30-year amortization
First-time buyers can spread an insured mortgage over 30 years instead of 25, which lowers the monthly payment.
First-time home buyers
Your first home.
Minus the guesswork.
Know what you can afford, which programs you qualify for and what closing day will cost, before you fall in love with a house.
First-time buyer rules at a glance
- Minimum down payment5% of the first $500,000, 10% of the rest
- Insured mortgage limitHomes under $1.5 million
- AmortizationUp to 30 years
- Ontario land transfer tax refundUp to $4,000
Mortgage Assurance Inc. · FSRA #13812
How ready are you, really?
Tick what you have. I'll help with the rest.
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Tick the boxes to see how close you are.
Programs worth knowing
Help that first-time buyers often miss.
First Home Savings Account
Save up to $8,000 a year, to a lifetime limit of $40,000. Contributions are deductible and qualifying withdrawals are tax-free.
RRSP Home Buyers' Plan
Withdraw up to $60,000 from your RRSP for your first home, or $120,000 as a couple, and repay it over time.
Land transfer tax refund
Ontario refunds up to $4,000 of land transfer tax for eligible first-time buyers. Toronto has its own additional rebate.
Insured mortgages to $1.5 million
Homes priced under $1.5 million can be bought with less than 20% down, using mortgage default insurance.
Gifted down payments
A gift from immediate family can form part of your down payment. Lenders ask for a signed gift letter.
Program rules and limits change. I confirm what applies to you before you rely on any of them.
How the minimum down payment works
Slide to any price and see the two parts.
5% of the first $500,000
10% of the portion above $500,000
Minimum down payment
Pre-approval first
Know your number
before you fall in love.
A pre-approval tells you what you can borrow and holds a rate while you shop. It also makes your offer stronger when you find the right home.
Your path to the keys
Six steps, in the order they matter.
- 01
Budget
We work out a comfortable payment, not just the maximum a lender will approve.
- 02
Pre-approval
A lender reviews your income and credit and holds a rate while you shop.
- 03
House hunting
You shop with a clear price range. I stay available for quick what-if numbers.
- 04
Offer and financing
Once your offer is accepted, I move the full approval through with the right lender.
- 05
Lawyer and closing costs
Your lawyer handles the transfer. We've already budgeted for tax, fees and adjustments.
- 06
Keys
You move in. I check in after closing and again before your first renewal.
Questions
Asked on almost every first call.
How much do I need for a down payment?
The minimum is 5% of the first $500,000 of the price and 10% of the portion above that, for homes under $1.5 million. Homes at $1.5 million or more need at least 20%.
What is mortgage default insurance?
If your down payment is under 20%, the lender requires insurance from CMHC, Sagen or Canada Guaranty. The premium is a percentage of the mortgage and is normally added to the loan.
What are closing costs?
Legal fees, land transfer tax, title insurance and adjustments. A common guide is to set aside 1.5% to 4% of the purchase price on top of your down payment.
Is a pre-approval a guarantee?
No. It's based on the information provided and the lender still has to approve the property. That's why I review your documents carefully up front.
Let's talk it through
Let's map out your first home.
A 20-minute call is enough to know where you stand and what your next step is.