How much do I need for a down payment in Canada?

The minimum down payment in Canada is 5% on the first $500,000 of the purchase price, 10% on the portion between $500,000 and $999,999, and 20% on homes priced at $1 million or more. CMHC mortgage insurance is required when the down payment is below 20%.

What is the First Home Savings Account (FHSA)?

The FHSA is a registered savings account that lets first-time home buyers save up to $40,000 ($8,000 per year) with tax-deductible contributions and tax-free withdrawals when used to purchase a qualifying first home. It combines the best tax features of the RRSP and TFSA.

How much can I withdraw from my RRSP to buy a home?

Through the RRSP Home Buyers' Plan (HBP), you can withdraw up to $60,000 per person to buy your first home. Couples can withdraw up to $120,000 combined. The withdrawal must be repaid to your RRSP over 15 years starting the second year after withdrawal.

What is the mortgage stress test in Canada?

The mortgage stress test requires all federally regulated lenders to qualify borrowers at the higher of their contract rate plus 2% or the Bank of Canada's qualifying rate (currently 5.25%). This ensures borrowers can handle potential interest rate increases.

Do I need mortgage insurance in Canada?

Yes, mortgage insurance (from CMHC, Sagen, or Canada Guaranty) is required if your down payment is less than 20% of the purchase price. Premiums range from 2.4% to 4.0% of the mortgage amount and are added to your mortgage balance.

What are the typical closing costs when buying a home in Canada?

Closing costs in Canada typically range from 1.5% to 4% of the purchase price. Major costs include land transfer tax (varies by province), legal fees ($1,500–$2,500), title insurance ($300–$500), home inspection ($400–$600), and property tax/utility adjustments.

What is the Home Buyers' Tax Credit (HBTC)?

The HBTC is a federal non-refundable tax credit of $1,500 (calculated as $10,000 × 15%) available to first-time home buyers. You claim it on line 31270 of your income tax return for the year you purchased your qualifying home.

What credit score do I need to buy a home in Canada?

A credit score of 680 or higher is ideal for getting the best mortgage rates. The minimum to qualify is typically 600 for insured mortgages, though some lenders may accept lower scores with compensating factors like a larger down payment.

Should I choose a fixed or variable mortgage rate?

Fixed rates offer payment certainty over your mortgage term, while variable rates have historically been cheaper over time but carry rate-change risk. Your choice depends on your risk tolerance, financial stability, and the current interest rate environment.

Can I combine the FHSA and RRSP Home Buyers' Plan?

Yes, you can use both the FHSA and the RRSP HBP for the same home purchase. This lets you access up to $100,000 per person ($40,000 FHSA + $60,000 HBP) tax-free for your down payment. Couples combining both accounts can access up to $200,000.

Can I buy a home with a partner or friend?

Yes, co-buying is increasingly common. Key decisions include choosing an ownership structure (joint tenancy vs. tenants in common), drafting a co-ownership agreement with a lawyer, and understanding that both parties are jointly liable for the full mortgage.

How does buying pre-construction work in Canada?

You sign an Agreement of Purchase and Sale with the builder, pay deposits on a schedule (typically 15–20% total over several months), wait for construction (1–4 years), then close once the building is registered. Tarion warranty protects buyers in Ontario. Prices are locked in at signing but closing costs may change.

What conditions should I include in my offer?

The three most common conditions are financing (to secure mortgage approval), home inspection (to identify structural or safety issues), and status certificate review (for condos). Your agent may recommend additional conditions depending on the property type and situation.

How long does it take to buy a home in Canada?

The search-to-closing process typically takes 3 to 6 months. Saving for a down payment can add 1 to 5 years of preparation. Once your offer is accepted, closing usually takes 30 to 90 days.

What is the first step to buying a home in Canada?

Start by checking your credit score and getting a mortgage pre-approval to understand how much you can borrow. Open an FHSA as early as possible to start the tax-advantaged savings clock, even if you are not ready to buy for several years.

Can I qualify for a mortgage if I am self-employed?

Yes, but you typically need at least 2 years of self-employment history. Lenders may use a Business-for-Self (BFS) program and review your Notice of Assessment. A larger down payment or strong business financials can improve your approval odds.

What types of properties can first-time buyers purchase?

First-time buyers can purchase detached houses, semi-detached homes, townhouses, condos, and in some cases duplexes or triplexes (if you live in one unit). Each property type has different down payment, insurance, and maintenance considerations.

Do I need a real estate lawyer to buy a home in Canada?

Yes, in most Canadian provinces a real estate lawyer is required to close a property purchase. They review the Agreement of Purchase and Sale, conduct title searches, register the mortgage, and handle the transfer of funds on closing day.

How do I handle a bidding war?

Set a firm maximum price before you bid and do not exceed it. Strengthen your offer with a pre-approval letter, a larger deposit, and flexible closing dates. Your agent can advise on escalation clauses and whether waiving conditions is appropriate for your situation.

How much should I save beyond the down payment?

Plan to save an additional 1.5% to 4% of the purchase price for closing costs, plus 3 to 6 months of housing expenses as an emergency fund. Having this financial buffer reduces stress and protects you from unexpected costs after closing.

Your complete guide to buying your first home in Canada

The free, step-by-step resource that 85% of first-time buyers wish existed. From FHSA savings strategies to closing costs by province — everything you need, in plain language.

Start the Free Guide Browse by Province

Book a Free Call

Free education · Expert guidance when you're ready · Updated for 2026

FirstHomeGuide.ca — Canada's complete first-time home buyer guide showing mortgage calculator and step-by-step modules

8 modules. One complete journey.

From your very first question to life after closing — we cover every step of buying your first home in Canada.

Module 1: Are You Ready?

Find out if you qualify as a first-time buyer, check your credit score, and understand the stress test.

Module 2: Saving Smart

FHSA, RRSP Home Buyers' Plan, and how to combine them for up to $100,000 per couple.

Module 3: Down Payments & Mortgages

Down payment rules, CMHC insurance, fixed vs. variable rates, and getting pre-approved.

Module 4: Government Programs

Every federal and provincial program in one place — from HBTC to land transfer rebates.

Module 5: Finding a Home

Working with realtors, reading MLS listings, condo vs. freehold, and what to look for at showings.

Module 6: Making an Offer

Purchase agreements, conditions, bidding wars, and why home inspections matter.

Module 7: Closing the Deal

Complete closing cost breakdown: land transfer taxes, legal fees, title insurance, and what happens on closing day.

Module 8: Life After Closing

Emergency funds, property taxes, home insurance, mortgage renewal strategy, and energy efficiency grants.

85% of buyers feel unprepared. This guide changes that.

The Knowledge Gap

Canadian home buyers face scattered resources, hidden costs, and complex programs with no single guide to connect them.

Built by Mortgage Professionals

Created by licensed mortgage advisors at LendCity who believe every first-time buyer deserves free, expert education — and personal guidance when you're ready.

Topics Covered

Across 8 modules

Government Programs

30+Federal + Provincial

Provinces Covered

10All of Canada

Average Read Time

45mSelf-paced

Expert-Backed Education

Built by licensed mortgage professionals at LendCity. The education is free and unbiased — when you're ready for personalized help, we're here.

Province-Specific

Programs and costs vary wildly by province. We break it all down so nothing catches you off guard.

Plain Language

GDS ratios? Stress tests? Amortization? We explain every concept in language anyone can understand.

Updated for 2026

New FHSA limits, HBP repayment changes, proposed GST elimination on new builds — all covered.

Start Learning Talk to an Advisor

Ask: I'm saving for my first home in Ontario — what programs do I qualify for?

From savings accounts to closing day — all connected

Every module builds on the last. Your FHSA strategy affects your down payment, which affects your mortgage insurance, which affects your closing costs. We connect all the dots.

FHSA + RRSP Strategy

Up to $100,000 per couple tax-free

Mortgage Pre-Approval

Documents, stress test, and timeline

Provincial Programs

Land transfer rebates, down payment help

Closing Costs

Budget 3-5% of purchase price

Our numbers say it all:

Modules

Provinces

Free

Everything competitors miss, we cover in
plain language

The Guide Canada Has Been Missing

Government PDFs are outdated. Bank guides push products. Reddit threads are overwhelming. This is the structured, neutral alternative.

From Learning to Keys — We're With You Every Step

FirstHomeGuide.ca is built by LendCity, licensed mortgage professionals who provide free education and personalized concierge service for first-time home buyers across Canada.

Learn

Work through our free 8-module guide at your own pace

Plan

Book a free call to discuss your goals and timeline

Get Pre-Approved

We handle your mortgage pre-approval and find the best rate

Find Your Home

Your realtor partner searches while we keep your financing ready

Close With Confidence

We coordinate everything from offer to keys in hand

Book Your Free Call

Or call us directly: 1-519-960-0370

Real questions from real first-time buyers

These are the questions Canadians are actually asking. Our guide answers every single one.

Get the answers

First-time buyer

r/PersonalFinanceCanada

I have $40K saved. Between FHSA and RRSP HBP, I have no idea which to use first or if I can combine them. Why is this so complicated?

Confused in Ontario

r/RealEstateCanada

Just found out about land transfer tax AFTER making an offer. That's an extra $8,000 nobody mentioned. Are there rebates for first-time buyers?

Saving for a home

r/MortgagesCanada

Can someone explain the stress test like I'm 5? My broker said I qualify for less than I expected and I don't understand why.

First-time buyer

r/PersonalFinanceCanada

I have $40K saved. Between FHSA and RRSP HBP, I have no idea which to use first or if I can combine them. Why is this so complicated?

Confused in Ontario

r/RealEstateCanada

Just found out about land transfer tax AFTER making an offer. That's an extra $8,000 nobody mentioned. Are there rebates for first-time buyers?

Saving for a home

r/MortgagesCanada

Can someone explain the stress test like I'm 5? My broker said I qualify for less than I expected and I don't understand why.

First-time buyer

r/PersonalFinanceCanada

I have $40K saved. Between FHSA and RRSP HBP, I have no idea which to use first or if I can combine them. Why is this so complicated?

Confused in Ontario

r/RealEstateCanada

Just found out about land transfer tax AFTER making an offer. That's an extra $8,000 nobody mentioned. Are there rebates for first-time buyers?

Saving for a home

r/MortgagesCanada

Can someone explain the stress test like I'm 5? My broker said I qualify for less than I expected and I don't understand why.

First-time buyer

r/PersonalFinanceCanada

I have $40K saved. Between FHSA and RRSP HBP, I have no idea which to use first or if I can combine them. Why is this so complicated?

Confused in Ontario

r/RealEstateCanada

Just found out about land transfer tax AFTER making an offer. That's an extra $8,000 nobody mentioned. Are there rebates for first-time buyers?

Saving for a home

r/MortgagesCanada

Can someone explain the stress test like I'm 5? My broker said I qualify for less than I expected and I don't understand why.

New to real estate

r/TorontoRealEstate

What are closing costs actually? I budgeted for the down payment but now I'm hearing I need another $15-20K on top of that??

Moving from renting

r/PersonalFinanceCanada

Is 5% down really enough? What is CMHC insurance and how much does it add to my mortgage? Nobody explains this clearly.

BC first-timer

r/VancouverRealEstate

I wish there was ONE place that listed all the programs I qualify for based on my province. Instead I'm googling 50 different things.

New to real estate

r/TorontoRealEstate

What are closing costs actually? I budgeted for the down payment but now I'm hearing I need another $15-20K on top of that??

Moving from renting

r/PersonalFinanceCanada

Is 5% down really enough? What is CMHC insurance and how much does it add to my mortgage? Nobody explains this clearly.

BC first-timer

r/VancouverRealEstate

I wish there was ONE place that listed all the programs I qualify for based on my province. Instead I'm googling 50 different things.

New to real estate

r/TorontoRealEstate

What are closing costs actually? I budgeted for the down payment but now I'm hearing I need another $15-20K on top of that??

Moving from renting

r/PersonalFinanceCanada

Is 5% down really enough? What is CMHC insurance and how much does it add to my mortgage? Nobody explains this clearly.

BC first-timer

r/VancouverRealEstate

I wish there was ONE place that listed all the programs I qualify for based on my province. Instead I'm googling 50 different things.

New to real estate

r/TorontoRealEstate

What are closing costs actually? I budgeted for the down payment but now I'm hearing I need another $15-20K on top of that??

Moving from renting

r/PersonalFinanceCanada

Is 5% down really enough? What is CMHC insurance and how much does it add to my mortgage? Nobody explains this clearly.

BC first-timer

r/VancouverRealEstate

I wish there was ONE place that listed all the programs I qualify for based on my province. Instead I'm googling 50 different things.

Your complete guide to buying your first home in Canada

8 modules. One complete journey.

Module 1: Are You Ready?

Module 2: Saving Smart

Module 3: Down Payments & Mortgages

Module 4: Government Programs

Module 5: Finding a Home

Module 6: Making an Offer

Module 7: Closing the Deal

Module 8: Life After Closing

85% of buyers feel unprepared. This guide changes that.

The Knowledge Gap

Built by Mortgage Professionals

Expert-Backed Education

Province-Specific

Plain Language

Updated for 2026

From savings accounts to closing day — all connected

FHSA + RRSP Strategy

Mortgage Pre-Approval

Provincial Programs

Closing Costs

Everything competitors miss, we cover in plain language

From Learning to Keys — We're With You Every Step

Learn

Plan

Get Pre-Approved

Find Your Home

Close With Confidence

Real questions from real first-time buyers

Everything competitors miss, we cover in
plain language