First-time home buyer guide: Toronto & the GTA

Step 1 — Know your real budget

Before browsing listings, get pre-approved. A pre-approval tells you exactly what lenders will give you, locks a rate for 90–120 days, and makes your offers credible to sellers. Remember the federal stress test: you must qualify at your contract rate + 2% (minimum 5.25%), so your buying power is lower than a simple payment calculator suggests.

Step 2 — Your down payment

• Minimum: 5% of the first $500,000 + 10% of the portion above, up to $1.5M (homes above $1.5M need 20%).
• FHSA: save up to $8,000/year ($40,000 lifetime) tax-deductible, withdrawn tax-free for your first home. If you qualify, open one — even with $1.
• RRSP Home Buyers’ Plan: withdraw up to $60,000 per person tax-free (repayable over 15 years).
• Gifted funds: an immediate-family gift is acceptable to virtually all lenders with a signed gift letter.

Step 3 — Budget for closing costs

Plan for roughly 1.5–4% of the purchase price on top of your down payment: land transfer tax (double in the City of Toronto — though first-time buyers get up to $4,000 back from Ontario and $4,475 from Toronto), legal fees, title insurance, home inspection, and adjustments. Try our land transfer tax calculator for your exact number.

Step 4 — Programs that save you money

• Ontario + Toronto land transfer tax rebates (up to $8,475 combined)
• 30-year amortization now available to first-time buyers on new construction, lowering monthly payments
• GST/HST rebates on new builds
• CMHC-insured mortgages letting you buy with as little as 5% down

Step 5 — Get help that costs you nothing

A mortgage agent compares dozens of lenders for you and is paid by the lender, not by you. As a bilingual (English/Farsi) agent serving all of the GTA, I’ll build your personal roadmap in a free consultation — no pressure, no obligation.