Buying your first home in Ontario is one of the biggest financial decisions you'll make — and one of the most complicated. Between saving the down payment, understanding mortgage rules, and navigating provincial programs, there's a lot to figure out.
This guide covers everything a first-time buyer in Ontario needs to know in 2026.
The FHSA lets first-time buyers contribute up to $8,000/year (lifetime max $40,000) in a registered account. Contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying home purchase are tax-free (like a TFSA). If you haven't opened one yet, open one today — the contribution room accumulates.
Withdraw up to $60,000 from your RRSP tax-free to use toward your first home purchase. Couples can access up to $120,000 combined. The withdrawal must be repaid over 15 years (starting 2 years after purchase), otherwise the amount is added to your taxable income annually.
First-time buyers in Ontario receive a rebate on provincial land transfer tax up to $4,000. In Toronto, there's also a municipal LTT rebate of up to $4,475 on top of that. Combined, Toronto first-time buyers can save up to $8,475 in land transfer taxes.
A federal non-refundable tax credit of $10,000 (15% = $1,500 actual savings) available to first-time buyers. Claim it on your tax return in the year you purchased.
If you're buying a newly built home or condo in Ontario, you may qualify for a partial HST rebate on the purchase price. The rebate phases out for homes priced above $450,000. Builders often factor this into the price — confirm with your agent and lawyer.
With CMHC mortgage insurance (required when down payment is under 20%), you pay a premium of 2.8%–4% of the mortgage amount, added to your mortgage balance.
Before you look at a single listing, know your budget. Pre-approval tells you the maximum mortgage you qualify for, locks in your rate for 90–120 days, and signals to sellers that you're serious.
Even if you're 2–3 years from buying, open the account now. Contribution room ($8,000/year) accumulates and can be carried forward one year.
Buyer's agents are paid by the seller in most transactions — use one. Look for agents active in your target neighbourhoods.
Your agent will help structure the offer. Key conditions to consider: financing (mortgage approval), home inspection, status certificate (condos).
Once your offer is accepted, your lender or broker submits a full application. You'll provide employment verification, down payment proof, and ID.
Mandatory in Ontario. Your lawyer reviews the title, handles the land transfer, and registers the mortgage. Budget $1,500–$2,500 in legal fees.
On closing day, your lawyer transfers funds and registers ownership. You get the keys. Budget for closing costs: typically 1.5%–4% of purchase price.
First-time buying in Ontario is expensive — but the programs available are significant if you know how to use them. Start with the FHSA, get pre-approved early, and work with professionals who specialize in first-time buyers.
The market rewards preparation. Start now, even if your purchase is 2–3 years away.