First-time home buyer guide for Ontario (2026): 9 steps

To buy your first home in Ontario, follow nine steps: check your finances, learn the down payment rules, get pre-approved, budget for closing costs, choose an agent and lawyer, search, view homes, make an offer and close. In the GTA, a median condo apartment is listed at $569,000, so plan on at least $31,900 down plus closing costs.

The steps are the same across the province, but GTA prices, competition and Toronto's extra land transfer tax mean preparation pays off. Here are the key numbers, then how each step works and what to watch for.

$569,000Median asking price, condo apartment7,850 active listings

$1,399,000Median asking price, detached house11,031 active listings

$31,900Minimum down payment on a $569,000 home5% of $500,000 + 10% of the rest

$7,235Land transfer tax on it in Toronto, after first-time refunds$3,855 outside Toronto

$2,677/moMortgage payment at 4.05% over 30 yearsCMHC premium added to the loan

6.05%Rate you'd be stress-tested at4.05% contract rate + 2 points

Asking prices of homes for sale right now, not sale prices.

Source: Dibz analysis of active MLS® listings (TRREB, via PropTx), Oct 2, 2026; FCAC minimum down payment rules; CMHC premium table; Ontario Ministry of Finance and City of Toronto (LTT, MLTT); Bank of Canada series V122667780 (July 2026). Dibz calculation.

Step 1: Check your finances and credit

Before you look at a single listing, get a clear picture of three things:

• Your credit. Order your free credit reports from Equifax and TransUnion and fix any errors. Lenders use your score and history to decide what rate to offer.
• Your savings. You'll need a down payment plus closing costs. Many first-time buyers forget the second part.
• Your monthly budget. Add up debts, car payments and regular spending. Lenders look at your debt service ratios, and so should you.

If you haven't already, open a First Home Savings Account (FHSA). Contributions are tax-deductible and qualifying withdrawals are tax-free. You can combine it with the RRSP Home Buyers' Plan, which we cover in detail in our FHSA and Home Buyers' Plan guide. Buying with a partner? You can each use your own, as our guide to buying a home together explains.

Step 2: How much down payment do you need in Ontario?

In Canada, the minimum down payment depends on the purchase price:

In dollars, that's $20,000 on a $400,000 home, $35,000 at $600,000 and $75,000 at $1 million. Just under $1.5 million you'd need $125,000, and at $1.5 million the minimum jumps to 20%, or $300,000.

With the minimum down, the CMHC premium added to the mortgage (25-year amortization) runs from $15,200 at $400,000 to $22,600 at $600,000 and $55,000 just under $1.5 million. At $1.5 million or more the minimum is 20% and mortgage insurance isn't available.

Source: FCAC minimum down payment rules; CMHC premium table (+0.20% for 30-yr amortization); Ontario 8% RST on premiums. Dibz calculation.

Show the numbers

	Value
$400,000 home	$20,000
$500,000 home	$25,000
$600,000 home	$35,000
$700,000 home	$45,000
$800,000 home	$55,000
$900,000 home	$65,000
$1,000,000 home	$75,000
$1,200,000 home	$95,000
Just under $1,500,000	$125,000

If you put down less than 20%, you'll need mortgage loan insurance (from CMHC, Sagen or Canada Guaranty). The premium is usually added to your mortgage. In Ontario, the provincial sales tax on that premium can't be added to the mortgage, so it's paid in cash at closing.

First-time buyers with an insured mortgage can choose amortizations of up to 30 years, which lowers the monthly payment but costs more interest over time (and adds 0.20 percentage points to the CMHC premium). Insured mortgages are available on homes priced below $1.5 million.

Step 3: Get pre-approved and pass the stress test

A mortgage pre-approval tells you the most a lender may lend you and can hold an interest rate for a period (often 60 to 130 days, depending on the lender). It's not a guarantee of final approval, but it tells you your price range and shows sellers you're serious.

To qualify, lenders must stress-test you at a rate higher than the one you'll actually pay: the greater of 5.25% or your contract rate plus 2%. Insured mortgages are stress-tested too. In July 2026, the average rate on new insured 5-year-plus fixed mortgages was 4.05% (Bank of Canada), so a typical buyer would qualify at 6.05%. The practical effect: you'll qualify for less than a simple payment calculation suggests.

Rates matter a lot at GTA prices. On a $569,000 condo with the minimum $31,900 down, the payment at 4.05% is $2,677 a month over 30 years or $2,953 over 25 years. Each half-point of rate adds about $150 to $180 a month.

• 25-year amortization
• 30-year amortization (first-time buyers)

$569,000 is the median asking price of active GTA condo apartment listings. Fixed rate, semi-annual compounding. Excludes condo fees, property tax and insurance.

Source: Dibz analysis of active MLS® listings (TRREB, via PropTx), Oct 2, 2026; FCAC minimum down payment rules; CMHC premium table (+0.20% for 30-yr amortization); Ontario 8% RST on premiums. Dibz calculation. Rate reference: Bank of Canada: 5-yr+ fixed insured mortgage rate on new funds advanced, July 2026 (4.05%, series V122667780); Bank of Canada policy rate 2.25% (Sept 2, 2026).

Show the numbers

	25-year amortization	30-year amortization (first-time buyers)
3.5%	$2,789/mo	$2,505/mo
4.0%	$2,938/mo	$2,661/mo
4.05% (Jul 2026 avg)	$2,953/mo	$2,677/mo
4.5%	$3,092/mo	$2,822/mo
5.0%	$3,249/mo	$2,987/mo
5.5%	$3,410/mo	$3,156/mo
6.0%	$3,574/mo	$3,329/mo
6.5%	$3,742/mo	$3,506/mo

Talk to at least two lenders or a mortgage broker. Rates, prepayment privileges and penalties vary more than people expect, and as the chart shows, even half a point is real money every month.

Step 4: Set a budget that includes closing costs

Your pre-approval is a ceiling, not a target. Work out a monthly payment you're comfortable with, then add:

• Ontario land transfer tax, and Toronto's municipal land transfer tax if you buy in the City of Toronto. First-time buyers can get refunds of up to $4,000 (Ontario) and up to $4,475 (Toronto).
• Sales tax on the CMHC premium (8%), paid in cash at closing.
• Legal fees and disbursements, title insurance, and a home inspection.
• Adjustments for property taxes or condo fees the seller has prepaid.
• Moving costs and a cushion for early repairs.

Here's what the big items add up to for a first-time buyer at each home type's median asking price in the City of Toronto. On a $569,000 condo apartment, it's $31,900 down, $7,235 of land transfer tax after both refunds and $1,805 of sales tax on the premium: $40,940 before legal fees, inspection and adjustments. Outside Toronto, the land transfer tax on that condo drops to $3,855.

• Minimum down payment
• Land transfer tax after refunds (City of Toronto)
• Sales tax on CMHC premium

Outside Toronto, land transfer tax after the refund is $3,855, $6,273, $10,455, $10,975 and $20,455 for these five prices. 30-year amortization. Excludes legal fees, title insurance, inspection, adjustments and moving.

Source: Dibz analysis of active MLS® listings (TRREB, via PropTx), Oct 2, 2026; Ontario Ministry of Finance (LTT rates, $4,000 refund); City of Toronto (MLTT rates, $4,475 rebate). Dibz calculation. FCAC minimum down payment rules; CMHC premium table (+0.20% for 30-yr amortization); Ontario 8% RST on premiums. Dibz calculation.

Show the numbers

	Minimum down payment	Land transfer tax after refunds (City of Toronto)	Sales tax on CMHC premium
Condo apartment ($569,000)	$31,900	$7,235	$1,805
Condo townhouse ($689,900)	$43,990	$12,071	$2,170
Freehold townhouse ($899,000)	$64,900	$20,435	$2,803
Semi-detached ($925,000)	$67,500	$21,475	$2,881
Detached ($1,399,000)	$114,900	$40,435	$4,315

Our closing costs guide walks through each item. To see the numbers for a specific home, the mortgage calculator on Dibz works out your payment along with the CMHC premium and its sales tax, Ontario and Toronto land transfer tax, first-time buyer rebates, the stress test and your total cash to close.

Step 5: Choose your agent and lawyer

In Ontario, real estate agents are licensed and regulated by the Real Estate Council of Ontario (RECO). Before an agent provides services, they must give you the RECO Information Guide, and a buyer representation agreement must be in writing. Read it carefully: it sets out the services, the term, the geographic area and how the agent is paid.

You'll also need a real estate lawyer to review your agreement, search title, arrange title insurance and register the transfer. Line one up before you make an offer.

Step 6: Search smart

Start broad, then narrow:

1. Pick areas, not just homes. Think about commute, schools, transit and lifestyle. Our guide to choosing a neighbourhood in the GTA breaks this down.
2. Look at what sold, not just what's listed. Asking prices in the GTA can be set low to attract offers or high to leave room for negotiation. Sold prices tell you what buyers actually paid.
3. Decide condo vs. house early. They have very different costs and risks. See condo vs. freehold in Toronto.
4. Set alerts. New listings can attract offers within days.

The condo-or-house decision also sets your budget. A typical GTA condo apartment is listed at $569,000, about 40% of a typical detached house at $1,399,000, and a quarter of condo apartments for sale ask $479,000 or less. Townhouses and semis sit in between.

Asking prices of homes for sale right now, not sale prices. Across all five types, the median asking price is $924,900.

Source: Dibz analysis of active MLS® listings (TRREB, via PropTx), Oct 2, 2026

Show the numbers

	Value
Condo apartment	$569,000
Condo townhouse	$689,900
Freehold townhouse	$899,000
Semi-detached	$925,000
Detached	$1,399,000

On Dibz, a free account shows sold and leased prices on the map beside homes for sale, the full listing history of each address and a Dibz Value Estimate with a likely range. You can save work or family addresses as "My places" to see drive times from every home, and set saved-search alerts as instant notifications or a daily digest. Comparing tools? See our roundup of the best real estate websites in Canada.

Step 7: View homes with a checklist

Go to showings and open houses with a plan. Check the roof, windows, basement, plumbing, electrical panel and signs of water. Ask how old the furnace and roof are, and what the utility costs run. Our home viewing checklist covers what to look for room by room.

Book a professional home inspection before you commit. RECO recommends making your offer conditional on an inspection where possible, and warns about the risk of skipping one under multiple-offer pressure.

Step 8: Make an offer

Your agent will help you prepare an Agreement of Purchase and Sale. Key parts:

• Price. Base it on recent comparable sales, not the asking price. Our guide to reading sold prices shows how.
• Deposit. Often due with the offer or within 24 hours of acceptance, and held in trust.
• Conditions. Common ones are financing, home inspection and, for condos, a review of the status certificate. Conditions protect you, but they can make an offer less competitive.
• Closing date and inclusions. Appliances, light fixtures and window coverings should be listed if you expect them to stay.

Multiple offers are common in parts of the GTA. In Ontario, the seller's agent must tell everyone who submitted a written offer how many competing offers there are. Sellers can also choose to share the contents of offers, but you shouldn't expect it.

Step 9: Firm up and close

Once your conditions are met or waived, the deal is firm. Between then and closing:

1. Finalize your mortgage and provide documents to your lender.
2. Arrange home insurance (your lender will require it).
3. Your lawyer does the title search, prepares documents and calculates adjustments.
4. Pay your down payment, land transfer tax and other costs to your lawyer before closing day.
5. Do a final walk-through if your agreement allows it.
6. On closing day, funds transfer, the deed is registered, and you get the keys.

How long does it take?

Every purchase is different, but from first budget to keys, most first-time buyers should allow a few months at least. A common pattern looks like this:

1. 1
   Get your finances ready and get pre-approvedA few weeks to a few months

   Check your credit, save the down payment plus closing costs, open an FHSA and get a pre-approval with a rate hold.

2. 2
   Search and view homesA few weeks to several months

   Narrow your areas, study sold prices, set alerts and view homes with a checklist.

3. 3
   Offer to firm dealA day to about two weeks

   A day with no conditions, or about a week or two while financing, inspection or a status certificate review are completed.

4. 4
   Firm deal to closingOften 30 to 90 days

   Finalize the mortgage, arrange home insurance, send funds to your lawyer and do the final walk-through.

5. 5
   Closing dayThe agreed date

   Funds transfer, the deed is registered and you get the keys.

Typical timelines vary by lender, market and the agreement you sign.

First-time buyer programs in Ontario worth knowing

• FHSA: $8,000 a year in participation room, up to $40,000 lifetime.
• RRSP Home Buyers' Plan: withdraw up to $60,000 from your RRSPs, repaid over 15 years.
• Land transfer tax refunds: up to $4,000 from Ontario and up to $4,475 from Toronto.
• Home buyers' amount: a non-refundable federal tax credit of up to $1,500.
• First-time home buyers' GST rebate: up to $50,000 on eligible new homes, with full relief on homes up to $1 million.

New to Canada? Some of these programs have extra conditions; see our guide for newcomers buying a home.

FAQ

How much do I need saved to buy my first home in Ontario?

Your down payment plus closing costs. On a $569,000 GTA condo (the median asking price on October 2, 2026), that's $31,900 down, plus $7,235 of land transfer tax in Toronto after first-time refunds ($3,855 elsewhere) and $1,805 of sales tax on the CMHC premium. Then add legal fees, title insurance, an inspection, adjustments and moving.

What is the minimum down payment in Ontario in 2026?

It's 5% of the first $500,000 and 10% of the portion from $500,000 up to $1.5 million. At $1.5 million or more, it's 20%. So a $400,000 home needs $20,000, a $600,000 home $35,000 and a $1 million home $75,000. With less than 20% down, you'll also pay a mortgage insurance premium.

Do first-time buyers pay land transfer tax in Ontario?

Yes, but you may get part or all of it refunded. Ontario's first-time buyer refund is up to $4,000, which covers the full tax on homes up to $368,000. Toronto's municipal rebate is up to $4,475 if you buy in the city, which covers its tax on homes up to $400,000.

What rate will I be stress-tested at?

The greater of 5.25% or your contract rate plus 2 percentage points. With the July 2026 average insured 5-year-plus fixed rate of 4.05% (Bank of Canada), that's 6.05%. Your lender checks that your housing costs fit your income at that higher rate, which is why you'll qualify for less than a simple payment calculation suggests.

Is a pre-approval the same as a mortgage approval?

No. A pre-approval estimates what you could borrow and may hold a rate, but the lender still has to approve you and the specific property after you make an offer.

Should I waive the home inspection to win a bidding war?

It's risky. RECO advises careful thought before skipping an inspection. If you can't include a condition, some buyers arrange a pre-offer inspection instead.

Can I use both the FHSA and the Home Buyers' Plan?

Yes. You can use both for the same qualifying home as long as you meet the conditions for each withdrawal.

Sources

• FCAC: Down payment
• FCAC: Getting pre-approved for a mortgage
• OSFI: Minimum qualifying rate for uninsured mortgages
• Department of Finance: Mortgage reforms (30-year amortization, $1.5M cap)
• CMHC: Premium information for homeowner loans
• Ontario: Retail sales tax on insurance
• Bank of Canada: Insured 5-year-plus fixed mortgage rate, funds advanced (series V122667780)
• Ontario: Calculating land transfer tax
• Ontario: Land transfer tax refunds for first-time homebuyers
• City of Toronto: MLTT rates and fees
• City of Toronto: MLTT rebate opportunities
• CRA: Line 31270 home buyers' amount
• RECO: Competing offers
• RECO: Home inspections
• GTA asking prices: Dibz analysis of active MLS® listings (TRREB, via PropTx), October 2, 2026. These are asking prices of homes for sale, not sale prices.

This article is general information, not financial or legal advice. Rules and rates change; confirm details with official sources and licensed professionals.