A lot of my first-time buyer calls start the same way. “We’ve been saving for years, we’re pre-approved somewhere, but we don’t really know what we’re allowed to use.”

Fair question. There are a few programs out there and they overlap, so people either miss one or use them in the wrong order. Here’s what’s actually available right now for first-time buyers in Toronto and the GTA, in plain English.

1. FHSA (First Home Savings Account)

If you don’t have one open yet, open one. Even if you’re buying soon.

1. You can contribute up to $8,000 a year, to a lifetime max of $40,000.
2. Contributions are tax deductible, like an RRSP.
3. Withdrawals for a qualifying first home are tax free, like a TFSA.

So you get the deduction going in and nothing owing coming out. Contribution room only starts building once the account is open, so the earlier the better. Talk to your accountant on the tax side, but from a mortgage point of view it’s a clean, documented source of down payment, which lenders like.

2. RRSP Home Buyers’ Plan (HBP)

You can take up to $60,000 out of your RRSP, tax free, to buy your first home. For a couple that’s up to $120,000 combined.

You do have to pay it back into your RRSP over 15 years. The good news: if your first HBP withdrawal is between 2026 and 2028, repayment doesn’t start until the fifth year after. So a 2026 withdrawal means your first repayment year is 2031.

A couple things people miss:

1. The money generally has to be in the RRSP for at least 90 days before you withdraw it under the HBP.
2. You can use the HBP and your FHSA together for the same home. They’re not either/or.

3. 30-year amortization on insured mortgages

Since December 2024, first-time buyers (and buyers of brand new builds) can get a 30-year amortization on an insured mortgage, meaning less than 20% down.

Before that, insured mortgages were capped at 25 years. Stretching to 30 lowers your monthly payment and can help you qualify. The tradeoff is simple: you pay more interest over the life of the mortgage. My usual advice is take the 30 if it helps you qualify or gives you breathing room, then use your prepayment privileges to pay it down faster when you can.

4. Smaller down payments up to $1.5M

The cap on insured mortgages also went from $1M to $1.5M. That matters a lot in the GTA.

Minimum down payment on a home under $1.5M:

1. 5% on the first $500,000
2. 10% on the portion between $500,000 and $1.5M

Example: on a $900,000 purchase that’s $25,000 + $40,000 = $65,000 minimum down. Before the change, anything over $1M needed 20%.

At $1.5M and up you still need 20% down, no insurance available. And keep in mind default insurance premiums get added to your mortgage when you put less than 20% down. I’ll show you that number upfront so there are no surprises.

5. Land transfer tax rebates

In Toronto you pay land transfer tax twice, provincial and municipal. First-time buyers get some of it back:

1. Ontario refund: up to $4,000. That covers the full provincial tax on roughly the first $368,000 of the price.
2. City of Toronto rebate: up to $4,475 on the municipal tax.

So a first-time buyer in Toronto can save up to $8,475. Outside Toronto (Mississauga, Vaughan, Markham, etc.) there’s no municipal land transfer tax, so it’s just the provincial one and the $4,000 refund.

The rules here are strict. You (and your spouse, while you’ve been together) can’t have ever owned a home anywhere in the world. You have to move in within 9 months. Your lawyer usually claims it on closing.

Heads up: the definition of “first-time buyer” is different program to program. For the 30-year amortization and HBP, you can qualify again if you haven’t lived in a home you or your spouse owned in the last 4 years. For the land transfer tax rebates, if you ever owned a home, you’re out. I see people mix these up all the time.

What to sort out before you write an offer

1. Get a real pre-approval. Not just an online calculator. I want to see your docs (pay stubs, employment letter, NOAs if you’re self-employed or have bonus/commission income) so the number is solid.
2. Line up your down payment sources. FHSA, RRSP, savings, gift from family. Lenders want 90 days of history on most of it, and a signed gift letter if family is helping.
3. Budget for closing costs. Plan on at least 1.5% of the price on top of your down payment for legal, land transfer tax (after rebates), title insurance, adjustments and moving.
4. Keep your credit clean. No new car loan, no new credit cards, no big furniture financing before closing. I’ve seen deals wobble over this.
5. Know your monthly comfort number. What you qualify for and what you’re comfortable paying aren’t always the same. We’ll look at both.

My advice

Open the FHSA now if you haven’t. Get your docs together. Then let’s sit down, look at which programs you qualify for, and figure out the right price range before you fall in love with a place.

If you’re planning to buy in the spring, now’s actually a good time to start. It gives us a few months to get everything lined up properly.

Thinking about buying your first home? Reach out anytime.

Call 416-840-6368
Email: info@everythingmortgages.ca
Web: everythingmortgages.ca

Manzeel Patel, Mortgage Broker
Everything Mortgages | Brokerage Lic# 12755

Sources: CRA First Home Savings Account and Home Buyers’ Plan pages; Finance Canada Dec 2024 mortgage reforms / CMHC Home Start; ontario.ca land transfer tax first-time buyer refund; toronto.ca MLTT rebate (checked Oct–Nov 2026). This article is general education, not financial advice. Eligibility and product details can change, and all financing is subject to lender and insurer approval.