First-Time Home Buyer Mortgage in Canada: 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 Canada.
Who a first time home buyer 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 lenders look for on a first time home buyer file
| 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: what it costs
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.
| Lender | 5-year fixed |
|---|---|
| Exclusive Lender | 4.39% |
| Insured lender · sign in to see the lender | 4.49% |
| Insured lender · sign in to see the lender | 4.59% |
| Insured lender · sign in to see the lender | 4.59% |
| Insured lender · sign in to see the lender | 4.59% |
Lowest five-year fixed on the insured shelf, 2026-10-15. Full board →
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First-Time Buyer by province
Land transfer tax, minimum down payment and typical prices differ by province.
Insured, insurable or uninsured: which shelf you buy on
Your down payment and your purchase price decide which of three rate shelves you are priced on, and this is the single biggest influence on the rate you are offered.
| Insured | Insurable | Uninsured | |
|---|---|---|---|
| Down payment | Less than 20%. | 20% or more, on a property that still meets insurance criteria. | 20% or more, outside those criteria. |
| Price limit | Default insurance is available up to $1.5 million. | Same criteria apply. | No limit — but no insurance either. |
| Insurance premium | You pay it, usually added to the mortgage. | The lender insures the pool; you do not pay a premium. | None. |
| Typical rate | Normally the lowest of the three, because the lender carries least risk. | Close behind. | Highest of the three. |
| Best for | A first-time buyer entering sooner with a smaller down payment. | A buyer with 20% down on a conventional purchase. | A buyer above the cap, on a rental, or on a longer amortization. |
Minimum down payment is 5% on the first $500,000 and 10% on the portion between $500,000 and $1.5 million. At $1.5 million and above, 20% is required and insurance is unavailable.
First-Time Buyer mortgage questions
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.
Will applying hurt my credit score?
A single mortgage enquiry has a small, short-lived effect. Several lenders pulling your bureau separately over weeks is worse than one broker pulling it once and taking that file to several lenders.
How long does this usually take?
A straightforward file takes a few weeks from application to approval. Alternative and private lending can move faster because less is being verified — sometimes days.
Have a first-time buyer file looked at
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
