How much do I need to buy my first home in Toronto?

For the average Toronto home price of $1,100,000, you need a minimum down payment of $220,000 (20%), plus closing costs of approximately $27,500 (2.5% for legal fees, land transfer tax, and inspection). Total upfront: approximately $247,500.

What is the minimum income to buy in Toronto?

To qualify for a mortgage on the average Toronto home ($1,100,000) at the current stress test rate of 6.89%, you need a household income of approximately $220,000 or more with a 20% down payment, or higher with less down. Use our stress test calculator for a precise estimate.

What first-time buyer programs are available in ON?

ON first-time buyers can access: the FHSA (up to $40,000 tax-free), the RRSP Home Buyers' Plan (up to $35,000 per person), CMHC mortgage insurance (enabling 5% down payment), and Up to $4,000 provincial LTT rebate + up to $4,475 Toronto LTT rebate.

Should I buy a condo or house as my first property in Toronto?

Given Toronto's high average home price of $1,100,000, many first-time buyers enter the market with a condo or townhouse. This allows you to build equity and upgrade later. Condos typically start around $550,000–$700,000 in Toronto, making them more accessible with a smaller down payment.

How do I find a mortgage broker in Toronto?

LendGuide connects you with licensed mortgage brokers in Toronto for free. Get quotes from multiple lenders with one application — no credit check required. Brokers in Toronto know local lender preferences and can often secure rates 0.3–0.5% lower than going directly to a bank.

First-Time Buyer GuideBalanced Market

First-Time Home Buyer Guide for Toronto, ON (2026)

Q: Is now a good time to buy in Toronto as a first-time buyer?

Toronto is currently a balanced market. Toronto is currently a balanced market — a good environment for first-time buyers to take their time and negotiate fair terms without extreme pressure in either direction. Home prices are down 3.2% year-over-year, which may represent an opportunity compared to recent peaks. The best time to buy is when you're financially ready — get pre-approved first.

Everything you need to know about buying your first home in Toronto — from saving your down payment to picking up the keys. Includes local programs, live mortgage rates, and free broker matching.

Avg Home Price

$1,100,000

Min Down Payment

$220,000

Best Rate Today

4.89%

Get Your Toronto Rate Quote

Free quotes from licensed Toronto brokers. No credit check required.

How Much Home Can You Afford in Toronto?

Based on the current stress test rate of 6.89% and a 25-year amortization. Monthly housing costs capped at 44% of gross income (TDS ratio).

Household Income	Max Mortgage	Down Payment Needed	Total Budget
$80,000/yr	$423,000	$42,000 (10%)	$465,000
$120,000/yr	$634,000	$63,000 (10%)	$697,000
$160,000/yr	$846,000	$85,000 (10%)	$931,000

At the average Toronto home price of $1,100,000, most first-time buyers need a household income of $220,000 or more. Many buyers start with condos or townhouses to get into the market.

Calculations based on live broker rate of 4.89% (stress tested at 6.89%), 25-year amortization, and a 44% TDS ratio. Actual qualification depends on credit score, existing debts, and property taxes. Use our full calculator →

First-Time Buyer Programs in ON

Stack these programs to maximize your down payment and minimize your tax bill.

Best Account

First Home Savings Account (FHSA)

Up to $40,000 lifetime ($8,000/year). Tax-deductible contributions and tax-free withdrawals for your first home. Canada's most powerful first-time buyer account.

Complete FHSA Guide →

RRSP Program

RRSP Home Buyers' Plan

Withdraw up to $35,000 from your RRSP tax-free ($70,000 for couples). Must be repaid over 15 years. Best used alongside your FHSA.

Down Payment Guide →

Insurance

CMHC Mortgage Insurance

Enables you to buy with as little as 5% down. CMHC insures the lender, not you — but it lets lenders offer lower rates. Premium of 4% on the insured amount.

CMHC Guide →

Ontario Land Transfer Tax Rebate

First-time buyers in Ontario receive a rebate of up to $4,000 on provincial land transfer tax. On most Ontario purchases, this fully covers the provincial LTT.

Toronto Municipal LTT Rebate

Toronto first-time buyers also receive up to $4,475 off the municipal land transfer tax. Combined with the provincial rebate, Toronto first-timers can save up to $8,475 total.

Step-by-Step: Buying Your First Home in Toronto

Follow this process from financial prep to getting your keys.

Check Your Credit

Pull your free credit report at Equifax or TransUnion. You need 680+ for the best rates. If below 680, spend 6–12 months improving before applying.

Open Your FHSA

Even if you're 2 years from buying, contribution room starts accumulating. $8,000/year in tax deductions adds up fast.

Learn about the FHSA →

Calculate Your Budget

Use our affordability calculator to understand exactly how much you can borrow at today's rates and the stress test rate.

Open Affordability Calculator →

Get Pre-Approved

A pre-approval locks in your rate for 90–120 days and shows sellers you're a serious buyer. Most brokers can get you pre-approved within 24–48 hours.

Pre-Approval Guide →

Find a Real Estate Agent

Choose an agent who specializes in Toronto and works primarily with buyers. Their commission is paid by the seller — free to you.

Make an Offer

Toronto is currently a balanced market — a good environment for first-time buyers to take their time and negotiate fair terms without extreme pressure in either direction.

Home Inspection

Never skip a home inspection — budget $400–$600. A licensed inspector will identify issues you might miss, potentially saving you thousands in repairs.

Close

Work with a real estate lawyer to handle title transfer and mortgage funding. Budget $1,500–$2,500 for legal fees. Your broker will coordinate with the lender.

Mortgage Rates for Toronto Buyers

Live rates from Toronto-area brokers. Monthly payments based on $1,100,000 purchase price with 20% down ($880,000 mortgage), 25-year amortization.

Mortgage Type	Best Rate	Est. Monthly Payment	Stress Test Rate
Best 5-Year Fixed	4.89%	$5,063/mo	6.89%
Best 5-Year Variable	5.45%	$5,346/mo	7.45%
Best 3-Year Fixed	4.74%	$4,989/mo	6.74%

Fixed vs Variable for First-Time Buyers

Most first-time buyers in Torontochoose a 5-year fixed rate for the predictability it provides — your payment stays the same regardless of Bank of Canada rate changes. Variable rates can save money when rates are falling, but add risk to an already stretched budget. If you're uncertain, read our Fixed vs Variable guide or take our rate quiz.

See all Toronto mortgage rates →

Popular Neighbourhoods for First-Time Buyers in Toronto

Each neighbourhood has different price points — ask your broker about what you can qualify for in specific areas.

Downtown Core