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Down payments, approvals, government programs, affordability rules — most first-time buyers do not know where to start or what actually matters. This is the part nobody explains properly, laid out in order.
Stephen Green, Mortgage BrokerWaterloo Region · serving all of Ontario
Nearly 30 years in Canadian financial services
Figures on this page are current Canadian rules, linked to their source. Everything is subject to full qualification and final lender terms.
Saving it is the hard part. Showing it properly is the part that delays files.
| Purchase price | Minimum down payment | Insurance |
|---|---|---|
| $500,000 or less | 5% of the price | Required below 20% down |
| $500,000 to $1.5 million | 5% of the first $500,000, then 10% of the rest | Required below 20% down |
| $1.5 million and above | 20% of the price | Not insurable — 20% is the floor |
Federal minimums, per the Financial Consumer Agency of Canada. Checked 25 August 2026 — these rules do change, so confirm before relying on them.
Lenders generally want three months of statements showing where the money came from. A large deposit that appears from nowhere will be questioned, and answering it late holds up the file.
Family help is completely normal and completely acceptable — provided it is a genuine gift. That means a signed gift letter confirming no repayment is expected, and the money in your account before closing. If a parent is helping you qualify rather than helping with the down payment, that is a different question — co-signing versus guaranteeing →
Funds inside an FHSA, an RRSP or a TFSA all behave differently on the way out. Moving them at the wrong moment can cost you tax or a program benefit.
Undocumented cash, borrowed down payment presented as savings, or a sudden transfer between accounts nobody can explain. None of these are fatal — but they are far easier to handle early.
These are widely misunderstood, and some of what you will read online is out of date.
$8,000 of contribution room a year toward a first home. Contributions are deductible and a qualifying withdrawal is not taxed — which makes it the most efficient of the options for most people. CRA details ↗
Withdraw up to $60,000 from your RRSP toward a first home. It is a loan to yourself, repayable over 15 years, and there is currently a deferral on when repayment starts for recent withdrawals. CRA details ↗
Up to $4,000 back on provincial land transfer tax for a first-time buyer. Toronto runs a separate municipal rebate on top. Normally claimed by your lawyer at closing — confirm it rather than assume. Ontario details ↗
A federal non-refundable credit claimed on your return for the year you buy. Small, easy to miss, and easy to claim. CRA details ↗
Applies if you are buying new or substantially renovated. Often built into the builder’s price, which is exactly why it is worth checking who is claiming it. CRA details ↗
Several Ontario municipalities run their own homeownership assistance programs, usually income-tested and usually with limited intake windows. They are easy to miss because nobody advertises them.
Third-party programs administered by each municipality — eligibility, funding and intake windows are theirs and change without notice. Know of one that is missing? Tell us and it goes on the list.
Families usually expect a parent to guarantee the mortgage without becoming an owner. Lenders frequently want them on title instead — and whether that is negotiable turns on whether the parent’s income is needed to qualify, how much is going down, and how the mortgage is registered. Three summaries of the same question, written for three different readers.
The two roles a parent can play, why lenders lean toward on title, and how your down payment and the type of charge change what is possible. Written for the family having the conversation.
Download the client guide — PDF, 1 page ↓The “why can’t my parents just co-sign?” conversation, the three ways a file can be structured, and the one-line version to give a buyer before the deal stalls.
Download the partner guide — PDF, 1 page ↓The structuring sheet: guarantor, covenantor and co-borrower side by side, what the down payment and charge type change, and where the exposure sits.
Download the reference sheet — PDF, 1 page ↓General information, not legal or tax advice. Lender policies, default insurer guidelines and provincial rules vary by file and change over time. Ownership and charge structure should be confirmed with your real estate lawyer, and everything is subject to full qualification and final lender terms.
Not because they are careless. Because nobody told them.
The headline number is the last thing that matters and the first thing everyone looks at. Structure, penalty terms and prepayment privileges matter far more over the life of the mortgage than the headline number does.
It is a budget, not a commitment. Full approval depends on underwriting your documents and on the lender being satisfied with the specific property.
Pay stubs, statements, employment letters, gift letters, tax documents. Files stall on documentation far more often than on qualification.
The most useful time for the first conversation is before you start looking — sometimes a year before. It costs nothing and it changes what you look at.
It sets the terms you live with for years, and it decides how expensive it is to change your mind. Before signing, it is worth knowing what happens if your income changes, what it would cost to break the mortgage early, whether you can port it if you move, and what the renewal looks like when the term ends.
What price you can actually carry, using the debt-service ratios lenders apply rather than a rough multiple of income. Open the calculators →
The full cost of buying including Ontario land transfer tax and the first-time rebates, so closing day holds no surprises. Open the calculators →
All nine calculators, plus a home value estimate, on your home screen. No app store and no account. See the app →
Based in Waterloo Region, working throughout southwestern Ontario — and able to help buyers anywhere in the province.
The federal minimum is 5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $1.5 million, and 20% at $1.5 million and above. Below 20% down your mortgage must be insured, which adds a premium. Those are the floors — what you should put down is a different conversation.
No, and this catches people out badly. A pre-approval is a lender's view of what you could likely borrow based on what you have told them. Full approval comes after underwriting reviews your documents and after the lender is satisfied with the specific property. Treat a pre-approval as a budget, not a promise.
The FHSA lets you contribute $8,000 a year toward a first home, and the contribution is deductible while the withdrawal for a qualifying home is not taxed. The Home Buyers' Plan lets you withdraw up to $60,000 from an RRSP, but it is a loan to yourself that has to be repaid over 15 years. Many first-time buyers can use both. Which order makes sense depends on your income and your timeline.
Lenders generally want to see 90 days of history on the funds, so they can confirm where the money came from. A large deposit that appears out of nowhere the week before closing will be questioned. If money is coming from family, it needs a signed gift letter and it needs to be in your account before closing.
Yes. A gifted down payment is common and entirely acceptable, provided it is a genuine gift and not a loan. The lender will want a signed gift letter from the giver confirming there is no repayment expected, plus proof the funds landed in your account.
Yes, it applies to essentially every first-time buyer. You have to qualify at a higher figure than the one you will actually pay, which is what determines your real maximum. It is the single biggest reason the amount you can borrow is lower than people expect.
Land transfer tax, legal fees, title insurance and adjustments for prepaid property tax — a common rule of thumb is 1.5% to 4% of the purchase price on top of the down payment, and in Toronto it is at the higher end because of the municipal land transfer tax. The home inspection and the appraisal are not closing costs: both are paid out of pocket while the offer is still conditional, so budget for them earlier.
In Ontario a first-time buyer can claim a refund of up to $4,000 on provincial land transfer tax, and Toronto has a separate municipal rebate. Your lawyer normally claims it at closing, but confirm it rather than assume — it is your money.
It depends on your tolerance for payment movement and how likely you are to break the mortgage early. The part almost nobody asks about is the penalty: fixed mortgages from the big banks can carry a much larger charge if you break them. That belongs in the decision from the start.
Before. Knowing your real number, your documentation gaps and your timeline before you fall in love with a house is the whole point. There is no cost and no obligation to that conversation.
The most useful conversation happens before you have found a house — when there is still time to fix the documentation, choose the right account to save into, and know your real number. No cost, no credit check, no obligation.