Current federal and Ontario programs, minimum down payments, closing-cost planning and a practical path from budget to closing.
Start by setting a total housing budget, checking your credit and debts, and estimating the cash needed for the down payment and closing costs. Then compare any FHSA, Home Buyers' Plan and tax-rebate eligibility before requesting a mortgage pre-approval. A pre-approval is conditional: the lender must still approve the borrower, property and final documents.
This guide separates current government programs from mortgage qualification and links to the administering government sources. Program limits and eligibility can change, so confirm the rules that apply to your purchase before relying on a benefit.
The following programs may reduce eligible buyers' saving or tax costs. They do not guarantee mortgage approval or make every property eligible.
An FHSA can provide tax-deductible contributions and tax-free qualifying withdrawals. Review the CRA First Home Savings Account rules before contributing or withdrawing:
FHSA room begins when you open your first account. Confirm your available participation room with CRA; excess contributions can have tax consequences.
The CRA Home Buyers' Plan currently permits an eligible participant to withdraw up to $60,000 from their own RRSP for a qualifying home.
Eligible buyers may receive up to $4,000 through the Ontario first-time homebuyer land transfer tax refund. An eligible Toronto purchase may also receive up to $4,475 under the city's municipal rebate.
Age, citizenship or permanent-resident status, occupancy, prior ownership and spouse-ownership rules apply. A lawyer can confirm the refund available for a specific closing.
An eligible buyer may claim up to $10,000 as the federal home buyers' amount. It is a non-refundable tax credit; the actual tax reduction depends on the applicable tax-credit rate and the buyer's circumstances.
Eligible first-time buyers of a newly built or substantially renovated primary residence may qualify for the first-time home buyers' GST/HST rebate. The federal rebate can reach $50,000 for homes valued up to $1 million and phases out between $1 million and $1.5 million; Ontario also has a provincial component. Agreement dates, construction dates, residence use and filing deadlines matter.
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, mortgage loan insurance is typically required and protects the lender, not the borrower. Confirm the current thresholds on the Financial Consumer Agency of Canada down-payment page, then use our Ontario down-payment guide for examples.
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 shopping, request a mortgage pre-approval to estimate a borrowing limit and review possible rate-hold terms. It is not final approval: lender review of income, debts, credit, down payment, property and documents still applies.
A buyer's representative can explain the local market, offer process and their services. Review the representation agreement and compensation terms before signing; do not assume a service has no cost to 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!
Bring your income, debt, down-payment and property details to a mortgage review. Mortgage Wave can compare available options and explain conditions, but approval, pricing and product availability remain subject to lender criteria.
Request a conditional borrowing review based on your current financial information.
Get Pre-Approved Freeor call (416) 666-8456