Buying your first home
Your first purchase comes with rules and programs you only meet once. We go through each one with you and show how it changes your numbers.
- Minimum down payment
- FHSA and Home Buyers' Plan
- Land transfer tax refunds
- 30-year amortization options
The minimum down payment depends on the price
For a home under $500,000, the minimum is 5%. From $500,000 up to $1.5 million, it is 5% on the first $500,000 and 10% on the rest. At $1.5 million and above, you need at least 20% down.
Savings plans and tax refunds help first-time buyers
A First Home Savings Account and the RRSP Home Buyers' Plan can both go toward your down payment, and you can use them together. Ontario refunds up to $4,000 of land transfer tax for first-time buyers who are citizens or permanent residents and have never owned a home, and Toronto has its own rebate. With less than 20% down, first-time buyers can choose a 30-year amortization on an insured mortgage.
Answers
All answersWhat is an FHSA and how does it work?
A First Home Savings Account lets first-time buyers save up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free.
How much can I take from my RRSP to buy my first home?
The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP toward a first home, and a spouse or partner can do the same. You repay it over 15 years. You can use it together with an FHSA.
Is there a land transfer tax rebate for first-time buyers in Ontario?
Yes. First-time buyers who are Canadian citizens or permanent residents, and have never owned a home anywhere in the world, can get a refund of up to $4,000 on the Ontario land transfer tax. Toronto offers a separate rebate on its municipal land transfer tax.
Can first-time buyers get a 30-year amortization?
Yes. Since December 2024, first-time buyers can choose a 30-year amortization on an insured mortgage, which applies when you put less than 20% down. With 20% or more down, many lenders already offer 30 years.
Who counts as a first-time home buyer in Canada?
It depends on the program. For the Home Buyers' Plan, you generally qualify if you have not lived in a home owned by you or your spouse in the current year or the previous four years. The Ontario land transfer tax refund uses a stricter test, so each program needs its own check.