First-time home buyer Toronto — your complete 2026 guide.

Why Toronto works for first-time buyers in 2026

Toronto is expensive, but it is also where the GTA has the deepest condo market, the strongest transit network, and the widest spread of entry points. The right first purchase is usually about choosing the best building, monthly carrying cost, and resale profile — not chasing the biggest space.

First-time buyers should compare downtown condos, Etobicoke lakefront buildings, Scarborough freehold pockets, East York semis, and North York subway corridors before committing to one narrow search.

How much down payment do you need in Toronto?

Canada's minimum down payment is tiered by purchase price — it's a federal rule and applies the same way in Toronto as anywhere else in the country:

• Under $500,000: 5% of the purchase price.
• $500,000 – $1,499,999: 5% on the first $500,000, plus 10% on the portion above $500,000.
• $1,500,000 or more: 20% (no mortgage default insurance available).

Example: On a $700,000 home in Toronto, your minimum down payment is 5% of $500,000 ($25,000) plus 10% of the remaining $200,000 ($20,000) — a total of $45,000.

Putting less than 20% down means CMHC mortgage default insurance (2.80%–4.00% of your mortgage, added to the loan; Ontario charges 8% RST on the premium itself at closing). You'll also need to clear the federal stress test — qualifying at your contract rate +2%, or 5.25%, whichever is higher. First-time and new-build buyers can access 30-year amortizations on insured mortgages.

See the full Ontario down payment breakdown →

Land transfer tax in Toronto — and the rebate to claim

Toronto purchases are subject to both Ontario provincial land transfer tax and Toronto municipal land transfer tax. Eligible first-time buyers can claim rebates on both — up to $4,000 provincially and up to $4,475municipally — but the double tax still needs to be budgeted before offers.

Government programs Toronto buyers can stack

• FHSA: Up to $8,000/year, $40,000 lifetime — tax-deductible in, tax-free out for a qualifying first home.
• RRSP Home Buyers' Plan: Withdraw up to $60,000 tax-free ($120,000 for a qualifying couple), repaid over 15 years starting year two.
• Home Buyers' Amount (HBTC): Federal tax credit worth roughly $1,500 in tax savings in the purchase year.
• Ontario LTT Rebate: Up to $4,000, as above.
• New for 2026 — Federal GST/HST New Home Rebate: Up to $50,000 on qualifying new-construction purchases (Royal Assent March 2026). Resale homes don't qualify.

The old federal First-Time Home Buyer Incentive (shared equity) was discontinued in March 2024 and no longer applies.

The Toronto home-buying process, step by step

1. Get pre-approved and stress-test the payment against Toronto condo fees, property tax, insurance, and utilities.
2. Decide your first property lane: condo, stacked town, smaller freehold, or transit-connected resale outside the core.
3. Shortlist buildings and neighbourhoods by monthly carrying cost, not only purchase price.
4. Review status certificates carefully for reserve fund health, lawsuits, special assessments, and maintenance-fee trends.
5. Close with a lawyer who applies both first-time buyer rebates and confirms final land transfer tax before funding.

Common mistakes first-time buyers make in Toronto

• Forgetting Toronto has both provincial and municipal land transfer tax.
• Buying a cheap condo in a weak building with high fees or poor resale demand.
• Ignoring commute reality — TTC, GO, parking, and hybrid-work patterns all affect value.
• Stretching to the maximum pre-approval without leaving room for rate changes or repairs.
• Comparing neighbourhoods by citywide averages instead of building-level and street-level comps.

Companion guides

First-time buyer GTA guide →
How to buy a house in Ontario →
Minimum down payment Ontario →
Closing costs Ontario →