First-Time Home Buyer Mortgage in Scarborough: Start With a Clear Plan

5% on the first $500,000, 10% on the portion from $500,000 up to $1.5 million, and 20% for homes priced at $1.5 million or more. Example: a $650,000 home needs $40,000 down (5% of $500,000 plus 10% of $150,000). With less than 20% down, your mortgage needs default insurance. See minimum down payment in Ontario.

Yes. Scarborough is part of the City of Toronto, so you pay Ontario and Toronto land transfer tax. First-time buyers may receive rebates of up to $4,000 from Ontario and up to $4,475 from Toronto, up to $8,475 combined. Conditions apply, including that you have not owned a home anywhere in the world, you live in the home as your principal residence within nine months, and your spouse has not owned a home while married to you. Your lawyer applies the rebates at closing.

The First Home Savings Account lets you contribute up to $8,000 a year, to a lifetime limit of $40,000, and unused room carries forward up to $8,000. Contributions are generally tax-deductible, and qualifying withdrawals for a first home are tax-free. See our FHSA guide.

The Home Buyers' Plan lets you withdraw up to $60,000 from your own RRSPs toward a first home and repay it over 15 years. You can use it with the FHSA. If you have the room and qualify, that can mean up to $100,000 per buyer, or $200,000 for a couple.

Most lenders qualify you at the higher of your contract rate plus 2% or 5.25%. This lowers your maximum mortgage compared with qualifying at your contract rate. We run your stress-tested maximum on the first call so you know your budget before you tour homes.

Your income, debts, down payment, condo fees and property taxes all affect your maximum price. Lenders also limit housing and total debt payments as a share of your income. We run your exact numbers and give you a maximum purchase price in writing.

Typical costs include land transfer tax (less any rebate), legal fees, title insurance, a home inspection, an appraisal where required, Ontario sales tax on a default insurance premium (paid in cash at closing) and adjustments. We give you a written estimate before you make an offer. Try the closing cost calculator for Scarborough.

Requirements differ by lender and program. Stronger credit usually opens more lenders and better pricing, and lower credit may point to B-lender or other options. We review where your file fits on the first call.

Often, yes. Many lenders and default insurers have newcomer programs, and some can work with a short Canadian credit history. Eligibility depends on your residency status, documents and the lender, so we review your situation case by case.

A pre-approval is a written indication from a lender of the mortgage amount and rate you may qualify for, with a rate hold of up to 120 days with many lenders. It is not a final approval, and it depends on documents, the property and lender conditions. It helps you shop with a clear budget.