Question 1

How much do I need for a down payment in Ontario?

Accepted Answer

For homes under $500,000 the minimum is 5%. From $500,000 to $1.5M it's 5% on the first $500K and 10% on the portion above. Homes $1.5M+ require 20% down. CMHC insurance applies to down payments under 20%.

Question 2

What is the First Home Savings Account (FHSA)?

Accepted Answer

The FHSA lets first-time buyers save up to $8,000 per year (lifetime limit $40,000) in tax-deductible contributions, with tax-free growth and tax-free withdrawals when used to buy a qualifying first home. You can also combine it with the Home Buyers' Plan from your RRSP.

Question 3

What is the Home Buyers' Plan (HBP)?

Accepted Answer

The HBP lets first-time buyers withdraw up to $60,000 (per person) from their RRSP tax-free toward a down payment. The withdrawal must be repaid over 15 years starting in the second year after withdrawal.

Question 4

Do I qualify for the Ontario Land Transfer Tax rebate?

Accepted Answer

First-time buyers in Ontario can receive a rebate of up to $4,000 on the provincial land transfer tax. Toronto buyers can also receive an additional municipal rebate of up to $4,475. You must be 18+, a Canadian citizen or permanent resident, and have never owned a home anywhere in the world.

Question 5

How long does the buying process take?

Accepted Answer

From the day we start searching to the day you get keys typically takes 60 to 120 days, depending on how quickly you find the right property and your closing date. The mortgage pre-approval and shopping phase often takes the longest.

Question 6

Do I need a real estate lawyer?

Accepted Answer

Yes, in Ontario you must use a real estate lawyer to close a property purchase. Budget $1,800 to $2,500 for legal fees, title insurance, and disbursements.

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