There is more government help available to a first-time buyer in Canada than most people realise, and most of it has to be set up before you start looking rather than after. This page covers every programme, what the purchase actually costs, and what happens at each step.
Federal, provincial and municipal help stacks — you can claim several of these on the same purchase. Two of them, the FHSA and the Home Buyers’ Plan, need to be opened well before you buy, so read those first.
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The First-Time Home Buyer Incentive, the federal shared-equity programme run through CMHC, stopped accepting applications in March 2024. It still appears in older articles and on some brokers’ sites, so it is worth knowing it has ended rather than wondering why you cannot apply.
Programme rules, limits and eligibility change with each federal and provincial budget. Figures here are current to the best of our knowledge but are general information, not advice — confirm your own eligibility with the CRA, your accountant and your lender before you rely on any of it.
Where you hold the money matters as much as how much you save. This works out what you need, how long it takes, and how much of it can sit in a tax-sheltered account.
Three tax-sheltered accounts can hold a down payment, and they behave very differently. Fill the FHSA first — it is the only one giving both a deduction going in and no tax coming out.
| Account | Room | Tax going in | Tax coming out | Repayment |
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The tax saving shown is the deduction on FHSA contributions at the marginal rate entered above, which arrives as a refund rather than as down payment. Contribution room and withdrawal limits are per person, so two first-time buyers double them.
The down payment is the number everyone knows. These are the ones that catch first-time buyers out, and they are all due on the same day.
What the home costs to run once you are in it. The mortgage is usually about two-thirds of it.
Income needed to qualify applies the gross debt service test at 39 per cent of household income, using the stress-test rate rather than your contract rate, and assumes no other debt payments. Your lender will run its own numbers.
From opening an account to collecting the keys. Most first purchases run three to six months from the first step to the last, though the search itself is the part that varies.
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The offer is where a first purchase is won or lost, and where the risk sits. This is what goes into one and what each condition actually protects you from.
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A condition lets you walk away and get your deposit back if something specific is not satisfied. In a competitive market sellers push buyers to remove them — which is exactly when a first-time buyer should be most careful.
| Condition | What it protects you from | Typical period | Risk of waiving it |
|---|---|---|---|
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An inspection takes two to four hours and produces a written report. It is not a pass or fail — every house of any age has findings. What matters is telling apart the items that are cosmetic, the ones that will cost money within five years, and the ones that should change your price or end the deal.
Ranges for the Toronto area, for guidance only. A contractor’s quote is the only real number.
Everything on this page is general information about Canadian and Ontario programmes and process, not financial, tax, mortgage or legal advice. Programme limits and eligibility change with each budget, and lender rules vary. Confirm your own position with the CRA, an accountant, a mortgage broker and a real estate lawyer before acting on any of it. Nick Ntoukas, Sales Representative, Chestnut Park Real Estate Limited, Brokerage.