FIRST-TIME HOME BUYER INFORMATION HUBCall Richard: 416-899-8995
FirstHomeGTA

BUILD YOUR HOME FUND

Building Your Down Payment
Starts with a Plan.

Know the target, choose the right savings accounts and create a monthly contribution you can sustain.

See the requirements →

DOWN PAYMENT REQUIREMENTS

How much down payment do you need?

The standard federal minimum depends on the purchase price. A lender may require more depending on the borrower, property or mortgage.

UP TO $500,0005%

of the purchase price

A $400,000 home requires at least $20,000.

OVER $500,000 AND UNDER $1.5M5% + 10%

calculated in two portions

5% of the first $500,000, plus 10% above $500,000. An $800,000 home requires $55,000.

$1.5 MILLION OR MORE20%

of the purchase price

A $1.5 million home requires at least $300,000.

Less than 20% down

Mortgage default insurance is typically required.

20% or more down

Mortgage default insurance is generally not required.

Keep closing funds separate

Land transfer tax and legal costs are paid in addition to your down payment.

Your deposit is part of your down payment

The deposit is paid after your offer is accepted and is credited toward your total down payment. Keep these funds readily available so you can provide them within the deadline in your offer.

BUILDING YOUR SAVINGS

Leverage Your FHSA, RRSP and TFSA.

Give each account a clear job within your savings plan.

First Home Savings Account

Contributions are generally tax deductible, qualifying withdrawals are tax free, and the lifetime contribution limit is $40,000. Annual room begins once the account is opened.

Home Buyers’ Plan

Eligible buyers may withdraw up to $60,000 from an RRSP. It can work alongside an FHSA, but HBP withdrawals are subject to repayment rules.

Tax-Free Savings Account

A TFSA offers flexible, tax-free withdrawals. It has no special first-home deduction, but it can hold additional down-payment or closing funds without an HBP repayment obligation.

See All First-Time Buyer Incentives →

PLAN YOUR MONTHLY SAVINGS

Cash Flow Calculator

Start with your monthly income, rent and debt payments. Then choose a savings amount that feels comfortable to you.

Remaining Balance$0

See what consistent savings could become.

Adjust the amount, timeline and illustrative growth rate. Returns are not guaranteed.

Compound-growth projection

PROJECTED FUTURE VALUE

$0
Starting amount $0Total contributions $0Estimated growth $0
Illustration assumes monthly compounding and end-of-month contributions. Excludes taxes and fees.

COMMON QUESTIONS

Questions first-time buyers often ask

How much down payment do I need to buy my first home?

Direct answer: The general minimum is 5% for homes up to $500,000; for homes above $500,000 and below $1.5 million, it is 5% of the first $500,000 plus 10% of the remainder. Homes priced at $1.5 million or more generally require at least 20%. A lender may require more based on the borrower, property or mortgage.

Can I use my FHSA and RRSP Home Buyers’ Plan together?

Direct answer: Eligible buyers may use a qualifying FHSA withdrawal and an eligible Home Buyers’ Plan withdrawal for the same home. The FHSA and HBP have different eligibility, timing and repayment rules, so confirm your plan with the relevant tax and mortgage professionals.

Is the offer deposit part of the down payment?

Direct answer: Yes. The deposit is credited toward the purchase and forms part of the total down payment. It is normally needed shortly after an offer is accepted, so keep that amount accessible.

How much additional cash should I keep for closing?

Direct answer: Closing needs vary by purchase and location. Plan separately for land transfer tax after eligible rebates, legal fees, title insurance, adjustments, moving expenses and an emergency cushion. Your lawyer can prepare a transaction-specific estimate.

Educational information reviewed September 24, 2026. Individual eligibility and lender requirements can vary.

VERIFY THE DETAILS

Official sources

Rules, limits and eligibility can change. Use these primary sources and confirm how they apply to your situation.

Links and program information reviewed September 24, 2026.

ORGANIZE YOUR NEXT STEPS

Use the Financial Readiness Checklist.

Want a step-by-step learning path? Follow the six-step Financial Readiness Roadmap and find the tool to use next.

Review what you already understand and identify the next question worth answering.

Open the checklist →