Your First Home, Made Clearer.
Buying your first home in Vaughan or the wider GTA comes with a lot of new vocabulary — down payments, deposits, insured mortgages, and a handful of first-time programs. This guide breaks the essentials down in plain English so you can walk into the process knowing what to expect. It is general information only, not advice or a commitment to lend.
The basics
A few core ideas cover most of what first-time buyers need to understand before they start shopping.
In Canada the minimum down payment is tied to the purchase price. As a general guide, lower-priced homes typically require a smaller percentage down, homes in a middle price band require a blended minimum, and higher-priced homes generally require a larger minimum. Exact thresholds and percentages change over time, so treat these as illustrative and confirm the current requirements for your price range before you budget.
These are often confused. The deposit is the money you submit with your offer to show you are serious; it is held in trust and later counts toward your purchase. The down payment is your total upfront contribution to the price, of which the deposit is one part. You do not pay both on top of each other — the deposit is applied against your down payment at closing.
Lenders look at how you have managed credit and whether your income comfortably supports the payments. That generally means reviewing your credit history, existing debts, and how your income is earned and documented. Strong, well-documented finances give you more options, but final lending decisions always rest with the lender and depend on your full profile, the property, and current lender guidelines.
First-time programs (high level)
Several programs are designed to help first-time buyers. Eligibility rules and dollar limits change — treat the summaries below as a starting point and confirm current details before relying on any of them.
First Home Savings Account (FHSA)
A registered account that lets eligible first-time buyers save toward a home with tax advantages, combining features of an RRSP and a TFSA. Contribution room and eligibility rules apply and can change, so confirm the current details before you plan around it.
RRSP Home Buyers' Plan (HBP)
Lets eligible first-time buyers withdraw funds from their RRSP toward a home purchase, to be repaid over time on a set schedule. Withdrawal limits, repayment terms, and eligibility conditions apply and are subject to change — verify the current rules before using it.
First-time land transfer tax rebate
First-time buyers may qualify for a rebate that reduces land transfer tax, with additional relief possible in some municipalities. Eligibility and amounts change; see our land transfer tax page and confirm what currently applies.
What lenders review
When you apply, a lender is building a picture of whether the mortgage fits your situation.
Lenders want to see stable, verifiable income. How you prove it depends on how you are paid, and self-employed or commission income is often documented differently.
Your track record with credit and your current obligations affect how much room there is for a new mortgage payment.
Lenders confirm you have the required down payment and where it comes from, whether savings, a gift, or a program like the FHSA or HBP.
The home you are buying is part of the decision — its type, value, and location all factor in. Final approval always rests with the lender based on the borrower, property, documentation, and current guidelines.
Costs to plan for
The purchase price is only part of the picture. Build your budget around the full set of upfront and ongoing costs.
Down payments
How much you need upfront, the minimum tiers by price, and where your funds can come from.
Closing costs
Legal fees, land transfer tax, title insurance, and other one-time costs due around closing.
Mortgage default insurance
When a down payment is below a certain threshold, insurance is generally required — here is how it works and what it costs.
Related pages
Buying your first home?
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