Start with a Pre-Approval
A pre-approval gives you clarity on your budget, locks in an interest rate, and shows sellers you’re serious. It’s the best first step to buying confidently.
Plan for Your Down Payment
- Minimum: 5% on the first $500,000, 10% on the portion up to $999,999.
- Sources: Savings, RRSP Home Buyers’ Plan, FHSA, TFSA, or gifted funds.
- Pro Tip: Keep your funds in a verifiable account — lenders require proof.
Understand the Stress Test
You must qualify at the higher of your contract rate + 2% or the benchmark rate. This ensures you can handle potential payment increases.
Explore First-Time Buyer Incentives
- Land Transfer Tax Rebates: Available from Ontario and Toronto (if buying in the city).
- First-Time Home Buyer Incentive: A shared equity program with the federal government.
- Tax Credits: The Home Buyers’ Amount provides a federal non-refundable tax credit.
The Bottom Line
Preparation is key. With the right strategy, you can maximize your budget, qualify with confidence, and take advantage of every incentive available.
