06/05/2026
First-Time Home Buyer Cheat Sheet (Ontario)
🏡 1. Open an FHSA Immediately
•Contribute up to $8,000 annually.
•Lifetime contribution limit of $40,000.
•Contributions are tax deductible.
•Qualified withdrawals are tax free.
•One of the most powerful savings tools available to future homeowners.
💰 2. Use the Home Buyers' Plan (HBP)
•Withdraw up to $60,000 from your RRSP tax-free.
•Couples can potentially access $120,000.
•Funds must generally be in the RRSP for at least 90 days before withdrawal.
•Repayment occurs over 15 years.
📈 3. 30-Year Amortizations Can Improve Affordability
•Available to eligible first-time buyers purchasing with less than 20% down.
•Lowers monthly payments.
•Can increase purchasing power.
•Applies to insured mortgages.
🏦 4. Don't Rely on Online Calculators
•Mortgage qualification is based on the federal stress test.
•What you think you qualify for and what a lender approves can be very different.
•A proper pre-approval provides a more accurate budget.
📋 5. Budget for Closing Costs
•Beyond your down payment, expect legal fees, land transfer tax, adjustments, and other costs.
•Many buyers underestimate this expense, 1.5% of purchase price is a safe amount.
💵 6. First-Time Home Buyers' Tax Credit
•Eligible buyers may claim a federal tax credit worth up to $1,500.
•Helps offset some of the costs of purchasing a home.
⚠️ 7. Have Deposit Money Accessible
•FHSA and RRSP funds may not be available quickly enough for a deposit.
•Deposits are often required within 24 hours of an accepted offer.
•Keep some funds liquid and readily accessible.
📅 8. Start Planning!
•12+ months before buying: Start building your down payment and emergency savings. The more you save, the more flexibility you'll have with your purchase options and monthly payment.
•6-12 months before buying: Focus on improving your credit score if needed. Pay bills on time, reduce credit card balances, avoid applying for new credit, and correct any errors on your credit report.
•3-6 months before buying: Organize your income documents. T4s, Notices of Assessment, Pay Stubs, Job Letter and any documents related to self-employment or additional income sources.
•2-5 months before buying: Create a strategy for your down payment, closing costs, and available programs such as the FHSA and Home Buyers' Plan. Know where the money is coming from and ensure it's accessible when needed.
• 1-3 months before buying: Get pre-approved and have your deposit funds readily available. In a competitive market, you may need to provide a deposit within 24 hours of an accepted offer.
Bottom line: The buyers who start planning 12 months ahead typically have more mortgage options, stronger negotiating power, and a less stressful buying experience.
Not sure where to start?
Whether you're buying in 3 months or 3 years, knowing your options now can make a huge difference later.
📞 Reach out at 519-538-6772 or send me a DM and let's map out your next steps
