FHSA strategy
Use the First Home Savings Account to save for a qualifying first home with deductible contributions and tax-free qualifying withdrawals.
First-time home buyers
Your first home should feel planned, not panicked.
Before you shop, understand what you can afford, how much cash you need, which rebates may apply, and whether a lower down payment, 20% down, or down payment support makes the most sense.
First buyer checklist
5%+
Minimum down payment can start below 20%, depending on price and insurance rules.
30 years
Eligible first-time buyers may access 30-year insured amortization.
FHSA + HBP
Registered savings can work together when rules are met.
Rebates
Land transfer and new-build tax relief can change closing cash.
What you may be able to use
First-time buyers get more than just a mortgage approval.
The right plan brings together affordability, rebates, tax accounts, closing costs, and down payment structure so you know the real cost before making an offer.
RRSP Home Buyers' Plan
Eligible buyers may be able to withdraw up to $60,000 from an RRSP under the Home Buyers' Plan, subject to CRA rules.
Land transfer rebates
Ontario first-time buyer rebates can reduce closing cash when eligibility conditions are met. Toronto has a separate municipal rebate, but Ottawa buyers mainly need the Ontario calculation.
New-build GST/HST help
First-time buyers of eligible new homes may qualify for federal GST/HST relief, with Ontario support also available for qualifying homes.
Payment-first planning
Compare affordability, stress test, land transfer tax, mortgage insurance, property tax, heating, condo fees, and monthly comfort before you fall in love with a listing.
Offer confidence
Know the approval structure, conditions, documents, and closing cash before competing.
Down payment structure
Less than 20% down gets you in sooner. 20% down changes the cost.
There is no single correct answer. A smaller down payment can help you enter the market earlier, but it usually means mortgage default insurance. With 20% or more down, you usually avoid that insurance premium and may lower the monthly payment, but you need more cash upfront.
Under 20% down
High-ratio mortgage
- Can start with a smaller down payment.
- Mortgage default insurance is generally required.
- Insurance premium can be added to the mortgage.
- May help you buy sooner if waiting for 20% down is unrealistic.
20% down or more
Conventional mortgage
- Mortgage default insurance is usually not required.
- Lower loan amount can mean lower monthly payments.
- More equity from day one.
- Requires more cash, so closing costs and emergency savings still matter.
Cash needed to close
The down payment is only one part of the first purchase.
A first-time buyer plan should show the full cash picture before the offer: down payment, rebates, insurance, taxes, lawyer costs, and a reserve after closing.
Down payment
Minimum down payment depends on purchase price. Less than 20% usually means an insured mortgage.
Mortgage insurance
If required, the premium is usually added to the mortgage, but it still affects payment and qualification.
Land transfer tax
Ontario buyers should estimate tax and any first-time buyer refund before making offers.
Legal and adjustments
Lawyer fees, title insurance, property tax adjustments, appraisal, moving, and setup costs should be planned.
Province and property matter
Rebates can change your closing cash.
Ontario is the default for most of Sean's clients, but first-time buyer programs can vary by province, city, and whether the home is resale or new construction.
Estimate closing costsOntario
Provincial land transfer tax refund may be available, commonly up to $4,000 for eligible first-time buyers.
FHSA and RRSP HBP
Registered plans can help build the down payment, but contribution room, withdrawal timing, and repayment rules should be checked before relying on the funds.
New builds
Eligible new homes may have GST/HST rebate considerations. Builder pricing can already include some rebate assumptions, so the purchase agreement matters.
Other provinces
Programs vary by province and city. I review the province, property type, price, and closing date before estimating rebates or closing cash.
If down payment is the problem
Strong income, short on down payment? Look at Ourboro.
Some buyers can carry the mortgage but cannot reach the down payment needed for the home they want. Ourboro may help eligible buyers by contributing part of the down payment in exchange for sharing in the future appreciation or loss when the home is sold.
Down payment gap
Useful when saving more would delay the purchase or change the home search.
Shared upside and downside
The agreement needs to be understood before the offer, refinance, renovation, rent, or sale.
Still needs mortgage fit
Income, credit, property, lender, and legal review still matter.
Sean's first buyer process
Get clear before you write the offer.
A pre-approval should be more than a rate quote. It should show how much you qualify for, what you are comfortable paying, what documents are needed, and what cash needs to be ready on closing.
1
Confirm income, credit, debts, and down payment source.
2
Estimate qualification and comfortable monthly payment.
3
Check FHSA, RRSP HBP, gift, Ourboro, or other down payment options.
4
Review rebates, closing costs, insurance premium, and cash needed on closing.
5
Get a pre-approval plan before making offers.
Ready to compare numbers?
Use the calculator, then send Sean the file.
The calculator estimates payment, land transfer tax, mortgage insurance, and affordability. Sean confirms lender fit and the documents needed for your approval.
Talk to Sean
Bring the numbers. I'll help turn them into a plan.
Send the basics or call directly. I'll help compare lender options, structure, affordability, and timing with plain-English advice.
Call or text514-746-9496
Emailsean@thebrokerguy.ca
Brokerage8Twelve Mortgage Corp 13072
Service areasBarrhaven, Nepean, Kanata, Stittsville, Ottawa West, and Ontario
Office45 Sheppard Ave. E, Suite 211, Toronto, ON M2N 5W9