First-Time Buyers

Buying your first home in Canada

Take advantage of the down payment rules, tax-sheltered savings, and rebates available only to first-time buyers. We make the process simple and stress-free.

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What do first-time home buyers need to know about mortgages in Canada?

First-time buyers in Canada can put down as little as 5% on homes up to $500,000, use tax-free savings from an FHSA and RRSP Home Buyers' Plan toward the down payment, and may qualify for a provincial land transfer tax rebate. A mortgage broker compares 65+ lenders to match your income, credit, and down payment to the right program.

Minimum down payment is 5% on the first $500,000 and 10% on the portion from $500,000 to $999,999.
Down payments under 20% require mortgage default insurance (CMHC, Sagen, or Canada Guaranty).
The FHSA lets you save up to $40,000 tax-free; the Home Buyers' Plan lets you borrow up to $60,000 from your RRSP.
Some provinces, including Ontario, BC, and PEI, offer land transfer tax rebates for first-time buyers.

$40K

FHSA tax-free savings

$60K

RRSP Home Buyers' Plan

Min down payment

25yr

Max amortization (insured)

A faster process for first-time home buyers

Buying a home for the first time can feel overwhelming, especially with the paperwork and programs to consider. A mortgage broker can make this a smooth process and help you get pre-approved quickly, at no cost to you.

Is this for me?

Yes, if you're a first-time buyer who is self-employed, works full time, or is new to Canada. If you're looking at a fixer-upper, check out Purchase Plus Improvement. Use our mortgage affordability calculator to see what you can comfortably afford before you shop.

What determines my down payment and rate?

• Your household income and employment type
• How much of your available credit you're using today
• Your debt-service ratios (ability to repay the loan)
• The type and location of the property you're purchasing
• The size of your down payment (5% to 20%+)

First-time buyer rebates

Land transfer tax rebates, the FHSA ($40K tax-free), and the Home Buyers' Plan ($60K from RRSPs).

Fast pre-approval

Get pre-approved in as little as 24 hours - no obligation, no impact to start.

Expert guidance

Our agents walk you through every step from offer to closing day.

Rate shopping done for you

We compare 65+ lenders to find a rate and program that fits your situation.

Programs and incentives for first-time buyers (2026)

$40K tax-free

First Home Savings Account (FHSA)

Save up to $40,000 tax-free ($8,000/year) for your first home. Contributions are tax-deductible like an RRSP, and qualifying withdrawals are tax-free like a TFSA. Any unused annual room carries forward.

$60K from RRSP

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP tax-free for a down payment. Repay the balance to your RRSP over 15 years, starting in the second year after withdrawal, or it's added to your taxable income.

Rebates vary by province

Land Transfer Tax Rebate

Eligible first-time buyers in Ontario can save up to $4,000 on provincial land transfer tax, and Toronto buyers get an additional municipal rebate of up to $4,475. BC and PEI offer their own first-time buyer exemptions.

Worked example: stacking your benefits

Priya and Sam are buying their first home together for $650,000 in Ontario. Here's how the programs can work together:

FHSA (×2)

up to $80,000

HBP (×2)

up to $120,000

Min. down payment needed

$32,500 (5%)

Est. LTT rebate (ON)

up to $4,000

On a $650,000 purchase, the minimum down payment is 5% on the first $500,000 ($25,000) plus 10% on the remaining $150,000 ($15,000), for a total of $40,000. Between their FHSAs and HBP withdrawals, Priya and Sam can comfortably cover this without dipping into other savings, and their combined RRSP repayment obligation is spread over 15 years.

Down payment minimums by purchase price

Purchase price	Min. down payment	CMHC insurance
Up to $500,000	5% ($25,000 on $500K)	Roughly 4.00% of the mortgage
$500,001–$999,999	5% on first $500K + 10% on remainder	Roughly 3.10%–4.00%
$1,500,000+	20% minimum ($300,000 on $1.5M)	Not available - conventional financing only

Documents you'll need

• Government-issued photo ID
• Recent pay stubs and a letter of employment, or 2 years of NOAs if self-employed
• Proof of down payment (bank statements, FHSA/RRSP withdrawal confirmation, gift letter if applicable)

• List of debts, credit cards, and other loans
• Accepted purchase agreement (once you have one)
• Void cheque or pre-authorized debit form for closing

Closing costs to plan for

Budget an additional 1.5% to 4% of the purchase price on top of your down payment. This typically includes land transfer tax (net of any first-time buyer rebate), legal fees, title insurance, a home inspection, an appraisal (if required), and adjustments for prepaid property tax or utilities. Land transfer tax rules and rebates differ by province - use our land transfer calculator to estimate yours before you budget.

Frequently asked questions

The questions we hear most from first-time buyers.

How much down payment do I need to buy my first home in Canada?

You need a minimum of 5% down on the first $500,000 of the purchase price, and 10% on the portion between $500,000 and $999,999. Homes priced at $1,500,000 or more still require a minimum 20% down payment, and homes under $1,500,000 can qualify for insured financing with less than 20% down.

What is the First Home Savings Account (FHSA)?

The FHSA lets first-time buyers contribute up to $8,000 per year (lifetime maximum $40,000) toward a home purchase. Contributions are tax-deductible like an RRSP, and qualifying withdrawals - including growth - are completely tax-free, similar to a TFSA.

Can I use my RRSP to buy my first home?

Yes. Under the Home Buyers' Plan (HBP), you can withdraw up to $60,000 per person ($120,000 per couple) from your RRSPs tax-free to put toward a home. You must repay the withdrawal to your RRSP over 15 years, starting the second year after you withdraw.

Do first-time buyers get a land transfer tax rebate?

Ontario, British Columbia and Prince Edward Island offer land transfer tax rebates to eligible first-time buyers, and Toronto adds a municipal rebate on top of Ontario's. Other provinces, including Alberta and Saskatchewan, don't charge a land transfer tax at all. Use our land transfer calculator to estimate your rebate.

Do I need mortgage default insurance (CMHC) as a first-time buyer?

If your down payment is less than 20% of the purchase price, your lender requires mortgage default insurance from CMHC, Sagen, or Canada Guaranty. The premium is a percentage of your mortgage amount (roughly 2.8% to 4.0%, depending on your down payment size) and is usually added to your mortgage rather than paid upfront.

What credit score do I need to qualify for a first mortgage?

Most lenders want to see a minimum credit score of 600 to 680 for a conventional insured mortgage. A higher score generally gives you access to more lenders and better rates, but if your credit is below that range, alternative and B-lender programs may still work.

What closing costs should first-time buyers budget for?

Beyond your down payment, budget 1.5% to 4% of the purchase price for closing costs: land transfer tax (minus any rebate), legal fees (roughly $1,000-$2,000), title insurance, home inspection, appraisal fees, and adjustments for prepaid utilities or property tax.

How long does mortgage pre-approval take?

A mortgage pre-approval can often be issued within 24 to 48 hours once you provide income documents, ID, and details on your down payment and debts. Pre-approval typically holds your rate for 90 to 120 days while you shop for a home.

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