First-Time Home Buyer Mortgage in Ontario: Rates, Rebates and Minimum Down Payment
Minimum down payment, the land transfer tax rebate you are owed, and what income the stress test actually demands in Ontario.
Who a first time home buyer in Ontario covers
- Buyers who have not owned a home in the last four years
- Anyone using an FHSA or the Home Buyers’ Plan for the down payment
- Households trying to work out whether the price they want is reachable
What Ontario lenders look for
| 5% down below $500,000 | The statutory minimum. Between $500,000 and $1.5M it is 5% on the first $500,000 and 10% on the rest. At $1.5M and above it is 20%. |
| Default insurance | Mandatory under 20% down. The premium is added to the mortgage; the provincial sales tax on it is not and must be cash at closing. |
| FHSA | Up to $8,000 a year and $40,000 lifetime, deductible going in and tax-free coming out for a first home. The strongest first-time buyer instrument available. |
| Home Buyers’ Plan | Up to $60,000 from an RRSP, repayable over 15 years. Stacks with the FHSA. |
First-Time Buyer mortgage rates in Ontario
First-time buyers with less than 20% down get insured pricing, which is the lowest on the board. Putting more down can genuinely produce a worse rate.
What a typical purchase looks like
| Typical price | $759,000 |
| Minimum down payment | $50,900 |
| Land transfer tax | $11,655 |
Averaged across 10 Ontario markets we track. Calculate yours →
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First-Time Buyer mortgages across Ontario
Prices and property tax vary widely inside the province, and both feed your qualification.
| Market | Typical price | Minimum down | |
|---|---|---|---|
| Toronto | $1,058,658 | $80,866 | Affordability → |
| Mississauga | $1,014,120 | $76,412 | Affordability → |
| Brampton | $888,203 | $63,820 | Affordability → |
| Hamilton | $741,172 | $49,117 | Affordability → |
| Ottawa | $683,308 | $43,331 | Affordability → |
| London | $603,006 | $35,301 | Affordability → |
| Kitchener | $706,240 | $45,624 | Affordability → |
| Windsor | $530,000 | $28,000 | Affordability → |
| Oshawa | $693,677 | $44,368 | Affordability → |
| Barrie | $668,083 | $41,808 | Affordability → |
First-Time Buyer mortgage questions for Ontario
Is 20% down better than 5%?
Not always. Crossing 20% removes the insurance premium but moves you off insured pricing onto insurable or uninsured, where rates are higher. Between roughly 15% and 20% the arithmetic often favours putting less down. It is worth running both.
What income do I need?
It depends on price, property tax and your other debt, and it is calculated at the stress-test rate rather than the rate you pay. Use the affordability calculator for your market rather than a national rule of thumb.
Do I qualify as first-time if I owned a home years ago?
For most programs, yes — the usual test is not having occupied a home you or your spouse owned in the current year or the four preceding years. Provincial land transfer tax rebates sometimes use a stricter definition.
What does it cost to close in Ontario?
Ontario land transfer tax on a $759,000 purchase comes to $11,655, due in cash on closing. Full Ontario closing costs →
First-Time Buyer in Ontario?
Send us the file and a licensed broker comes back with what is realistically available — which lenders will take it, at what rate, and what they will want to see.
