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First Time Home Buyer

Guidance & loans for your first home

Buying your first home isn’t just a milestone — it’s one of the smartest long-term financial decisions you can make. While there are short-term benefits like tax breaks and incentives, the real value lies in long-term wealth creation.

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Home ownership

Construction financing is a short-term loan designed to fund the building of a home or property. Unlike a traditional mortgage, construction financing provides funds in stages—also known as draws—based on the progress of the build.

Benefits

First Time Home Buyer

First-Time Home Buyer Incentive (FTHBI):

Shared equity program with the government offering 5%–10% of home price to reduce mortgage payments.

Home Buyers’ Plan (HBP):

Withdraw up to $60,000 from your RRSP tax-free to use toward your down payment.

Land Transfer Tax Rebates:

Up to $4,000 in Ontario and $4,475 in Toronto.

Money-Saving Tips for First Time Home Buyers

  • Use the First Home Savings Account (FHSA) – tax-deductible contributions and tax-free withdrawals for a home.
  • Combine RRSP withdrawal (HBP) and FHSA to boost your down payment.
  • Use a mortgage broker to access multiple lenders and find the best rate.
  • Ask about rate holds to lock in a lower rate
    for up to 120 days.
  • If possible, put 20% down to avoid mortgage default insurance costs.
  • Avoid surprises and prevent rushed, emotional buying decisions that can lead to overspending.
  • Ask sellers to cover some closing costs.
  • Negotiate the purchase price—even in
    competitive markets.
  • Consider properties that need cosmetic
    updates—less competition, lower price, and future value potential.
  • Budget for moving, property taxes, utilities, and maintenance so you don’t rely on credit.

Appreciation Creates Wealth

Historically, real estate values increase over time. This means your home may be worth significantly more in 10, 20, or 30 years — creating passive wealth simply by owning it.

BuildEquityOver Time Witheverymortgage

payment, you're not just paying rent to a landlord — you're building ownership in a valuable asset. Over time, this equity grows, becoming a powerfulfinancial tool.

LeverageEquity for Other Goals

  • Refinance to lower interest rates
  • Use equity for renovations, investments, or education
  • Tap into it later through a reverse mortgage or downsizing in retirement

Supplement Retirement Income

When you retire, your mortgage may be paid off reducing your living expenses. You could also rent part of your home or sell and downsize, turning that equity into retirement income.

Budget for closing costs

Set aside 1.5–4% of the purchase price.

Get preapproved

Know your budget and lock in your interest rate.

Work with professionals

Choose an experienced mortgage broker and real estate agent.

Check your credit

Better scores mean better mortgage terms

Think long-term

Choose a property that fits future needs too.

Closing Process

  • Your offer is accepted by the seller. You’ll sign a purchase agreement that includes conditions (like financing and inspection).
  • Finalize your mortgage approval with your
    lender or broker.
  • Provide all required documents (income, ID, down payment proof).
  • Hire a qualified inspector to assess the home’s condition. Renegotiate if major issues are found.
  • They’ll handle title searches, prepare documents, and register your mortgage and ownership.
  • Meet all conditions in your purchase agreement (financing, inspection, insurance, etc.) before deadlines.
  • Set up home insurance effective on the closing date—this is required for mortgage funding.
  • Your lawyer provides a statement of adjustments outlining what you owe, including:
  1. Down payment
  2. Land transfer tax
  3. Legal fees
  4. Title insurance
  5. Property tax adjustments
  • On closing day, your lawyer transfers funds to the seller’s lawyer, and you receive the keys to your new home.

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