Buying your first home in Canada follows a clear path: check your budget, save a down payment, get pre-approved, pass the stress test, shop, and close. First-timers can also tap the Home Buyers' Plan, an FHSA and land transfer tax rebates. Estimate payments on our mortgage calculators and follow the live rate.
Get pre-approved to learn your budget and lock a rate hold, then save your down payment (minimum 5% on the first $500,000). Use the Home Buyers' Plan (up to $60,000 from an RRSP) and an FHSA, claim any land transfer tax rebate, and budget 1.5-4% for closing costs. You must still pass the stress test. This is not financial advice.
The journey is more manageable when you break it into stages. A simple checklist:
Several federal and provincial programs are built for first-timers:
| Program | What it does |
|---|---|
| Home Buyers' Plan (HBP) | Withdraw up to $60,000 from an RRSP tax-free, repaid over 15 years |
| First Home Savings Account (FHSA) | Deductible contributions; tax-free withdrawals for a first home |
| Land transfer tax rebate | Provincial or municipal rebate that offsets land transfer tax |
| GST/HST new housing rebate | Partial rebate of GST/HST on qualifying newly built homes |
You can combine the HBP and FHSA, which is a powerful way to build a larger down payment while lowering your taxable income.
The minimum down payment is 5% on the first $500,000 of the price and 10% on the portion above, up to a $1.5 million purchase price where insured mortgages are available. Below 20% down, you pay CMHC mortgage default insurance. Regardless of your down payment, at a federally regulated lender you must pass the stress test — qualifying at the higher of your contract rate plus 2% or 5.25% — and stay within a 39% GDS and 44% TDS ratio.
Beyond the down payment, plan for closing costs of roughly 1.5% to 4% of the purchase price. These typically include land transfer tax, legal or notary fees, title insurance, a home inspection, an appraisal, and prepaid property tax or utility adjustments. On a $600,000 home, that is an illustrative $9,000 to $24,000 on top of your down payment. Set this money aside early so a surprise bill does not derail your closing.
Your rate shapes both how much you can borrow and your monthly payment. With the overnight rate at 2.25% and the next decision on July 15, 2026, watch whether the Bank is leaning toward cuts or holds — that feeds into the prime rate and variable mortgages. Compare fixed vs variable, review our rate history and inflation pages, and run a few scenarios in the calculators before you lock in.
Start by checking your credit and budget, save your down payment, then get a mortgage pre-approval so you know your price range and can lock a rate hold. From there you shop for a home, make an offer, complete financing and inspection conditions, and close with a lawyer or notary.
A first-time buyer can withdraw up to $60,000 from an RRSP tax-free under the Home Buyers' Plan, and a couple can combine for up to $120,000. The withdrawal must be repaid to your RRSP over 15 years.
The FHSA is a registered account for first-time buyers that combines features of an RRSP and a TFSA: contributions are tax-deductible and qualifying withdrawals to buy a first home are tax-free. It can be used alongside the Home Buyers' Plan.
Closing costs typically run about 1.5% to 4% of the purchase price. They include land transfer tax, legal or notary fees, title insurance, an appraisal, and adjustments. First-time buyers may qualify for a land transfer tax rebate in some provinces and cities.
Yes. At a federally regulated lender you must qualify at the higher of your contract rate plus 2% or 5.25%, even as a first-time buyer. This buffer ensures you could still afford payments if rates rise.