Programs that help first-time buyers
Several federal and Ontario programs can lower the cost of your first home. Most can be combined.
First Home Savings Account (FHSA)
Contribute up to $8,000 a year, to a lifetime maximum of $40,000. Contributions are tax-deductible, and withdrawals to buy a qualifying first home are tax-free.
Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSP toward your first home (each buyer in a couple can use it), then repay it to your RRSP over time. It can be combined with the FHSA.
Ontario land transfer tax refund
Eligible first-time buyers get a refund of up to $4,000 of Ontario's land transfer tax, which covers the full tax on a home priced up to $368,000.
Calculate your land transfer tax →Home Buyers' Tax Credit
A federal non-refundable credit on a $10,000 amount, worth up to $1,500 on your tax return for the year you buy.
30-year amortization on insured mortgages
First-time buyers (and buyers of new builds) can spread an insured mortgage over 30 years instead of 25, which lowers the monthly payment.
Compare 25 and 30 years →Seven steps to your first home
- 1
Check your budget
Work out what you can comfortably afford, including the mortgage stress test lenders apply.
Affordability calculator → - 2
Save 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, mortgage default insurance is added to your mortgage.
Mortgage calculator → - 3
Get pre-approved
A lender or mortgage broker confirms how much you can borrow and holds a rate for you, usually for 90 to 120 days.
- 4
Choose your REALTOR® and your search area
Compare communities, set up listing alerts and start touring homes.
Compare Windsor-Essex communities → - 5
Make an offer
Your REALTOR® prepares the offer with the price, deposit, conditions (such as financing and inspection) and closing date.
- 6
Finalize financing, inspection and insurance
Fulfil your conditions, confirm your mortgage and arrange home insurance.
- 7
Close
Your lawyer handles the title transfer and funds. Budget for closing costs on top of your down payment.
Closing cost calculator →
Common questions
How much do I need for a down payment in Ontario?
At least 5% of the first $500,000 of the purchase price plus 10% of the portion between $500,000 and $1.5 million. Homes at $1.5 million or more require 20%. On a $450,000 home the minimum is $22,500; on a $600,000 home it is $35,000.
Who counts as a first-time home buyer?
The definition varies by program. For the Ontario land transfer tax refund you must never have owned a home anywhere in the world, and your spouse must not have owned one while being your spouse. The FHSA and Home Buyers' Plan use a look-back period of roughly four years. Check each program's rules for your situation.
How much are closing costs?
Plan for roughly 1.5% to 4% of the purchase price. That covers land transfer tax, legal fees, title insurance, a home inspection, adjustments and, if your mortgage is insured, the 8% Ontario sales tax on the insurance premium.
Do Windsor-Essex buyers pay a municipal land transfer tax?
No. Only the City of Toronto charges a municipal land transfer tax. Buyers in Windsor, LaSalle, Tecumseh, Lakeshore, Amherstburg, Essex, Kingsville and Leamington pay only the Ontario tax.
Does it cost anything to work with a REALTOR® as a buyer?
How your REALTOR® is paid is set out in the buyer representation agreement you sign with the brokerage under Ontario's Trust in Real Estate Services Act. In many purchases the buyer brokerage's commission is offered by the seller, but this is not guaranteed. Yvonne will explain your options before you sign anything.
This guide is general information reflecting rules as of November 2026. It is not financial, legal or tax advice. Program rules and limits change, and eligibility depends on your circumstances. Confirm the details with your lender, lawyer or accountant and with the Canada Revenue Agency and the Ontario Ministry of Finance.