Buying your first home is exciting, but it still needs to make financial sense. Before you start touring properties, get a clear picture of your finances: your savings, income, monthly debt, and credit score. A mortgage pre-approval is the natural next step — it tells you, in writing, roughly what a lender will lend you, based on the mortgage stress test (qualifying at your contract rate plus 2%, or 5.25%, whichever is higher).
The Home Buyers' Plan lets eligible first-time buyers withdraw up to $60,000 per person ($120,000 per couple) from their RRSP, tax-free, toward a down payment. Funds generally need to sit in your RRSP for at least 90 days before withdrawal, and repayment is spread over 15 years starting the second year after you withdraw. The First Home Savings Account (FHSA) can be used alongside it for additional down payment funds that don't need to be repaid.
Ontario land transfer tax is calculated on marginal brackets, generally 0.5% to 2.5% of the purchase price (Toronto adds its own municipal tax). First-time buyers may qualify for a provincial rebate of up to $4,000, which fully covers the tax on purchases up to roughly $368,000; Toronto offers a separate municipal rebate up to $4,475. Beyond land transfer tax, budget for legal fees ($1,200–$2,000), title insurance ($250–$800), a home inspection ($400–$600), and property tax adjustments. As a general rule of thumb, budget 1.5% to 4% of the purchase price for closing costs on top of your down payment.
This brochure covers the essentials. The full course, Your First Home: A First-Time Buyer's Roadmap, walks through every one of these topics in detail with a complete step-by-step curriculum — free to access.