First-Time Home Buyer Mortgages in Canada
Take advantage of every Canadian first-time buyer program available — CMHC insurance with 5% down, the First Home Savings Account, Home Buyers' Plan RRSP withdrawals, and provincial rebates. We make sure you don't leave money on the table. Our team walks you through the entire process from pre-approval to possession day, explaining each step in plain language so you feel confident and informed. With access to 50+ lenders, we negotiate the best rate and terms for your first purchase while ensuring you claim every incentive and rebate available in your province.
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Every Program, Every Rebate, Every Advantage
Canada has more first-time buyer incentives than most people realize. Between the FHSA, HBP, provincial rebates, and the First-Time Home Buyer Incentive, you could save tens of thousands. We make sure you access all of them.
First-Time Buyer Incentive
The federal government's shared-equity program provides 5% of an existing home's purchase price or 5-10% for a new build as a down payment boost. No monthly payments are required — you repay the shared equity when you sell the home or after 25 years. This program can significantly reduce your monthly mortgage payment and help you get into the market sooner.
Home Buyers' Plan (HBP)
Withdraw up to $35,000 tax-free from your RRSP for your down payment — couples can withdraw $70,000 combined. You repay the amount over 15 years starting in the second year after withdrawal, essentially giving yourself an interest-free loan. This can be combined with the FHSA for a combined tax-advantaged down payment strategy worth up to $105,000 for a couple.
FHSA Guidance
The First Home Savings Account lets you contribute up to $8,000 per year to a lifetime maximum of $40,000, with contributions that are tax-deductible like an RRSP and withdrawals that are tax-free like a TFSA. We help you understand how to combine FHSA, HBP, and other programs for maximum purchasing power and ensure you meet all eligibility requirements.
CMHC Insurance Expertise
With as little as 5% down, we secure CMHC, Sagen, or Canada Guaranty mortgage insurance — comparing premiums across all three insurers to minimize your cost. Insurance premiums range from 2.8% to 4.0% of the mortgage amount depending on your down payment percentage. We also explain how the premium can be added to your mortgage so it does not require an upfront out-of-pocket payment.
Land Transfer Tax Rebates
First-time buyers in Ontario save up to $4,000 on land transfer tax, and BC offers an exemption on homes up to $500,000 with partial relief up to $525,000. Prince Edward Island, Toronto (municipal land transfer tax rebate up to $4,475), and other jurisdictions offer additional savings. We ensure you claim every rebate and exemption you are entitled to.
Step-by-Step Support
From pre-approval through possession day, we guide you through every step of your first home purchase. Our team explains the offer process, conditions, home inspections, financing timelines, and closing costs in plain language. We also coordinate directly with your realtor and lawyer to ensure nothing is missed and you feel confident at every stage.
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First-Time Buyer Requirements
To qualify as a first-time home buyer in Canada and access the available incentive programs, you need to meet specific criteria. Here is what lenders and government programs require, and how we help you maximize every benefit.
Requirements
- You must not have owned a home in which you lived at any time during the current year or the preceding four calendar years to qualify as a first-time buyer
- Minimum down payment of 5% for homes under $500,000, with 10% required on the portion between $500,000 and $1,499,999
- Minimum credit score of 600 for A-lender insured mortgage approval, with alternative options for lower scores
- Must pass the federal mortgage stress test by qualifying at the higher of your contract rate plus 2% or the Bank of Canada qualifying rate
- Proof of stable income through employment letters, T4 slips, and Notice of Assessment from the CRA
- Gross Debt Service (GDS) ratio at or below 39% and Total Debt Service (TDS) ratio at or below 44%
- Canadian citizen or permanent resident status with valid government-issued identification
How We Help
- We ensure you claim every available program — FHSA, HBP, First-Time Home Buyer Incentive, and all provincial land transfer tax rebates
- Our pre-approval process takes 24-48 hours and locks in your rate for up to 120 days while you search for the right home
- We compare mortgage insurance programs to find the lowest cost for your down payment level
- If your credit needs work, we create a targeted improvement plan with specific steps to reach the 600 threshold before you apply
- We provide a detailed closing cost estimate customized to your province so you know exactly how much cash you need beyond the down payment
- Our team explains the entire purchase process — from making an offer to setting conditions, arranging inspections, and closing with your lawyer
- We coordinate with your realtor and lawyer at every stage to ensure timelines are met and your purchase closes smoothly
Questions About First-Time Buyer Programs
Everything you need to know about buying your first home in Canada. Can't find your answer? Book a call with our team.
Down Payment & Programs
First-time buyers can purchase with as little as 5% down on homes under $500,000. For homes between $500,000 and $1,499,999, you need 5% on the first $500,000 and 10% on the remainder. Homes $1.5 million or more require 20% down. With less than 20% down, mortgage insurance (CMHC, Sagen, or Canada Guaranty) is required. For a $600,000 home, that works out to a minimum of $35,000.
The FHSA is a registered account that lets first-time buyers save up to $8,000 per year (max $40,000 lifetime) tax-free for a home purchase. Contributions are tax-deductible (like an RRSP) and withdrawals for a qualifying home purchase are tax-free (like a TFSA). It can be combined with the Home Buyers' Plan for maximum down payment savings. If you have not opened one yet, we recommend doing so immediately to start building contribution room.
The HBP allows first-time buyers to withdraw up to $35,000 from their RRSP ($70,000 for a couple) tax-free for a down payment. You have 15 years to repay the amount back to your RRSP, starting the second year after your withdrawal. It is essentially an interest-free loan from yourself. The funds must be in the RRSP for at least 90 days before withdrawal, so plan ahead when contributing specifically for your down payment.
Costs & Savings
Budget 1.5-4% of the purchase price for closing costs. These include legal fees ($1,000-2,000), land transfer tax (varies by province with first-time buyer rebates available), home inspection ($300-500), title insurance ($200-400), and appraisal fees if required. In Ontario, the land transfer tax on a $500,000 property is approximately $6,475 before the first-time buyer rebate of $4,000. We provide a detailed closing cost estimate before you start shopping.
Yes, you can use both programs simultaneously for the same home purchase. A couple could potentially access up to $80,000 from their FHSAs ($40,000 each) plus $70,000 from their RRSPs through the HBP, for a combined $150,000 in tax-advantaged down payment funds. This makes homeownership significantly more accessible, especially in higher-priced markets like Toronto, Vancouver, and Ottawa.
Qualification & Buying
Most A-lenders require a minimum credit score of 600 for insured mortgages. If your score is between 550 and 599, B-lender and alternative programs are available with slightly higher rates. We recommend checking your credit at least 6 months before you plan to buy so there is time to address any issues. Simple steps like paying down credit card balances below 30% of their limit and ensuring all payments are current can boost your score quickly.
Your maximum purchase price depends on your income, debts, down payment, and the current qualifying rate. Canadian lenders use the stress test — you must qualify at the higher of your contract rate plus 2% or the Bank of Canada's qualifying rate. As a general rule, most buyers qualify for approximately 4-5 times their gross annual household income. We provide an exact qualification amount during our free pre-approval process, usually within 24-48 hours.
The right choice depends on your budget, lifestyle, and local market. Condos typically require a lower purchase price and offer lower maintenance responsibilities, but come with monthly condo fees that can range from $300 to $800 or more. Freehold homes appreciate differently and have no condo fees but require budgeting for maintenance. Lenders factor condo fees into your debt service ratios, which can reduce your maximum qualification compared to a freehold property. We run both scenarios during pre-approval.
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