Buying your first home in the Greater Toronto Area — whether that's Toronto, York Region, Peel, Durham, or Simcoe County — comes down to five things: saving a down payment of at least 5% of the purchase price, using the government programs built for first-time buyers (they can add up to tens of thousands of dollars), getting pre-approved before you shop, understanding closing costs (which differ between Toronto and the surrounding regions), and working through the offer process with someone who explains every step. This guide walks through each one in plain language. It was written by Anis Khairkhwa, a Broker with eXp Realty of Canada Inc. who has guided first-time buyers across Toronto, York Region, Peel, Durham, and Simcoe County since 2018 — and if you'd rather talk it through in Dari, that's offered too.
Prefer this guide as a PDF, or have a question as you read? Email me and I'll send it along — I'm here to help.
How much down payment do you need in 2026?
Canada sets minimum down payments in tiers: 5% of the first $500,000 of the purchase price, plus 10% of any portion between $500,000 and $1,499,999. At $1,500,000 or more, the minimum is 20% and the mortgage can no longer be insured. Here's what that means in practice: on a $700,000 townhouse — a realistic first purchase in much of the GTA — the minimum down payment is $45,000 ($25,000 on the first $500,000, plus $20,000 on the remaining $200,000). Anything below 20% down requires mortgage default insurance, which is added to your mortgage rather than paid in cash. One rule changed recently that helps first-time buyers specifically: insured mortgages now allow 30-year amortizations for first-time buyers (25 years for everyone else), which lowers the monthly payment on the same loan. A smaller down payment gets you in sooner; a larger one costs less over time. There is no single right answer — it depends on your situation, and that's a conversation worth having before you start shopping.
What government programs help first-time buyers in 2026?
Four programs matter, and they stack. First, the FHSA (First Home Savings Account): contribute up to $8,000 per year to a lifetime maximum of $40,000 — contributions are tax-deductible like an RRSP, and withdrawals for a first home are tax-free like a TFSA. Second, the Home Buyers' Plan: withdraw up to $60,000 from your RRSP tax-free for your first home, repaid over 15 years. A couple using both programs at their maximums could put up to $200,000 of tax-advantaged savings toward a down payment. Third, the Ontario land transfer tax refund: up to $4,000 back for eligible first-time buyers, claimed automatically by your lawyer at closing. Fourth, if you buy in the City of Toronto, a municipal land transfer tax rebate of up to $4,475 stacks on top — though outside the City of Toronto — including York Region, Peel, Durham, and Simcoe County — there is no municipal land transfer tax at all, which is a genuine cost difference worth understanding before you choose where to buy (more on that below). One caution for couples: if your spouse has owned a home you lived in together, the land transfer refund is typically reduced or lost. Eligibility details matter — confirm yours before counting on any of these.
What closing costs should you budget beyond the down payment?
The down payment is the headline number, but closing day brings a second list. In Ontario, expect: provincial land transfer tax (reduced by up to $4,000 with the first-time buyer refund), legal fees, title insurance, a home inspection if you choose one (recommended for most resale homes), and adjustments — reimbursing the seller for prepaid property taxes or utilities. Buyers outside the City of Toronto — in York Region, Peel, Durham, and Simcoe County — pay only the provincial land transfer tax; Toronto buyers pay it twice (provincial plus municipal). On the same $700,000 home, that difference alone can be roughly the price of a year of condo fees — one reason many first-time buyers compare both sides of the Toronto boundary before deciding. A commonly used rule of thumb is to set aside 1.5% to 3% of the purchase price for closing costs beyond the down payment, but get an itemized estimate from your lawyer early rather than relying on rules of thumb. If the numbers in this section matter to your planning, ask — I'll make sure to get the details for you before we move forward.
How does mortgage pre-approval work — and why do it first?
Pre-approval means a lender reviews your income, debts, and credit and commits, in writing, to how much they'll lend you at what rate — usually holding that rate for 90 to 120 days. It matters for two reasons. First, it sets your real budget: every buyer must pass the federal stress test, qualifying at the higher of your contract rate plus 2% or 5.25%, so the amount you qualify for is often lower than online calculators suggest. Lenders also look for a gross debt service ratio at or below 39% and total debt service at or below 44%. Second, in a competitive situation, an offer from a pre-approved buyer is simply stronger — sellers take it more seriously because the financing risk is lower. Pre-approval costs nothing and does not commit you to a lender. If you don't have a mortgage contact, I'm happy to connect you with brokers my clients have worked with — and there's never pressure to use anyone in particular.
What can you actually buy across the GTA right now?
Here is where the market actually stands. In June 2026, GTA REALTORS® reported 6,770 home sales, up 9.4% from a year earlier, while new listings fell 12.9% — a market gaining traction but still balanced, which means buyers retain negotiating room that didn't exist during the frenzied years. The average selling price across all home types was $1,058,658, down 3.9% year-over-year, and the MLS® Home Price Index Composite benchmark was down 5.4% (Source: TRREB Market Watch, June 2026). For first-time buyers specifically, two things matter in those numbers. First, condo apartments — the most common first purchase — have seen the largest price declines of any home type over the past year, improving the entry point meaningfully. Second, TRREB's own 2026 outlook projects 45% of intending buyers this year will be first-time buyers, and expects conditions to tighten in the second half of the year. Nobody can time a market, but a balanced market with soft prices and a working stress test is a more forgiving place to learn than a bidding-war market.
What can be said beyond the numbers: the GTA's regions offer meaningfully different entry points. Condo apartments and townhouses are where most first purchases happen. Toronto offers the shortest commutes and the second land transfer tax; Durham and Simcoe County generally offer the most space per dollar; Peel sits between; and York Region's six municipalities — Richmond Hill, Aurora, Vaughan, Markham, Newmarket, and East Gwillimbury — climb their own price ladder from north to south. The right region depends on your commute, your budget, and what kind of home fits your life — a conversation, not a lookup table.
What does the buying process look like, step by step?
Seven steps, in order. One: pre-approval — know your real budget first. Two: sign a Buyer Representation Agreement — under Ontario's rules (TRESA), your agent explains in writing what they do for you and how they're paid, before you start viewing homes. Three: shop — your agent sets up a search that matches your criteria, and you see homes as they list. Four: offer — your agent prepares it, explains every condition (financing, inspection, status certificate for condos), and negotiates on your behalf. Five: conditional period — usually a few days to a couple of weeks to satisfy your conditions; your deposit (typically 5% in this market) is held in trust. Six: firm to closing — your lawyer handles title searches, the land transfer refund, and the money flow; your lender finalizes the mortgage. Seven: closing day — keys. Every term in that list gets explained when we reach it. No question is too small — the buyers who ask the most questions usually make the best decisions.
What mistakes do first-time buyers make most often?
Five come up again and again. Shopping before pre-approval — falling for a home you can't finance is heartbreak you can skip. Draining every dollar into the down payment — leaving nothing for closing costs, moving, or the first repair. Skipping the inspection to compete — sometimes a calculated risk, but it should be a decision, not a default. Judging a home by its furniture — staging sells; look at layout, mechanicals, and light instead (this is the designer's-eye part of my job: helping you see what a space actually is, and what it could become). Waiting for the perfect market moment — the honest answer is nobody calls the top or bottom; the better question is whether the home fits your life and the payment fits your budget for the next five years. If it does, timing tends to take care of itself.
Why does the agent you choose matter as a first-time buyer?
Because everything in this guide is general, and your purchase will be specific. A first-time buyer's agent has two jobs: education — explaining every document, condition, and cost in plain language before you sign anything — and protection — negotiating terms that fit your situation, not the market's mood. My own approach comes from experience: I know what it means to start from nothing and build a home here, I spent years caring for people in a doctor's office before real estate, and I fell in love with this work through staging and design — seeing what a space can become. Whether it's your first home or your next one, you won't go through it alone. Service is offered in English and Dari, and the first conversation is free, unhurried, and pressure-free.
Frequently asked questions
How much do I need for a down payment on a $700,000 home in Ontario?
The legal minimum is $45,000 — 5% of the first $500,000 ($25,000) plus 10% of the remaining $200,000 ($20,000). Below 20% down, mortgage default insurance applies and is added to the loan.
What is the FHSA and how much can I contribute?
The First Home Savings Account lets first-time buyers contribute $8,000 per year to a lifetime maximum of $40,000. Contributions are tax-deductible, and withdrawals for a qualifying first home are tax-free.
How much can I take from my RRSP under the Home Buyers' Plan?
Up to $60,000, tax-free, repayable to your RRSP over 15 years. It can be combined with the FHSA for the same purchase.
Do first-time buyers pay land transfer tax in Ontario?
Yes, but eligible first-time buyers receive a refund of up to $4,000, applied automatically at closing by your lawyer. Outside the City of Toronto — including York Region, Peel, Durham, and Simcoe County — there is no additional municipal land transfer tax; that second tax applies only in the City of Toronto (where first-time buyers get a separate rebate of up to $4,475).
What credit score do I need for an insured mortgage?
Lenders generally look for a minimum credit score of 600 for an insured mortgage, alongside debt-service limits and the federal stress test. Stronger credit usually means better rates.
What is the stress test?
To qualify for a mortgage, you must prove you could carry the payment at the higher of your contract rate plus 2% or 5.25% — a buffer that protects you if rates rise at renewal.
Can I get a 30-year mortgage as a first-time buyer?
Yes — insured mortgages allow 30-year amortizations for first-time buyers (and buyers of new construction). The longer amortization lowers the monthly payment but increases total interest over the life of the loan.
How much deposit do I need with an offer?
In the GTA, a deposit of about 5% of the purchase price within 24 hours of acceptance is customary. It's held in trust and counts toward your down payment at closing.
Is it better to buy in Toronto or outside the city as a first-time buyer?
It depends on your commute, lifestyle, and budget — buyers in York Region, Peel, Durham, and Simcoe County avoid Toronto's municipal land transfer tax entirely and generally get more space per dollar, while Toronto offers shorter commutes and transit access. This is exactly the conversation to have in a first meeting.
What does it cost to work with a buyer's agent?
In most GTA transactions the buyer's agent is compensated from the transaction as set out in your Buyer Representation Agreement, which is explained and signed before you begin. You'll understand exactly how it works before seeing a single home.
Ready to talk it through?
I hope this guide gave you a clearer picture. If you'd like to talk through your own situation — your budget, the programs that apply to you, or simply whether now or later makes more sense — the first conversation is free, unhurried, and pressure-free, in English or Dari. Email me or call (647) 648-4552. Let me know what works best for you — I'm here to help.
This guide is general information, not financial, legal, or tax advice — confirm program eligibility with your lender, lawyer, and accountant. Market figures: TRREB Market Watch, June 2026. Last updated July 2026.