First Time Home Buyer Mortgages in Ontario
You earn well, you have saved, and buying still feels out of reach. That is the most common conversation we have. Online calculators ignore bonuses, student loans, car payments and the way a co buyer or a family gift changes everything, so they leave you guessing. We replace the guessing with one honest set of numbers: the price range that works, the total cash you need on closing day, the payment you can live with, and what to do first.
- Typical first purchase
- $650,000 to $1.1 million across Toronto and the GTA
- Minimum down payment
- 5% on the first $500,000, 10% on the portion above it
- Timeline we plan for
- Buying now, or six to twenty four months out
What you can realistically buy, not the best case number
A pre approval from a branch is usually the largest number their rulebook allows. That is not the same as the number you should spend. We model your purchase against the payment you actually want to carry, so you buy a home with room left over for travel, family, savings and the life you already have.
That means running your file the way an underwriter will: the stress test rate rather than the contract rate, your real credit obligations, condo fees and property tax in the ratios, and bonus or commission income counted only to the extent a lender will accept it.
- ◆A purchase price range with the monthly payment attached to each one
- ◆What a co buyer, a sibling or a parent on title changes about the approval
- ◆How a gifted down payment must be documented so it is accepted
- ◆The trade off between a bigger down payment and keeping a cash cushion
The full cash picture, not just the down payment
The down payment is the first number in your budget, not the last. In Toronto you also need land transfer tax on both the provincial and municipal side, legal fees, title insurance, a status certificate review on a condo, moving costs and the lender's requirement that you have funds left after closing.
We put every one of those on a single page before you make an offer, so nothing appears in the last week. Where you qualify for the first time buyer land transfer tax rebates, the FHSA or the Home Buyers' Plan, we build them into the plan rather than mentioning them afterwards.
- ◆Provincial and Toronto land transfer tax, with first time buyer rebates applied
- ◆Legal fees, title insurance, adjustments and the status certificate
- ◆FHSA and Home Buyers' Plan withdrawals, and the timing rules that apply
- ◆The reserve your lender wants to see after closing
If you are not ready yet, you get the reason and the fix
Being told to save more is not advice. If the file does not work today, you should leave the conversation knowing exactly which number is blocking it, how much it has to move, and roughly how long that takes at your savings rate.
Sometimes the block is the down payment. Often it is a car loan, a credit limit reported at its maximum, or a probation period that ends in four months. Those have very different timelines, and knowing which one you are dealing with is the difference between a year of waiting and a purchase this spring.
Common Questions
How much do I need for a down payment on a first home in Ontario?
Five percent of the first $500,000 and ten percent of the portion between $500,000 and $1.5 million. On an $800,000 purchase that is $55,000. Above $1.5 million the minimum is twenty percent, which is why the price you write on the offer matters so much near that line.
Does my bonus or commission income count toward qualifying?
Usually yes, once there is a two year history, and lenders typically use the two year average rather than your best year. If you are newer to a bonus structure, some lenders will still consider it with a signed employment letter that guarantees a portion of it.
Can my parents help with the down payment?
Yes. A gift from an immediate family member is accepted by every prime lender when it comes with a signed gift letter and the funds are in your account before closing. It must be a genuine gift, not a loan, and we will tell you how to document it so it is never questioned.
Should I get pre approved before I start looking?
Yes, and do it before you fall for a listing. A real pre approval holds a rate for ninety to one hundred and twenty days, tells you the price range to search in, and makes your offer credible. It also surfaces credit or documentation issues while there is still time to fix them.
How long does the whole process take?
A prepared first time buyer can go from first conversation to pre approval in a few days. From an accepted offer to closing is usually thirty to sixty days. The part that takes longest is gathering documents, which is why we send the list at the start.
Let us look at your file.
Blackwood Mortgage Partners works with clients across Ontario from our Toronto office. Call 416-990-3790 or book a time that suits you.
Other Services
Self Employed Mortgages
Business owners, incorporated professionals and contractors placed with lenders who read real financials, not just a T4.
Mortgage Renewal
The renewal letter is an offer, not a verdict. We shop the whole market before your maturity date.
Private Mortgages
Equity based first and second mortgages when the bank timeline or the bank rulebook does not fit.
Investment Property Financing
Rental, duplex and multi unit financing structured so the next purchase is still possible.
Business Owner Mortgages
Incorporated owners qualified on the whole business: salary, dividends, retained earnings and add backs.