TS MORTGAGES
Mortgage expert GTA & beyond
License #10464
First Time Home Buyers Ontario
Buying your first home is an exciting time but might seem overwhelming! With the right help and resources you can turn your homeownership goals into a reality. At TS Mortgages, we understand that purchasing your first home comes with a lot of questions and need for additional support, so Tamara is here to help you every step of the way.
In general, as a first-time home buyer you will be subject to a similar application process, rates, and requirements as any other mortgage seeker. However, there are added benefits associated with buying a property for the first time. To help first-time home buyers navigate the complex process of purchasing a home, it is important to do your research and consult with a trusted mortgage professional to receive personalized and accurate advice.

FAQ for First Time Home Buyers
To help you along your journey to purchasing your first home, here are some first-time home buyer frequently asked questions and information:
Who qualifies as a first time home buyer?
You can qualify as a first-time home buyer if you have not occupied a home that you, your spouse, or common law partner own in the 4 years prior to the purchase of the new home.
How much down payment do I need as a first time home buyer?
The required down payment for a first-time home buyer depends on various factors including the purchase price of the home and the mortgage amount. Generally, if the property is less than $1 million, then the minimum down payment is 5% of the first $500,000 and then 10% on the remaining loan amount. If the property is valued at $1 million or more, a minimum of 20% down payment is required.​
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However, the government of Ontario has implemented various incentives and programs to make your homeownership goals a reality including the First Time Home Buyer Incentive.
What is the Ontario First Time Home Buyer Incentive?
The Ontario First Time Home Buyer Incentive is a shared-equity mortgage program offered by the Government of Ontario. It provides an interest-free loan of up to 5% of the home's purchase price, or up to 10% for new construction homes, to be used towards the down payment.
This program aims to reduce the mortgage amount and make breaking into the housing market easier for first-time home buyers. This interest-free loan is a second mortgage that can be repaid at any time within the 25 years or if when you sell the home, whichever comes first. Although it is interest-free, as it is a shared-equity loan, the repayment must include a percentage of any gains in property value.
To qualify for this program the annual household income of the first-time home buyer must be below $120,000, with a mortgage loan of no more then 4 times the annual income. In higher demand and priced markets, such as Toronto and Vancouver, the maximum annual income must be below $150,000 with a mortgage loan of no more than up to 4.5 times the income.
How to use your RRSP as a first time home buyer?
As a first-time home buyer in Ontario, you can utilize the Home Buyers' Plan (HBP) to withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to use towards your down payment. This maximum withdrawal amount is per individual that is a first-time home buyer. This means if you and your partner are both first-time buyers, you will EACH be allowed to take up to $35,000 from your RRSP. The withdrawal is tax-free as long as the funds are repaid within a specified timeframe.
What tax incentives and refunds are there for first time home buyers in Ontario?
​There are extra tax incentives and refunds for first time home buyers n Ontario. The Ontario government offers a provincial Land Transfer Tax Refund for first-time home buyers, allowing eligible buyers to receive up to $4,000 back from the provincial land transfer tax paid during the purchase of their home. It is important to continue to research new incentives and rebates as the government introduces them.
What is mortgage loan insurance and do I need it as a first time home buyer in Ontario?
Mortgage loan insurance is required if your down payment is less than 20% of the purchase price of the home, with a purchase price under $1 million. This insurance protects the lender against default but also allows first-time buyers in Ontario access to competitive interest rates for their mortgages. The premium for the insurance varies dependent on the percentage of mortgage you require verses the home value.
Remember, the mortgage landscape and eligibility criteria may change over time. It's always recommended to consult with a mortgage professional to get the most up-to-date and personalized information for your specific situation.