Everything you need to know about buying your first home in Ontario — from government programs to closing day.
Buying your first home is one of life's most exciting milestones — and in Ontario's competitive real estate market, it's also one of the most challenging. The good news? There are more government programs and incentives available to first-time buyers than ever before, and with the right strategy, you can save tens of thousands of dollars.
This comprehensive guide covers everything you need to know about buying your first home in Ontario in 2026, from saving for your down payment to getting the keys to your new home.
The federal and provincial governments offer several programs designed to help first-time buyers enter the housing market. Here's what's available in 2026:
Introduced in 2023, the FHSA is the most powerful savings tool for first-time buyers. It combines the best features of an RRSP and a TFSA:
Pro tip: Even if you're not planning to buy soon, open an FHSA now to start the clock on your contribution room. You can accumulate up to $40,000 in tax-free savings over 5+ years.
The HBP allows you to withdraw up to $60,000 from your RRSP tax-free to put toward your first home (increased from $35,000 in 2024). If you're buying with a partner, that's up to $120,000 combined.
First-time buyers in Ontario can receive a rebate of up to $4,000 on the provincial land transfer tax. If you're buying in Toronto, you can also get up to $4,475 back on the municipal land transfer tax — for a combined rebate of up to $8,475.
To qualify, you must be a Canadian citizen or permanent resident, at least 18 years old, and have never owned a home anywhere in the world.
Claim a $10,000 non-refundable tax credit on your tax return, which translates to approximately $1,500 in tax savings at the federal level.
This shared equity program lets the government contribute 5-10% of your home's purchase price toward your down payment, reducing your mortgage and monthly payments. You repay the government's share when you sell or after 25 years. Note: income and home price caps apply, which limits its usefulness in the GTA's higher-priced markets.
If you're buying a newly built home, you may qualify for a partial rebate of the GST/HST. The federal portion provides up to $6,300 back on homes priced up to $450,000, with a sliding scale reduction up to $350,000.
In Canada, the minimum down payment depends on the purchase price:
| Purchase Price | Minimum Down Payment | Example |
|---|---|---|
| Up to $500,000 | 5% | $500K home = $25,000 down |
| $500,001 – $1,499,999 | 5% on first $500K + 10% on remainder | $800K home = $55,000 down |
| $1,500,000+ | 20% | $1.5M home = $300,000 down |
With less than 20% down, you'll need CMHC mortgage default insurance, which protects the lender (not you). The premium ranges from 2.8% to 4.0% of your mortgage amount and is typically added to your mortgage balance. For more details, read our complete down payment guide.
Your down payment isn't the only cash you'll need. Budget an additional 1.5% to 4% of the purchase price for closing costs:
Before you start shopping for homes, get mortgage pre-approval. This tells you exactly how much you can afford and locks in your rate for up to 120 days. It also shows sellers you're a serious buyer. At Mortgage Wave, we can typically pre-approve you within 24 hours.
A good buyer's agent knows the local market, negotiates on your behalf, and guides you through the offer process. In Ontario, the seller typically pays both agents' commissions, so a buyer's agent is essentially free for you.
With your pre-approval in hand, you know your budget. Be realistic about your needs vs. wants, and don't forget to factor in commute times, school districts, and neighbourhood amenities. Consider areas like Mississauga, Brampton, or Markham if Toronto prices stretch your budget.
Your agent will help you draft a competitive offer. In a balanced market, include conditions for financing and home inspection. In a hot market, you may need to be more aggressive — but never waive conditions without understanding the risks.
Once your offer is accepted, we finalize your mortgage application. We'll need the purchase agreement, property details, and any remaining documentation. We handle everything with the lender so you can focus on planning your move.
Your lawyer handles the legal transfer of property. You'll sign documents, pay your closing costs, and receive the keys to your new home. Congratulations — you're a homeowner!
Buying your first home in Ontario doesn't have to be overwhelming. With the right preparation and the right mortgage professional in your corner, you can navigate the process confidently and save thousands of dollars in the process.
At Mortgage Wave, we've helped hundreds of first-time buyers across the GTA find the best mortgage for their situation. Our service is free, our advice is unbiased, and we're with you every step of the way.
Find out exactly how much you can afford — no obligation, no pressure.
Get Pre-Approved Freeor call (416) 666-8456