First-Time Home Buyer Guide: Toronto
How much you need, the rebates and programs you can use, and the steps to buying your first home in Toronto, explained plainly.
Updated October 2026 · Written by Candice Schott, Broker, Schott & Co., Royal LePage Signature Realty, Brokerage
To buy your first home in Toronto, you need a down payment of at least 5% of the first $500,000 and 10% of the rest, plus about 1.5% to 2.5% of the price for closing costs, and a mortgage pre-approval. On a $640,000 condo, that's about $39,000 down. First-time buyers also get up to $8,475 back on Toronto's double land transfer tax, and can save for the down payment tax-free with an FHSA.
This guide from Candice Schott, Broker and co-founder of Schott & Co., covers how much you need, the programs and rebates you can use, condo versus freehold, and each step from pre-approval to keys.
The short version
- Get pre-approved before you look. It sets your real budget.
- Use the FHSA and the Home Buyers' Plan to build your down payment.
- Claim both land transfer tax rebates: up to $4,000 from Ontario and $4,475 from Toronto.
- Budget for closing costs on top of your down payment.
How much do you need to buy your first home in Toronto?
Two amounts: your down payment and your closing costs. The minimum down payment in Canada is 5% of the first $500,000 of the price and 10% of the portion between $500,000 and $1,499,999, according to the Department of Finance Canada. Homes at $1.5 million and up need 20%. In September 2026, the average City of Toronto condo apartment sold for $640,248, according to TRREB, which works out to a minimum down payment of about $39,000.
| Purchase price | Minimum down payment |
|---|---|
| $600,000 | $35,000 |
| $800,000 | $55,000 |
| $1,000,000 | $75,000 |
| $1,200,000 | $95,000 |
With less than 20% down, you'll pay mortgage default insurance, a premium added to your mortgage. It's 4% of the mortgage with 5% to 9.99% down, 3.1% with 10% to 14.99% down, and 2.8% with 15% to 19.99% down.
"My very first place was a condo in the Merchandise Building at Church and Dundas, and I bought it for $150K." — Candice Schott
How much is land transfer tax for first-time buyers in Toronto?
Less than everyone else pays, if you claim the rebates. Toronto buyers pay land transfer tax twice, to Ontario and to the City. First-time buyers can get up to $4,000 back from Ontario and up to $4,475 back from the City of Toronto, so up to $8,475 in total. To qualify, you can't have owned a home anywhere in the world, and you must move in within nine months.
| Purchase price | Without rebates | First-time buyer pays |
|---|---|---|
| $500,000 | $12,950 | $4,475 |
| $700,000 | $20,950 | $12,475 |
| $800,000 | $24,950 | $16,475 |
| $1,000,000 | $32,950 | $24,475 |
Your lawyer usually claims both rebates at closing. If your spouse has owned a home while you were together, neither of you qualifies, so check before you budget.
What programs help first-time buyers save for a down payment?
Two federal programs do most of the heavy lifting, and you can use both. The First Home Savings Account (FHSA) lets you contribute up to $8,000 a year, to a lifetime maximum of $40,000. Contributions are tax-deductible like an RRSP, and withdrawals for your first home are tax-free like a TFSA. The Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP for your first home, which you pay back to your RRSP over time.
A couple who each use both could put a substantial amount toward a down payment without paying tax on it. Open your FHSA early, because contribution room only starts building once the account is open. Talk to your bank or financial advisor about which order works for you.
How do you get pre-approved for a mortgage?
Talk to a lender or mortgage broker before you start looking. They'll review your income, debts and credit, and tell you how much you can borrow and at what rate, usually holding that rate for a set number of days. You'll need to pass the stress test: for an insured mortgage, lenders qualify you at the higher of your contract rate plus 2% or 5.25%.
Since December 15, 2024, first-time buyers can choose a 30-year amortization on an insured mortgage, which lowers your monthly payment, according to the Department of Finance Canada. You'll pay more interest over the life of the mortgage, so compare both. A pre-approval also tells sellers you're serious, which helps on offer night.
Should your first home be a condo or a house?
For most first-time buyers in Toronto, a condo or a condo townhouse is the realistic first step, and it can be a smart one right now. In September 2026, City of Toronto condo apartments sold for 97% of asking after 40 days on average, according to TRREB, which gives buyers time and room to negotiate. Semi-detached homes sold for 104% of asking in 21 days.
Condo
- Lower price, lower down payment
- Monthly maintenance fees
- Review the status certificate first
More room to negotiate right now
Freehold
- Land, a yard, more space
- No condo fees, but you pay for every repair
- Competitive on offer night
Bigger down payment needed
Before you buy any condo, have your lawyer review the status certificate. It shows the building's finances, the reserve fund and any upcoming special assessments.
What closing costs should first-time buyers budget for?
Plan on roughly 1.5% to 2.5% of the purchase price on top of your down payment, depending on the price and your rebates. The main items:
- Land transfer tax, after your rebates
- Legal fees and disbursements, including title insurance
- A home inspection
- Property tax and utility adjustments at closing
- Moving costs, and condo fees from day one if it's a condo
- For a new build, possible HST and development charges written into the agreement
Ask your lawyer for a quote before you make an offer. Mortgage insurance premiums are added to your mortgage, but Ontario charges provincial sales tax on the premium, and that's due in cash at closing.
What are the steps to buying your first home in Toronto?
- Get pre-approved and set a budget you're comfortable with, not just the maximum you qualify for.
- Open your FHSA and plan any Home Buyers' Plan withdrawal.
- Choose your areas. Our Find Your Home tool shows which Toronto districts fit your budget.
- Tour homes and compare what similar homes actually sold for.
- Make an offer with a deposit, and conditions on financing and inspection where the market allows.
- Firm up once your conditions are met.
- Close with your lawyer, who claims your rebates, and get your keys.
What do first-time buyers most often get wrong?
- Shopping before getting pre-approved. You fall for a home you can't buy.
- Forgetting closing costs. The down payment isn't the only cheque.
- Skipping the status certificate on a condo.
- Buying at the top of the budget. Leave room for life, fees and repairs.
- Waiting for the perfect market. Buy when your finances and life are ready.
And if a home doesn't fit your needs, we'll tell you not to buy it, even if you love the kitchen.
Common questions from first-time buyers in Toronto
How much do I need for a down payment on a condo in Toronto?
At least 5% of the first $500,000 and 10% of the rest. On a $640,000 condo, close to the September 2026 Toronto average according to TRREB, that's about $39,000, plus closing costs.
What are the first-time buyer land transfer tax rebates in Toronto?
Up to $4,000 from Ontario and up to $4,475 from the City of Toronto, for up to $8,475 in total. You can't have owned a home anywhere in the world, and you must move in within nine months.
Can I use both the FHSA and the Home Buyers' Plan?
Yes. You can withdraw from your FHSA tax-free and up to $60,000 from your RRSP under the Home Buyers' Plan for the same first home. Talk to your bank or advisor about timing.
Can first-time buyers get a 30-year mortgage in Canada?
Yes. Since December 15, 2024, first-time buyers can choose a 30-year amortization on an insured mortgage. It lowers your monthly payment, but you pay more interest overall.
Is it better to buy a condo or rent in Toronto?
It depends on how long you'll stay, your savings and your monthly costs. Our Rent vs Buy Calculator compares both with your own numbers.
Do I need a real estate agent to buy my first home?
You don't have to, but a buyer's agent helps you price offers, compare sales, protect yourself with the right conditions and avoid costly condo surprises.
Who is Candice Schott?
Candice Schott is a Broker with Royal LePage Signature Realty, Brokerage, who co-leads Schott & Co. with Jason Schott, Sales Representative. Since 2005 they've sold more than 500 Toronto homes, with a focus on first-time buyers and upsizers in the east end.
Ready to buy your first home?
We'll walk you through your budget, the rebates and the areas that fit, no pressure. Get in touch with Candice and Jason →
Sources: Department of Finance Canada, mortgage reforms · Government of Ontario, first-time buyer refund · City of Toronto, MLTT rebate · Department of Finance Canada, FHSA · OSFI, minimum qualifying rate · TRREB Market Watch, September 2026
General information, not legal, tax, mortgage or financial advice. Rebates and programs have eligibility rules; confirm with your lawyer, lender or accountant. Not intended to solicit buyers or sellers currently under contract.