Start with a monthly budget, down payment and money for closing costs. Prepare your teaching-income documents before relying on a borrowing amount. Then check which first-home programs you qualify for, including the FHSA, Home Buyers' Plan and land transfer tax refunds.
Buying your first home: where to start
- Estimate a comfortable monthly payment using take-home pay, then compare it with a borrowing estimate.
- Add up your down-payment savings and keep separate money for closing costs and emergencies.
- Prepare your employment and income documents. Include assignment dates or a return-to-work letter where relevant.
- Request a mortgage review before making a purchase commitment. Ask what still needs to be verified and discuss a financing condition.
What happens after a pre-approval?
A pre-approval gives you a conditional borrowing estimate. The lender still needs to accept the home you choose and verify the documents and conditions for the mortgage. Keep money aside for legal costs, moving and maintenance as well as the down payment.
Before making an offer, ask which financing conditions remain. Tell Emily and Jeff about changes to your job, debts or down payment before closing so they can check the effect on the application.
Several first-home programs can be combined if you meet each set of conditions. Compare the withdrawal rules, repayment obligations and closing costs before deciding which savings to use.
The programs at a glance
| Program | What it does | Limit |
|---|---|---|
| First Home Savings Account (FHSA) | Tax-deductible contributions, tax-free withdrawal for a first home | $8,000 a year, $40,000 lifetime |
| Home Buyers' Plan (HBP) | Withdraw from your RRSP tax-free for a first home, repay over 15 years | $60,000 |
| Home Buyers' Amount | Non-refundable federal tax credit in the year you buy | $10,000 claim; tax saving depends on the purchase year |
| Ontario land transfer tax refund | Refund of provincial land transfer tax for first-time buyers | Up to $4,000 |
| Toronto municipal land transfer tax rebate | Rebate of the City of Toronto tax on top of the provincial refund | Up to $4,475 |
FHSA: First Home Savings Account
Your participation room is $8,000 in the year you open the account and $8,000 each year after, to a $40,000 lifetime maximum. Unused room carries forward, but the carry-forward is capped at $8,000, so an account opened and left empty for three years does not hold $24,000 of room. Contributions are tax-deductible and qualifying withdrawals for a first home are tax-free. Opening the account early, even with a small deposit, starts the room accumulating.
Home Buyers' Plan (HBP)
You can withdraw up to $60,000 from your RRSP tax-free for a first home and repay it over 15 years. The CRA allows an HBP withdrawal and an FHSA withdrawal for the same qualifying home, if you meet the conditions of both programs. For participants making a first HBP withdrawal between January 1, 2026 and December 31, 2028, the start of the 15-year repayment period is deferred by an additional three years.
Land transfer tax refunds
As a first-time buyer in Ontario you can claim a refund of up to $4,000 on the provincial land transfer tax, which the Ministry of Finance describes as no tax payable on the first $368,000 of the purchase price for eligible homes. If you buy in the City of Toronto, you can claim a rebate of up to $4,475 on the municipal land transfer tax as well. Both are claimed on the purchase, not per buyer, so a two-teacher couple gets each refund once.
Federal Home Buyers' Amount
Eligible buyers can claim up to $10,000 on line 31270. The tax saving depends on the applicable federal credit rate and tax payable for the purchase year. A shared claim cannot exceed the maximum for the home. This is a non-refundable credit, not a cash grant.
Program figures are set by the federal government, Ontario, and the City of Toronto and were read on the dates shown in the sources. Eligibility rules apply and figures change, so confirm before you file.
Down payment and closing costs on a $600,000 home
The minimum down payment on an eligible $600,000 home is $35,000: 5 per cent of the first $500,000 plus 10 per cent of the remaining $100,000. Eligible FHSA and HBP withdrawals can help fund it. Keep additional money for legal costs, any land transfer tax left after rebates, insurance-related taxes and other closing costs. Tax credits are not funds available on closing day.
Why a defined-benefit pension matters here
An active pension is not a savings account for a home purchase. Pension contributions also reduce take-home pay and can affect RRSP room through the pension adjustment. Check your own CRA contribution limits and budget before committing savings.
Sources and dates
Sources below support the relevant figures and rules. Source dates and historical salary years are shown where available. A planned review date does not guarantee that a figure stays current; check the source and your own eligibility before acting.
- Canada Revenue Agency, participating in your FHSAs (accessed 2026-08-26)
- Canada Revenue Agency, the Home Buyers' Plan (accessed 2026-08-26)
- Canada Revenue Agency, line 31270 Home buyers' amount (accessed 2026-08-26)
- Ontario Ministry of Finance, land transfer tax refunds for first-time homebuyers (as of 2026-02-10)
- City of Toronto, municipal land transfer tax rebate opportunities (accessed 2026-08-26)
- Financial Consumer Agency of Canada, how much you need for a down payment (accessed 2026-08-26)
- Financial Consumer Agency of Canada, getting preapproved for a mortgage (accessed 2026-10-13)
First published . Updated . Source dates are listed above.
Common questions
Can I combine the FHSA and the Home Buyers' Plan?+
Yes. The CRA allows an HBP withdrawal and an FHSA withdrawal for the same qualifying home, as long as you meet the conditions of each at the time you withdraw.
How much land transfer tax can a first-time buyer get back in Ontario?+
Up to $4,000 provincially, which covers the tax on the first $368,000 of the purchase price, plus up to $4,475 more on the municipal tax in the City of Toronto.
Is the Home Buyers' Amount cash back?+
No. Eligible buyers can claim up to $10,000 for a non-refundable federal credit. The tax saving depends on the purchase-year credit rate and tax payable, not a fixed $1,500 payment.
How much FHSA room can I carry forward?+
Unused room carries forward, but the carry-forward is capped at $8,000. Opening the account early starts the room building; leaving it empty for years does not stockpile unlimited room.
What is the minimum down payment on a first home in Ontario?+
5 per cent of the first $500,000 and 10 per cent of the portion above it, for a purchase price below $1,500,000. Anything under 20 per cent down normally needs mortgage default insurance.
Talk to us
Emily & Jeff Mudrick
Mortgage agents, Mudrick Mortgages
Serving teachers across Ontario.
Discuss your mortgage plans
Bring your questions about buying, renewing or refinancing. We will help you understand the next steps.