First-time home buyers

Turn your first purchase into a clear, workable plan.

Understand your true budget, compare renting with ownership, use the programs available to you and prepare an offer with fewer surprises.

A welcoming detached home for a first-time buyer
Start with the monthly cost and the life you want the home to support.

Programs worth checking

Benefits that may reduce the cost of buying.

Eligibility rules differ, and some programs can be combined. Confirm your situation with the program administrator and qualified financial or tax advisers.

First Home Savings Account

An FHSA lets an eligible first-time buyer save for a qualifying first home. The first year’s participation room is $8,000, contributions are generally deductible, and qualifying withdrawals are tax-free.

FHSA information from CRA →

Home Buyers’ Plan

The HBP currently allows an eligible buyer to withdraw up to $60,000 from RRSPs. An HBP withdrawal and a qualifying FHSA withdrawal may be used for the same home when all conditions are met.

Home Buyers’ Plan details →

First-Time Home Buyers’ GST/HST Rebate

For an eligible newly built or substantially renovated primary residence, the federal rebate may recover up to $50,000. The full amount may apply up to $1 million, with a gradual reduction up to $1.5 million.

See the pre-construction rebate guide →

Home buyers’ amount

An eligible purchaser may claim up to $10,000 on the federal income-tax return for the year a qualifying home is acquired. It is a non-refundable tax credit, so the actual tax reduction depends on the buyer’s circumstances.

Home buyers’ amount details →

Ontario land-transfer-tax refund

Qualifying first-time buyers may receive an Ontario land-transfer-tax refund of up to $4,000 on eligible new or resale homes. Additional municipal land-transfer tax and rebates may apply in Toronto.

Ontario eligibility rules →

Mortgage-insurance options

A purchase with less than 20% down generally requires mortgage insurance and must meet lender and insurer rules. Compare the premium, amortization, qualification and total monthly cost before choosing the down payment.

Estimate the CMHC premium →

Buying versus renting

Compare the full decision, not only the monthly payment.

The right answer depends on your timeline, flexibility, savings, expected maintenance and the local homes available within your budget.

Buying may fit when

You want stability and can absorb ownership costs.

  • You expect to stay long enough to spread purchase and sale costs.
  • Your emergency savings remain healthy after the down payment and closing costs.
  • The mortgage, taxes, utilities, insurance, fees and maintenance fit comfortably.
  • You value control over the property and accept market and repair risk.

Renting may fit when

You need flexibility or more time to prepare.

  • Your work, family needs or preferred location may change soon.
  • Buying would use nearly all available savings.
  • A suitable rental costs materially less than owning a comparable home.
  • You want time to improve credit, income stability or your down payment.
A rent-versus-buy comparison should include closing costs, land transfer tax, mortgage interest, insurance, condominium fees where applicable, repairs, expected time in the home and the opportunity cost of your down payment.

Your first-home roadmap

Prepare before viewing properties.

01

Set the safe monthly budget

Start with income, debts, lifestyle spending and a reserve for repairs—not only the lender’s maximum approval.

02

Organize financing and benefits

Review your credit, down payment, FHSA, RRSP options, mortgage terms and the programs that may apply.

03

Plan the cash needed to close

Budget for the deposit, down payment, legal work, inspections, land transfer tax, adjustments, insurance and moving.

04

Compare homes with discipline

Assess neighbourhood, condition, ongoing costs, resale considerations and offer risk before committing.

Personal first-home plan

Know your range, programs and next steps.

Mehul will help organize the real-estate side of your first purchase and coordinate with your mortgage, legal and tax professionals.

Book a first-buyer consultation
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