First Time Home Buyer Mortgage
First-Time Home Buyer Mortgages Ontario
Discover how to buy your first home in Ontario with competitive mortgage rates, government incentives like the First-Time Home Buyer Credit, and flexible approval criteria—even if you have limited savings or credit challenges. Compare lenders and find deals tailored for first-time buyers.
What Is a First-Time Home Buyer Mortgage?
A first-time home buyer mortgage is a specialized loan program designed to help Ontario residents purchase their first property. These mortgages often come with benefits like lower down payments (starting at just 5%), competitive interest rates, and access to government programs such as the First-Time Home Buyer Credit.
At Mortgage Professionals like Abhishek Gopinath, we understand that navigating the various mortgage options can feel overwhelming. That’s why we work closely with first-time buyers to simplify the process, connecting you with trusted lenders and helping you secure mortgage deals tailored to your unique financial situation. Whether you’re looking for conventional bank mortgages or alternative lending solutions, we’ll guide you through every step to make your homeownership dreams a reality.
The First-Time Home Buyer Mortgage Process: A Step-by-Step Guide
Working with an experienced mortgage advisor like Abhishek Gopinath can simplify the journey—helping you compare lenders, secure the best rates, and avoid surprises.
What is the Deposit Amount for First-Time Home Buyer Incentives?
If you’re a first-time home buyer in Ontario, you may qualify for a mortgage with just a 5% down payment—making homeownership more accessible. This incentive helps buyers who may struggle to save a large deposit, but keep in mind that the home’s price must fall within certain limits to be eligible.
Since a down payment below 20% requires mortgage default insurance (CMHC insurance), it’s wise to save as much as possible. The insurance premium typically costs around 2.8% of your total mortgage, but a larger down payment reduces this fee. Exploring first-time home buyer mortgages in Ontario with lenders can help you find the best rates and terms tailored to your needs.
For expert advice on first-time home buyer loans, consult Abhishek Gopinath, a trusted mortgage specialist who can guide you through the process.
What Additional Savings & Incentives Can First-Time Home Buyers Access in Ontario?
Buying your first home in Ontario comes with exclusive savings opportunities that can make homeownership more affordable. Here are key incentives you may qualify for:
RRSP Home Buyers’ Plan (HBP) – Withdraw up to $35,000 tax-free from your RRSP to fund your down payment, with up to 15 years to repay it.
First Home Savings Account (FHSA) – Save up to $40,000 tax-free, with contributions deductible from your income.
Land Transfer Tax Rebate – Ontario first-time buyers can receive up to $4,000 back on land transfer taxes.
First-Time Home Buyer Tax Credit – Claim $10,000 on your tax return for closing costs like legal fees and inspections.
Exploring first-time home buyer mortgage options in Ontario with trusted lenders ensures you maximize these benefits. For personalized advice on home loans for first-time buyers, consult Abhishek Gopinath, a mortgage expert who can help you unlock every available savings opportunity.
What Are the Interest Rates for First-Time Buyers?
As a first-time home buyer in Ontario, you can access competitive mortgage rates that make homeownership more affordable. While rates vary between lenders, first-time buyers often qualify for special discounted rates and flexible terms.
Key factors that influence your rate include:
- Credit score (stronger scores secure lower rates)
- Down payment amount (larger down payments may reduce rates)
- Mortgage type (fixed vs. variable rates)
- Loan term (shorter terms often have lower rates)
Since first-time home buyer mortgages are considered low-risk by lenders, they typically offer better rates than personal loans or credit cards. To find the best mortgage deals for first-time buyers, compare offers from multiple Ontario mortgage lenders or consult Abhishek Gopinath, a trusted mortgage advisor who can help you secure the most favorable terms.
Who Qualifies for the First-Time Home Buyer Mortgage?
Qualifying for a first-time home buyer mortgage in Ontario comes with specific requirements designed to make homeownership accessible. Here’s what you need to know:
Eligibility Criteria:
First-Time Buyer Status
You (and your spouse/common-law partner) must not have owned a home in the past 4 years.
Canadian Residency
You must be a legal resident of Canada (citizen, permanent resident, or valid work permit holder).
Minimum Down Payment
Typically 5% for homes under $500,000 (higher for more expensive properties).
Mortgage Stress Test Approval
You must qualify at the Bank of Canada's qualifying rate (currently ~5.25%) or your contracted rate + 2%, whichever is higher.
Purchase Agreement
A signed agreement to buy or build a qualifying home in Canada.
Special Considerations:
Disability Exemption – You may still qualify if purchasing for a disabled dependent, even if you’ve owned property before.
Credit & Income Requirements – Most mortgage lenders for first-time buyers require a credit score of 650+ and stable income.
For expert guidance on first-time home buyer loans and maximizing your eligibility, consult Abhishek Gopinath, a trusted mortgage specialist who helps buyers secure the best mortgage deals for first-time buyers.
What If You Have a Low Credit Score?
A low credit score doesn’t have to stop you from buying your first home. While traditional first-time home buyer mortgages in Ontario typically require a minimum 650 credit score, some specialized lenders offer solutions for buyers with less-than-perfect credit. Here’s what you should know:
Options for Low-Credit Borrowers:
- Alternative Lenders – Some mortgage lenders for first-time buyers work with borrowers with scores as low as 580, though rates may be slightly higher.
- Larger Down Payment – Putting down 10-20% can improve approval chances by reducing lender risk.
- Co-Signer/Guarantor – Adding a creditworthy co-signer may help you qualify for better mortgage loans for first time buyers.
- Credit Repair Strategies – Paying down debts and fixing errors on your report can boost your score in months
Abhishek Gopinath
Find the Best Mortgage Offers for You
Don’t settle for the first mortgage offer you receive – first-time buyers in Ontario have more options than they realize. From big bank mortgages to credit union specials and private lender solutions, the rate difference between providers can be dramatic. That’s why savvy buyers work with mortgage experts like Abhishek Gopinath who specialize in first-time buyer programs. They’ll help you uncover hidden deals, qualify for government incentives, and potentially save thousands over your mortgage term. The right professional can mean the difference between an ordinary mortgage and one truly tailored to your financial situation.
Most lenders prefer a minimum 650 credit score, but some alternative mortgage lenders for first-time buyers may accept scores as low as 580 with a larger down payment.
The minimum is 5% for homes under $500,000 (portion up to $500,000) and 10% for the amount above $500,000. First-time buyers can use the Home Buyers’ Plan (HBP) to withdraw up to $35,000 from their RRSPs tax-free.
You may qualify for:
✔ First-Time Home Buyer Incentive (shared equity program)
✔ Land Transfer Tax Rebate (up to $4,000 back)
✔ First Home Savings Account (FHSA) – Save up to $40,000 tax-free
Compare offers from multiple first-time home buyer lenders, including banks, credit unions, and mortgage brokers like Abhishek Gopinath, who can access exclusive deals.
Yes! Some lenders specialize in mortgage loans for first-time buyers with low credit scores. A larger down payment or co-signer can improve your approval chances.
To qualify as a first-time home buyer in Ontario, you must not have owned a home anywhere in the world before, and you need to plan on living in the property as your primary residence. You’ll also need to meet the lender’s requirements for income, credit score, and debt levels.
The minimum down payment is 5% of the purchase price for homes up to $500,000. For homes between $500,000 and $999,999, it’s 5% on the first $500,000 and 10% on the remaining amount. For homes $1 million and above, a minimum 20% down payment is required.
The best mortgage depends on your budget, long-term plans, and comfort with risk. Many first-time buyers choose a fixed-rate mortgage for predictable payments, while others may benefit from a variable-rate mortgage for potentially lower initial rates. A mortgage broker can help compare options and secure the best fit for your situation.
The First-Time Home Buyers’ Tax Credit (HBTC) allows eligible buyers to claim up to $10,000 when purchasing their first home. This translates into a maximum tax savings of $1,500 (based on the current 15% federal rate).
The First-Time Home Buyer Incentive is a federal program where the Government of Canada offers 5% or 10% of the home’s purchase price to boost your down payment. This reduces your monthly mortgage costs. The amount is repayable when you sell the home or after 25 years.
- 5% of the purchase price for homes up to $500,000.
- 10% on the portion above $500,000 (for homes up to $999,999).
- 20% minimum for homes priced at $1 million or more.
If your down payment is under 20%, you’ll need mortgage insurance through CMHC or another insurer.
You can use an online mortgage calculator to estimate your monthly payments based on the purchase price, down payment, interest rate, and amortization period. Mortgage With Abhishek also offers personalized calculations tailored to your financial situation.
The “best” mortgage depends on your goals. Many first-time buyers choose a fixed-rate mortgage for predictable payments, while others prefer a variable-rate mortgage for potentially lower costs. A mortgage broker can compare multiple lenders to find the option that suits you best.
The FHSA is a registered savings plan that allows you to contribute up to $8,000 per year (lifetime max $40,000) towards your first home. Contributions are tax-deductible, and withdrawals used for your home purchase are tax-free. It’s a great way to save for your down payment faster.
The Canada Revenue Agency (CRA) offers:
Home Buyers’ Tax Credit (HBTC): Claim up to $10,000, which equals $1,500 in tax savings.
Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free to use as a down payment (must be repaid within 15 years).
First Home Savings Account (FHSA): Tax-advantaged savings for your first home.
FAQs
