First-Time Home Buyer Guide for Ontario (2026)

Quick answer: A first-time home buyer in Ontario needs a down payment of at least 5% of the first $500,000 plus 10% of the rest, and roughly 1.5% to 4% more for closing costs. In return you can use the FHSA, withdraw up to $60,000 from an RRSP, and get up to $4,000 of land transfer tax refunded, or $8,475 in Toronto. This guide walks through the nine steps in order.

1. Check which first-time home buyer rules you meet in Ontario

There is no single definition. Ontario's land transfer tax refund requires that you have never owned a home anywhere in the world. The federal programs — FHSA, Home Buyers' Plan, tax credit and GST/HST rebate — use a four-year rule instead. You can qualify for one set and not the other. See the land transfer tax refund and the FHSA.

2. Open the savings accounts early

FHSA room only starts building once the account is open, so open one even if buying is years away. RRSP money can be used through the Home Buyers' Plan. Which to use first depends on whether you want to repay yourself later.

3. Work out your real budget

You need the minimum down payment, your closing costs, and a cushion for moving and the first months of ownership. How much money you need to buy your first home in the GTA has worked examples at current prices.

4. Get pre-approved

A mortgage pre-approval tells you what a lender will advance and holds an interest rate for a set period. Lenders test your application at a rate higher than the one you will actually pay, so the amount you qualify for can be less than an online calculator suggests. First-time buyers with less than 20% down can choose a 30-year amortization.

5. Choose your representation

Before an agent can work with you they must give you the RECO Information Guide and explain it. You will then normally sign a buyer representation agreement that sets out the services, the term and how the brokerage is paid. Read it and ask questions.

6. Decide where and what to buy

Price varies more by home type and community than most buyers expect. Start with where first-time buyers can afford in the GTA, then read the community guides for the places on your list. If you are weighing a builder's sales centre against a resale, read new build or resale.

7. Make an offer

Offers are written on an Agreement of Purchase and Sale and usually include conditions for financing and inspection, plus a status certificate review for condos. How offers work in Ontario covers deposits, conditions and competing offers.

8. Close

Your lawyer searches title, registers the mortgage and the transfer, claims your land transfer tax refund, and tells you the exact amount to bring. You get the keys on closing day.

9. After you move in

Claim the first-time home buyers' tax credit on that year's return, and note when your Home Buyers' Plan repayments begin.

More for first-time buyers

• First-Time Home Buyer Incentives in Ontario (2026): The Complete ListFirst-time home buyer incentives in Ontario for 2026 in one table: land transfer tax refunds, FHSA, RRSP Home Buyers' Plan, tax credit and HST relief.
• How Much Money Do You Need to Buy Your First Home in the GTA?How much money you need to buy your first home in the GTA: down payment, land transfer tax and closing costs added up at October 2026 average prices.
• FHSA vs RRSP Home Buyers’ Plan: Which Should You Use First?FHSA vs RRSP Home Buyers' Plan: limits, tax treatment, repayment and timing compared. Most first-time buyers should fill the FHSA first and can use both.
• New Build vs Resale: What First-Time Buyers in Ontario Should CompareNew build vs resale in Ontario for first-time buyers: HST and rebates, deposits, the 10-day cooling-off period, warranty and closing dates compared.
• Where Can First-Time Buyers Afford in the GTA? Prices by City (October 2026)Where first-time buyers can afford in the GTA: cities ranked by October 2026 median price, with the down payment and land transfer tax needed in each.