First-Time Home Buyer Mortgage in Toronto & Ontario

First-time buyers ask me the same three questions in every market: how much can I afford, how much do I need saved, and what could go wrong. I work with first-time home buyers across Toronto, North York, the GTA, and Ontario to answer those questions before a purchase gets stressful. The down payment isn't actually your hardest hurdle. Qualifying for the right amount is. The right amount isn't the maximum approval, either. It's the payment you can carry without giving up the life that made the home worth buying.

Leah's take, from the press

When the Financial Post asked who the typical first-time buyer in Canada actually is, my answer was the same one I give clients: don't budget from the listing price down. Budget from a payment you can live with up. The market-priced home you can technically qualify for is rarely the one you should buy.

What you need to qualify

To qualify for a mortgage in Canada, lenders look at four things:

Credit score. Most A-lenders want 680 or higher. Below that, we can still find options. It just narrows the lender pool.
Income. Stable, verifiable income is the foundation. Self-employed or commission income still works, but documentation is different.
Down payment. Minimum 5% on the first $500,000 of the purchase price, and 10% on anything above that (up to $1.5M).
Debt-to-income ratios. Your total monthly debt payments (including the new mortgage) need to fit within lender limits.

Don't guess. Get pre-approved first.

Before you start house shopping, get a pre-approval. It confirms exactly how much you can borrow, locks in a rate for 120 days, and makes your offer stronger when you find the right place.

How much do you actually need saved?

Everyone focuses on the down payment, but the full up-front cost includes several pieces. For a typical $700,000 home in the GTA, here's what you'd realistically need:

Down payment: $45,000 (5% on first $500k + 10% on the next $200k)
Land transfer tax: ~$10,000-$22,000 depending on province and whether you're a first-time buyer (rebates available)
Legal fees: $1,500-$2,500
Home inspection: $400-$600
Title insurance: $250-$500
Moving costs + immediate repairs: $2,000-$5,000

In total, plan on closing costs running about 1.5-4% of the purchase price, on top of your down payment.

The mortgage insurance rule

If your down payment is less than 20%, your mortgage is "high-ratio" and requires CMHC, Sagen, or Canada Guaranty insurance. The insurance premium gets added to your mortgage. You don't pay it out of pocket, but it's worth knowing:

5-9.99% down: 4.00% premium
10-14.99% down: 3.10% premium
15-19.99% down: 2.80% premium
20%+ down: no insurance required

The step-by-step process

Get pre-approved. We'll pull your credit, verify your income, and confirm your maximum purchase price.
House shop with confidence. Your realtor now knows your price ceiling and can focus you on the right listings.
Make an offer. Include a financing condition that gives you 5-10 days to finalize the mortgage.
Formalize the mortgage. I'll submit your accepted offer to the lender, along with the final paperwork (appraisal, lawyer info, insurance).
Close. Your lawyer handles the actual transfer of funds and title. You get the keys.

A common mistake

Don't make big changes to your finances between pre-approval and closing. No new car loans, no job changes, no large credit card charges. Lenders re-check your file just before closing, and last-minute changes can derail the deal.

Programs are separate from mortgage approval

First-time buyer programs can help with the down payment and closing costs, but they do not replace mortgage qualification. If you want the FHSA, RRSP Home Buyers' Plan, and land transfer tax rebate breakdown, I keep that on the first-time buyer programs page.

Frequently Asked Questions

Do first-time home buyers in Toronto need a mortgage broker before shopping?

Ideally, yes. Toronto and GTA purchase timelines can move quickly. A pre-approval helps you understand the payment, down payment, closing costs, and lender conditions before you are under pressure on an offer.

How long does pre-approval take?

Usually same-day or next-day. I'll need a short application, your last two pay stubs, proof of down payment, and permission to pull credit. From there, we can have a pre-approval letter in your hands within 24 hours.

Should I get pre-approved by my bank first?

You can, but each application is a credit inquiry. Let's start with a soft discussion. I can often tell you within an hour whether your situation qualifies and at what rate. Then we only submit formal applications to the one or two lenders most likely to approve you at the best terms.

What's the difference between pre-qualified and pre-approved?

Pre-qualified is a rough estimate based on what you tell us. Pre-approved means the lender has actually verified your income, credit, and down payment and committed to a specific amount. That's what you want before making offers.

How much can I afford to borrow?

As a rough rule, your total housing costs (mortgage, property tax, heat, half of condo fees) shouldn't exceed 32-39% of your gross monthly income. But this varies by lender, interest rate environment, and your other debts. The pre-approval gives you the exact number.

Can my parents gift me the down payment?

Yes. Gifted down payments from immediate family are allowed by almost all lenders. They'll need to sign a short gift letter confirming it's not a loan, and we'll need to show the funds arriving in your account 30+ days before closing.

Ready to start your real budget?

Pre-approval is free, non-committal, and usually moves in a day or two. Send me your situation and I'll come back to you with the maximum mortgage you'd qualify for, the payment that goes with it, and the comfortable payment you should actually plan around. The gap between those two numbers is half the conversation.

Local and remote mortgage help

My office is in North York, and most of my closest local work is across the north GTA. I also work with clients across Toronto, Ontario, and the other provinces where I'm licensed. See the areas served page for the full service-area map.

These are educational estimates. Lender criteria, government program limits, insurance premiums, and qualifying rules all change. For an accurate quote for your situation, start your application now and I'll come back to you with real numbers from real lenders within a business day.

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Questions about your first home?

Send me yours. I read every message myself, and the conversation is always free.

Start your application Call (416) 567-2552