First-Time Home Buyers

In Canada, the minimum down payment is 5% on the first $500,000 of a home’s price and 10% on the portion above that, up to $1.5 million. For most first-time buyers in Toronto and Mississauga, where prices are high, this math matters. Any purchase with less than 20% down requires mortgage default insurance through CMHC, Sagen, or Canada Guaranty, which is added to your mortgage and protects the lender.

A larger down payment lowers your monthly payment and reduces or eliminates insurance premiums, but waiting too long to save can mean rising prices outpace your progress. I help first-time buyers weigh that trade-off realistically.

Ontario first-time buyers have several powerful tools. The First Home Savings Account (FHSA) lets you contribute up to $8,000 per year, tax-deductible, and withdraw it tax-free for a home. The RRSP Home Buyers’ Plan allows you to borrow up to $60,000 from your RRSP toward a down payment. Both can be combined.

You may also qualify for the federal first-time home buyer land transfer tax rebate and, in Toronto, an additional municipal rebate that can offset thousands in closing costs. Knowing which programs you qualify for before you shop changes how much home you can comfortably afford.

First-time buyers often focus only on the mortgage payment, but closing costs typically run 1.5% to 4% of the purchase price. That includes legal fees, title insurance, home inspection, appraisal, and land transfer tax. In the GTA, land transfer tax alone can be substantial. I build these numbers into your plan up front so nothing catches you off guard at closing.

A mortgage broker is especially valuable for first-time buyers because the process is unfamiliar and the stakes are high. Instead of accepting your own bank’s single offer, I shop more than thirty lenders to find the right rate and the right structure for someone just starting out, then guide you step by step from pre-approval to keys in hand. The advice is free, and having an advocate who explains every decision in plain language makes the whole experience far less stressful.

The most common first-time buyer mistake in the GTA is shopping for a home before getting properly pre-approved, then falling in love with something outside the realistic budget. A close second is maxing out the approval amount and leaving no cushion for property taxes, condo fees, utilities, and maintenance. A mortgage you can technically qualify for is not always a mortgage you can comfortably live with, and I always model the full monthly picture before you commit.

Other pitfalls include making a large purchase or changing jobs right before closing, which can jeopardize financing, and overlooking the fixed-versus-variable rate decision. First-time buyers in Toronto, Brampton, Vaughan, and across Ontario also frequently forget that the lowest advertised rate often carries restrictive prepayment privileges or steep penalties. I help you weigh rate against flexibility so your first mortgage fits both your budget and your plans for the next few years, whether that means starting a family, upsizing, or renovating.