{ "name": "FirstHomeGuide.ca FAQ", "url": "https://firsthomeguide.ca/llms-faq.json", "updated": "2026-09-06", "relatedFeeds": { "index": "https://firsthomeguide.ca/llms.txt", "fullSite": "https://firsthomeguide.ca/llms-full.txt", "faq": "https://firsthomeguide.ca/llms-faq.json" }, "faqs": [ { "id": "faq-1", "category": "Welcome", "question": "What is FirstHomeGuide.ca?", "answer": "FirstHomeGuide.ca is a free, independent 8-module guide for Canadian first-time home buyers. It covers FHSA and RRSP savings, mortgages, government programs in every province, finding a home, making an offer, closing costs, and life after you get the keys — with no product sales or affiliate links.", "source_url": "https://firsthomeguide.ca/guide/welcome/" }, { "id": "faq-2", "category": "Are You Ready?", "question": "Who qualifies as a first-time home buyer in Canada?", "answer": "In Canada, a first-time home buyer is anyone who has not owned a home they lived in as their principal residence in the current year or the preceding four calendar years. This means even if you owned a home more than 4 years ago, you may qualify again for all first-time buyer programs and tax benefits.", "source_url": "https://firsthomeguide.ca/guide/1-are-you-ready/1-first-time-buyer/" }, { "id": "faq-3", "category": "Are You Ready?", "question": "Is it better to rent or buy in Canada?", "answer": "Neither is universally better — buying usually makes financial sense if you will stay 5+ years, can afford the full cost of ownership (mortgage, taxes, insurance, and ~1% annual maintenance), and your local market supports ownership. Renting wins when you need mobility, cannot cover closing costs, or home prices are very high relative to rent.", "source_url": "https://firsthomeguide.ca/guide/1-are-you-ready/2-rent-vs-buy/" }, { "id": "faq-4", "category": "Are You Ready?", "question": "What credit score do I need to buy a home in Canada?", "answer": "Most Canadian lenders require a minimum credit score of 680 for the best mortgage rates. You can qualify with a score as low as 600 for insured mortgages, but you will face higher rates and fewer lender options. A score of 760 or above unlocks the most competitive rates available.", "source_url": "https://firsthomeguide.ca/guide/1-are-you-ready/3-credit-score/" }, { "id": "faq-5", "category": "Are You Ready?", "question": "What is the mortgage stress test in Canada?", "answer": "The mortgage stress test requires all federally regulated Canadian lenders to qualify borrowers at a rate higher than their actual contract rate — the greater of contract rate + 2% or the Bank of Canada's benchmark qualifying rate (currently 5.25%). This reduces maximum borrowing power by roughly 20%.", "source_url": "https://firsthomeguide.ca/guide/1-are-you-ready/4-stress-test/" }, { "id": "faq-6", "category": "Saving Smart", "question": "What is the First Home Savings Account (FHSA)?", "answer": "The FHSA is a registered savings account that gives Canadian first-time home buyers a double tax advantage: contributions are tax-deductible (like an RRSP) and qualifying withdrawals for a home purchase are completely tax-free (like a TFSA). No other registered account offers both benefits.", "source_url": "https://firsthomeguide.ca/guide/2-saving-smart/1-fhsa/" }, { "id": "faq-7", "category": "Saving Smart", "question": "How much can I withdraw from my RRSP to buy a home?", "answer": "Through the RRSP Home Buyers' Plan (HBP), you can withdraw up to $60,000 per person tax-free to buy or build your first qualifying home. Couples can combine for up to $120,000. Unlike the FHSA, HBP withdrawals must be repaid to your RRSP over 15 years.", "source_url": "https://firsthomeguide.ca/guide/2-saving-smart/2-rrsp-hbp/" }, { "id": "faq-8", "category": "Saving Smart", "question": "Can I combine the FHSA and RRSP Home Buyers' Plan?", "answer": "Yes. The FHSA and HBP are completely separate programs and can be used simultaneously for the same home purchase. A single buyer can access up to $100,000 ($40,000 FHSA + $60,000 HBP), and a couple can access up to $200,000 combined — all with significant tax advantages.", "source_url": "https://firsthomeguide.ca/guide/2-saving-smart/3-combined-strategy/" }, { "id": "faq-9", "category": "Down Payments & Mortgages", "question": "How much do I need for a down payment in Canada?", "answer": "The minimum down payment in Canada is 5% on the first $500,000, 10% on the portion from $500,000 to $1,499,999, and 20% on homes priced at $1,500,000 or more. CMHC mortgage insurance is required when the down payment is below 20%.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/1-down-payment-rules/" }, { "id": "faq-10", "category": "Down Payments & Mortgages", "question": "What is CMHC mortgage insurance and when is it required?", "answer": "Mortgage default insurance is required in Canada when your down payment is less than 20% of the purchase price. The premium ranges from 2.80% to 4.0% of the mortgage amount and is typically added to your mortgage balance. Three insurers offer this product: CMHC, Sagen, and Canada Guaranty.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/2-cmhc-insurance/" }, { "id": "faq-11", "category": "Down Payments & Mortgages", "question": "Should I choose a fixed or variable mortgage rate in Canada?", "answer": "Fixed-rate mortgages lock your rate for the entire term (typically 5 years), giving payment certainty. Variable-rate mortgages fluctuate with the Bank of Canada's policy rate and have historically been cheaper over time, but carry rate-change risk. Most Canadian first-time buyers choose a 5-year fixed term for predictability.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/3-fixed-vs-variable/" }, { "id": "faq-12", "category": "Down Payments & Mortgages", "question": "What is a mortgage pre-approval in Canada?", "answer": "A mortgage pre-approval is a conditional commitment from a lender stating how much they are willing to lend you, at what interest rate, and for how long the rate is held (typically 90–120 days). It requires a credit check and income verification, and gives you a realistic budget before you start house hunting.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/5-pre-approval/" }, { "id": "faq-13", "category": "Down Payments & Mortgages", "question": "What is the difference between 25-year and 30-year mortgage amortization?", "answer": "A 25-year amortization is the Canadian default with higher monthly payments but less total interest. A 30-year amortization lowers monthly payments by roughly $180–$215 on a $400,000 mortgage but costs $70,000+ more in total interest. First-time home buyers can use a 30-year amortization on an insured mortgage (less than 20% down) since 15 December 2024 (OSFI/CMHC). Non-first-time buyers putting less than 20% down are limited to 25 years. Conventional mortgages with 20% or more down can use 30 years regardless of first-time buyer status.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/4-amortization/" }, { "id": "faq-14", "category": "Down Payments & Mortgages", "question": "What are GDS and TDS ratios in Canada?", "answer": "GDS (Gross Debt Service) measures housing costs as a percentage of gross income — maximum 39% for most insured mortgages. TDS (Total Debt Service) includes all debt payments plus housing — maximum 44%. Both are calculated at the stress-test qualifying rate, not your actual mortgage rate.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/6-gds-tds-ratios/" }, { "id": "faq-15", "category": "Down Payments & Mortgages", "question": "Should I use a mortgage broker or go to my bank?", "answer": "A mortgage broker has access to dozens of lenders and can often find rates 0.1% to 0.5% lower than your bank. Brokers are typically paid by the lender. Compare quotes from both your bank and a broker — even 0.2% can save $5,000–$10,000 over a five-year term.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/7-choosing-provider/" }, { "id": "faq-16", "category": "Down Payments & Mortgages", "question": "Can I get a mortgage if I am self-employed in Canada?", "answer": "Yes, but you typically need at least 2 years of self-employment history with tax returns, Notices of Assessment, and financial statements. Lenders use net business income (after expenses), which is often lower than gross revenue. A mortgage broker is especially valuable for finding flexible lenders.", "source_url": "https://firsthomeguide.ca/guide/3-down-payments-mortgages/8-self-employed/" }, { "id": "faq-17", "category": "Saving Smart", "question": "Should I use a TFSA to save for a down payment in Canada?", "answer": "Yes — a TFSA is a flexible complement to the FHSA and RRSP HBP. Withdrawals are tax-free with no repayment obligation, and contribution room is restored the following year. It lacks the FHSA's tax deduction but offers complete flexibility if your timeline or plans change.", "source_url": "https://firsthomeguide.ca/guide/2-saving-smart/4-tfsa/" }, { "id": "faq-18", "category": "Government Programs", "question": "Can I combine multiple first-time home buyer programs in Canada?", "answer": "Yes. Federal programs stack together — FHSA ($40,000 tax-advantaged savings), RRSP HBP ($60,000/person tax-free withdrawal), Home Buyers' Tax Credit ($1,500), and GST rebates can be used on the same purchase. Provincial rebates (land transfer tax, etc.) add on top.", "source_url": "https://firsthomeguide.ca/guide/4-government-programs/7-program-comparison/" }, { "id": "faq-19", "category": "Are You Ready?", "question": "Can two people buy a home together in Canada?", "answer": "Yes. Co-buyers can combine incomes to qualify for a larger mortgage, but each buyer's GDS/TDS ratios and stress-test qualification still apply to the shared application. Legal structure (joint tenancy vs tenants in common) and a written co-ownership agreement are essential.", "source_url": "https://firsthomeguide.ca/guide/1-are-you-ready/6-co-buying/" }, { "id": "faq-20", "category": "Government Programs", "question": "What government programs are available for first-time home buyers in Canada?", "answer": "The Canadian federal government offers five major programs that can be stacked together: the First Home Savings Account (FHSA), RRSP Home Buyers' Plan (HBP), Home Buyers' Tax Credit (HBTC), GST/HST New Housing Rebate, and the first-time home buyers' GST/HST rebate (Bill C-4). Combined, these can save first-time buyers tens of thousands of dollars.", "source_url": "https://firsthomeguide.ca/guide/4-government-programs/1-federal-programs/" }, { "id": "faq-21", "category": "Government Programs", "question": "What first-time home buyer programs exist in Ontario?", "answer": "Ontario first-time buyers can claim a provincial land transfer tax rebate up to $4,000, a Toronto municipal LTT rebate up to $4,475 (if buying in Toronto), plus federal programs (FHSA, RRSP HBP, HBTC). New builds may qualify for Ontario's full HST exemption on homes up to $1M (Bill 114, April 2026–March 2027, up to ~$130,000 savings).", "source_url": "https://firsthomeguide.ca/guide/4-government-programs/2-ontario/" }, { "id": "faq-22", "category": "Making an Offer", "question": "How do bidding wars work in Canada?", "answer": "In a Canadian bidding war, multiple buyers submit blind offers on a set date — you know how many offers exist (in Ontario) but not their terms. Set a firm maximum price before bidding, strengthen your offer with pre-approval and a larger deposit, and avoid waiving conditions unless you can absorb the risk.", "source_url": "https://firsthomeguide.ca/guide/6-making-an-offer/3-bidding-wars/" }, { "id": "faq-23", "category": "Making an Offer", "question": "What are the biggest offer mistakes first-time buyers make in Canada?", "answer": "The costliest mistakes are waiving the financing condition, skipping a home inspection, bidding far above your verified budget, and misunderstanding deposit or condition deadlines in the purchase agreement. A pre-approval is not a final mortgage commitment — protect your deposit with conditions until financing and inspection clear.", "source_url": "https://firsthomeguide.ca/guide/6-making-an-offer/6-offer-mistakes/" }, { "id": "faq-24", "category": "Closing the Deal", "question": "How much are closing costs when buying a home in Canada?", "answer": "Closing costs in Canada typically range from 1.5% to 4% of the purchase price (CMHC). In high land-transfer-tax cities such as Toronto, budget closer to 3% to 5%. On a $500,000 home, that is often $7,500 to $20,000, or more where municipal land transfer tax applies. Major costs include land transfer tax (varies by province), legal fees ($1,500 to $2,500), title insurance ($250 to $500), home appraisal ($300 to $500), and property tax adjustments.", "source_url": "https://firsthomeguide.ca/guide/7-closing-the-deal/1-closing-costs-overview/" }, { "id": "faq-25", "category": "Closing the Deal", "question": "What is land transfer tax in Canada?", "answer": "Land transfer tax is a one-time provincial (and sometimes municipal) tax paid when a property title is registered to a new owner. Rates are tiered by purchase price and vary by province — it is often the largest closing cost. Most provinces offer first-time buyer rebates that reduce or eliminate the tax.", "source_url": "https://firsthomeguide.ca/guide/7-closing-the-deal/3-land-transfer-tax/" } ] }