Buying your first home in Ontario can feel overwhelming — but it doesn't have to be. With the right preparation and the right team, you can move from renting to owning without the stress. Here's everything you need to know.
Step 1: Know Your Budget
Before you fall in love with a home, know what you can realistically afford. A mortgage pre-approval from your bank or a mortgage broker gives you a firm number — and signals to sellers that you're serious.
- Minimum 5% down payment for homes under $500,000.
- 5% on the first $500K + 10% on the remaining portion for homes $500K–$999,999.
- 20% down is required for homes priced at $1M+.
- Budget an extra 1.5–4% of the purchase price for closing costs.
Step 2: Ontario & Federal First-Time Buyer Incentives
- Land Transfer Tax Rebate (Ontario): Up to $4,000 rebate on provincial land transfer tax.
- Toronto Land Transfer Tax Rebate: Up to $4,475 if buying in the City of Toronto.
- First Home Savings Account (FHSA): Contribute up to $8,000/year (lifetime max $40,000) — contributions are tax-deductible.
- Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free for a down payment.
- First-Time Home Buyers' Tax Credit: Up to $1,500 credit on your federal tax return.
Strategy: Combine FHSA + RRSP Home Buyers' Plan to maximize your tax-free down payment. A couple can access up to $120,000 from RRSPs + $80,000 from FHSAs = $200,000 down payment, tax-free.
Step 3: The Buying Process
- Get pre-approved for a mortgage.
- Work with a realtor who knows your target market.
- Tour homes and make an offer (with conditions — home inspection, financing).
- Negotiate and accept a final price.
- Complete due diligence: home inspection, lawyer review.
- Close the deal and get your keys.
Step 4: What to Look For in the GTA
In competitive GTA markets like Scarborough, Markham, and Pickering, homes can sell in days. In Durham Region communities like Oshawa, Whitby, and Ajax, there's slightly more room to negotiate — but inventory still moves fast. Knowing what to prioritize (location, transit, school zones) will make your search more focused.
As your realtor, we help you avoid overpaying, flag red flags in property disclosures, and write competitive but smart offers.