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First-Time Home Buyers

First-Time Home Buyer Mortgages in Canada

Your dream of homeownership starts here.

Take advantage of special programs, lower down payment requirements, and government incentives designed specifically for first-time home buyers in Canada. Lenderoo shops 40+ lenders and matches you with a top mortgage professional to guide you through every step — free, and on your side.

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Why Choose Us for Your First Home

First-Time Buyer Specialists

The mortgage professionals in our network specialize in helping first-time buyers navigate the complex mortgage process with expertise and patience.

Access to Special Programs

We help you access exclusive first-time buyer programs, incentives, and rebates available across Canada.

Low Down Payment Options

Qualify with as little as 5% down payment on homes under $500,000, making homeownership more accessible.

Government Incentives

Take advantage of tax rebates, RRSP withdrawals, and federal incentive programs to reduce your costs.

Step-by-Step Guidance

From pre-approval to closing, we provide comprehensive support throughout your entire home buying journey.

No Hidden Fees

Complete transparency in our process with no surprise costs or hidden fees. You'll know exactly what to expect.

First-Time Buyer Timeline

1
Get Pre-Approved

Understand how much you can borrow and show sellers you're a serious buyer

2
Understand Your Budget

Calculate what you can afford including down payment, closing costs, and monthly payments

3
Find a Real Estate Agent

Work with an experienced agent who understands first-time buyers' needs

4
Start House Hunting

Visit properties that fit your budget and lifestyle requirements

5
Make an Offer

Submit a competitive offer with appropriate conditions to protect yourself

6
Close on Your Home

Complete final inspections, secure financing, and receive the keys to your new home

First-Time Home Buyer Programs in Canada

First-Time Home Buyer Incentive
Shared equity mortgage with Government of Canada

The FTHBI offers 5% or 10% of the home's purchase price for first-time buyers. This reduces your monthly mortgage payments without adding to your debt.

  • 5% for resale homes, 5-10% for new construction
  • Must have minimum 5% down payment from own resources
  • Total borrowing cannot exceed 4x your annual income
Home Buyers' Plan (RRSP Withdrawal)
Withdraw up to $35,000 from your RRSP

Withdraw up to $35,000 from your RRSP tax-free to put toward your down payment. Couples can withdraw up to $70,000 combined.

  • No tax on withdrawal if repaid within 15 years
  • Funds must be in RRSP for at least 90 days
  • Start repaying in the second year after withdrawal
Land Transfer Tax Rebates
Provincial rebates for first-time buyers

Many provinces offer land transfer tax rebates for first-time home buyers, potentially saving you thousands of dollars.

  • Ontario: Up to $4,000 rebate
  • BC: Full or partial exemption based on property value
  • Other provinces may have similar programs
GST/HST New Housing Rebate
Rebate on new construction purchases

If you're buying a newly constructed home, you may be eligible for a rebate of some of the GST/HST paid.

  • Up to 36% of GST on homes under $350,000
  • Partial rebate for homes between $350,000-$450,000
  • Must be used as primary residence
Provincial Programs
Additional support varies by province

Many provinces offer additional programs to help first-time buyers, from tax credits to down payment assistance.

  • BC: First-Time Home Buyers' Program
  • Alberta: Various municipal programs
  • Check your province for specific programs

Minimum Down Payment Requirements

Purchase Price Under $500,000

Minimum down payment:

5%

Example: $25,000 down on a $500,000 home

Purchase Price $500,000 - $999,999

5% on first $500,000

$25,000

10% on remainder

Variable

Example: $75,000 down on a $750,000 home ($25,000 + $25,000)

Purchase Price $1,000,000+

Minimum down payment:

20%

Example: $200,000 down on a $1,000,000 home

Note: CMHC insurance not available for homes over $1 million

Common First-Time Buyer Mistakes to Avoid

Not Getting Pre-Approved First
Know your budget before house hunting to avoid disappointment and show sellers you're a serious buyer.
Maxing Out Your Budget
Leave room for unexpected expenses, maintenance, and lifestyle costs. Don't stretch yourself too thin.
Skipping the Home Inspection
A few hundred dollars for an inspection can save you thousands in unexpected repairs and give you negotiating power.
Not Budgeting for Closing Costs
Closing costs typically run 1.5-4% of the purchase price. Budget for legal fees, title insurance, and other expenses.
Making Major Purchases Before Closing
Avoid taking on new debt before your mortgage closes. New car loans or credit cards can affect your qualification.
Ignoring Additional Homeownership Costs
Factor in property taxes, utilities, insurance, maintenance, and potential condo fees when calculating affordability.
Not Shopping Around for Rates
Even a small difference in interest rates can save you thousands over the life of your mortgage. Compare multiple lenders.
Waiving Conditions in a Competitive Market
While tempting to make your offer more attractive, waiving financing or inspection conditions can be risky.

What You Need to Qualify

Minimum Credit Score Requirements

Generally 600+ for insured mortgages, 680+ for conventional mortgages. Higher scores typically qualify for better rates.

Down Payment Source

Your down payment must come from your own resources (savings, RRSP withdrawal, gift from family). Some restrictions apply on borrowed down payments.

Stable Employment History

Typically 2 years of employment history in the same field. Self-employed applicants may need additional documentation.

Debt-to-Income Ratio

Total debt payments (including mortgage) should not exceed 44% of gross monthly income. Housing costs alone should be under 39%.

Proof of Income

Recent pay stubs, T4s, Notice of Assessment, employment letter, and/or business financial statements depending on your employment type.

Benefits of Being a First-Time Home Buyer

Lower Down Payment Requirements

Only 5% down required on homes under $500,000, making it easier to enter the market compared to the standard 20% for conventional mortgages.

Access to Government Programs

Exclusive access to programs like the First-Time Home Buyer Incentive and the Home Buyers' Plan that aren't available to repeat buyers.

Tax Rebates and Credits

Qualify for land transfer tax rebates and the First-Time Home Buyers' Tax Credit, potentially saving thousands of dollars.

RRSP Withdrawal Privileges

Withdraw up to $35,000 from your RRSP tax-free under the Home Buyers' Plan to boost your down payment.

Building Equity

Start building equity with every mortgage payment instead of paying rent, creating long-term wealth and financial security.

Expert Guidance

Access to mortgage professionals who specialize in first-time buyers and understand the unique challenges you face.

What Our First-Time Buyers Say

Made the Process So Easy

"As a first-time buyer, I was completely overwhelmed. The team walked me through every step, explained all the programs I qualified for, and helped me save thousands with the FTHBI program. I'm now a proud homeowner!"

- Sarah M., Toronto

Got the Best Rate

"I thought I'd never be able to afford a home in Vancouver, but they found me a great rate and helped me access the Home Buyers' Plan. Their expertise saved me over $15,000 in the first year alone."

- Michael L., Vancouver

Patient and Professional

"The team answered all my questions (and I had a lot!) with patience and expertise. They made sure I understood everything before moving forward. I felt confident and supported throughout the entire process."

- Jennifer K., Calgary

First-Time Buyer Affordability Calculator

Find out how much home you can afford based on your income and down payment

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Fill in your financial details to calculate affordability
Your Results
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Questions & Answers

Frequently Asked Questions

Straight answers to the questions every first-time home buyer in Canada asks before making an offer.

Ready to Become a Homeowner?

Take the first step toward your dream home today. Get pre-approved and discover how much you can afford with our expert first-time buyer specialists.

Get Pre-Approved Now Try Our Calculator
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