Your First Home in Ontario Starts Here
Navigate the exciting journey of homeownership with expert guidance, access to 50+ lenders, and all the government incentives you deserve.
Buying Your First Home in Ontario
Purchasing your first home is one of life's most significant milestones. In Ontario's dynamic real estate market—from the bustling Greater Toronto Area to growing cities like Hamilton, Ottawa, Kitchener-Waterloo, and London—having the right mortgage guidance can make all the difference.
As a licensed mortgage agent with access to over 50 lenders, I specialize in helping first-time buyers navigate the complexities of home financing. Whether you're a young professional, a new family, or someone who's been renting and is ready to build equity, I'll help you find the mortgage solution that fits your unique situation.
First-time buyers in Ontario have access to several programs and incentives designed to make homeownership more accessible. From federal programs like the First-Time Home Buyer Incentive and RRSP Home Buyers' Plan to provincial benefits like the Ontario Land Transfer Tax Rebate, I'll ensure you take advantage of every opportunity available to you.
Who Qualifies as a First-Time Home Buyer?
Federal Definition
You're considered a first-time buyer if you haven't owned a home in the past 4 years. This applies to both you and your spouse/partner.
Provincial Rebates
For Ontario Land Transfer Tax Rebates, you must have never owned a home anywhere in the world, and you must be 18+ years old.
Recent Separation
If you previously owned a home with a spouse but no longer do due to separation, you may qualify as a first-time buyer for certain programs.
New to Canada
Newcomers to Canada who haven't owned property here typically qualify for first-time buyer programs, even if they owned property abroad.
Benefits & Government Incentives
Ontario Land Transfer Tax Rebate
First-time buyers can receive up to $4,000 back on provincial land transfer tax. Toronto buyers may receive an additional $4,475 municipal rebate—a combined savings of up to $8,475.
RRSP Home Buyers' Plan (HBP)
Withdraw up to $35,000 from your RRSPs tax-free for your down payment ($70,000 for couples). Repay over 15 years starting the second year after withdrawal.
First-Time Home Buyer Incentive (FTHBI)
The federal government contributes 5% or 10% toward your down payment as a shared-equity mortgage, reducing your monthly payments.
First Home Savings Account (FHSA)
A new tax-advantaged account allowing you to save up to $40,000 for your first home with tax-deductible contributions and tax-free withdrawals.
Home Buyers' Tax Credit
Claim up to $10,000 on your tax return for a tax credit of up to $1,500 to offset closing costs.
How Qualification Works in Ontario
Lenders evaluate first-time buyers based on several key factors:
- Credit Score: Most lenders require a minimum score of 600-650. Higher scores (680+) qualify for better rates.
- Income Verification: Stable employment history (typically 2+ years) with verifiable income from pay stubs, T4s, and NOAs.
- Debt Service Ratios: GDS ratio (housing costs) should be under 32-39% of gross income. TDS ratio (total debts) should be under 40-44%.
- Down Payment: Minimum 5% for homes under $500K, with additional requirements for higher-priced properties.
- Stress Test: You must qualify at the higher of your contract rate plus 2% or 5.25% (the benchmark rate).
Don't worry if your situation doesn't fit perfectly into these boxes. With access to alternative lenders and creative financing solutions, I can often find options for buyers who don't meet traditional criteria.
Documents You'll Need
Income Verification
- • Recent pay stubs (last 30 days)
- • Letter of employment
- • T4 statements (last 2 years)
- • Notice of Assessment (last 2 years)
Identification
- • Valid government-issued photo ID
- • Social Insurance Number
- • Proof of current address
Financial Documents
- • Bank statements (last 90 days)
- • Proof of down payment source
- • Investment/RRSP statements
- • Gift letter (if applicable)
Property Documents
- • Signed purchase agreement
- • MLS listing
- • Property tax information
- • Condo status certificate (if applicable)
The First-Time Buyer Process
Free Consultation & Pre-Approval
1-3 daysWe review your finances, credit, and goals. You receive a pre-approval letter showing your maximum purchase price and locked-in rate.
House Hunting
VariesArmed with your pre-approval, you search for your perfect home with confidence, knowing exactly what you can afford.
Make an Offer
1-2 daysWhen you find the right home, your real estate agent helps you make a competitive offer. Pre-approval strengthens your position.
Mortgage Application
2-5 daysOnce your offer is accepted, we submit your full mortgage application with property details and required documents.
Appraisal & Approval
5-10 daysThe lender orders an appraisal to verify the property value. We address any conditions and work toward final approval.
Closing Day
Closing dayYour lawyer handles the final paperwork. You sign the mortgage documents, receive your keys, and become a homeowner!
Common Mistakes to Avoid
Skipping Pre-Approval
Shopping without pre-approval wastes time on homes you can't afford and weakens your negotiating position.
Making Large Purchases Before Closing
Buying a car or furniture on credit before closing can affect your debt ratios and jeopardize your mortgage approval.
Ignoring Closing Costs
Budget 1.5-4% of the purchase price for land transfer tax, legal fees, inspections, and moving costs.
Only Considering the Purchase Price
Factor in property taxes, insurance, utilities, maintenance, and condo fees when determining affordability.
Not Comparing Mortgage Options
Working with a mortgage agent gives you access to multiple lenders and potentially better rates than going directly to one bank.
Waiving Home Inspection
Even in competitive markets, a home inspection can reveal costly issues. Consider inspection conditions carefully.
Real Scenarios
The Young Professional
Sarah, 28, is a marketing manager earning $75,000/year in Toronto. She's been renting and has saved $40,000. With her RRSP of $25,000, she used the Home Buyers' Plan to boost her down payment to $65,000, qualifying for a $550,000 condo. The Ontario Land Transfer Tax Rebate and Toronto rebate saved her over $8,000 in closing costs.
Key strategy: Maximized government incentives and RRSP withdrawal
The Growing Family
Mike and Jennifer, both 32, have a combined income of $130,000 and a toddler. They wanted to move from their Toronto condo to a Hamilton townhouse for more space. With 10% down on a $650,000 property and the First-Time Home Buyer Incentive, they reduced their mortgage amount and monthly payments significantly while gaining extra bedrooms and a backyard.
Key strategy: Used FTHBI to reduce monthly costs while upgrading space
The New Canadian
Priya moved to Canada 18 months ago with her husband, both working in tech. Despite limited Canadian credit history, they qualified through an alternative lending program using their international credit history and strong income documentation. They purchased a $700,000 home in Mississauga with 20% down.
Key strategy: Leveraged alternative lender program for newcomers
* These scenarios are illustrative examples. Actual results vary based on individual circumstances, market conditions, and lender requirements.
Frequently Asked Questions
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Mortgage Agent Level 1 | Dominion Lending Centres | License #M23005941
Information is general in nature and may vary by lender and borrower profile. Government programs and incentives are subject to change and eligibility requirements. Contact us for personalized guidance based on your specific situation.