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Posted On Mar 01, 2026

First-Time Home Buyers in Ontario: What You Need to Know

Lazar Mortgages | Your Guide to Buying Your First Home

 

Buying your first home is exciting — and overwhelming.

Between down payments, mortgage approvals, closing costs, and government programs, it can feel like learning a new language overnight.

At Lazar Mortgages, we guide first-time buyers across Ontario every day. This guide walks you through what really matters — clearly and strategically.

Step 1: How Much Do You Need to Buy in Ontario?

The first question most buyers ask:

How much money do I actually need?

Minimum Down Payment Rules

In Ontario (and across Canada):

  • 5% on the first $500,000

  • 10% on the portion between $500,000–$999,999

  • 20% minimum for homes $1,000,000+

If your down payment is under 20%, your mortgage must be insured through:

  • Canada Mortgage and Housing Corporation

  • Sagen

  • Canada Guaranty

Insured mortgages often come with some of the most competitive interest rates available.

Step 2: What Income Do You Need?

Lenders look at four major areas:

✔ Income Stability

  • Full-time employment preferred

  • 2-year history ideal

  • Self-employed requires 2 years of tax returns

✔ Credit Score

  • 680+ is strong

  • 600–679 workable

  • Below 600 requires strategy

✔ Debt Ratios

Your total monthly debts (including the new mortgage) must fall within lender guidelines.

✔ Down Payment Source

Must be verified with 90-day history or proper documentation.

We always run a full pre-approval before you shop — not just a quick estimate.

Step 3: First-Time Buyer Programs in Ontario

There are major advantages available to first-time buyers.

🏦 Home Buyers’ Plan (HBP)

You can withdraw up to $35,000 from your RRSP tax-free (per person) to use toward your down payment.

You’ll have 15 years to repay it.

💰 First-Time Home Buyers’ Tax Credit

The federal government offers a non-refundable tax credit to help offset closing costs.

🏷 Ontario Land Transfer Tax Rebate

Ontario first-time buyers may qualify for a rebate on provincial land transfer tax — often saving thousands.

If you’re buying in Toronto, there may be an additional municipal rebate as well.

Step 4: What Are the Closing Costs?

First-time buyers are often surprised by this part.

Plan for approximately 1.5%–4% of the purchase price for:

  • Land transfer tax (minus rebates)

  • Legal fees

  • Title insurance

  • Home inspection

  • Adjustments (property taxes, utilities)

We provide a full closing cost estimate before you make an offer.

Step 5: Pre-Approval — Your First Real Move

Before house hunting, you need a structured mortgage pre-approval.

A proper pre-approval will:

  • Confirm your maximum budget

  • Lock in a rate (typically 90–120 days)

  • Strengthen your offer

  • Identify potential issues early

At Lazar Mortgages, we review:

  • Income documents

  • Credit report

  • Down payment verification

  • Debt ratios

  • Stress test qualification

No guesswork.

Ontario First-Time Buyer Timeline

0–3 Months Before Buying

  • Check credit

  • Save aggressively

  • Get pre-approved

1–2 Months Before Offer

  • Work with a trusted realtor

  • Narrow neighbourhoods

  • Confirm budget comfort level

Offer Accepted

  • Final mortgage approval

  • Appraisal (if required)

  • Remove financing condition

Closing Day

  • Sign with lawyer

  • Transfer funds

  • Get keys

Common First-Time Buyer Mistakes

❌ Shopping before pre-approval
❌ Draining savings for down payment (leaving no buffer)
❌ Opening new credit before closing
❌ Changing jobs mid-application
❌ Underestimating closing costs

We help you avoid these.

What Monthly Payment Feels Comfortable?

Approval amount and comfort level are not the same thing.

We help you answer:

  • What fits your lifestyle?

  • Do you want travel flexibility?

  • Planning kids?

  • Future renovations?

Buying your first home should feel exciting — not financially suffocating.

Should You Buy Now or Wait?

Ontario markets fluctuate. Rates fluctuate. Rents continue to rise in many cities.

The real question isn’t timing the market perfectly.

It’s:

Are you financially ready?

If you have:

  • Stable income

  • Manageable debt

  • A plan for savings

  • A 3–6 month emergency buffer

Then you may be closer than you think.

Final Thoughts from Lazar Mortgages

Your first home is more than a transaction — it’s the start of long-term wealth building.

At Lazar Mortgages, we:

  • Map your buying power clearly

  • Explain programs simply

  • Structure your application strategically

  • Make sure you feel confident before you commit

If you're thinking about buying your first home in Ontario, let's build the plan properly.

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