Neighbourhood guide · Toronto & the GTA
First-Time Home Buyer Guide for Toronto & Ontario (2026)
How to buy your first home in Toronto and Ontario in 2026: down payment rules, FHSA, Home Buyers' Plan, land transfer tax refunds, closing costs and newcomer tips.
By Irina Marchenkova, Sales Representative, RE/MAX Realtron Realty · Senior Real Estate Specialist (SRES®) · Last updated September 2026
Buying your first home in Toronto or anywhere in Ontario is exciting, and a little overwhelming. This guide explains, in plain language, how much you need for a down payment, which first-time buyer programs are available in 2026, what closing costs to expect, and how the buying process works from pre-approval to getting your keys.
Down payment Programs Closing costs Step by step Newcomers FAQ
First-time buying at a glance
- Minimum down payment: 5% of the first $500,000 of the price, and 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more.
- 2026 programs: the FHSA (up to $40,000 tax-free), the RRSP Home Buyers’ Plan (up to $60,000), land transfer tax refunds (up to $4,000 in Ontario plus up to $4,475 in Toronto) and a $1,500 tax credit.
- Mortgages: first-time buyers can get insured mortgages with 30-year amortizations; the insured-mortgage price cap is $1.5 million.
- Start with a mortgage pre-approval so you know your budget before you shop.
How much do you need for a down payment?
| Purchase price | Minimum down payment | Example |
|---|---|---|
| Up to $500,000 | 5% | $450,000 → $22,500 |
| $500,000 to $1,500,000 | 5% of the first $500,000 + 10% of the rest | $800,000 → $25,000 + $30,000 = $55,000 |
| $1,500,000 or more | 20% | $1,600,000 → $320,000 |
With less than 20% down, your mortgage must be insured (through CMHC, Sagen or Canada Guaranty). The premium is added to your mortgage, but in Ontario the sales tax on the premium must be paid at closing. Your lender will also check that you could afford payments at a higher qualifying rate (the “stress test”).
First-time buyer programs in 2026
| Program | What it gives you | Key condition |
|---|---|---|
| First Home Savings Account (FHSA) | Save up to $8,000 a year and $40,000 in total; contributions are tax-deductible and withdrawals for your home are tax-free | You haven’t lived in a home you owned in the current year or the previous four years |
| RRSP Home Buyers’ Plan (HBP) | Withdraw up to $60,000 per person from your RRSP tax-free (up to $120,000 for a couple); repay over 15 years | Same four-year first-time buyer rule |
| Ontario land transfer tax refund | Up to $4,000 | You (and your spouse) have never owned a home anywhere in the world |
| Toronto municipal land transfer tax refund | Up to $4,475 | Buying in the City of Toronto; same condition |
| Home Buyers’ Amount | A $10,000 non-refundable tax credit, worth up to $1,500 | First-time buyer |
| First-Time Home Buyers’ GST/HST Rebate | Up to $50,000 on a new home: full rebate up to $1 million, partial up to $1.5 million | Newly built homes only |
Ontario has also announced temporary HST relief on new homes for first-time buyers; check the current terms and dates before you buy. I’m not a financial or tax advisor, so please review your situation with a mortgage specialist and an accountant.
Closing costs to budget for
- Land transfer tax: Ontario’s tax on every purchase, plus Toronto’s municipal tax if you buy in the City of Toronto (with first-time buyer refunds). Try the land transfer tax calculator.
- Legal fees: in Ontario, a real estate lawyer completes your purchase; ask for a quote in advance.
- Home inspection: strongly recommended, especially for older houses.
- Home insurance, moving costs and adjustments (for example, property tax the seller has prepaid).
- A buffer: many experts suggest setting aside about 1.5% to 4% of the purchase price for closing costs.
Buying your first home, step by step
- Check your credit and savings. Open an FHSA as early as you can, since contribution room starts building once it’s open.
- Get a mortgage pre-approval from a bank or mortgage broker.
- Choose your area. Explore my neighbourhood guides and the most affordable neighbourhoods in Toronto and the GTA.
- View homes and condos together with me. A buyer’s agent is usually paid from the seller’s commission; we’ll discuss this upfront.
- Make an offer. I’ll help with price and conditions: financing, home inspection and, for condos, the status certificate.
- Pay your deposit, usually within 24 hours of your offer being accepted.
- Waive your conditions once your mortgage is approved and the inspection is complete.
- Close: your lawyer finalizes the documents, you pay your down payment and closing costs, and you get your keys.
Many first-time buyers worry they won’t understand the rules. I explain every step, in English or Russian, so you can make decisions calmly and confidently. — Irina
If you’re new to Canada
- Permanent residents and citizens buy on the same terms as all Canadians.
- Temporary residents and foreign nationals: the federal ban on foreign buyers of residential property is in effect until January 1, 2027, with some exceptions, including for some work-permit holders. Check your status before you start looking.
- Ontario’s Non-Resident Speculation Tax: 25% for buyers who aren’t Canadian citizens or permanent residents, with some exemptions.
- Newcomer mortgages: many lenders offer programs for people new to Canada, even with a short Canadian credit history.
- Documents: prepare proof of income, employment history and the source of your down payment (including transfers from abroad).
Free first-time buyer consultation
Tell me your budget, where you work and where you’d like to live, and I’ll prepare a shortlist of areas and explain your next steps. I work in English and Russian.
First-time buyer FAQ
How much do I need to save for my first home in Toronto?
The minimum down payment is 5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. For a $550,000 condo, that’s $30,000, plus about 1.5% to 4% of the price for closing costs.
Can I use the FHSA and the Home Buyers’ Plan together?
Yes. In 2026 you can use both for the same purchase: up to $40,000 from an FHSA and up to $60,000 from your RRSP under the Home Buyers’ Plan, per person.
Who counts as a first-time buyer?
For the FHSA and Home Buyers’ Plan, someone who hasn’t lived in a home they owned in the current year or previous four years. For Ontario’s land transfer tax refund, someone who has never owned a home anywhere in the world.
Can newcomers buy a home in Toronto?
Permanent residents and citizens can buy on the usual terms. Temporary residents face federal restrictions until January 1, 2027 (with some exceptions) and Ontario’s Non-Resident Speculation Tax, so check your situation first.
Do I have to pay a buyer’s agent?
Usually the buyer’s agent is paid from the seller’s commission, but arrangements can vary; we’ll discuss this before you start your search.
Related guides
- Most affordable neighbourhoods in Toronto and the GTA
- Best GTA neighbourhoods for families
- Land transfer tax calculator
- All neighbourhood guides
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