Buying your first home in the GTA is a different project than it was even three years ago. Prices have come off the 2022 peak, there are more listings to choose from, and Ottawa and Queen’s Park have added new rebates and savings accounts for first-time buyers. The catch is that the rules now have a lot of moving parts. This guide walks through them in the order you will actually meet them, with real numbers for Brampton, Mississauga and Toronto.
Are you a first-time buyer under the rules?
Each program defines “first-time” a little differently, so check before you count on the money.
- Ontario land transfer tax refund: you must never have owned a home, or an interest in one, anywhere in the world. Your spouse cannot have owned a home while married to you.
- Toronto municipal land transfer tax rebate: the same test, and only for homes inside the City of Toronto.
- First Home Savings Account (FHSA) and RRSP Home Buyers’ Plan: you qualify if you have not lived in a home you or your spouse owned in the current year or the previous four calendar years. Someone who sold a condo in 2020 may qualify again.
Step 1: Work out what you can really afford
Lenders look at two ratios. Housing costs (mortgage, property tax, heat and half of any condo fee) should stay under about 39 per cent of gross household income, and all debts together under about 44 per cent. You must also pass the stress test: you qualify at the higher of 5.25 per cent or your contract rate plus 2 per cent, even if your actual rate is lower.
Get a pre-approval from a bank or mortgage broker before you book showings. It holds a rate for 90 to 120 days and tells you your real ceiling. Our mortgage payment calculator is a quick way to test monthly payments at different prices.
Step 2: Build the down payment with tax help
The minimum down payment in Canada is 5 per cent of the first $500,000 and 10 per cent of the portion between $500,000 and $1.5 million. At $1.5 million and above you need 20 per cent. Two federal programs can speed this up.
- FHSA: contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible like an RRSP and withdrawals for a qualifying home are tax-free like a TFSA. Unused room of up to $8,000 carries forward one year. A couple can shelter $80,000 between them.
- RRSP Home Buyers’ Plan: each buyer can withdraw up to $60,000 from their RRSP tax-free and repay it over 15 years. Money must sit in the RRSP for at least 90 days before you withdraw it.
You can use both on the same purchase. A couple who max out both could have up to $200,000 in tax-assisted savings toward a first home.
Step 3: Pick the home type and the city
Your budget decides most of this. As a rough guide in 2026, a first condo apartment in Mississauga or north Brampton sits well below the GTA average, a freehold townhouse in Brampton or Milton sits near the middle, and a detached home in Toronto is out of reach for most first-time buyers without family help. Our guides to buying a house or a condo, the types of homes in Canada and Mississauga versus Brampton go deeper.
Commute matters more than people expect. A townhouse near a GO station in Brampton or Milton can get you to Union Station in about an hour, while a cheaper home far from transit can cost you two hours a day. Check GO schedules and the drive at 8 a.m., not on a Sunday.
Step 4: New build or resale?
This choice changes your tax bill. Since May 27, 2025, first-time buyers who sign an agreement with a builder can claim the federal First-Time Home Buyers’ GST/HST rebate of up to $50,000 on a new home up to $1 million, phasing out at $1.5 million. Ontario has also announced a one-year expansion of its HST relief on new homes, running from April 1, 2026 to March 31, 2027. Read our summary of the expanded Ontario HST rebate for the details.
Resale homes do not carry HST, you can move in sooner, and you can inspect the actual house. New homes come with a Tarion warranty but can close years later and often include extra closing charges from the builder. Our new versus resale guide compares both.
If you buy a pre-construction condo in Ontario, you have a 10-day cooling-off period after signing to cancel without penalty. Use it to have a lawyer review the agreement.
Step 5: Hire your agent and lawyer early
Since December 2023, Ontario’s Trust in Real Estate Services Act requires a written buyer representation agreement before an agent works for you. Read it before you sign: check the length, the area it covers and how commission is handled. Ask the agent how many buyers they have helped in the city you are targeting.
Line up a real estate lawyer before you make an offer. They will review the agreement, search title, arrange title insurance and register the purchase. Expect roughly $2,000 to $3,000 in legal fees and disbursements for a typical GTA purchase.
Step 6: Make a protected offer
In today’s market many first-time buyers can include conditions again, which was rare in 2021. The two that matter most are financing and inspection. A financing condition gives your lender time to approve the specific property. An inspection condition lets you walk away if the inspector finds something serious. For a condo, add a condition to review the status certificate, which shows the reserve fund, any special assessments and lawsuits against the corporation. Ontario caps the status certificate fee at $100.
On a showing, look beyond the paint. Ask how old the furnace, roof and windows are, whether the water heater is rented (you will inherit the contract), whether any work was done without permits, and whether there is a recent survey. Our home inspection checklist covers what to test.
If a home draws multiple offers, set your top number before the night of offers and do not waive conditions you cannot afford to lose. More on this in our guide to buying in a bidding war.
Step 7: Budget the closing costs
Closing costs catch more first-time buyers than any other step. Here is a worked example for an $850,000 freehold townhouse bought with the minimum down payment.
| Item | In Brampton | In Toronto |
|---|---|---|
| Minimum down payment (5% of $500,000 + 10% of $350,000) | $60,000 | $60,000 |
| Ontario land transfer tax | $13,475 | $13,475 |
| Ontario first-time buyer refund | minus $4,000 | minus $4,000 |
| Toronto municipal land transfer tax | none | $13,475 |
| Toronto first-time buyer rebate | none | minus $4,475 |
| Ontario 8% sales tax on the CMHC insurance premium (paid in cash at closing) | about $2,500 | about $2,500 |
| Legal fees, title insurance, inspection and adjustments | about $4,000 | about $4,000 |
| Cash needed on closing day | about $76,000 | about $85,000 |
The CMHC premium itself (about 4 per cent of the mortgage at 5 per cent down) is added to your loan, but the provincial sales tax on it is not. Toronto’s second land transfer tax is why the same home costs about $9,000 more in cash inside the city line. Run your own numbers with our land transfer tax calculator.
Step 8: Choose the mortgage
Since December 15, 2024, every first-time buyer can take a 30-year amortization on an insured mortgage, and the insured price cap is $1.5 million. A longer amortization lowers the monthly payment but costs more interest over time. Compare a 5-year fixed against a variable rate, and ask about prepayment privileges so you can pay down faster when your income grows.
Step 9: Closing and moving in
Your lawyer handles the money and keys on closing day. Before that, arrange home insurance (the lender will ask for proof), book movers early if you close at month end, and set up utilities. Once you have the keys, change the locks, test smoke and carbon monoxide alarms, find the main water shut-off and the electrical panel, and redirect your mail through Canada Post.
Buying as a newcomer to Canada
Permanent residents can buy like any Canadian. Most temporary residents and foreign nationals are restricted by the federal ban on foreign buyers, which runs until January 1, 2027, and Ontario charges a 25 per cent non-resident speculation tax. There are exemptions for some work permit holders and refugees. Our guide to buying a home as a new immigrant covers this in detail.
Mistakes we see most often
- Shopping before getting pre-approved, then falling for a home the bank will not finance.
- Forgetting the cash for land transfer tax and closing costs.
- Skipping the status certificate on a condo with a thin reserve fund.
- Stretching to the maximum approval and leaving nothing for repairs in year one.
More in our list of common first-time buyer mistakes.
If you are buying in Brampton, Mississauga, Caledon, Milton or Toronto and want a second opinion on a home or an offer, get in touch. HomeLife Landmark Realty Inc., Brokerage.
Rules and rebate amounts are current as of September 2026 and can change. Confirm eligibility with your lawyer, lender or the Canada Revenue Agency before you rely on any program.