Buying Your First Home in Ontario: 2025 Step-by-Step Guide

🏡 Buying Your First Home in Ontario: 2025 Step-by-Step Guide

The buying your first home in Ontario journey can feel overwhelming. But with the right guidance, it becomes one of the most exciting milestones in your life. Whether you’re saving for a down payment or ready to buy, understanding the latest incentives and mortgage updates in 2025 will help you start strong.

💡 What Does “First-Time Homebuyer” Mean When Buying Your First Home in Ontario?

In Ontario, a first-time homebuyer is someone who has never owned a home anywhere in the world.
You may also qualify if you haven’t lived in a property owned by your spouse or partner in the last four years.

This status matters because many government incentives are available only to first-time buyers. Always confirm your eligibility before applying for any program.

💰 How Much Do You Need for a Down Payment When Buying Your First Home in Ontario?

Your down payment is your first major step.
In Canada, the amount depends on your home’s price:

• 5% for homes under $500,000

• 5% on the first $500,000 + 10% on the portion above, for homes up to $999,999

• 20% for homes priced at $1 million or more

If your down payment is less than 20%, mortgage insurance from CMHC or another insurer will be required. This protects the lender but slightly increases your monthly costs.

🕒 New for 2025: 30-Year Amortization Helps Buyers in Ontario

Good news! The federal government now allows 30-year amortizations on insured mortgages for new homes.
This change from the previous 25-year limit helps lower monthly payments, giving first-time buyers more flexibility — though it means paying more interest over time.

🎯 Government Incentives for Buying Your First Home in Ontario

Several programs can make buying your first home in Ontario easier and more affordable:

🏦 First Home Savings Account (FHSA) (LINK)

Save up to $8,000 per year (to a lifetime limit of $40,000).
Your contributions are tax-deductible, your savings grow tax-free, and withdrawals are tax-free when used to buy your first home.

💸 Home Buyers’ Plan (HBP)

Withdraw up to $60,000 from your RRSP for a down payment.
You’ll repay the amount over 15 years, and it works even better when paired with your FHSA.

🏠 Land Transfer Tax Rebates

Ontario offers up to $4,000 in rebates on the provincial land transfer tax.
If you buy in Toronto, you could get another $4,475 through a city refund.

💰 First-Time Home Buyers’ Tax Credit

Claim a $10,000 federal tax credit, reducing your tax bill by up to $1,500.

🚫 What’s Gone: The End of the FTHBI Program

The First-Time Home Buyer Incentive (FTHBI) ended in 2024.
It offered shared-equity loans for up to 10% of a home’s value but was discontinued due to limited use, especially in high-priced areas like the GTA.

🧭 Step-by-Step Plan for Buying Your First Home in Ontario

1. Check your finances. Review your credit score, savings, and debt.

2. Open an FHSA or use your RRSP. Build your down payment with tax-free growth.

3. Get pre-approved for a mortgage. Know your budget and rate before shopping.

4. Work with the right REALTOR®. A professional agent helps you find listings, compare areas, and negotiate the best deal.

5. Budget for closing costs. Include land transfer tax, inspections, insurance, and small fees.

🤝 Why You Need the Right Realtor When Buying Your First Home in Ontario

When buying your first home in Ontario, having the right REALTOR® makes all the difference. The process can feel confusing — but it doesn’t have to be.

At Century 21 Atria, the Number 1 C21 Office Globally, our team guides you from pre-approval to closing. We simplify every step, explain market trends in plain language, and help you take advantage of every available incentive.

With expert advice, advanced tools, and decades of local experience, we make your first home purchase smoother, faster, and more rewarding.

🏡 Take the Next Step Toward Homeownership in Ontario

The dream of buying your first home in Ontario is closer than you think. With the right support and strategy, 2025 can be the year you make it happen.

👉 Contact us today to start your journey with the #1 Century 21 office in the world — and let us help you find the perfect first home.