Most first-time buyer guides are written to make you feel confident. This one is written to make you accurate. Here is what you actually need in cash, what the rebates are worth, and the three things that go wrong most often — from a broker who does this in Etobicoke and the west end every week.
What you actually need as a down payment
| Purchase price | Minimum down payment |
|---|---|
| Up to $500,000 | 5% of the price |
| $500,000 to $1,500,000 | 5% on the first $500,000, then 10% on the portion above it |
| Over $1,500,000 | 20% of the full price |
Anything under 20% down requires mortgage default insurance, and that premium is added to your mortgage — it is not an upfront cost, but you do pay interest on it for the life of the loan. Budget for it.
Your down payment is not your cash to close. Land transfer tax, legal fees, title insurance, the home inspection, and the first month of everything all land in the same two weeks. In Toronto you pay two land transfer taxes — provincial and municipal — though first-time buyer rebates offset a meaningful part of both.
The rebates worth knowing about
- Ontario land transfer tax rebate for first-time buyers, and a separate Toronto municipal rebate if you buy inside the city. They stack.
- The First Home Savings Account (FHSA) — contributions are deductible and qualifying withdrawals are tax-free. If you are more than a year out, this is the single highest-return thing you can do today.
- The Home Buyers’ Plan, which lets you withdraw from an RRSP toward a first home and repay it over time.
Amounts and eligibility change, so confirm the current figures with your lawyer or accountant before you count on them — but check all three, because most first-time buyers I meet have used none of them.
The three things that go wrong
- Getting pre-qualified instead of pre-approved. A pre-qualification is a conversation. A pre-approval is underwritten. Sellers can tell the difference and so can your own budget.
- Skipping the status certificate on a condo. It costs at most $100 including tax and must be produced within 10 days. It is where a pending special assessment lives. Never waive it to win a bid.
- Buying at the top of the approval. The bank approves you on gross income. It does not know about your car, your daycare, or the fact that condo fees rise. Buy below the ceiling.
Start with a straight answer, not a pre-approval call
Tell me roughly what you have saved and where you are looking. I will tell you what that genuinely reaches, and what the closing costs come to.
I will come back to you personally, usually the same day. If it is urgent, call or text 437-987-1925.
Run your numbers before you look
Land transfer taxOntario and Toronto, with the first-time rebates
Rent vs ownWhether buying beats renting for you right now
Where to lookHow to see what is actually available
Read next
- Minimum down payment in Ontario — the exact dollar figure at every price point
- Who pays realtor fees — spoiler: as a buyer, usually not you
- Neighbourhood guides — where your budget actually goes furthest
- The current market report — what this month means for a buyer
Jatin Dua, Broker of Record, RE/MAX Quantum Realty Inc., Brokerage, 799 The Queensway, Etobicoke. I am not a mortgage broker, lawyer or accountant — confirm rebate amounts and eligibility with the appropriate professional before relying on them. Down payment rules stated are the federal minimums current at the time of writing.