Top 5 Things to Know for First-Time Home Buyers


Buying your first home is a significant milestone—one filled with excitement, nerves, and plenty of learning opportunities. To help you navigate this big step with confidence, we’ve outlined the top five things every first-time home buyer in Toronto should know. This guide breaks down the essentials: understanding your finances, leveraging incentives, managing emotions, and building the right team of professionals to ensure your journey is smooth and informed.

1. Know Your Financial Picture

Before you start browsing listings, it’s crucial to get a clear understanding of your financial situation. This includes:

  • Down Payment: In Canada, the minimum down payment is 5% for homes up to $500,000, with increasing percentages for higher-priced homes. Start saving early and explore programs like the RRSP Home Buyers’ Plan (HBP), which allows you to withdraw up to $35,000 tax-free.
  • Mortgage Pre-Approval: Speak with a mortgage broker to determine how much you can afford. A pre-approval locks in your interest rate for up to 120 days and signals to sellers that you’re a serious buyer.
  • Closing Costs: Factor in additional expenses like land transfer taxes, legal fees, and home inspections—these typically range between 1.5% to 4% of the purchase price.

2. Take Advantage of Incentives

As a first-time home buyer, you’re eligible for several government programs designed to ease the financial burden:

  • First-Time Home Buyer Incentive: A shared equity program that can reduce your monthly mortgage payments.
  • Land Transfer Tax Rebate: Receive up to $4,000 back on Ontario’s land transfer tax.
  • Home Buyers’ Tax Credit: A $5,000 non-refundable tax credit to help cover closing costs.

These incentives can add up to significant savings, so make sure to take full advantage of them.

Buying a home involves important legal steps that protect your investment. A real estate lawyer plays a critical role by:

  • Reviewing your purchase agreement to ensure your interests are protected.
  • Conducting a title search to confirm the property is free of liens or claims.
  • Handling ownership transfer and all closing documents.

Having a trusted lawyer ensures every legal aspect is addressed, giving you peace of mind.

4. Keep Emotions in Check

Buying your first home is exciting, but it’s easy to let emotions take over. Stay rational and focused by:

  • Sticking to your budget to avoid financial strain.
  • Walking away if the deal doesn’t make sense—there will always be other opportunities.
  • Relying on your team of professionals (realtor, mortgage broker, lawyer) for expert advice and guidance.

Remember, this is a long-term investment. Balancing emotions with practicality will help you make a confident and informed decision.

5. Work with the Right Professionals

Surrounding yourself with a team of experts is key to a smooth home-buying experience:

  • Realtor: Guides you through home searches, negotiations, and offers while advocating for your interests.
  • Mortgage Broker: Finds financing options tailored to your budget and goals.
  • Real Estate Lawyer: Manages all legal aspects and ensures your purchase is secure.

The right professionals provide clarity, support, and expertise every step of the way.


Ready to Take the Next Step?

At the Open Door Collective, we specialize in educating first-time home buyers and connecting you with trusted professionals who make the process seamless. From understanding government incentives to navigating legal processes, we’re here to provide the tools and guidance you need.

Work with us to gain quality education, build your team of experts, and make confident decisions. Your journey to homeownership starts here. Let’s open that door together!