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Canada’s first‑time homebuyers need to plan carefully due to rising home prices, mortgage rules, and additional costs. The minimum down payment is 5% for homes up to $500,000 and 5% on the first $500,000 plus 10% on the portion from $500,000 to $1.5 million; homes above $1.5 million require 20%. The down payment, buyers must budget for closing costs—legal fees, inspections, land-transfer tax—typically 1.5%–4% of the property price.

Government programs help ease the financial burden. The Home Buyers’ Plan (HBP) allows first-time buyers to withdraw up to C$60,000 from their RRSPs tax-free, to be repaid over 15 years. The First Home Savings Account (FHSA), launched in 2023, lets individuals save up to C$40,000 tax-free for a first home. There was also a First-Time Home Buyer Incentive, a shared-equity loan of 5% (resale) or 10% (new build), but it has since ended.

Finally, qualifying for a mortgage depends on income, credit history, and debt ratios—lenders typically limit mortgage sizes to between 3–4 times annual income. First-timers should seek mortgage pre‑approval, factor in closing and insurance costs beyond the down payment, and build an emergency fund. Provincial credits (like the Home Buyers’ Tax Credit) and RRSP/FHSA withdrawal strategies can further ease entry into homeownership. 

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