First-Time Buyers

Buying your first home in Canada

Take advantage of the down payment rules, tax-sheltered savings, and rebates available only to first-time buyers. We keep the process clear from pre-approval to closing day.

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What do first-time home buyers need to know about mortgages in Canada?

First-time buyers in Canada can put down as little as 5% on homes up to $500,000, use tax-free savings from an FHSA and the RRSP Home Buyers' Plan toward the down payment, and may qualify for a provincial transfer-tax rebate or exemption. A mortgage broker compares 65+ lenders to match your income, credit, and down payment to the right program.

Minimum down payment is 5% on the first $500,000 and 10% on the portion from $500,000 up to $1.5 million. Homes priced at $1.5 million or more need 20% down.
Down payments under 20% require mortgage default insurance (CMHC, Sagen, or Canada Guaranty).
The FHSA lets you save up to $40,000 tax-free; the Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP.
Ontario (land transfer tax), BC (property transfer tax) and PEI (real property transfer tax) offer first-time buyer rebates or exemptions.

$40K

FHSA tax-free savings

$60K

RRSP Home Buyers' Plan

Min down payment

30yr

Max insured amortization (first-time buyers)

A faster process for first-time home buyers

Buying a home for the first time can feel overwhelming, especially with the paperwork and programs to consider. A mortgage broker keeps it organized and gets your pre-approval moving quickly, at no cost to you.

Is this for me?

Yes, if you're a first-time buyer who is self-employed, works full time, or is new to Canada and buying a first home. If you're looking at a fixer-upper, see how Purchase Plus Improvement adds renovation costs to your mortgage. Use our mortgage affordability calculator to see what you can comfortably afford before you shop. Buying in the GTA? Our page on first-time buyer mortgages in Toronto covers the city's municipal land transfer tax and rebate.

What determines my down payment and rate?

• Your household income and employment type
• How much of your available credit you're using today
• Your debt-service ratios (ability to repay the loan)
• The type and location of the property you're purchasing
• The size of your down payment (5% to 20%+)

First-time buyer rebates

Transfer-tax rebates or exemptions in some provinces, the FHSA ($40K tax-free), and the Home Buyers' Plan ($60K from RRSPs).

Quick pre-approval

Pre-approvals are often issued within 24 to 48 hours once your documents are in. No obligation to start.

Expert guidance

Our agents walk you through every step from offer to closing day.

Rate shopping done for you

We compare 65+ lenders to find a rate and program that fits your situation.

Programs and incentives for first-time buyers (2026)

$40K tax-free

First Home Savings Account (FHSA)

Save up to $40,000 tax-free ($8,000/year) for your first home. Contributions are tax-deductible like an RRSP, and qualifying withdrawals are tax-free like a TFSA. Up to $8,000 of unused room carries forward to the next year.

$60K from RRSP

Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP tax-free for a down payment. Repay the balance to your RRSP over 15 years, or the missed repayment is added to your taxable income.

Rules vary by province

Transfer-tax rebates and exemptions

Eligible first-time buyers in Ontario can save up to $4,000 on provincial land transfer tax, and Toronto buyers get an additional municipal rebate of up to $4,475. BC exempts qualifying buyers from all or part of its property transfer tax, and PEI offers a first-time buyer exemption from its real property transfer tax.

Worked example: stacking your benefits (illustrative)

Priya and Sam are buying their first home together for $650,000 in Ontario. Here's how the programs can work together:

FHSA (×2)

up to $80,000

HBP (×2)

up to $120,000

Min. down payment needed

$40,000

Est. LTT rebate (ON)

up to $4,000

On a $650,000 purchase, the minimum down payment is 5% on the first $500,000 ($25,000) plus 10% on the remaining $150,000 ($15,000), for a total of $40,000. Between their FHSAs and HBP withdrawals, Priya and Sam can cover this without dipping into other savings, and their combined RRSP repayment obligation is spread over 15 years.

How getting your first mortgage works

1
Check your credit and savings
Review your credit report and confirm your down payment sources, including FHSA and RRSP funds available under the Home Buyers' Plan.
2
Gather your documents
Collect ID, proof of income (pay stubs, T4s or NOAs), proof of down payment, and a list of debts and assets.
3
Get pre-approved
A mortgage broker submits your file to lenders to confirm how much you qualify for and arranges a rate hold, typically for 90-120 days.
4
Shop within your budget
Use your pre-approved amount and our affordability calculator to shop within a payment you're comfortable with.
5
Make an offer and finalize financing
Once your offer is accepted, your broker finalizes the mortgage, orders an appraisal if needed, and sends instructions to your lawyer.
6
Close and take possession
Sign your mortgage documents with a lawyer, pay closing costs and land transfer tax (minus any rebate), and get the keys.

Down payment minimums by purchase price

Purchase price	Min. down payment	CMHC insurance
Up to $500,000	5% ($25,000 on $500K)	Roughly 4.00% of the mortgage
$500,001–$1,499,999	5% on first $500K + 10% on remainder	Roughly 3.10%–4.00%
$1,500,000+	20% minimum ($300,000 on $1.5M)	Not available - conventional financing only

Documents you'll need

• Government-issued photo ID
• Recent pay stubs and a letter of employment, or 2 years of NOAs if self-employed
• Proof of down payment (bank statements, FHSA/RRSP withdrawal confirmation, gift letter if applicable)

• List of debts, credit cards, and other loans
• Accepted purchase agreement (once you have one)
• Void cheque or pre-authorized debit form for closing

Closing costs to plan for

Budget an additional 1.5% to 4% of the purchase price on top of your down payment. This typically includes land transfer tax (net of any first-time buyer rebate), legal fees, title insurance, a home inspection, an appraisal (if required), and adjustments for prepaid property tax or utilities. Transfer-tax rules and rebates differ by province (it's called property transfer tax in BC, deed transfer tax in Nova Scotia, and the welcome tax in Quebec), so use our land transfer tax calculator to estimate yours, and the mortgage payment calculator to check what the monthly payment looks like once insurance is added.

Frequently asked questions

The questions we hear most from first-time buyers.

How much down payment do I need to buy my first home in Canada?

You need a minimum of 5% down on the first $500,000 of the purchase price, and 10% on the portion between $500,000 and $1,500,000. Homes priced at $1,500,000 or more require a minimum 20% down payment, because the insured mortgage cap is $1.5 million. Homes under $1,500,000 can qualify for insured financing with less than 20% down.

What is the First Home Savings Account (FHSA)?

The FHSA lets first-time buyers contribute up to $8,000 per year (lifetime maximum $40,000) toward a home purchase. Contributions are tax-deductible like an RRSP, and qualifying withdrawals, including growth, are tax-free, similar to a TFSA.

Can I use my RRSP to buy my first home?

Yes. Under the Home Buyers' Plan (HBP), you can withdraw up to $60,000 per person ($120,000 per couple) from your RRSPs tax-free to put toward a home. You repay the withdrawal to your RRSP over 15 years; any missed annual repayment is added to your taxable income for that year.

Do first-time buyers get a land transfer tax rebate?

In some provinces, yes. Ontario offers a land transfer tax rebate of up to $4,000 to eligible first-time buyers, and Toronto adds a municipal rebate of up to $4,475. British Columbia exempts qualifying first-time buyers from all or part of its property transfer tax, and Prince Edward Island offers a first-time buyer exemption from its real property transfer tax. Alberta and Saskatchewan don't charge a land transfer tax at all, only modest title registration fees.

Do I need mortgage default insurance (CMHC) as a first-time buyer?

If your down payment is less than 20% of the purchase price, your lender requires mortgage default insurance from CMHC, Sagen, or Canada Guaranty. The premium is a percentage of your mortgage amount (roughly 2.8% to 4.0%, depending on your down payment size) and is usually added to your mortgage rather than paid upfront.

What credit score do I need to qualify for a first mortgage?

Most lenders want to see a minimum credit score of 600 to 680 for a conventional insured mortgage. A higher score generally gives you access to more lenders and programs, and if your credit is below that range, alternative lenders may still have options.

What closing costs should first-time buyers budget for?

Beyond your down payment, budget 1.5% to 4% of the purchase price for closing costs: land transfer tax (minus any rebate), legal fees (roughly $1,000-$2,000), title insurance, home inspection, appraisal fees, and adjustments for prepaid utilities or property tax.

How long does mortgage pre-approval take?

A mortgage pre-approval can often be issued within 24 to 48 hours once you provide income documents, ID, and details on your down payment and debts. Pre-approval typically holds your rate for 90 to 120 days while you shop for a home.

Ready to buy your first home?

Get a pre-approval and a clear budget before you make an offer. Free to apply, no obligation.

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Best available rate from 8Twelve's lender panel, subject to qualification and lender approval. OAC. Your rate depends on your individual financial situation.