First-time home buyer guide for Canada
The sequence that keeps a first purchase from going wrong is mostly about what you have in writing, and when. This page sets out that sequence, then links the official authority for every federal buyer program instead of reproducing figures that change in each budget.
What does a first-time buyer in Canada actually need to arrange?
A written mortgage commitment rather than a pre-qualification, a down payment plus separate closing cash for land transfer tax or registration fees, legal fees, inspection and adjustments, confirmation from an insurer that the specific property can be covered, and a decision on which federal, provincial and municipal buyer programs you will claim and when. Program limits and thresholds are set by statute and change, so confirm each one on the administering authority's page.
- Jurisdiction
- Canada — federal, provincial and municipal rules all apply
- Page reviewed
- 2026-09-01
These are illustrative estimates based on the values you entered. Actual costs depend on your lender, municipality, insurer, utility provider, and the condition of the property. Confirm every figure before making a decision.
The sequence
1. Establish what you can carry, not what you can borrow
Start from your own budget: mortgage payment, property tax, insurance, utilities, condo fees, and a maintenance reserve. A lender's maximum is a lending limit, not an affordability opinion.
2. Get a written mortgage commitment
Ask for the rate, term, amortisation, prepayment terms and the expiry date in writing. Confirm whether default insurance applies to your down payment and who pays the premium and any tax on it.
3. Check which programs you actually qualify for
Work through the official pages in the table below, one at a time, and note the eligibility definition each uses. Record deadlines — several measures must be claimed within a fixed window after closing.
4. Price the closing cash, not just the down payment
Land transfer tax or registration fees, legal fees and disbursements, title insurance, inspection, appraisal, adjustments for prepaid property tax, and moving costs all land within a few weeks of each other.
5. Inspect and insure before conditions come off
Book the inspection early, attend it, and take the report to your insurer. Older wiring, plumbing, oil tanks and roofs can affect whether a policy is offered at all, which in turn affects financing.
6. Plan the first year of ownership
Utilities set-up, immediate repairs, and the first property tax instalment usually arrive before any savings rhythm is re-established. Budget for them before closing rather than after.
Federal programs and where the current rules live
Source links checked 2026-09-01. Amounts, limits and eligibility windows are not reproduced here because they are amended in federal budgets; read them on the authority's page and confirm with your accountant or lawyer.
| Program | What it does | Administering authority |
|---|---|---|
| Home Buyers' Plan (RRSP withdrawal) | Withdraw from an RRSP toward a qualifying home, with a repayment schedule back into the plan. | Canada Revenue Agency |
| First Home Savings Account (FHSA) | Registered account for a first home; contribution room, lifetime limits and deadlines are set by CRA. | Canada Revenue Agency |
| Home Buyers' Amount (tax credit) | Non-refundable credit claimed on your return for the year you buy a qualifying home. | Canada Revenue Agency |
| GST/HST new housing rebate | Partial rebate on a newly built or substantially renovated home, subject to price conditions. | Canada Revenue Agency |
| Mortgage rules, insurance and consumer guidance | Plain-language federal guidance on down payments, mortgage insurance and the buying process. | Financial Consumer Agency of Canada |
Programs are also withdrawn. If a guide elsewhere describes a federal shared-equity incentive, check whether it is still accepting applications on the administering authority's own page before relying on it.
Provincial and municipal rebates
Most first-time buyer money in Canada is provincial: land transfer tax rebates and exemptions, and in Toronto a separate municipal rebate. Each has its own price ceiling, residency test and claim mechanism, and several must be claimed at registration rather than afterwards.