YOUR FIRST HOME, ONE STEP AT A TIME
First-Time Home Buyers
A practical guide to buying in Toronto and the GTA, from your first budget to the keys in your hand.
Plan your first purchaseSTEP 1
Down payment requirements
For eligible purchases, the minimum is 5% up to $500,000, then 10% on the portion above $500,000 for homes below $1.5 million. At $1.5 million or more, the minimum is 20% of the full price. Lenders may require more, and a down payment below 20% generally requires mortgage default insurance. Confirm eligibility and current rules with your lender.
A $700,000 purchase: $25,000 on the first $500,000 + $20,000 on the remaining $200,000 = $45,000 minimum down payment, subject to approval.
STEP 2
Closing costs
Keep money available beyond your down payment for land transfer taxes, legal fees and disbursements, adjustments, inspection or appraisal costs, moving and insurance. Your deposit is normally part of your purchase funds, not an additional charge, but it may be due before closing. Ask your lawyer and lender for estimates and document where your funds will come from.
STEP 3
Mortgage pre-approval
A pre-approval helps establish a working budget and possible rate hold, but it is not final approval for every property. A lender still reviews the chosen home, appraisal, income, debts, down payment and any changed circumstances. Discuss financing conditions before making an offer, and avoid new borrowing that could alter qualification.
STEP 4
Land transfer taxes
Ontario land transfer tax applies to qualifying transfers. Purchases within the City of Toronto can also attract municipal land transfer tax. First-time buyer relief has specific eligibility rules, including ownership history and occupancy requirements; being new to buying in Toronto alone is not enough. Have your lawyer calculate both taxes and confirm any rebates before you commit.
STEP 5
Toronto condo purchases
Compare the unit and the building together. Review fees and inclusions, reserve fund information, disclosed assessments, insurance, rules, parking and locker rights. Have a lawyer review the status certificate and attachments. Budget for the full monthly cost, and verify whether your intended use complies with the corporation’s governing documents.