First-Time Home Buyer Mortgages in Toronto
Buying your first home in Toronto — without the guesswork.
Toronto buyers face two land transfer taxes, a federal stress test, and condo-versus-freehold trade-offs most first-time buyer guides skip. A licensed broker walks you through how much you can actually borrow, what rebates apply, and which lender fits your profile.
Who this is best for
- Buyers who have never owned a home in Canada
- Couples combining incomes for the first time
- Renters tired of paying down someone else's mortgage
- Buyers using the First Home Savings Account (FHSA) or RRSP Home Buyers' Plan
How a Toronto mortgage broker helps
- Explains minimum down payment rules tier-by-tier
- Shows how the stress test affects your real Toronto budget
- Maps out Toronto + Ontario land transfer tax and the first-time buyer rebates
- Walks through FHSA and RRSP HBP coordination
- Picks lenders that price first-time-buyer files competitively
What lenders typically look at
- Minimum 5% down on the first $500,000, 10% on the portion above
- Default insurance required when down payment is under 20%
- Stress test at the higher of contract rate + 2% or the qualifying rate
- Stable two-year income history (exceptions apply)
- Credit profile generally 680+ for best pricing
Documents you'll likely need
- Photo ID
- Pay stubs and T4s (last two years)
- Notices of Assessment
- 90-day down payment history
- FHSA / RRSP statements if used for down payment
- Gift letter if applicable
A Toronto example
Single buyer, midtown condo
A salaried buyer earning $110,000 with $60,000 in FHSA/RRSP and no debt is typically reviewed against insured mortgage limits, the stress-test rate, and condo-fee impact on GDS/TDS to land on a realistic Toronto condo budget.
Frequently asked questions
+How much do I really need as a down payment in Toronto?
Minimums are 5% on the first $500,000 and 10% on the portion above, up to insured limits. Anything over $1.5M typically requires 20%+.
+What is the Toronto land transfer tax rebate?
First-time buyers can claim rebates against both the Ontario and Toronto municipal land transfer taxes, up to set maximums. A broker confirms eligibility.
+Can I use my FHSA and RRSP together?
Yes. FHSA contributions and the RRSP Home Buyers' Plan can both be used toward a first home purchase, subject to their respective rules.
+Should I get a variable or fixed rate?
Neither is universally better. The right choice depends on your timeline, risk tolerance, and current spread — a broker walks you through both.
Related
This website does not guarantee any mortgage rate, approval, or product. We do not provide mortgage advice on this website. All mortgage transactions are handled by the licensed brokerage identified on this site, in accordance with FSRA requirements.