A First-Time Buyer’s Guide to Getting a Mortgage in Ontario

Buying your first home is a big milestone, and getting the right mortgage can make all the difference. Here’s what first-time buyers in Ontario need to know:

1. Start with a Mortgage Pre-Approval. Before you fall in love with a home, find out how much you can afford. A pre-approval helps set your budget, locks in your interest rate, and shows sellers you’re serious.

2. Understand Your Down Payment Options. You’ll need at least 5% of the purchase price for properties valued at 500,000 or less. For properties valued between 500,000 and 1,500,000 you'll need 5% of the first $500,000 of the purchase price and 10% for the portion of the purchase price above $500,000. If your down payment is under 20%, mortgage default insurance will apply. For Properties wiht purchase price over 1,500,000 20% down payment is required.

3. Budget for Closing Costs. In addition to your down payment, be prepared to cover closing costs like land transfer tax, legal fees, home inspection, and title insurance. A good rule of thumb is 1.5% to 1.75% of the home price.

4. Explore First-Time Buyer Incentives. You may qualify for programs such as:

• The First-Time Home Buyer Incentive
• The Home Buyers' Plan (RRSP withdrawal)
• Ontario Land Transfer Tax Rebate 

These can help reduce your upfront costs and improve affordability.

5. Work with a Mortgage Broker. A broker helps you compare rates and mortgage products across multiple lenders — not just one bank — and guides you through the entire process, from application to approval to closing date and beyond.

Buying your first home is exciting, and it doesn’t have to be overwhelming. With the right support and a clear plan, you’ll be moving into your new place with confidence.

Have questions? Connect with our team today and take the first step toward homeownership.