First-Time Home Buyer Guide Canada (2026): Every Number Before You Buy
Minimum down is 5% of the first $500,000 and 10% of the rest, up to $1,500,000. A $600,000 first home needs $35,000 down, but between $35,000 and $45,283 of cash to close depending on where you buy. First-time buyers can take 30 years to pay, and a couple can shelter $200,000 for the purchase.
Buying a first home in Canada is a sequence of numbers, and most of them are set by rules rather than by the market. The rules changed in December 2024, and several of the figures still quoted widely are from before that. Everything below is computed from the current rules.
Minimum down payment and CMHC insurance, by price
Below 20% down, the mortgage must carry default insurance. The premium is a percentage of the loan, added to the mortgage, and it is highest at the minimum down payment.
| Price | Minimum down | CMHC premium | Mortgage |
|---|---|---|---|
| $400,000 | $20,000 (5.0%) | $15,200 | $395,200 |
| $600,000 | $35,000 (5.8%) | $22,600 | $587,600 |
| $800,000 | $55,000 (6.9%) | $29,800 | $774,800 |
| $1,000,000 | $75,000 (7.5%) | $37,000 | $962,000 |
| $1,250,000 | $100,000 (8.0%) | $46,000 | $1,196,000 |
| $1,499,999 | $125,000 (8.3%) | $55,000 | $1,429,999 |
| $1,500,000 | $300,000 (20.0%) | None | $1,200,000 |
Minimum down payment in each case, so the premium is CMHC's 4.00% rate for less than 10% down. Putting down 10% to 14.99% drops it to 3.10%, and 15% to 19.99% to 2.80%.
The $175,000 cliff at $1.5 million
Insurance is only available on homes priced under $1,500,000. At that price the minimum down payment stops being a blend of 5% and 10% and becomes 20% of the whole price.
Computed from the federal minimum down payment rules in force since 15 December 2024. Before that date the jump came at $1,000,000.
A home at $1,499,999 needs $125,000 down. One dollar more needs $300,000. If you are shopping near the cap, that line decides what you can bid, and it is worth knowing before you fall for a listing at $1,500,000.
Before December 2024 the same cliff sat at $1,000,000. Raising it cut the minimum down payment on a $1.4 million home from $280,000 to $115,000.
The cash you need to close, by province
The down payment is not the cheque you write. Land transfer tax is due in cash and cannot be added to the mortgage, and neither can the provincial sales tax charged on the CMHC premium in Ontario, Quebec and Saskatchewan. For a $600,000 first home at the minimum down payment:
Down payment of $35,000 plus land transfer tax after first-time rebates and sales tax on the CMHC premium. Brighter needs more cash. Toronto, which adds its own land transfer tax, is in the table below.
| Where | Land transfer tax | Tax on premium | Cash to close |
|---|---|---|---|
| Prince Edward Island | $0 | None | $35,000 |
| Alberta | $0 | None | $35,000 |
| Northwest Territories | $0 | None | $35,000 |
| Nunavut | $0 | None | $35,000 |
| Yukon | $0 | None | $35,000 |
| British Columbia | $2,000 | None | $37,000 |
| Newfoundland and Labrador | $2,498 | None | $37,498 |
| Saskatchewan | $1,800 | $1,356 | $38,156 |
| New Brunswick | $6,000 | None | $41,000 |
| Ontario | $4,475 | $1,808 | $41,283 |
| Nova Scotia | $9,000 | None | $44,000 |
| Quebec | $7,233 | $2,034 | $44,267 |
| Manitoba | $9,650 | None | $44,650 |
| Toronto | $8,475 | $1,808 | $45,283 |
Down payment of $35,000 plus land transfer tax after first-time buyer rebates, plus provincial sales tax on the $22,600 CMHC premium. Alberta and the territories charge no land transfer tax; Saskatchewan's figure is its title registration fee. Excludes legal fees, title insurance, inspection, property tax adjustments and moving. Nova Scotia uses the Halifax rate; Quebec excludes Montreal's higher municipal tiers.
The same house costs $10,283 more cash to close in Toronto than in Prince Edward Island. Toronto stands apart because it charges its own land transfer tax on top of Ontario's, with a separate first-time rebate. To run your own price, use the land transfer tax calculator.
25 or 30 years, and the stress test
First-time buyers can now take a 30-year amortization on an insured mortgage. It lowers the payment and raises the total interest:
| Monthly payment per $100,000 | 3.5% | 4.5% | 5.5% |
|---|---|---|---|
| 25 years | $499.27 | $553.47 | $610.39 |
| 30 years | $447.64 | $504.22 | $563.91 |
Illustrative rates, not a quote. Fixed-rate payments computed with the semi-annual compounding Canadian fixed-rate mortgages use.
On the $587,600 mortgage above at an illustrative 4.5%, 30 years instead of 25 lowers the payment from $3,252 to $2,963 a month, $289 less, and adds about $90,935 of interest over the full amortization if the rate never changed. Rates do change at every renewal, so treat the second figure as a direction rather than a forecast.
Approval is a separate test. You must qualify at the greater of your rate plus 2 points or 5.25%: at 4.5% that means 6.5%. The affordability calculator applies it with the 39% and 44% debt-service ratios lenders use, and tells you which one is limiting you.
The programs, and how they stack
| Program | What it gives you |
|---|---|
| FHSA | $8,000 a year to $40,000 lifetime. Deductible going in, tax-free coming out for a first home, never repaid. |
| RRSP Home Buyers' Plan | Withdraw up to $60,000 from your RRSP tax-free; repay it over 15 years or the shortfall is taxed. |
| Home buyers' tax credit | A $10,000 non-refundable credit, worth $1,400 at the 2026 lowest federal rate. |
| First-time buyers' GST rebate | All the GST on a new home up to $1,000,000, phasing out to $1,500,000. Up to $50,000. New homes only. |
| Land transfer tax rebates | Ontario up to $4,000, Toronto up to $4,475 on top, British Columbia up to $8,000, and a full exemption in Prince Edward Island. Already applied in the table above. |
The FHSA and the Home Buyers' Plan can both be used for the same home, and the limits are per person. A couple who both qualify can put $80,000 through FHSAs and take $120,000 out of RRSPs, $200,000 of down payment saved with a deduction on the way in. The FHSA is the better of the two because it is never repaid; the Home Buyers' Plan borrows from your retirement and must go back. Model the FHSA with the FHSA calculator, and see TFSA vs RRSP vs FHSA for the order to fund them in.
"First-time buyer" generally means you have not lived in a home that you or your spouse owned in the current year or the previous four, but each program words it slightly differently, so check the one you are relying on.
Whether to buy at all
Buying carries large one-time costs at both ends: the land transfer tax above going in, and agent commission and legal fees coming out. Short stays rarely recover them. Run your own timeline through the rent vs buy calculator for your break-even year, check the payment with the mortgage calculator, and before ever breaking a fixed term early, the mortgage penalty calculator.
Frequently asked questions
How much do I need for a down payment in Canada?
5% of the first $500,000 and 10% of the portion above it, for homes under $1,500,000. At $1,500,000 or more the minimum is 20%. On a $600,000 home that is $35,000.
What changed in the December 2024 mortgage rules?
The price cap for insured mortgages rose from $1,000,000 to $1,500,000, so homes between the two can now be bought with less than 20% down. And 30-year amortization became available on insured mortgages for all first-time buyers and all buyers of new builds.
How much is CMHC insurance?
A one-time premium of 4.00% of the loan with less than 10% down, 3.10% with 10% to 14.99%, and 2.80% with 15% to 19.99%. It is added to the mortgage. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is due in cash at closing.
What is the mortgage stress test?
You must qualify at the greater of your contract rate plus 2 percentage points or 5.25%. At a 4.5% contract rate you qualify at 6.5%. Insured borrowers switching lenders at renewal no longer face it again.
How much cash do I need to buy a home?
More than the down payment. For a $600,000 first home at the minimum down payment, down payment, land transfer tax after first-time rebates and sales tax on the CMHC premium come to between $35,000 in Prince Edward Island and $45,283 in Toronto, before legal fees, inspection and moving.
Can I use an FHSA and the Home Buyers' Plan together?
Yes, for the same purchase. Each person can withdraw up to $40,000 plus growth from an FHSA and $60,000 from their RRSP under the Home Buyers' Plan, so a couple can bring $200,000 of contributions saved with tax help. The FHSA is never repaid; the Home Buyers' Plan is repaid to the RRSP over 15 years.
Is there a GST rebate for first-time home buyers?
On new homes, yes. Together with the existing new housing rebate, first-time buyers get back all of the GST on a new home up to $1,000,000, phasing out in a straight line to nothing at $1,500,000, worth up to $50,000. It applies to agreements with a builder from 27 May 2025. It does not apply to resale homes.
Should I choose a 25 or 30-year amortization?
Thirty years lowers the payment and raises the total interest. On a $587,600 mortgage at an illustrative 4.5%, it cuts the monthly payment by $289 and adds about $90,935 of interest over the life of the loan if the rate held.
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Researching and writing about Canadian personal finance since 2026.
Last reviewed October 2026 · How we research
“First-Time Home Buyer Guide Canada (2026): Every Number Before You Buy.” Vault Nerd, https://www.vaultnerd.com/ca/learn/first-time-home-buyer-guide, updated October 2026.
- Department of Finance Canada, 15 December 2024: insured-mortgage cap raised to $1.5 million and 30-year amortization for first-time buyers and new builds; FHSA and Home Buyers' Plan limits
- CMHC, mortgage loan insurance premium rates and provincial sales tax on premiums
- Department of Finance Canada and CRA: first-time home buyers' GST rebate, Royal Assent March 2026
- OSFI Guideline B-20: minimum qualifying rate
- Provincial and City of Toronto land transfer tax schedules and first-time buyer rebates
No product is reviewed on this page and Vault Nerd has no affiliate relationship in this category. Figures checked October 2026.