Buying a house in Toronto in November 2026: what higher rates and a slower market mean for you
TL;DR: The monthly payment, not the asking price, is the number to plan around when buying a house in Toronto this fall.…
Read more>First-time Home Buyer
Looking to buy your first property? Congratulations on reaching this significant milestone. We’re here to help you take advantage of all the perks first-time home buyers have access to and find a mortgage rate that fits your needs.
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What First-Time Home Buyers Need to Know
What First-Time Home Buyers Need to Know
A mortgage is a loan used to buy property, repaid through regular payments covering both the principal amount (the borrowed sum) and interest. Over time, these payments reduce the loan balance.
For an insured mortgage, the minimum down payment is 5% of the first $500,000 of the price plus 10% of the portion from $500,000 to $1.5 million. Homes priced at $1.5 million or more need at least 20% down. A larger down payment lowers or removes mortgage insurance costs.
First-time buyers can use a 30-year amortization on an insured mortgage, which lowers the monthly payment compared with 25 years. It also means more interest over the life of the loan, so it is worth comparing both.
Programs and rebates for first-time buyers:
First Home Savings Account (FHSA): Contribute up to $8,000 a year, to a lifetime limit of $40,000, toward a first home (CRA).
Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP toward a first home, repaid over time. Confirm current terms with the CRA.
Ontario land transfer tax refund: Up to $4,000 for eligible first-time buyers (Province of Ontario).
Toronto land transfer tax rebate: Up to $4,475 for eligible first-time buyers in the city of Toronto (City of Toronto).
GST/HST rebate on new homes: Up to $50,000 back on a newly built home at or below $1 million, reduced between $1 million and $1.5 million, and none at $1.5 million or more (CRA).
From Denial to Homeownership
Our client, Lily, was struggling to qualify for a mortgage as a first-time home buyer due to her limited credit history and high student loan debt. Despite having a stable income and a significant down payment, she was repeatedly rejected by traditional banks because she failed to qualify against their debt service ratio requirements.
MonsterMortgage.ca was able to make important recommendations to Lily to consolidate some of her debts, which made it easier for her to qualify for the mortgage that she needed. At that point, MonsterMortgage.ca was able to identify the right lender for Lily, who had more flexible lending criteria and was more understanding of Lily’s goals. With our expertise and broad network of lenders, MonsterMortgage.ca was able to find Lily a mortgage solution that allowed her to buy her first home.
From Denial to Homeownership
The Monster Difference
Our Customers Are Our Priority
With over 25 years of experience, we’ll work closely with you to assess your eligibility for different debt consolidation options, considering your financial situation and both short-term and long-term goals.
Get All The Facts
We’ll spend time understanding your needs and providing you with all the details and options to make an informed decision. Our independence allows us to focus on working for you. We partner with numerous lenders so we can find you the most advantageous deal.
Our Reputation
We are an award-winning Canadian mortgage brokerage firm with a weekly call-in show on CP24. We believe in giving back to our community. Over the years, we’ve proudly supported various community initiatives, including a 14-year partnership with the City of Toronto to raise millions of dollars for seniors.
Benefits
Tailored Mortgage Options
We offer a variety of mortgage options customized to fit your unique needs and financial situation, helping you secure the best fit for your first home.
Access to the Best Rates
As a trusted broker, we have the ability to shop around with multiple lenders, ensuring you receive the most competitive rates available in the market.
Increased Approval Chances
Our deep understanding of lenders’ unique criteria allows us to match you with the right mortgage products, increasing your chances of approval even in complex situations.
Expert Guidance Every Step of the Way
Our experienced team ensures you work with one dedicated person throughout the entire home-buying process. From pre-approval to closing, you’ll receive consistent, reliable advice and support, making your journey to homeownership smooth and informed.
Discover Your Home-Buying Potential
Are you a first-time home buyer looking to understand your budget and mortgage options? Our calculators can help you navigate your journey to homeownership.
FAQs
For an insured mortgage, at least 5% of the first $500,000 of the price and 10% of the part between $500,000 and $1.5 million. At $1.5 million or more, the minimum is 20%.
For the Ontario land transfer tax refund, you must be at least 18, be a Canadian citizen or permanent resident, move in as your principal residence within nine months, and never have owned a home anywhere in the world. A spouse who owned a home while married to or living with you can also affect eligibility (Province of Ontario). Other programs set their own rules.
Getting pre-approved for a mortgage offers several advantages for first-time home buyers. It provides a clear understanding of your budget by determining how much you can borrow, which helps you focus on homes within your price range. Pre-approval also strengthens your offer by showing sellers you are a serious buyer with secured financing, making your bid more competitive. Additionally, it can speed up the closing process since much of the paperwork and verification are completed in advance. Plus, with rate protection for 120 days, you’re safeguarded against rate increases, ensuring your mortgage rate remains stable. Overall, pre-approval gives you confidence and a strategic edge in the home-buying process.
They are separate programs with separate rules, and many buyers use both toward a down payment. Confirm the details and how withdrawals are treated with the CRA or your advisor before you rely on the combined amount.
You or the person you’re buying the home with may qualify as a first-time home buyer if:
a) You have never previously purchased a home.
b)You have experienced a breakdown of a marriage or common-law partnership.
c) In the past four years, you have not lived in a home that was owned by you, a spouse, or a common-law partner.
Let Us Help You Get the Best Mortgage
With experience assisting over 100,000 Canadians, we’re here to help you explore your options, compare rates, and find the mortgage that suits you best.
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