First-Time Buyers
Your first purchase, from savings to keys.
A first purchase runs the same legal process as any other, but without a prior sale to draw on, and with a set of savings and tax programs that only apply if you qualify. Here's what's actually different about buying your first home in Ontario, and where each piece of it is covered in full.
Talk to an agentWhat’s actually different about a first purchase
Buying your first home follows the same legal steps as any Ontario purchase — search, offer, conditions, closing — but a first-time buyer is missing a few things a repeat buyer usually has: no proceeds from a prior sale to put toward the next one, no built-in familiarity with the vocabulary, and a set of federal and provincial programs that apply only if you meet a specific eligibility test. Our first-time buyer roadmap orients you across the whole journey in more detail than this page does; the sections below focus on the money side of that journey — what you’ll pay, when, and what might offset it.
Deposit vs. down payment
These get confused constantly, and they’re not the same thing. The deposit is money you provide with your offer, held in trust rather than spent, that shows the seller you’re serious about completing the deal — it’s applied toward the purchase price at closing. The down payment is your own equity contribution, paid separately at closing alongside your mortgage lender’s funds, and the larger it is, the less you need to borrow. Our home buying process guide covers where each fits across the full purchase sequence, and our guide to making an offer explains how the deposit itself gets negotiated and held.
Land transfer tax and the first-time buyer rebates
Ontario charges land transfer tax on every property transfer, calculated in tiers against the purchase price — and if the property is in the City of Toronto, a second, municipal land transfer tax applies on top, calculated the same way. Both levels offer a separate refund program for qualifying first-time buyers, as of 2026-07-29: a provincial refund against the provincial tax, and Toronto’s own municipal refund against its municipal tax. Each program sets its own eligibility test, its own maximum, and its own application process — qualifying for one doesn’t automatically mean you qualify for the other. Our Ontario land transfer tax guide covers how the tax is calculated and how each rebate works; confirm your own eligibility and the current maximums directly with Ontario.ca, the City of Toronto, or your real estate lawyer.
Savings and withdrawal programs: the FHSA and the Home Buyers’ Plan
Two federal programs specifically help first-time buyers fund a purchase from registered savings. The First Home Savings Account (FHSA) is a registered account combining features of an RRSP and a TFSA: contributions can reduce your taxable income, and a qualifying withdrawal toward a first home comes out tax-free. The RRSP Home Buyers’ Plan (HBP) lets you withdraw from your own RRSP, tax-free at the time of withdrawal, toward a qualifying home — it’s a loan from your own retirement savings to yourself, with a repayment schedule CRA sets, not a grant. A separate non-refundable tax credit and a new-construction HST rebate can also apply depending on your purchase. Our first-time buyer programs guide covers what each program actually is, how they interact, and confirms that one commonly-cited program (the First-Time Home Buyer Incentive) no longer exists — contribution limits, withdrawal maximums, and current eligibility are set federally and should be confirmed on canada.ca or with a tax professional before you plan around a specific figure.
Mortgage pre-approval
Pre-approval is a mortgage professional’s assessment of what you can likely borrow, based on your income, credit, and existing debt, before you’re attached to a specific property. It’s typically the first professional relationship a first-time buyer forms, ahead of engaging a real estate representative, since it clarifies what price range is realistic to search in. Our home buying process guide covers when pre-approval typically happens relative to assembling the rest of your team and making an offer.
Closing costs
Closing costs are the fees and taxes — led by land transfer tax — due in cash on closing day, on top of the purchase price and separate from your down payment. Legal fees, title insurance, and possible inspection or appraisal costs round out the list. Our closing costs guide breaks down each category, who it’s paid to, and when, so it can be budgeted for well before your closing date rather than discovered at the last minute.
Not your first purchase, or looking to invest rather than occupy?
This page is specifically for a first home purchase. If you’ve bought before, see Buy & Sell for the full process from either side of a transaction. If you’re evaluating a property as a rental rather than a home to live in, see Invest for portfolio strategy and investment financing instead.
Starting from zero?
Tell us where you are — still saving, pre-approved and searching, or ready to make an offer — and CRESI, RE/MAX Hallmark, will pick up from there.
Common questions
Frequently asked
- What's the actual difference between the deposit and the down payment?
- The deposit is money you provide with your offer, held in trust and later applied toward the purchase price — it shows the seller you're serious about completing the deal. The down payment is your equity contribution, paid separately at closing alongside your mortgage funds. They're different amounts, held differently, paid at different times — first-time buyers often assume they're the same thing, and they aren't. Our home buying process guide walks through where each fits in the sequence.
- Do first-time buyers get a break on land transfer tax?
- Ontario runs a land transfer tax refund for qualifying first-time buyers, and Toronto runs a separate municipal refund on top for Toronto purchases — two distinct programs, each with its own eligibility test and maximum, administered independently. Whether you qualify, and the current maximum for each, are questions for Ontario.ca, the City of Toronto, or your real estate lawyer — this page and our dedicated land transfer tax guide explain the mechanism, not your personal eligibility.
- Can I use the FHSA and the RRSP Home Buyers' Plan on the same purchase?
- Generally yes — they're separate registered-account programs with separate rules, and CRA's own guidance describes using both toward one qualifying home. Whether it makes sense for you depends on your savings, timeline, and tax situation. Our first-time buyer programs guide covers how the FHSA, the Home Buyers' Plan, and the other federal programs fit together; confirm the current rules on canada.ca and with a tax professional before relying on either.
- When should I get pre-approved, relative to house-hunting?
- Getting pre-approved with a mortgage professional before you start touring is generally the more useful order, since it tells you what to search for before you're attached to a specific property. Nothing stops you from looking first, but you'll want a mortgage professional and a real estate representative in place before you actually submit an offer. Our home buying process guide covers how pre-approval fits alongside assembling the rest of your team.
- What should I budget for beyond the down payment?
- Closing costs — a separate cash requirement due on closing day, on top of the purchase price and your down payment. Land transfer tax is usually the largest single item, followed by legal fees, title insurance, and possible costs like a home inspection or appraisal. Our closing costs guide breaks down the full list, what's paid to whom, and when.