First-Time Home Buyer Mortgage in Toronto — Programs & Pre-Approval 2026
Buying your first home in Toronto is a major milestone. lendsimpl walks you through every government program, down payment strategy, and lender option to get you into your first home with the best possible mortgage terms.
Ready to buy your first home in Toronto?
Free pre-approval. No hard credit pull to start. Rate held up to 120 days.
Ontario & Federal First-Time Buyer Programs 2026
First Home Savings Account (FHSA)
Up to $8,000/yr, $40,000 lifetime
Tax-deductible contributions + tax-free withdrawals for qualifying home
RRSP Home Buyers' Plan (HBP)
Up to $35,000 per person
Withdraw RRSP savings tax-free for first home (repay within 15 years)
Ontario Land Transfer Tax Rebate
Up to $4,000
First-time buyers get rebate on Ontario LTT
Toronto MLTT Rebate
Up to $4,475
Toronto first-time buyers also get municipal LTT rebate
First-Time Home Buyers' Tax Credit
$10,000 credit (~$1,500 tax reduction)
Federal non-refundable tax credit on your CRA return
GST/HST New Housing Rebate
Varies
Partial rebate on HST paid on new construction homes
Minimum Down Payment Requirements in Toronto 2026
| Home Price (Toronto) | Minimum Down Payment | CMHC Insurance Required? |
|---|---|---|
| Up to $500,000 | 5% ($25,000 on $500K) | Yes |
| $500,000 – $999,999 | 5% on first $500K + 10% on remainder | Yes |
| $1,000,000+ | 20% minimum | No |
*Most Toronto properties require 10–20% down given average prices. Use our closing cost calculator to estimate total cash needed at closing.
Pre-Approval Checklist for First-Time Buyers
- ✓2 years T4 slips or NOAs
- ✓Most recent pay stubs (2–3)
- ✓90 days bank statements
- ✓Photo ID (2 pieces)
- ✓Proof of down payment source
- ✓Employment letter (if applicable)
- ✓FHSA / RRSP statements
- ✓Gift letter (if down payment is gifted)
First-Time Buyer Mortgage FAQs — Toronto & Ontario
What is the minimum down payment for a first-time home buyer in Toronto in 2026?
In Canada, the minimum down payment is 5% for homes priced up to $500,000, 5–10% (blended) for homes between $500,000 and $999,999, and 20% for homes $1 million and above. Most Toronto homes require at least 10–20% given current prices. CMHC default insurance is required for down payments under 20%.
What is the First Home Savings Account (FHSA) and how does it help in Ontario?
The FHSA is a registered account allowing first-time buyers to save up to $8,000/year (lifetime limit $40,000) where contributions are tax-deductible and withdrawals for a qualifying home purchase are tax-free. In Ontario, combining FHSA + RRSP Home Buyers' Plan ($35,000 per person) means couples can access up to $150,000 tax-free for their down payment.
What does CMHC mortgage insurance cost in Toronto?
CMHC insurance premiums range from 2.80% (10–14.99% down) to 4.00% (5–9.99% down) of the mortgage amount. For example, on a $700,000 home with 10% down ($70,000), the insured mortgage is $630,000 × 3.10% = $19,530 premium added to the mortgage. The PST on the premium in Ontario is paid upfront at closing.
What are closing costs for first-time home buyers in Toronto?
Toronto closing costs typically include Ontario Land Transfer Tax (LTT), Toronto Municipal LTT, legal fees (~$1,500–$2,500), title insurance (~$300–$500), home inspection ($400–$600), and moving costs. First-time buyers can receive an LTT rebate of up to $4,000 provincial and $4,475 Toronto MLTT, saving up to ~$8,475. Budget 3–5% of purchase price.
How do I get pre-approved for a mortgage as a first-time buyer in Toronto?
Apply online with lendsimpl — you'll need proof of income (T4, NOA, pay stubs), 90 days of bank statements, ID, and a credit check (soft pull to start). Pre-approval typically takes a few hours and locks your rate for up to 120 days while you shop for a home.