Buying your first home in Toronto is one of the largest financial decisions you will make. A first-time home buyer mortgage gives you access to lower down payment options, government incentives, and pre-approval pathways that put you in a stronger position when you find the right property. At Everything Mortgages, we guide first-time buyers through every step of the process, from understanding what you qualify for to closing.
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About
The Challenge
Benefits
Pre-Approval Process
Services Offered
Why Choose Us
How to Get Started
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First-time home buyers in Toronto have access to mortgage products and government programs that are not available to repeat buyers. The challenge is knowing which ones apply to your situation, how to stack them effectively, and what lenders look for when reviewing a first-time buyer file.
The minimum down payment in Ontario depends on the purchase price. For homes under $500,000, the minimum is 5%. For homes between $500,000 to $1.5M, it is 5% on the first $500,000 and 10% on the remainder. For homes at $1.5 million or above, the minimum is 20% and mortgage default insurance does not apply.
Down payments below 20% require mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium is added to your mortgage balance and ranges upto 4.2% of the loan amount depending on your down payment percentage. We explain these costs clearly before any application goes forward.
The Challenge
What First-Time Home Buyers in Toronto Face
Toronto’s housing market adds layers of complexity that buyers in smaller markets do not face. Purchase prices in Toronto regularly push past the $500,000 and $1.5 million thresholds, which changes both the down payment calculation and the mortgage default insurance requirement. First-time buyers can access insured mortgages on properties up to $1.5 million, while all other buyers remain capped at $1 million for insured financing. Qualifying under the federal stress test at a rate 2% above your contract rate requires a higher income than many first-time buyers expect. And for buyers using gifted down payments, self-employed income, or non-traditional documentation, the qualification process requires more preparation than a standard salaried application.
At Everything Mortgages, we work through these variables with every first-time buyer before an application is submitted. Understanding the full picture upfront prevents declined applications and positions your file for the strongest possible approval.
Benefits
Several federal and provincial programs are available to first-time buyers that can reduce upfront costs or improve your tax position.
Home Buyers’ Plan (HBP)
Allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free to use as a down payment. If purchasing with a partner who also qualifies, the combined withdrawal can reach $120,000. The amount must be repaid to the RRSP over 15 years.
Tax-Free First Home Savings Account (FHSA)
A registered account that allows contributions of up to $8,000 per year and $40,000 lifetime. Contributions are tax-deductible and qualifying withdrawals for a first home purchase are tax-free. First-time buyers can combine FHSA and HBP withdrawals on the same purchase.
First-Time Home Buyers’ Tax Credit
A federal non-refundable tax credit on $10,000 of qualifying home purchase costs, worth up to $1,500 in tax relief for the year of purchase.
GST/HST New Housing Rebate
Available on newly constructed homes where some or all of the federal GST or provincial HST paid on the purchase price can be recovered. Eligibility depends on purchase price and intended use as a primary residence.
Land Transfer Tax Rebate (Ontario)
First-time buyers in Ontario receive a rebate of up to $4,000 on the provincial land transfer tax. Buyers purchasing in Toronto also pay a Municipal Land Transfer Tax and can receive a rebate of up to $4,475 on that amount.
Pre-Approval Process
The Pre-Approval Process for First-Time Buyers
Getting pre-approved before you start looking at properties is one of the most important steps a first-time buyer can take in the Toronto market. A pre-approval confirms the maximum mortgage amount you qualify for, locks in your interest rate for 90 to 120 days, and signals to sellers that your offer is backed by financing.
To get pre-approved, you will need to provide proof of income (recent pay stubs and a letter of employment for salaried buyers, or two years of tax returns and notices of assessment for self-employed buyers), a credit check, details of any existing debts, and confirmation of your down payment source. If your down payment is a gift, most lenders require a gift letter confirming no repayment is expected.
At Everything Mortgages, we review your complete file before submitting to any lender. That review identifies issues that could cause a decline and gives us the opportunity to address them or select a lender whose criteria better match your profile.
Services Offered
Mortgage Pre-Approval
We assess your income, credit, and down payment, identify which lenders are the strongest match for your file, and submit a pre-approval that gives you a clear purchase budget before you start making offers.
Incentive and Program Review
We review your eligibility for the Home Buyers’ Plan, FHSA, First-Time Home Buyers’ Tax Credit, and both provincial and municipal land transfer tax rebates, and build those figures into your total cost of purchase.
Rate and Lender Comparison
We access rates across more than 35 lending institutions and present your options with full transparency on rate, term, prepayment privileges, and total cost of borrowing. Fixed versus variable, open versus closed, we explain the trade-offs for your specific situation.
Closing Cost Preparation
Many first-time buyers underestimate closing costs. We prepare a full breakdown that includes legal fees, title insurance, home inspection, land transfer tax after rebates, and any mortgage default insurance premium, so there are no surprises on closing day.
Why Choose Us
We Know the Toronto Market
Purchase prices, down payment thresholds, municipal land transfer tax, and condo versus freehold mortgage considerations all behave differently in Toronto than in other Ontario markets. We have been placing buyers in this market since 2012 and understand how those variables affect mortgage qualification and total purchase cost.
Access to 35+ Lenders
First-time buyer files are not all the same. A buyer with a gifted down payment, variable income, or a shorter credit history needs a lender whose criteria fit that profile. We compare options across more than 35 lenders, including those with more flexible underwriting for non-standard files, and present the best fit with full cost transparency.
End-to-End Guidance
From your first conversation through to funding, one of our brokers manages your file and keeps you informed at every stage. First-time buyers typically have more questions than experienced buyers, and we treat those questions as part of the process, not an interruption to it.
How to Get Started
Ready to take the first step toward securing a first-time homebuyer mortgage? Here’s how to get started:
1
Complete our online mortgage application with your basic financial details, income information, and the purchase price range you are targeting. This gives us what we need to assess your pre-approval options and identify which incentive programs apply to your situation.
2
Once we review your application, we send you a specific document list. For most first-time buyer files this includes recent pay stubs, a letter of employment, your last two years of tax returns and notices of assessment, bank statements confirming your down payment, and government-issued identification.
3
One of our mortgage brokers walks through your file, presents your pre-approval options across multiple lenders, confirms which government incentives apply, and provides a full closing cost breakdown. No obligation, no cost.
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Amy Asadullah
Toronto, Ontario
A++++.
I had the pleasure of working with Manzeel at Everything Mortgages. After dealing with 2 other brokers, Manzeel made this purchase happen for me and my family. He has been professional, approachable and sincere. I couldn’t be happier and highly recommend him.
Hovig Tchaderian
Toronto, Ontario
I was extremely pleased with the service I received!! The communication from start to finish could not have been any better.
I would recommend the whole team for anyone that’s looking for a mortgage!!
Thanks again!
Sarah Paul
Toronto, Ontario
My experience with Everything Mortgages was excellent. My mortgage broker was very knowledgeable, professional, and personable. Also, the process was smooth and uncomplicated. I would recommend Everything Mortgages for any type of buyer, new or seasoned, residential or commercial.
Varun Kalia
Canada, Toronto
Manzeel and his team at Everything Mortgages are fantastic! Buying a house can be quite an ordeal but these guys made it stress free and painless. Not only did they take the time to answer all the questions I had but they were also respectful and diligent in keeping me informed through out the closing process. They were mindful of my time and worked around my schedule. It was an excellent experience from end to end. I highly recommend them for anyone in need of a mortgage. Thanks Manzeel and team!
Rahee G
Canada, Toronto
My experience with Everything Mortgages was excellent. Manzeel and his team are best in class. They were very professional and really simplified the process for me. I would recommend Everything Mortgages for everyone!
Melissa Emond
Toronto, Ontario
I’ve personally dealt with Everything Mortgages for years now and they have done many transactions for me (purchases and refinances). They are competitive, tech savvy, and trustworthy. I highly recommend them for all your mortgages needs.
Fixed-rate mortgages offer payment certainty for the full term. Variable rates fluctuate with the Bank of Canada’s prime rate and have historically offered lower costs over time. Buyers with less than 20% down must use mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The right product depends on your income stability, risk tolerance, and intended hold period.
For homes under $500,000, the minimum is 5%. For homes between $500,000 and $999,999, it is 5% on the first $500,000 and 10% on the portion above. For homes at $1 million or above, the minimum is 20%. Down payments below 20% require mortgage default insurance with premiums of 0.60% to 4.00% added to the mortgage balance.
Most A lenders require 620 to 680 depending on down payment and loan-to-value ratio. A score above 680 gives access to the full range of lender options. Buyers below 620 may still qualify through alternative mortgage lenders depending on income and down payment. We review your credit at the start of the process before any application is submitted.
Closing costs typically range from 2 to 4% of the purchase price, including legal fees, title insurance, home inspection, and land transfer tax after rebates. Toronto buyers pay both provincial and municipal land transfer tax, though first-time buyers receive rebates of up to $4,000 provincially and up to $4,475 municipally. We prepare a full closing cost breakdown before any offer is made.
The Home Buyers’ Plan allows RRSP withdrawals of up to $60,000 tax-free for a down payment. The FHSA allows up to $40,000 in lifetime contributions, tax-deductible in and tax-free out for a qualifying purchase. The First-Time Home Buyers’ Tax Credit provides up to $1,500 in federal tax relief. Ontario buyers receive a provincial land transfer tax rebate of up to $4,000 and Toronto buyers receive a municipal rebate of up to $4,475. Most programs can be combined.
Yes. The Home Buyers’ Plan allows RRSP withdrawals of up to $60,000 tax-free with repayment over 15 years. The FHSA allows tax-free withdrawals with no repayment obligation. Gifted down payments from immediate family members are accepted by most lenders with a signed gift letter. We confirm your down payment sources meet lender requirements at the start of the process.
Salaried buyers need recent pay stubs, a letter of employment, two years of tax returns and notices of assessment, three to six months of bank statements, and government-issued ID. Self-employed buyers typically also need two years of business financials. Gifted down payments require a signed gift letter. We provide every client with a specific document list based on their file.
Most pre-approvals complete within 2 to 5 business days once all documents are submitted. A rate hold is typically good for 90 to 120 days, giving you a protected rate while you search for a property.
Starting a property search before getting pre-approved, applying with only one lender, underestimating closing costs, missing government programs, and making large purchases or job changes between pre-approval and closing. Working with a broker who reviews your full file before submission addresses most of these risks upfront.
A licensed mortgage broker with GTA experience, the CMHC website for mortgage insurance information, federal first-time buyer program pages, and a mortgage calculator to model purchase prices against your income. At Everything Mortgages, we consolidate all of these inputs into a single pre-approval review covering qualification, cost, and applicable programs.
A consumer proposal doesn't have to keep you out of the housing market. We work with lenders across Toronto and the GTA who look past the R7 rating on your credit bureau, whether you're still making payments or already discharged. If the bank says no, we say yes.
A discharge doesn't have to mean years on the sidelines. We place GTA borrowers with the right lender at each stage of recovery, from private financing the week after discharge to bank-rate approvals once credit is rebuilt.
If the CRA has registered a lien on your home, or your property taxes have fallen behind, refinancing can pay the debt in full at closing. We connect GTA homeowners with lenders who look at the equity in your home first and the lien second.
Private mortgage lenders in Toronto approve applications that banks and B lenders decline. Approval is based primarily on property equity and loan-to-value ratio rather than credit score or income documentation. At Everything Mortgages, we connect borrowers with private mortgage lenders across Toronto and Ontario, structure the application to present the file in the strongest light, and manage the process through to funding.
A second mortgage in Toronto lets you access your home equity without breaking your existing first mortgage or triggering a prepayment penalty. It sits behind your first mortgage on title and advances funds as a lump sum at closing. At Everything Mortgages, we place second mortgages for Toronto and GTA homeowners with strong credit and those with bruised credit, accessing B lenders, private lenders, and MICs to find the right fit for each file.