Roadmap to home ownership in Ontario: how to save and buy your first home

Buying your first home in Ontario is a sequence, not a leap. This roadmap takes you from your first savings deposit to the keys, with the 2026 rules that most buyers still get wrong: you do not need 20% down until $1.5M, the FHSA is the best savings account you can open, and new homes now carry up to $130,000 in HST relief.

1. Know your number and your credit

Pull your credit report (Equifax and TransUnion are free online), pay down card balances below 30% of the limit, and add up your monthly debts. Lenders generally cap total housing plus debt costs at roughly 44% of gross income, and stress-test you at the higher of your rate plus 2% or 5.25%.

2. Save the down payment the smart way

Open a First Home Savings Account (FHSA): $8,000 a year, $40,000 lifetime per person, tax-deductible going in and tax-free coming out. Stack the RRSP Home Buyers’ Plan (up to $60,000 each). Automate a transfer on payday, park it in a high-interest account or FHSA, and cut one fixed cost (car, phone, subscriptions) rather than chasing small daily savings.

3. How much you actually need

Minimum down payment is 5% of the first $500,000 and 10% of the rest, up to $1.5M. On $800,000 that is $55,000; on $1.2M it is $95,000. 20% is only required at $1.5M and above. Budget about 1.5% to 2% extra for closing costs, plus land transfer tax (first-time buyers get up to $4,000 back from Ontario and up to $4,475 from Toronto).

4. Get pre-approved

A pre-approval holds a rate and shows what you qualify for; it is not a final approval. See my pre-approval guide. First-time buyers and buyers of new builds can now choose a 30-year insured amortization.

5. Choose where: city, school, commute

Shortlist two or three areas by school ranking, commute and budget. Start with the moving guides and city real estate guides for September prices in every GTA city.

6. New build or resale?

New homes bought by March 31, 2027 can carry up to $130,000 in HST relief; resale homes are cheaper per square foot in many areas and you can move in now. Compare both on the new-construction hub.

7. Offer, conditions and closing

Make your offer conditional on financing and inspection (or a lawyer’s review for new builds), keep your deposit ready (usually 5% in the GTA), and avoid new debt until closing. Your lawyer handles title, land transfer tax and the rebates.

Related: Buying your first GTA home in fall 2026 · Buying around $1 million · New construction hub

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