Mortgage Education
First-Time Home Buyer Guide (Canada)
Buying your first home is stressful — down payments, CMHC insurance, closing costs, and rate types can feel overwhelming. This guide summarizes the key programs and steps for new buyers in Canada.
Minimum down payment rules
The minimum down payment is based on the property price:
- 5% on the first $500,000
- 10% on the portion from $500,000 to $999,999
- 20% for homes of $1,000,000 or more
First Home Savings Account (FHSA)
The FHSA allows Canadians to save up to $8,000 per year toward their first home, tax-free on both contributions and withdrawals.
RRSP Home Buyers’ Plan (HBP)
You can withdraw up to $60,000 from your RRSP tax-free for your down payment, as long as you repay it over 15 years.
Land Transfer Tax Rebates
Provinces like Ontario and British Columbia, plus the City of Toronto, offer rebates for first-time buyers.
Closing costs to prepare for
- Land transfer tax (LTT)
- Legal fees
- Title insurance
- Inspection fees
- Appraisal fees
Try the Mortgage Affordability & Approval Calculator
Use our calculator to estimate your monthly payment, check your GDS/TDS ratios, and see an estimated approval probability based on your income, down payment, and other debts.
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