builds)If buying a newly built home, you may qualify for a rebate of up to 36% of the GST paid, with a maximum rebate of $6,300 for homes up to $450,000.
Best GTA Areas for First-Time Buyers
Frequently Asked Questions
How much do I need for a down payment in Ontario?
For homes under $500,000: minimum 5%. For $500K–$999,999: 5% on the first $500K + 10% on the remainder. For $1M+: minimum 20%. A larger down payment reduces your mortgage insurance costs and monthly payments.
What is the land transfer tax in Ontario?
Ontario charges land transfer tax on a sliding scale: 0.5% on first $55K, 1% on $55K–$250K, 1.5% on $250K–$400K, and 2% on amounts over $400K. Toronto adds its own municipal LTT at similar rates. First-time buyers get rebates on both.
Should I buy a condo or a house as a first-time buyer?
It depends on your lifestyle and budget. Condos offer lower entry prices and less maintenance but come with monthly condo fees ($400–$800+). Houses provide more space and no condo fees but cost more upfront and require more maintenance. In the GTA, many first-time buyers start with condos in established areas.
What credit score do I need to buy a home in Ontario?
The minimum credit score for a mortgage in Canada is typically 600 for insured mortgages (less than 20% down). However, for the best rates and terms, aim for 680+. If your score is below 600, consider working on improving it before applying.