First-Time Home Buyers

Before you start

A few questions help you decide if now is the right time:

• Is your income stable, and do you have savings beyond your down payment?
• Are you comfortable with the upfront costs and the ongoing costs of owning?
• Are you ready for repairs and maintenance that a landlord used to handle?

Programs you may qualify for

• First Home Savings Account (FHSA): contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax deductible, and qualifying withdrawals for your first home are tax free
• RRSP Home Buyers' Plan: withdraw up to $60,000 from your RRSPs ($120,000 for a couple buying together), and you have up to 15 years to repay it
• Ontario land transfer tax refund: up to $4,000
• City of Toronto land transfer tax rebate: up to $4,475 more if the home is in Toronto
• An amortization of 30 years on an insured mortgage, which lowers your regular payment

Each program has its own eligibility rules, so we'll check which ones apply to you.

Your down payment

The minimum is 5% of the first $500,000 and 10% of the portion above that, up to $1.5 million. With less than 20% down, your mortgage needs default insurance. Your down payment can come from savings, your FHSA or RRSP, or a gift from an immediate family member with a signed gift letter.

How it usually goes

• Get preapproved so you know your budget before you shop
• Find a home and make an offer, ideally with financing and inspection conditions
• The lender reviews the property and gives final approval
• Your lawyer handles the funds, registers the home in your name and hands you the keys on closing day

Between preapproval and closing, hold off on new credit, big purchases and job changes. They can change what you qualify for.