Zubic Law · Ontario Edition · 2026
The Ontario First-Time Home Buyer’s Guide
The largest purchase of your life deserves more than a blog post. This is your complete path from budgeting to keys in hand — with the calculators built right in.
Before You Begin
One complete path, built to be worked through — not skimmed.
What This Guide Is
An interactive playbook, not a blog post. The complete Ontario path from your first budget number to keys in hand — with the calculators built right into each stage.
Who It's For
First-time buyers anywhere in Ontario — whether you're saving your first $10,000 or reviewing an Agreement of Purchase and Sale this week.
How to Use It
Work through the four stages and check items off as you go — your progress is saved automatically on this device. Then stress-test your numbers with the mortgage and land transfer tax calculators.
The Down Payment
Where do you find five percent of a house?
Every first-time buyer starts here. For homes under $1.5 million, the minimum down payment is 5% of the first $500,000 and 10% of the remainder. Homes costing $1.5 million or more require at least 20% down. Put 20% down and you skip mortgage default insurance entirely. On a $500,000 home, five percent is $25,000. That number feels enormous until you stack the registered accounts the government built for exactly this moment.
First Home Savings Account (FHSA)
Tax-deductible in, tax-free out — use it first
- Contribute up to $8,000 per year, $40,000 lifetime
- Contributions lower your taxable income like an RRSP; qualifying withdrawals to buy your first home come out completely tax-free
- Open one now even if you can only spare $50 a month — unused room carries forward one year
Tax-Free Savings Account (TFSA)
Your flexible bridge — no repayment rules
- Every dollar of growth and withdrawal is tax-free, with no strings attached
- Ideal for the part of your down payment you may need to touch for closing costs or surprises
- Unlike the FHSA or RRSP, there is no requalification or repayment — it is simply your money
RRSP Home Buyers' Plan (HBP)
Borrow from your future, interest-free
- Withdraw up to $60,000 from your RRSP without paying tax on it
- Repay over 15 years, starting the second year after withdrawal — miss a payment and it becomes taxable income
- Best paired with a pre-approval: you know exactly how much you need before you pull anything out
Credits & rebates that cushion the fall
Money back at tax time and at closing
- First-Time Home Buyers' Tax Credit: up to $1,500 back on your return the year you buy
- Ontario land transfer tax rebate of up to $4,000 — Toronto adds up to another $4,475
- Budget 1.5%–4% of the purchase price for closing costs so these rebates are a bonus, not a lifeline
A simple strategy: open an FHSA today and automate whatever you can afford, keep your closing-cost fund liquid in a TFSA, and only reach into your RRSP once you know the purchase price you are targeting. Registered account limits are set by the federal government and may change — confirm current rules with your financial institution.
From Saved to Borrowed
Your down payment doesn't just open the door — it sets the terms of everything that follows.
Under 20% down
Your mortgage must be insured — the premium is added to your balance and paid down with interest.
20% or more
Default insurance disappears, your loan shrinks, and every monthly payment works harder for you.
The stress test
You must qualify at the greater of 5.25% or your contract rate plus 2% — your down payment decides how much room you have.
So before you tour a single listing, see what your savings translate to each month. The calculator below turns your down payment into a real monthly carrying cost — principal, interest, and insurance included.
The Mortgage Calculator
What will it actually cost each month?
Slide the numbers to your scenario. Estimated mortgage payment includes principal, interest, and — if you put less than 20% down — the default-insurance premium rolled into your mortgage.
Estimated monthly payment
$4,044
Principal and interest, including any financed default-insurance premium. Assumes a fixed rate compounded semi-annually. Excludes property tax, utilities, condo fees and home insurance. Ontario's 8% tax on the insurance premium is paid at closing, not financed. The 30-year insured estimate assumes an eligible first-time buyer and includes a 0.20% premium surcharge. Confirm eligibility and figures with your lender.
The Land Transfer Tax Calculator
Your true closing costs, rebates included
Ontario charges land transfer tax on every purchase — and Toronto adds a second, municipal tax on top. Toggle the first-time buyer rebate to watch your bill shrink.
Estimated land transfer tax
$7,475
$4,000 saved by the first-time buyer rebate
Estimate for a residential property with one or two single-family residences, up to $2.5 million. Assumes full eligibility for selected first-time buyer rebates. Residency, previous ownership, spouse and occupancy rules apply. Excludes non-resident taxes, legal fees and other closing adjustments. Confirm eligibility with your lawyer.
The Checklist
Four stages to the closing table
Work through each stage at your own pace — budgeting, search, offer, and closing. Your progress is saved automatically and shown in the meter above.
A Note from Zubic Law
Once your offer goes firm, you're bound to it — including your deposit. We review your Agreement of Purchase and Sale before you sign: conditions, deposit terms, chattels, and closing dates. Have a question before you commit? That's exactly what we're for.
Take the checklist with you.
Print the full four-stage Ontario first-time buyer checklist or save it as a PDF — every step, from budgeting to keys in hand, ready to work through at your own pace.
Choose “Save as PDF” in your print window to keep a digital copy.
The Final Handover
Ready to review the Agreement of Purchase and Sale?
You've done the math. Now have a lawyer in your corner. Zubic Law represents Ontario buyers from the first offer to the final key — fixed, transparent legal fees, no surprises at the closing table.
This guide is provided for informational purposes only and does not constitute legal, financial, or tax advice. Figures are estimates; land transfer tax, rebates, and mortgage requirements are set by the Province of Ontario, the City of Toronto, and your lender.
© 2026 Zubic Law · zubiclaw.com