Who this is for
- People who have never owned a home, or have not owned one in the past four years for some programs
- Couples buying together where one person is a first-time buyer
- Newcomers buying their first Canadian home
- Students and recent grads with family help for the down payment
Programs that help first-time buyers
The First Home Savings Account (FHSA) lets you contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible and withdrawals for a first home are tax-free.
The RRSP Home Buyers' Plan lets each first-time buyer withdraw up to $60,000 from their RRSP for a down payment, repaid over 15 years starting in the second year after withdrawal.
Ontario refunds up to $4,000 of land transfer tax for eligible first-time buyers. There is also a federal first-time home buyers' tax credit worth up to $1,500 on your tax return.
Down payment and mortgage insurance
The minimum down payment is 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. If you put down less than 20%, the mortgage must be insured by CMHC, Sagen or Canada Guaranty. The premium is a percentage of the mortgage, from 2.80% to 4.00% depending on your down payment, and is added to the mortgage balance.
First-time buyers purchasing a newly built home can choose a 30-year amortization on an insured mortgage, which lowers the monthly payment.
Qualifying and the stress test
Lenders qualify you at the higher of 5.25% or your contract rate plus 2%. Your housing costs generally need to stay under about 39% of gross income, and total debts under about 44% for insured mortgages. Paying down car loans or credit cards before applying can make a real difference.
How we work with you
We start with a 30-minute call, then collect documents once and send your file to the lenders that fit. You get a written comparison of rate, prepayment privileges and penalty terms. After your offer is accepted we handle the lender, appraisal and lawyer coordination through to closing.
Worked example (example only, OAC)
- Purchase price: $600,000
- Down payment: 5% of $500,000 = $25,000 + 10% of $100,000 = $10,000 → $35,000
- Mortgage before insurance: $565,000
- CMHC premium at 4.00%: $22,600 → total mortgage $587,600
- Monthly payment at a sample rate of 4.29%, 25-year amortization: about $3,190
- Example only, OAC. Rates and premiums subject to change.
Frequently asked questions
Who counts as a first-time buyer?
For the land transfer tax refund, you must never have owned a home anywhere. For the FHSA and HBP, you qualify if you have not lived in a home you or your spouse owned in the current year or the previous four years.
Can I get gifted money for my down payment?
Yes, from immediate family. Lenders need a signed gift letter and proof the funds are in your account before closing.
How much are closing costs?
Plan for about 1.5% to 4% of the price for land transfer tax, legal fees, title insurance, inspection and adjustments. Insurance premiums are added to the mortgage, but Ontario charges 8% PST on the premium, payable at closing.
Should I pick fixed or variable?
Fixed gives payment certainty; variable can be cheaper if rates fall but moves with the prime rate. We compare both against your budget and plans.
Do you charge a fee?
Most standard mortgages with good credit cost you nothing; the lender pays the broker. Private and some alternative mortgages carry a broker fee that is disclosed in writing before you commit.
Serving these cities
Related guides
- How much down payment in Kitchener?
For an eligible owner-occupied home in Kitchener priced below $1.5 million, the minimum down payment is 5% of the first $500,000 plus 10% of the portion above $500,000. At $1.5 million or more, you need at least 20% down
- More guides coming soon
Learn more from CMHC and the Financial Consumer Agency of Canada.
Straight answers, no cost and no obligation for most standard mortgages.
Mortgage Kraft · Affinity Mortgage Solutions Inc., Brokerage #13093 · Jay Shah, Licensed Mortgage Broker, Lic. #M22002236 · Rates and examples OAC, subject to change. Not financial advice.