Spoke Guide

First-Time Home Buyer Canada — programs, process & pre-approval

Buying your first home is the biggest financial decision of your life. We walk you through every program available, every step of the process, and get you pre-approved with confidence.

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Programs & incentives

Every first-time buyer program in Canada

First-time buyers have access to several federal and provincial programs that reduce upfront costs and tax burden.

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First Home Savings Account (FHSA)

Contribute up to $8,000/year (lifetime max $40,000). Contributions are tax-deductible, and withdrawals for a first home purchase are tax-free. Available since April 2023.

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Home Buyers' Plan (HBP)

Withdraw up to $60,000 from your RRSP tax-free for a first home purchase. You have 15 years to repay it starting 2 years after withdrawal. Couples can each withdraw $60,000.

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First-Time Home Buyer Tax Credit

A $10,000 non-refundable federal tax credit on your first qualifying home purchase — worth up to $1,500 in tax savings.

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Land Transfer Tax Rebate (Ontario)

Ontario first-time buyers receive a rebate of up to $4,000 on provincial land transfer tax. Toronto has a separate municipal rebate of up to $4,475.

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CMHC insured mortgage (5% down)

With as little as 5% down, you can buy a home up to $1 million. CMHC insurance (2.8–4% premium added to mortgage) makes this possible while protecting the lender.

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Routes to Purchase product

We walk you through which programs apply to your situation, maximize your savings, and secure the best pre-approval rate from 50+ lenders.

Common questions
How much down payment do I need as a first-time buyer?
Minimum 5% on homes up to $500,000; 10% on the $500K–$1M portion; 20% on homes over $1M. On a $650,000 home, the minimum is $40,000 (5% of $500K + 10% of $150K).
What's the difference between the FHSA and the HBP?
The FHSA is a new account (2023) with tax-deductible contributions and tax-free withdrawals — superior to the HBP in most cases because you don't have to repay the withdrawal. Many buyers use both together to maximize their down payment.
How long does the pre-approval process take?
With My Future Mortgage, typically 24–48 hours from application to approval letter. We gather your documents upfront so there are no surprises when you find the right home.
More questions
What credit score do I need to buy my first home?
Most A-lenders require a minimum of 620–680 for best rates. Scores below 620 may qualify with B-lenders or with a larger down payment. We'll check your score and tell you exactly where you stand.
What closing costs should I budget for?
Plan for 1.5–4% of the purchase price in addition to your down payment. This covers legal fees ($1,500–$3,000), Ontario land transfer tax, title insurance ($200–$300), and adjustments. First-time buyers get a land transfer tax rebate of up to $4,000 provincially.

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