First-Time Homebuyer Guide
Your first home, simplified.
💡 Frank tip: Get pre-approved before you start serious searching — your rate hold locks the clock while you shop, and sellers take you more seriously.
Buying your first home in Canada is exciting, and a little overwhelming. We break it down into clear steps, connect you with the right people, and find you the best mortgage for your situation.
Your Roadmap
5 Steps to Your First Home
Every first-time buyer goes through the same milestones. Here's what to expect and exactly how Frank Mortgage supports you at each one.
Set Your Budget
6–12 months before buyingBefore you browse listings, get clear on what you can actually afford. The purchase price you can afford is determined by income, existing debts, and down payment size, not just the mortgage rate. Use the calculator below to find your realistic ceiling.
- Factor in your gross household income and all monthly debt obligations (car payments, student loans, credit cards)
- The stress test qualifies you at your rate + 2% - so budget conservatively
- Aim for a TDS ratio (total debt service - all your debts) under 44% and GDS ratio (gross debt service - housing debt) under 39%
- Include property tax, condo fees, and heat in your monthly budget estimate
Save Your Down Payment
3–6 months before buyingCanada's minimum down payment is 5% for homes under $500,000. A larger down payment means lower insurance premiums and lower monthly payments. Use the FHSA and RRSP Home Buyers' Plan (see Government Programs below) to maximize your savings tax-efficiently.
- Under $500K: minimum 5% down
- $500K–$999,999: 5% on first $500K + 10% on the remainder
- $1.5M+: minimum 20% - no CMHC insurance available
- For gifts from immediate family qualify, a gift letter is required by the lender
Get Pre-Approved
90–120 days before making an offerPre-approval locks in a rate for 90–120 days and signals to sellers that you're a serious buyer. Frank Mortgage has access to multiple lenders to find you the best rates and with one credit check can evaluate multiple lender options.
- Rate holds typically last 90–120 days - if rates rise, your held rate is protected; if they fall, you get the lower rate at closing
- Pre-approval is conditional on the property being accepted by the lender
- Prepare for full application to follow - gather documents early to avoid delays
Income & Employment
- Last 2 years T4s / NOAs
- Recent pay stubs (2–3)
- Employment letter (salaried)
- 2 years financials (self-employed)
Down Payment
- Minimum 3 months bank statements
- FHSA / RRSP statements
- Gift letter (if applicable)
- Investment account statements
Identity & Credit
- Government-issued photo ID
- Consent for credit check
- Existing debt statements
Property Info
- Signed purchase agreement
- MLS listing
- Property tax bill
- Condo docs (if applicable)
Make Your Offer
Offer acceptedYour realtor submits a purchase offer that may have conditions (financing, inspection). Once accepted, Frank Mortgage converts your pre-approval to a firm mortgage commitment - managing appraisal, lender conditions, and document collection so you can win the deal.
- Include a financing condition (typically 5 business days) to protect yourself if approval falls through
- Always include a home inspection condition when possible
- Budget for closing costs on top of your down payment - typically 1.5%–4% of the purchase price
- Final mortgage approval can take 5–10 business days after offer acceptance
Close & Move In
Closing dayYour lawyer registers the title, the lender releases the funds, and you get the keys. Frank stays in touch post-close for renewals and life changes.
- Provide funds for closing costs + remaining down payment to your lawyer
- Review all documents with your lawyer before signing - ask questions freely
- Confirm utilities, home insurance, and mail transfer are set up before your possession date
- Frank's licensed advisors will follow up at renewal - you won't start over from scratch
Frank's licensed advisors handle the mortgage side - so you can focus on the home
Between budget-setting and closing day, there are dozens of moving parts on the mortgage side. Frank's licensed advisors manage all of it on your behalf - for free, because the lender pays Frank, not you.
- 1. One application, multiple lenders. Frank has access to Canada's best mortgage lenders. You get access to multiple lenders with a single credit check.
- 2. We explain the features and trade-offs, not just the rate. Prepayment privileges, penalty structures, portability - Frank's licensed advisors walk you through what matters for your situation.
- 3. We convert your pre-approval to a firm commitment. Appraisals, document collection, lender conditions all handled.
- 4. We guide you through to closing. Funding documents, title insurance requirements, and lender sign-off - nothing falls through the cracks.
This is Frank's free mortgage service. The lender pays Frank — you pay nothing.
Save More
Government Programs for First-Time Buyers
Canadians buying their first home can access up to $101,500+ in down payment support and tax relief. Stack these programs for maximum impact.
Available programs for 2026
These programs apply to first-time buyers who have not owned a principal residence in the last four years. Check individual program rules - some have income caps, purchase price limits, or repayment schedules.
FHSA
Up to $40,000
Contribute up to $8,000 per year (lifetime max $40,000). Contributions are tax-deductible like an RRSP; qualifying withdrawals for your first home are tax-free like a TFSA. The best of both accounts.
RRSP Home Buyers' Plan (HBP)
Up to $60,000
Withdraw up to $60,000 from your RRSP ($120,000 for a couple) to use as a down payment - no tax withheld at withdrawal. Repay over 15 years with 1/15 required each year or the unpaid amount is added to your income.
First-Time Home Buyers' Tax Credit
~$1,500 credit
Claim $10,000 on your federal tax return in the year you purchase your home. At a 15% federal tax rate, this generates roughly $1,500 in tax savings. No application required - claim it on your T1 return.
Land Transfer Tax Rebates
Up to $4,000
Some jusrisdictions provide land transfer tax reabtes - Ontario (up to $4,000), BC (partial rebate), Quebec and PEI (exemption for 1% real property trasnfer tax). A further rebate is also available in the City of Toronto (up to $4,475).
Learn the Lingo
Mortgage Basics
Three concepts every first-time buyer should understand before signing anything.
Fixed vs Variable Rate
Understand the trade-off between payment certainty and potential savings and which product suits your situation.
Read the guide →Term vs Amortization
Your mortgage term (1–5 years) vs amortization (up to 30 years) - a key distinction that is easy to mix up.
Read the guide →Insured vs Conventional
With less than 20% down payment, you'll need to pay for CMHC (or private) mortgage default insurance. Here's what it costs and why it can help you.
Read the guide →Plan Ahead
Closing Costs: Budget 1.5–4%
On a $700,000 home, that's roughly $10,500–$28,000 on top of your down payment. Here's where it goes.
Land Transfer Tax
~0.5%–2% of purchase price
Most provinces charge a land transfer tax - but the rate and whether first-time buyers get a rebate varies significantly. Ontario and BC charge it; Alberta and Saskatchewan do not. Others provinces charge it or have fees that are similar to a land transfer tax. Be sure to know if you can apply for a rebate.
Legal & Admin Fees
Varies, but expect $1,500–$2,500
Your real estate lawyer handles title transfer, mortgage registration, and closing document review. Shop around - fees vary. Some online closing legal services provide fixed fees and are efficient.
Inspection & Other
~$500–$1,500
Home inspection (~$500), appraisal (~$300–$600), title insurance (~$300), and adjustments for prepaid property taxes and utilities.
Your Frank advisor will prepare a full closing cost estimate as part of your mortgage approval so there are no surprises on closing day.
Common Questions
First-Time Buyer FAQs
How much down payment do I need as a first-time buyer in Canada?
You need a minimum of 5% for homes up to $500,000, 10% on the portion between $500,000–$999,999, and 20% for homes $1 million or more. First-time buyers can also use the FHSA and Home Buyers' Plan (HBP) to help build that down payment faster.
What is mortgage pre-approval and why do I need it?
Pre-approval is a lender's conditional commitment to lend you up to a specific amount at a locked-in rate (typically for 90–120 days). It shows sellers you're serious, sharpens your budget, and speeds up the process when you find the right home. Frank Mortgage can pre-approve you online in minutes.
What is the First Home Savings Account (FHSA)?
The FHSA lets first-time buyers contribute up to $8,000/year (lifetime limit $40,000) toward a down payment — completely tax-free on contributions and withdrawals. Combined with the Home Buyers' Plan (up to $60,000 from your RRSP), these programs can significantly cut your down payment timeline.
What closing costs should I budget for?
Typical closing costs run 1.5%–4% of the purchase price and include land transfer tax, legal fees ($1,500–$2,500), home inspection (~$500), title insurance, and appraisal fees. First-time buyers in Ontario may receive up to $4,000 in land transfer tax rebates. Your Frank advisor will walk you through a complete closing cost estimate before you make an offer.
Should I use a mortgage broker or go directly to my bank?
A licensed mortgage broker like Frank Mortgage shops 30+ lenders on your behalf — including banks, credit unions, and monoline lenders — to find the lowest rate and best terms for your situation, at no cost to you. Banks can only offer their own products, so you may leave savings on the table by going direct.
What First-Time Buyers Say
Real Experiences, Real Results
★★★★★
"Randheer at Frank Mortgage helped my fiancée and I get into our first home, and he made the whole process way easier than we expected. He looked at every option to get things approved and stuck with us right up to closing. Super helpful and made it all as hassle-free as possible. Definitely recommend him."
★★★★★
"I got in touch with Randheer from Frank Mortgage for my very first home and he was really nice and supportive enough to walk me through the entire process and answer all my queries, as a first time home buyer I had many! I would highly recommend going through them for your Mortgage needs and ask for Randheer if you can. Cheers & All the Best"
★★★★★
"Katie Riccio was knowledgeable and pleasant to work with when I was buying my first home. She was able to secure a great rate and guide me through a stringent and stressful underwriting process, and ensured that I close my mortgage on time. I will not hesitate to work with Katie and Frank Mortgage in the future."
Keep Learning
Helpful Articles for First-Time Buyers
Our most-read guides to help you navigate every part of the homebuying journey.
First-Time Homebuyers in Canada
First-time homebuyer? Discover the steps to secure your dream home with the best mortgage deals across Canada,…
Read more →First Time Home Buyer Incentives in Canada
Homeownership is a goal for most Canadians. Most of us want to find a place to raise a family, provide shelter…
Read more →First Home Savings Account (FHSA)
If you are looking to save for a down payment on a home, the FHSA looks like a good way to start. An FHSA is a…
Read more →House Hacking: Making Homeownership More Affordable in Canada
Are there ways to make owning a home in Canada more affordable? The high cost of housing means that many Canad…
Read more →A Guide to Mortgage Closing Costs
Read more →Not sure where to start house hunting?
Frank Mortgage works alongside vetted local realtors who specialise in first-time buyers. One conversation can connect you to the full team you need.
Ready to take the first step?
Get pre-approved in minutes or speak with a licensed mortgage advisor — completely free, no commitment.