First-Time Home Buyer Guide in Ontario (2026 Edition)

Buying your first home is a big step. It’s exciting. It’s emotional. And if we’re being honest… it can feel overwhelming.

Between down payments, credit scores, and mortgage rules, most first-time buyers aren’t sure where to start.

Let’s simplify it.

Step 1: Know What You Can Afford

Before looking at listings, understand your numbers.

This includes:

  • How much a lender will approve

  • What monthly payment feels comfortable

  • Property taxes and condo fees (if applicable)

  • Closing costs (typically 1.5–4% of purchase price)

Approval amount and comfort level are not always the same thing. The goal is a payment that fits your life — not stretches it.

Step 2: Understand Down Payment Rules in Canada

Minimum down payment requirements:

  • 5% on homes up to $500,000

  • 10% on the portion above $500,000 (up to $999,999)

  • 20% minimum for $1.5M+ homes

Sources for your down payment can include:

  • Personal savings

  • A gifted down payment from family

  • RRSP withdrawal under the Home Buyers’ Plan

Planning this early makes everything smoother later.

Step 3: Strengthen Your Credit

Your credit score can impact:

  • Your interest rate

  • Your lender options

  • Your overall borrowing power

Quick wins:

  • Pay everything on time

  • Keep credit card balances under 50% of limits

  • Avoid opening new loans before buying

Small adjustments can save thousands over time.

Step 4: Get Pre-Approved

A mortgage pre-approval:

  • Confirms your buying range

  • Makes your offer stronger

  • Can hold an interest rate for up to 130 days

It turns “maybe” into a clear plan.

Step 5: Build Your Buying Team

You’ll typically need:

  • A mortgage professional

  • A real estate agent

  • A real estate lawyer

  • A home inspector

The right team makes the process feel organized instead of chaotic.

Step 6: Making the Offer

Once you find the right home:

  • Your agent structures the offer

  • Conditions are added (financing, inspection, etc.)

  • Negotiations happen

This is where preparation pays off.

Step 7: Closing Day

Closing includes:

  • Final mortgage signing

  • Transferring funds

  • Paying legal fees and land transfer tax

  • Getting your keys

Yes, it’s worth it.

Ready to Buy Your First Home in Ontario?

If you’re thinking about buying (even if it’s 6–12 months away) now is the right time to plan.

A short strategy call can help you:

• Understand your true buying power
• Map out a down payment plan
• Improve your approval strength
• Avoid common first-time buyer mistakes

You don’t need to have all the answers.
You just need to start the conversation.

👉 Reach out and let’s build your plan.

Christina

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