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⏰ Pressed for time? Skip ahead to our first-time home buyer checklist.
Almost seven-in-ten Canadians (69%) agree that the country’s housing market is unfair to first-time home buyers, according to NerdWallet Canada’s 2026 Real Estate Sentiment Report.
Mercifully, there are several programs that can make buying your first home a little more affordable.
But buying a home isn’t just a financial matter. There’s an emotional component, too. Self-awareness and expectation-setting play major roles, particularly in the early stages of the home buying process.
Canadian mortgage lenders must abide by the following minimum down payment rules:
For homes priced up to $500,000:5% of the sale price.
For homes priced from $500,000 up to $1.5 million: 5% of the first $500,000 and 10% of the remainder.
For homes priced $1.5 million or more:20% of the sale price.
Those are just the minimums. You may be required to make a larger down payment due to your debt service ratios or the mortgage stress test. Some lenders require higher down payments as well.
You won’t really know how much your down payment will be until you connect with a lender or mortgage broker and get pre-approved for a mortgage.
Minimum down payment examples
Final sale price
Minimum down payment required
$300,000
$15,000 (5%)
$600,000
$35,000 (5% plus 10%)
$900,000
$65,000 (5% plus 10%)
$1,200,000
$95,000 (5% plus 10%)
$1,500,000
$300,000 (20%)
Other home buying costs
Your monthly mortgage payment
Your down payment determines how large a mortgage you wind up with, an amount that gets divided into monthly payments. Your income and other debt obligations will determine what you can afford to pay each month.
Mortgage insurance
Make a down payment of less than 20% and you’ll need to buy mortgage default insurance, which gets added to your mortgage amount and generates additional interest.
Closing costs
Closing costs pay for things like land transfer taxes, appraisals and legal fees. The exact amount can vary, but be prepared to pay 3-5% of the home’s market value. Use a closing costs calculator to estimate what you might pay in a particular province.
General expenses
Your mortgage payment is just one homeownership expense. To get a clear idea of how much your first home might cost, you have to factor in other expenses, including:
Commuting costs.
Lifestyle spending like shopping, socializing and subscriptions.
Utility bills that aren’t factored into your mortgage pre-approval.
Parking.
Seasonal maintenance costs.
Canadian first-time home buyer assistance: Grants, incentives and saving tools
Deposits are tax-refundable, and the gains on those deposits are tax-free.
You can open an FHSA at most financial institutions in Canada.
Each year, you can deposit up to $8,000 in your FHSA, up to a total limit of $40,000.
Deposits can be used to purchase stocks, bonds or GICs, which may help grow your down payment savings more quickly.
Because the FHSA’s total deposit limit is so modest, you may need to also fund a TFSA and an RRSP (for use with the Home Buyers’ Plan) to significantly increase your buying power.
If you don’t end up buying a home, you can always transfer your FHSA savings into your RRSP. Your TFSA savings can be used however you like.
Home Buyers' Plan
The Homebuyers' Plan allows you to withdraw up to $60,000, tax-free, from your registered retirement savings plan (RRSP) to put towards a home purchase.
Funds withdrawn from an RRSP must be paid back within 15 years to remain tax-free.
That sounds like a long time, but if your mortgage and other expenses take up most of your monthly income, setting aside RRSP repayment funds could put added stress on your budget.
It’s also important to consider the HBP’s opportunity cost. If your RRSP was growing at 7% annually, and then you pulled your funds out to buy a home that appreciates at 3%, that money’s not necessarily generating additional wealth.
GST/HST New Housing Rebate
You might be eligible to get back some of the GST or the federal portion of the HST paid on a new or significantly renovated home that is used as a primary residence.
On top of savings at the federal level, there may be programs that reduce the provincial portion of your HST as well.
Home Buyers’ Tax Credit
The Home Buyers' Tax Credit (HBTC) is a non-refundable income tax credit of up to $10,000 for first-time home buyers.
Enter the $10,000 Home Buyer’s Amount on Line 31270 of your income tax return for the year you purchased your first home. It results in a $1,500 tax rebate.
To be eligible to claim the HBTC, you (or your spouse or common-law partner) must:
Buy a qualifying home registered in your (or your spouse’s or common-law partner’s) name. It can be an existing property or under construction and includes single-family structures, townhouses, condo units and more.
Be a first-time home owner, meaning that you did not reside in a property that you or your spouse or common-law partner owned in the previous four years.
The qualifying home must become your principal place of residence within one year after it’s bought or constructed.
Eligible persons with a disability can apply for the tax credit without needing to be a first-time home buyer.
Properties that qualify include:
Single-family houses.
Townhomes and semi-detached houses.
Apartments and condo units.
Mobile homes.
Discontinued programs
It's a bummer, but these programs are no longer available:
First-Time Home Buyer Incentive. The FTHBI was a program that offered down payment assistance of up to 10% of a home's purchase price in exchange for an equity share in the home.
Canada Greener Homes Loan. The Canada Greener Homes Loan program provided up to $40,000 in interest-free loans for Canadians making their homes more energy efficient.
Greener Homes Grant. This grant provided up to $5,000 for eligible efficiency-related retrofits.
Deposits are tax-refundable, and the gains on those deposits are tax-free.
You can open an FHSA at most financial institutions in Canada.
Each year, you can deposit up to $8,000 in your FHSA, up to a total limit of $40,000.
Deposits can be used to purchase stocks, bonds or GICs, which may help grow your down payment savings more quickly.
Because the FHSA’s total deposit limit is so modest, you may need to also fund a TFSA and an RRSP (for use with the Home Buyers’ Plan) to significantly increase your buying power.
If you don’t end up buying a home, you can always transfer your FHSA savings into your RRSP. Your TFSA savings can be used however you like.
The Homebuyers' Plan allows you to withdraw up to $60,000, tax-free, from your registered retirement savings plan (RRSP) to put towards a home purchase.
Funds withdrawn from an RRSP must be paid back within 15 years to remain tax-free.
That sounds like a long time, but if your mortgage and other expenses take up most of your monthly income, setting aside RRSP repayment funds could put added stress on your budget.
It’s also important to consider the HBP’s opportunity cost. If your RRSP was growing at 7% annually, and then you pulled your funds out to buy a home that appreciates at 3%, that money’s not necessarily generating additional wealth.
You might be eligible to get back some of the GST or the federal portion of the HST paid on a new or significantly renovated home that is used as a primary residence.
On top of savings at the federal level, there may be programs that reduce the provincial portion of your HST as well.
The Home Buyers' Tax Credit (HBTC) is a non-refundable income tax credit of up to $10,000 for first-time home buyers.
Enter the $10,000 Home Buyer’s Amount on Line 31270 of your income tax return for the year you purchased your first home. It results in a $1,500 tax rebate.
To be eligible to claim the HBTC, you (or your spouse or common-law partner) must:
Buy a qualifying home registered in your (or your spouse’s or common-law partner’s) name. It can be an existing property or under construction and includes single-family structures, townhouses, condo units and more.
Be a first-time home owner, meaning that you did not reside in a property that you or your spouse or common-law partner owned in the previous four years.
The qualifying home must become your principal place of residence within one year after it’s bought or constructed.
Eligible persons with a disability can apply for the tax credit without needing to be a first-time home buyer.
Properties that qualify include:
Single-family houses.
Townhomes and semi-detached houses.
Apartments and condo units.
Mobile homes.
It's a bummer, but these programs are no longer available:
First-Time Home Buyer Incentive. The FTHBI was a program that offered down payment assistance of up to 10% of a home's purchase price in exchange for an equity share in the home.
Canada Greener Homes Loan. The Canada Greener Homes Loan program provided up to $40,000 in interest-free loans for Canadians making their homes more energy efficient.
Greener Homes Grant. This grant provided up to $5,000 for eligible efficiency-related retrofits.
🤓Nerdy Tip
Generally, you’ll be considered a first-time home buyer if you or your common-law partner has never owned a home or investment property. Some programs have exceptions, so you may be considered a first-time home buyer if you’ve previously owned a home but have recently experienced the breakdown of a marriage or common-law partnership.
Provincial programs
British Columbia
First-Time Home Buyers’ Program. This program can cut up to $8,000 from the land transfer tax owed on houses valued at $500,000 or less.
Home Owner Grant. Reduce your property taxes if the home is your principal residence. This program isn’t limited to only first-time home buyers.
Newly Built Home Exemption. The exemption reduces property transfer taxes on newly built homes worth less than $800,000
Attainable Homes Calgary (AHC). This local program helps people with a household income of up to $131,424 fund a down payment. If you sell your home later, you repay AHC the loaned amount plus a portion of any equity appreciation. » Learn more about AHC here.
Edmonton First Place Program. Through this program, buyers with a combined household income of less than $117,000 can defer the land cost for five years when buying eligible townhomes. » Learn more about Edmonton First Place here.
PST rebate on new home construction. Worth up to 42% of the PST paid when purchasing a newly constructed home worth less than $550,000. » Learn more about the rebate here.
Manitoba
Affordable Homes Program. If you meet certain income thresholds and purchase a home directly from Manitoba Housing, you may qualify for down payment assistance, no land transfer tax and two non-repayable grants that add up to $2,500. » Learn more about the Affordable Homes program.
First-Time Home Purchase Program. Provides Red River Métis citizens with down payment assistance worth up to 5% of a home's purchase price and closing cost assistance worth up to $2,500. » Learn more about the Metis home purchase program.
Ontario
Ontario Land Transfer Tax Refund. Eligible first-time home buyers can get a refund of the provincial land transfer tax worth up to $4,000. Buyers won’t pay any tax for homes worth less than $368,000. » Learn more about the refund program.
First-Time Purchaser Rebate (Toronto only). First-time buyers in Toronto can avoid some or all of the municipal land transfer tax. The maximum refund is $4,475, which can be combined with the provincial LTT refund. » Learn more about the MLTT rebate.
👉 Tap for more homeownership programs in Ontario
The Region of Waterloo (includes Kitchener and Cambridge)
Type of assistance:Down payment loan. The loan is completely forgiven if you live in the home for 20 years. If you sell before then, however, you’ll have to repay the loan in full plus a percentage of the capital gains.
How much: 5% for the first $500,000 of a home’s purchase price, and 10% for any amount between $500,000 and $600,000.
Eligibility: Household income can’t exceed $109,000. You must have resided in the region for at least the last 12 months.
Simcoe County
Type of assistance:Down payment loan. The loan is completely forgiven if you live in the home for 20 years. If you sell before then, however, you’ll have to repay the loan in full plus a percentage of the capital gains.
How much: 10% of a home’s purchase price, with a loan maximum of $50,000. Purchase price can’t exceed $712,300.
Eligibility: Participants must be renters earning a gross household income of no more than $121,500.
How much: 10% of the purchase price, up to $70,000. Purchase price can’t exceed $726,600.
Eligibility: Household income at or below $112,400. Assets of no more than $50,000 for an individual or $75,000 for households.
Quebec
Home Buyers' Tax Credit. A provincial tax credit for first-time buyers worth up to $1,400 for a qualifying home. » Learn more about the tax credit.
Home Purchase Assistance Program (Montreal only). The HPAP offers up to $15,000 in assistance for first-time buyers purchasing a newly built home. Smaller amounts are available if you buy an existing home and have at least one child under 18. » Learn more about the assistance program.
New Brunswick
Homeownership Assistance Program. HAP offers 25-year loans of up to $75,000 for first-time buyers earning a total household income of $40,000 or less. A loan is interest-free if the borrower’s income is less than $30,000. » Learn more about the assistance program.
The Off-Reserve Aboriginal Home Ownership Program. Indigenous New Brunswick residents interested in buying or building their first home can apply for 25-year loans with affordable interest rates. Borrowers must earn a total household income of $55,000 or less, and have a shelter cost-to-income ratio no higher than 32%. » Learn more about the ORAH program.
Nova Scotia
Down Payment Assistance Program. First-time buyers who qualify for an insured mortgage may be eligible for an interest-free loan worth 5% of a home's purchase price. The loan is repayable over 10 years and must be put toward a down payment. » Learn more about the DPAP program.
First-Time Home Buyers' Rebate. First-timers can get a rebate worth up to $3,000 on the provincial portion of the HST charged on a newly built home. » Learn more about the rebate.
Prince Edward Island
Real Property Transfer Tax exemption. First-time buyers can avoid paying the province's Real Property Transfer Tax when buying a qualifying home worth up to $200,000. » Learn more about the exemption.
Down Payment Assistance Program. PEI's DPAP offers first-time home buyers a loan worth up to $17,500. The loan is interest-free unless a borrower fails to repay it back. » Learn more about the DPAP program.
Newfoundland
First-Time Homebuyers Program. The FHP offers a grant worth up to 50% of a first-tie buyer's closing costs and a loan worth up to 5% of a home's purchase price. Eligible households must earn less than $85,000 to qualify for full funding. » Learn more about the FHP.
First-Time Home Buyers’ Program. This program can cut up to $8,000 from the land transfer tax owed on houses valued at $500,000 or less.
Home Owner Grant. Reduce your property taxes if the home is your principal residence. This program isn’t limited to only first-time home buyers.
Newly Built Home Exemption. The exemption reduces property transfer taxes on newly built homes worth less than $800,000
Attainable Homes Calgary (AHC). This local program helps people with a household income of up to $131,424 fund a down payment. If you sell your home later, you repay AHC the loaned amount plus a portion of any equity appreciation. » Learn more about AHC here.
Edmonton First Place Program. Through this program, buyers with a combined household income of less than $117,000 can defer the land cost for five years when buying eligible townhomes. » Learn more about Edmonton First Place here.
PST rebate on new home construction. Worth up to 42% of the PST paid when purchasing a newly constructed home worth less than $550,000. » Learn more about the rebate here.
Affordable Homes Program. If you meet certain income thresholds and purchase a home directly from Manitoba Housing, you may qualify for down payment assistance, no land transfer tax and two non-repayable grants that add up to $2,500. » Learn more about the Affordable Homes program.
First-Time Home Purchase Program. Provides Red River Métis citizens with down payment assistance worth up to 5% of a home's purchase price and closing cost assistance worth up to $2,500. » Learn more about the Metis home purchase program.
Ontario Land Transfer Tax Refund. Eligible first-time home buyers can get a refund of the provincial land transfer tax worth up to $4,000. Buyers won’t pay any tax for homes worth less than $368,000. » Learn more about the refund program.
First-Time Purchaser Rebate (Toronto only). First-time buyers in Toronto can avoid some or all of the municipal land transfer tax. The maximum refund is $4,475, which can be combined with the provincial LTT refund. » Learn more about the MLTT rebate.
👉 Tap for more homeownership programs in Ontario
The Region of Waterloo (includes Kitchener and Cambridge)
Type of assistance:Down payment loan. The loan is completely forgiven if you live in the home for 20 years. If you sell before then, however, you’ll have to repay the loan in full plus a percentage of the capital gains.
How much: 5% for the first $500,000 of a home’s purchase price, and 10% for any amount between $500,000 and $600,000.
Eligibility: Household income can’t exceed $109,000. You must have resided in the region for at least the last 12 months.
Simcoe County
Type of assistance:Down payment loan. The loan is completely forgiven if you live in the home for 20 years. If you sell before then, however, you’ll have to repay the loan in full plus a percentage of the capital gains.
How much: 10% of a home’s purchase price, with a loan maximum of $50,000. Purchase price can’t exceed $712,300.
Eligibility: Participants must be renters earning a gross household income of no more than $121,500.
How much: 10% of the purchase price, up to $70,000. Purchase price can’t exceed $726,600.
Eligibility: Household income at or below $112,400. Assets of no more than $50,000 for an individual or $75,000 for households.
Home Buyers' Tax Credit. A provincial tax credit for first-time buyers worth up to $1,400 for a qualifying home. » Learn more about the tax credit.
Home Purchase Assistance Program (Montreal only). The HPAP offers up to $15,000 in assistance for first-time buyers purchasing a newly built home. Smaller amounts are available if you buy an existing home and have at least one child under 18. » Learn more about the assistance program.
Homeownership Assistance Program. HAP offers 25-year loans of up to $75,000 for first-time buyers earning a total household income of $40,000 or less. A loan is interest-free if the borrower’s income is less than $30,000. » Learn more about the assistance program.
The Off-Reserve Aboriginal Home Ownership Program. Indigenous New Brunswick residents interested in buying or building their first home can apply for 25-year loans with affordable interest rates. Borrowers must earn a total household income of $55,000 or less, and have a shelter cost-to-income ratio no higher than 32%. » Learn more about the ORAH program.
Down Payment Assistance Program. First-time buyers who qualify for an insured mortgage may be eligible for an interest-free loan worth 5% of a home's purchase price. The loan is repayable over 10 years and must be put toward a down payment. » Learn more about the DPAP program.
First-Time Home Buyers' Rebate. First-timers can get a rebate worth up to $3,000 on the provincial portion of the HST charged on a newly built home. » Learn more about the rebate.
Real Property Transfer Tax exemption. First-time buyers can avoid paying the province's Real Property Transfer Tax when buying a qualifying home worth up to $200,000. » Learn more about the exemption.
Down Payment Assistance Program. PEI's DPAP offers first-time home buyers a loan worth up to $17,500. The loan is interest-free unless a borrower fails to repay it back. » Learn more about the DPAP program.
First-Time Homebuyers Program. The FHP offers a grant worth up to 50% of a first-tie buyer's closing costs and a loan worth up to 5% of a home's purchase price. Eligible households must earn less than $85,000 to qualify for full funding. » Learn more about the FHP.
Agents, brokers and lawyers: Your home buying team
As a first-time buyer, it’s inevitable that you’ll bring in a professional or two to help complete the home buying process. You’ll generally need to find:
A real estate agent or Realtor. You don’t need to hire an agent to help you find a home, but their local expertise and negotiating experience may be invaluable. As a buyer, you don’t pay commission to an agent or Realtor.
A mortgage professional. You can’t get a mortgage without either a bank’s mortgage advisor or an independent mortgage broker underwriting your loan and explaining the terms of your mortgage.
A real estate lawyer. Another must-have, if only to look over the details of your purchase agreement and ensure you understand them.
🤓Nerdy Tip
Finding real estate professionals can be stressful since you’ll be sifting through strangers to find someone trustworthy. Ask your friends and family for recommendations, then expand your search to the internet. Look for a combination of positive customer reviews and extensive local experience.
Quick tips for your first housing market experience
Ignore national home prices in the mediaFocus exclusively on data provided by your municipal or provincial real estate board.
Go to the sourceUse Realtor.ca to track sold data and active listings in your target neighbourhoods.
Watch out for bidding warsIt's common for sellers to price homes below market value to trigger an artificial bidding war. Establish your price ceiling before making an offer.
Focus on must-havesMake a list of elements you can't live without and a let that be your guide. Your first home doesn't have to be your forever home.
First-time home buyer checklist
✅ Firm up your credit score:
Access your credit score for free to see where you stand now.
Check the report for any lingering issues or mistakes.
Decide if there are debts that can be paid down quickly, which could improve your score.
✅Create an initial budget:
Confirm the down payment savings you have available.
Add up your household monthly income and subtract recurring debt payments and monthly expenses.
Use a mortgage affordability calculator to estimate mortgage payment amounts.
✅ Get pre-approved for a mortgage:
Contact your bank or a mortgage broker and assemble the list of documents required for pre-approval.
When pre-approval is complete, review your mortgage options.
✅Decide what you’re looking for:
Based on your pre-approval amount, research homes available within your budget.
Make a list of “must-haves” for the home you buy, including location and neighbourhood amenities.
Make a list of “nice-to-haves” that you’re willing to compromise on.
✅Find a real estate agent to work with:
Ask friends and family if there’s a local agent they would recommend.
Interview a few agents until you find one you’re comfortable with.
Discuss your must-haves and nice-to-haves with your agent.
✅View properties and make offers:
Ask your agent to explain the various conditions sellers might require when accepting offers. Factor in the taxes, insurance, upkeep and repairs you’d be paying for as a homeowner.
Frequently asked questions
What assistance is available for first-time home buyers in Canada?
There are several programs and tools first-timers can use to make home buying more attainable: the First Home Savings Account, the Home Buyers’ Plan, the Home Buyers Tax Credit and the GST/HST rebate on new home purchases.
Is it worth it to buy a house?
Buying a home is worth it if the sacrifices involved help you attain specific goals. If you don’t want the uncertainty of renting someone else’s property, it may be worth the cost. Buying a home purely for financial gain, however, might not be a surefire bet. It's expensive, and a home’s value can fluctuate.
Can I buy a house if I have bad credit?
In some cases, yes. Some mortgage lenders provide funding for home buyers with low credit scores or past debt issues. These alternative lenders often charge higher interest rates and require down payments of 20%, so they may not be a feasible option for first-time buyers.
I just moved to Canada. Can I buy a house?
Possibly. Several lenders provide mortgage funding for new arrivals to Canada. You still need to provide a minimum down payment and subject your finances to a mortgage stress test before you can get approved for a mortgage.
Do I have to get pre-approved for a mortgage?
Legally, no, but you really should. Mortgage pre-approval determines how much a lender is willing to loan you, which establishes your home buying budget. Make an offer and have it accepted with no bank on board to fund it and you could be in serious legal trouble.
⏰ Pressed for time? Skip ahead to our first-time home buyer checklist.
Clay Jarvis
