First Time Home Buyer in Ontario

Purchasing your first home in the Ontario housing market can seem like a daunting task, but it's far from impossible. Every day, many first-time home buyers successfully navigate this market, despite the average price rising by more than 30% in 2021 alone. 

Buying your first home requires a combination of preparation, both financially and mentally, as well as the help of professionals to avoid common mistakes and the use of local, provincial, and federal incentives.


To start, it's essential to understand who qualifies as a first-time home buyer in Ontario. If you have never owned a property, in full or in part, anywhere in the world, you qualify. This also applies if you received a home as a gift or inheritance.

However, if you owned a property that you did not purchase, the government of Ontario does not consider you a first-time home buyer. One of the critical first steps in buying your first home in Ontario is to set realistic expectations about the housing market.

This will help keep you motivated and focused, especially if one or more of your offers are rejected. As of November 2022, there were fewer than 34,000 active residential listings across Ontario, which makes it challenging for prices to fall.


The average price for a resale home in Ontario at the end of November 2022 was $936,435, which is over 7.7% higher than the previous year. High prices can make the process of buying a home daunting for first-time buyers, as they require substantial mortgages and larger down payments.

When it comes to finances, your down payment and overall financial situation are crucial factors to consider. According to Canada's mortgage lending rules, buyers must provide a 5% down payment on homes that cost less than $500,000.

For homes that cost more than that, the down payment must be larger. To prepare for a substantial down payment, consider speaking to a professional who will help you understand the down payment required based on your income and price range. An experienced mortgage professional can calculate how much home you can afford, provide a mortgage pre-approval, and suggest strategies to strengthen your finances.

Mortgage Broker

Additionally, talking to a mortgage broker will help guide you through the process and also recommend the right product for you given the pool of lenders they work with. Working with a local real estate agent who specializes in the area you're interested in is also a smart move.

Reputable agents will look at recent sales activity and help you understand the market you're facing, including its competitiveness, growth potential, and if you should expect to pay more than the asking price.

Once they understand your goals and spending limits, they will help you feel emotionally and strategically prepared to buy your first home. Finally, exploring first-time home buyer programs in Ontario can significantly reduce the overall cost of buying a home.

Government Programs

There are various programs and incentives available from the federal, provincial, and local levels, so it's worth researching and taking advantage of as many as you can.

For instance, the Home Buyers' Plan (HBP) is a federal program that allows first-time home buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) for their down payment.

At the provincial level, the Ontario Land Transfer Tax Rebate provides a rebate of up to $4,000 for first-time home buyers to offset the cost of the land transfer tax. Additionally, the Ontario Home Ownership Program provides down payment assistance to eligible first-time home buyers.

Buying your first home in the Ontario housing market can be a complex and competitive process, but with the right preparation, resources, and professional help, it can be a manageable and rewarding experience. Simplify your first home-buying journey with Amrita Bhogal Mortgages. Our expert team of mortgage brokers and local real estate agents will guide you through the complex Ontario housing market and help you access the best federal and provincial incentives. Start living in your dream home today!


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