First Home Buyer Guide in Canada 2026

Your First Home in Canada — Where to Start

Buying your first home in Canada is one of the biggest financial decisions you will make. The process can feel overwhelming, but breaking it down into clear steps makes it manageable. This guide covers everything from saving your deposit to collecting the keys.

Saving for Your Deposit

Most lenders in Canada require a deposit of 5-20% of the property price. The more you save, the better your loan terms and the less you pay in additional costs.

Open an FHSA immediately — contributions are tax-deductible and grow tax-free, combining the best features of an RRSP and TFSA. Max out the FHSA ($8,000/year) before contributing to the HBP. Use a TFSA for additional savings. Set up automatic transfers on payday

Government Support for First-Time Buyers

The First Home Savings Account (FHSA) allows tax-deductible contributions up to $8,000/year ($40,000 lifetime). The Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 from your RRSP tax-free. First-time buyers receive land transfer tax rebates in Ontario (up to $4,000) and BC. These programmes can provide $30,000-100,000+ toward your first home

Check our government grants guide for the full list of current programmes and eligibility requirements.

Getting Pre-Approved for a Mortgage

Pre-approval tells you exactly how much you can borrow and shows sellers you are a serious buyer. In Canada, the process works as follows.

Get pre-approved through a mortgage broker — they access dozens of lenders and their service is free to you (paid by the lender). Pre-approval locks in a rate for 90-120 days. You must pass the stress test at the higher of your contract rate + 2% or the qualifying rate

Use our mortgage calculator to model different scenarios before applying. Read our mortgage types guide to understand which loan product suits your situation.

Understanding the Full Cost of Buying

The purchase price is just the beginning. Budget for additional costs that can add significantly to your total outlay.

Land transfer tax varies by province: Ontario charges 0. Read our buying costs guide for a complete breakdown of every expense.

Common First-Time Buyer Mistakes

Waiving the home inspection to win a bidding war (risky and increasingly discouraged), not understanding the stress test (which reduces your maximum borrowing by 15-20%), forgetting to budget for CMHC insurance on high-ratio mortgages (2.8-4% of the mortgage), and not comparing rates across lenders at renewal

Avoid these pitfalls by taking your time, doing thorough research, and leaning on qualified professionals throughout the process. Our property inspection checklist covers what to check before committing.

Your Step-by-Step Timeline

The typical first home purchase follows these stages: establish your budget and savings target, explore government support options, get pre-approved for financing, search for the right property, make an offer, complete legal due diligence and inspections, and finalise settlement.

Our property buying guide walks through each stage in detail, and our mortgage guide covers everything about financing.

Next Steps

Ready to start? Use our mortgage calculator to see what you can afford, browse Canada FAQs for quick answers, or explore our full property buying guide.