Originally published 2026-02-18. Targeted claim corrections and editorial dating: September 21, 2026. Any retained market estimates or neighbourhood opinions refer to the original publication period and are not September valuations, verified rankings or return forecasts. This is not a complete market revalidation.
Start Here: Know Your Numbers
Before you fall in love with a house, you need to know what you can actually afford. That means two things: your maximum mortgage approval, and your true monthly carrying cost (mortgage + property tax + insurance + condo fees if applicable).
Banks generally apply a mortgage stress test using the higher of the contract rate plus 2 percentage points or 5.25%. Ask your lender or mortgage broker to confirm qualification, services, any fees and timing. A pre-approval is conditional and is not final approval for a particular property.
Government Programs for First-Time Buyers in 2026
Check each program separately for eligibility before including it in your purchase budget.
First Home Savings Account (FHSA)
An FHSA is a registered account for eligible first-time home buyers. Initial participation room is $8,000 and the lifetime contribution limit is $40,000. Contributions are generally deductible; RRSP transfers are not. The contribution limit is not a cap on a qualifying tax-free withdrawal, which may include growth. Confirm available room and withdrawal conditions with CRA. Source: cra-fhsa Source: finance-reforms
RRSP Home Buyers' Plan (HBP)
The Home Buyers’ Plan permits an eligible individual to withdraw up to $60,000 from an RRSP; each buyer must qualify independently. This is retirement savings, not a grant. CRA’s main HBP page retrieved September 21, 2026 states that temporary repayment relief covers first withdrawals from January 1, 2026 through December 31, 2028, with repayment beginning in the fifth following year: a first withdrawal in 2026 has a first repayment year of 2031. Check CRA’s conditions and your repayment statement. This reports CRA guidance, not a claim about legislative enactment. Source: cra-hbp
Ontario Land Transfer Tax Rebate
Eligible first-time buyers may qualify for an Ontario land transfer tax refund up to $4,000. For a Toronto purchase, have your lawyer separately verify any municipal rebate, its amount and application rules. Ownership history, spousal circumstances and other rules matter; qualification for one program does not establish eligibility for another. Confirm transaction-specific refunds before including them in your budget. Source: ontario-refund
First-Time Home Buyers' Tax Credit (HBTC)
The home buyers’ amount is a non-refundable tax credit, not a cash grant. The CRA page retrieved for this refresh describes a claim amount of up to $10,000 for a qualifying home purchased in 2025; that is not a $10,000 refund. Check the rules for the year of purchase rather than assuming a fixed $1,500 benefit in 2026. [10] CRA home buyers’ amount
The Buying Process: Step by Step
- Assess your finances — Know your credit score, savings, and income documentation (NOAs, pay stubs, bank statements)
- Get pre-approved — Work with a mortgage broker, not just your bank. Shop rates. A pre-approval letter strengthens your offer.
- Choose your representative — Read the representation agreement and confirm services, remuneration and any amount you may owe before signing.
- Define your criteria — Location, property type, must-haves vs. nice-to-haves. Prioritize ruthlessly.
- Tour homes — In a competitive market, be ready to move quickly when the right property appears
- Make an offer — Your broker will advise on price, deposit, conditions, and closing date
- Due diligence — Home inspection, review of status certificate (for condos), lawyer review
- Close — Your lawyer handles the final transfer. Budget for closing costs beyond the down payment using transaction-specific figures from your lawyer and lender: provincial land transfer tax and any applicable municipal land transfer tax, less applicable refunds, plus legal fees, title insurance and adjustments. Confirm the amounts and funding required for your transaction rather than relying on a universal percentage.
Down Payment: What You Actually Need
In Canada, the minimum down payment is:
- 5% on purchases up to $500,000
- For an eligible insured purchase above $500,000 and below $1.5 million: 5% of the first $500,000 plus 10% of the remainder.
- For a purchase of $1.5 million or more: at least 20% of the purchase price.
Mortgage default insurance is typically required with less than 20% down and protects the lender, not you. Finance Canada’s insured-mortgage price-cap expansion took effect December 15, 2024. Borrower, property and lender eligibility still matter, and a larger down payment may be required. For illustration, the tiered minimum on a $900,000 eligible purchase is $65,000, before closing costs. [8] FCAC minimum down payments [7] Finance Canada reforms
Making a Competitive Offer in the GTA
The GTA market in 2026 remains competitive in well-priced segments. To win:
- Have your pre-approval letter ready before making any offer
- Come in with a substantial deposit (typically 5% of purchase price, bank draft or certified cheque within 24 hours)
- Discuss financing, inspection and legal-review conditions before making an offer; do not remove a protection you do not understand.
- Be flexible on closing date — sellers often want either a quick close or a longer one; ask what they prefer
- Write a personal letter — not always decisive, but it costs nothing and sometimes matters
Ready to Start Your Buying Journey?
Sonia works with first-time buyers across the GTA — patient, honest, and committed to making sure you understand every step of the process before you commit.
Talk to Sonia — No Pressure
Sonia Sabouhi, Broker
Forest Hill Real Estate Inc., Brokerage · 12 Years in GTA Real Estate · Luxury & Residential Specialist. Trusted by GTA families across every neighbourhood.