Am I still a first-time buyer if I owned a home years ago?

For most programs you qualify again if you have not owned a home you occupied in the current year or the four preceding calendar years. Rules differ slightly between the FHSA, the Home Buyers' Plan and the Ontario rebate, so we check each one against your situation.

Can my parents give me the down payment?

Yes. Gifted down payments from immediate family are accepted with a signed gift letter confirming the money is a gift and not a loan, plus proof the funds landed in your account.

What credit score do I need?

Insured mortgages generally start around a 680 score, and there are options below that with a larger down payment. More important than the number is a clean recent history: no missed payments in the last year and balances well under your limits.

Should I buy now or save for 20% down?

It depends on how fast prices move against how fast you save. We will run both scenarios with real numbers, including the insurance premium, so you can compare rather than guess.

Get in touch:info@npmortgages.org Call:+1 416-754-8881 Visit:2225 Markham Rd Suite 408, Scarborough, ON M1B 2W4, Canada

Purchase

First-Time Home Buyer

Starting your home ownership journey? We'll walk you through down payments, government incentives, and choosing the right rate and term.

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What to expect

First homes come with programs other buyers cannot use. The First Home Savings Account, the RRSP Home Buyers' Plan and land transfer tax rebates each lower your entry cost, and we make sure you claim every one you qualify for.

Down payment as low as 5%
FHSA & RRSP Home Buyers' Plan guidance
Land transfer tax rebates
Education on fixed vs. variable

How much down payment you actually need

In Canada the minimum is 5% on the first $500,000 of the purchase price and 10% on the portion above that, up to $1.5 million. Above that price there is no insured option, so 20% down is required.

Anything under 20% means default insurance, which is added to your mortgage rather than paid at closing. It is an extra cost, but it also unlocks the lowest rates on the market, so buying with 10% down is not automatically worse than waiting two years to reach 20%.

Closing costs are the part first-time buyers underestimate. Budget roughly 1.5% of the purchase price for legal fees, title insurance, adjustments and the home inspection, on top of your down payment.

The programs worth using

The First Home Savings Account is the strongest tool available: contributions are deductible like an RRSP and withdrawals for a first home are tax free like a TFSA. If you have room, filling it before you buy is usually the single best move.

The RRSP Home Buyers' Plan lets each buyer withdraw from an RRSP toward a first home, repaid over the following years. Ontario's land transfer tax rebate reduces provincial land transfer tax for first-time buyers, and buyers inside the City of Toronto get a second municipal rebate on top.

First Home Savings Account (FHSA)
RRSP Home Buyers' Plan withdrawal
Ontario first-time buyer land transfer tax rebate
Toronto municipal land transfer tax rebate
GST/HST new housing rebate on qualifying new builds

Fixed or variable on a first mortgage

Fixed rates buy certainty: the payment and the rate stay put for the whole term, which matters when your budget is new and tight. Variable rates move with the lender's prime rate, and historically have cost less over long holding periods, but they require room in your budget for increases.

There is also the penalty question. Breaking a fixed mortgage early with a big bank usually triggers an interest rate differential penalty that can run into five figures. Variable mortgages are typically capped at three months' interest. If there is any chance you move, refinance or sell within the term, that difference can outweigh the headline rate.

The timeline, start to keys

Most first purchases run about three to six months. You pre-qualify, get pre-approved with a rate hold, shop with an agent, make an offer with a financing condition, and then we take the accepted offer to the lender for a full approval.

Once the lender issues its commitment, the file moves to your lawyer for closing. We stay involved until the mortgage funds, and we tell your lawyer what they need rather than making you relay messages.

Common questions

Am I still a first-time buyer if I owned a home years ago?: For most programs you qualify again if you have not owned a home you occupied in the current year or the four preceding calendar years. Rules differ slightly between the FHSA, the Home Buyers' Plan and the Ontario rebate, so we check each one against your situation.
Can my parents give me the down payment?: Yes. Gifted down payments from immediate family are accepted with a signed gift letter confirming the money is a gift and not a loan, plus proof the funds landed in your account.
What credit score do I need?: Insured mortgages generally start around a 680 score, and there are options below that with a larger down payment. More important than the number is a clean recent history: no missed payments in the last year and balances well under your limits.
Should I buy now or save for 20% down?: It depends on how fast prices move against how fast you save. We will run both scenarios with real numbers, including the insurance premium, so you can compare rather than guess.

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