First-Time Home Buyer in Toronto: The Complete 2026 Mortgage Guide

Canada's minimum down payment rules are tiered. For purchase prices up to $500,000 you need 5%. Between $500,000 and $1.5M you need 5% on the first $500,000 and 10% on the portion above. At $1.5M and above you need 20% down and the mortgage cannot be insured.

Because Toronto's benchmark price sits well above $1M for most freehold homes, many first-time buyers either stretch to 20% down or focus on condos where 5–10% down still works.

• Up to $500,000 → 5% down
• $500,001 to $1,499,999 → 5% of first $500k + 10% above
• $1,500,000+ → 20% down, uninsured mortgage only

Every federally regulated lender must qualify you at the higher of your contract rate + 2% or the Bank of Canada minimum qualifying rate of 5.25%. This is the OSFI B-20 stress test. It does not change your actual payment — it only changes how much mortgage you qualify for.

A broker can show you whether a credit union (not federally regulated and sometimes more flexible) or an alternative lender makes sense if the stress test is squeezing your purchase price.

Toronto is one of the only Canadian cities that charges a municipal land transfer tax on top of the provincial one. On a $900,000 purchase you can expect roughly $14,475 of Ontario LTT and another $13,950 of Toronto MLTT before rebates.

First-time buyers can claim up to $4,000 in Ontario LTT rebate and up to $4,475 in Toronto MLTT rebate, for total relief up to $8,475 if they qualify.

Most first-time buyers underestimate how much of the work happens before they ever see a listing. A typical broker-led timeline looks like this:

• Pre-qualification call — confirm budget, credit, and timeline
• Document gathering — income, ID, down payment source
• Pre-approval — rate hold for 90–120 days
• Offer with financing condition (or firm offer if you have an approval)
• Full underwriting and appraisal once offer is accepted
• Final commitment and lawyer instructions
• Closing and key handover