How much down payment do I need as a first-time buyer in Ontario?

In Ontario, the minimum down payment is 5% for homes priced under $500,000. For homes between $500,000 and $999,999, you pay 5% on the first $500,000 and 10% on the remaining amount. Homes priced at $1 million or more require a 20% down payment. A larger down payment (20%+) eliminates CMHC mortgage default insurance, which can save you thousands.

What is the First Home Savings Account (FHSA) and how does it work?

The FHSA is a registered savings account introduced in 2023 that allows first-time buyers to save up to $8,000 per year (lifetime maximum $40,000) tax-free for a home purchase. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals are tax-free (like a TFSA). Combined with the Home Buyers' Plan (up to $35,000 from RRSP), first-time buyers can access up to $75,000 tax-advantaged savings for a down payment.

What is CMHC mortgage insurance and do I need it?

CMHC (Canada Mortgage and Housing Corporation) mortgage default insurance is mandatory for home purchases with less than 20% down payment. Premiums range from 2.80% to 4.00% of the mortgage amount, depending on your down payment percentage. The premium is typically added to your mortgage. For example, on a $700,000 home with 5% down ($35,000), your insured mortgage of $665,000 would incur a 4% CMHC premium of $26,600.

What are the closing costs for a first-time buyer in Durham Region?

Closing costs in Durham Region (outside Toronto) typically total 1.5–4% of the purchase price. Key costs include: Ontario Land Transfer Tax (first-time buyers receive a rebate up to $4,000, which covers LTT on homes up to $368,000); legal fees ($1,200–$2,000); home inspection ($400–$600); title insurance ($200–$400); property tax adjustment; and home insurance. Budget approximately $15,000–$30,000 for closing costs on a typical Durham Region home.

Updated April 2026

First-Time Home Buyer
Guide for Durham Region

Everything you need to know about buying your first home in Oshawa, Whitby, Ajax, and across Durham Region. From FHSA accounts to closing day — step by step.

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$825K

Avg Oshawa Home Price

$75K

Max FHSA + HBP

24 hrs

Pre-Approval Time

50+

Lenders We Compare

The 6 Steps to Your First Home

Follow this proven process to go from first-time buyer to homeowner — typically 60–90 days from start to finish.

STEP 01

Check Your Finances

Review your credit score (aim for 680+), calculate your debt-to-income ratio, and assess your savings for down payment and closing costs.

Get a free credit report from Equifax or TransUnion
Pay down credit cards below 30% utilization
Avoid new credit applications 90 days before applying
Calculate 1.5–4% of purchase price for closing costs

STEP 02

Open a FHSA

The First Home Savings Account allows first-time buyers to save up to $40,000 tax-free. Start as early as possible — contribution room doesn't accumulate until you open the account.

Annual contribution limit: $8,000
Lifetime maximum: $40,000
Contributions are tax-deductible
Withdrawals for a qualifying home are tax-free
Combine with HBP from your RRSP ($35,000)

STEP 03

Get Pre-Approved

A mortgage pre-approval gives you a firm budget, locks your rate for 90–120 days, and makes your offer more competitive in Durham Region's market.

Gather: government ID, pay stubs, T4s, bank statements
Pre-approval takes as little as 24 hours
Pre-approval does NOT guarantee final approval
Rate held for 90–120 days during home search
Submit through a broker to preserve your credit score

STEP 04

Find Your Home

Work with a REALTOR to find your ideal home within your pre-approved budget. Focus on neighbourhoods in your target area and consider future resale value.

Oshawa average: $825,000 | Whitby: $920,000 | Ajax: $890,000
Inspect the property before waiving conditions
Budget for moving costs ($1,000–$5,000)
Consider schools, commute, and community amenities

STEP 05

Finalize Your Mortgage

Once your offer is accepted, your mortgage broker submits your full application to the selected lender. Lender confirms appraisal, income, and property details.

Don't make major purchases or change jobs during this time
Respond quickly to lender document requests
Review your mortgage commitment carefully
Understand your prepayment privileges

STEP 06

Close on Your Home

Closing day: your lawyer handles the title transfer, you pay closing costs, and you receive your keys. The entire process from pre-approval to closing typically takes 60–90 days.

Final walkthrough 24–48 hours before closing
Wire closing funds to your lawyer in advance
Bring government-issued ID to your lawyer's office
Celebrate — you're a homeowner!

Government Programs for First-Time Buyers

Ontario first-time buyers have access to several programs that can significantly reduce the cost of buying your first home.

First Home Savings Account (FHSA)

Up to $40,000

Benefit: Tax-deductible contributions + tax-free withdrawals

Who qualifies: First-time buyers who have not owned a home in the current year or prior 4 years

Home Buyers' Plan (HBP)

Up to $35,000

Benefit: Tax-free RRSP withdrawal for down payment

Who qualifies: First-time buyers with existing RRSP savings (repay over 15 years)

Ontario Land Transfer Tax Rebate

Up to $4,000

Benefit: Rebate on Ontario LTT (covers LTT on homes up to ~$368,333)

Who qualifies: Ontario first-time buyers

First-Time Home Buyer Incentive

5–10% shared equity

Benefit: Government co-invests in your home to reduce mortgage payments

Who qualifies: Income under $120,000; purchase price limit applies

Important: Program eligibility and limits change. Always confirm current rules with a licensed mortgage professional before making financial decisions. This guide was last updated April 2026.

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First-Time Home BuyerGuide for Durham Region