How much down payment do I need?

5% on the first $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% on any property above $1,500,000. On a $700,000 home that is $45,000.

What are closing costs on top of the down payment?

Budget 1.5% to 4% of the purchase price. Land transfer tax is the largest item and Toronto purchases pay it twice, provincial and municipal. Legal fees, title insurance and adjustments make up the rest.

Can my parents give me the down payment?

Yes, from an immediate family member, with a signed gift letter confirming it is a gift and not a loan. Lenders will also want to see the funds land in your account.

Do I qualify for the land transfer tax refund?

Ontario offers a refund to eligible first-time buyers, and Toronto has a separate municipal refund. Eligibility rules and amounts change, so confirm the current figures with your lawyer before you budget on them.

First-Time Home Buyer Mortgage Ontario

The hardest part of a first purchase is not the mortgage. It is the closing costs nobody mentions until three weeks before you take possession.

1.5 to 4%Closing costs

FHSA and HBPPrograms to check

5%Minimum down on first $500k

Where you probably are right now

You have never owned a home, or have not owned one in the last four years.
You are saving a down payment and want to know what number to aim for.
You are receiving a gifted down payment from a parent.
You are buying with a partner and only one of you has owned before.
You are buying a pre-construction unit and closing is more than a year away.

What first-time buyers miss

Budget for land transfer tax, legal fees, title insurance, the status certificate and adjustments. On an $800,000 Mississauga purchase those can pass $20,000 on top of the down payment.
The First Home Savings Account is deductible going in and tax-free coming out for a qualifying purchase.
The Home Buyers' Plan lets you withdraw from an RRSP toward a purchase, repayable over time.
Ontario offers a land transfer tax refund for eligible first-time buyers. Toronto charges a separate municipal tax with its own refund.
A gifted down payment needs a signed gift letter and the funds sitting in your account before closing.
Eligibility and limits on these programs change. We will confirm which apply to you and send you to your accountant when the answer is a tax question.

Documents to gather

Government photo ID for each applicant
Two most recent pay stubs and a letter of employment
Two years of T4s and Notices of Assessment
Ninety days of statements for every account holding down payment funds
Signed gift letter, if any of the down payment is gifted
FHSA or RRSP statements, if you are using either toward the purchase

How a first purchase runs

01 Work out the real budgetPurchase price, down payment, insurance premium, land transfer tax and closing costs, in one figure.
02 Check which programs applyFHSA, Home Buyers' Plan, provincial and municipal land transfer tax rebates.
03 Pre-approval and rate holdSo you know your ceiling and are protected if rates move while you shop.
04 Offer to closingWe handle the lender side and coordinate with your agent and lawyer through to keys.

Want a real budget before you look?

Start the application, or call 647-505-1096 and talk it through first.

Start an application Call 647-505-1096

Questions first-time buyers ask

How much down payment do I need?: 5% on the first $500,000, 10% on the portion between $500,000 and $1,500,000, and 20% on any property above $1,500,000. On a $700,000 home that is $45,000.
What are closing costs on top of the down payment?: Budget 1.5% to 4% of the purchase price. Land transfer tax is the largest item and Toronto purchases pay it twice, provincial and municipal. Legal fees, title insurance and adjustments make up the rest.
Can my parents give me the down payment?: Yes, from an immediate family member, with a signed gift letter confirming it is a gift and not a loan. Lenders will also want to see the funds land in your account.
Do I qualify for the land transfer tax refund?: Ontario offers a refund to eligible first-time buyers, and Toronto has a separate municipal refund. Eligibility rules and amounts change, so confirm the current figures with your lawyer before you budget on them.