There’s nothing quite like the thrill of buying your first home. The excitement. The responsibility. The moment you get the keys to a place that’s finally yours. But as every first-time home buyer in Ontario quickly learns, it’s not just about finding the right home — it’s about understanding how the process works.
Whether you’re confused by mortgage terms, down payments, or the fine print on closing costs, this guide will help you feel confident in every step of your home-buying journey.
First, Are You Considered a “First-Time Buyer”?
The federal government defines a first-time buyer as someone who hasn’t owned a home in the last four years. This includes your spouse or partner — both of you must qualify. If you do, a world of government incentives in Ontario becomes available.
What Support is Available in 2025?
Here’s what’s making first-time buying easier this year:
- First-Time Home Buyer Incentive (FTHBI): A shared equity mortgage from the government, reducing your mortgage without increasing your down payment.
- Home Buyers’ Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free to put toward your down payment.
- Ontario Land Transfer Tax Rebate: Get up to $4,000 back on your closing costs — that’s money you can use for moving or furniture!
These programs are designed to make the process more affordable for new buyers. If you’re looking for down payment help, these options can open doors.
How Much Do You Need for a Down Payment?
- Homes under $500,000: 5%
- Between $500,000 and $999,999: 5% on the first $500,000, 10% on the rest
- $1M and above: Minimum 20%
If you’re tight on cash, the Home Buyers’ Plan can bridge the gap.
Pre-Approval: Your First Big Step
A mortgage pre-approval in Ontario helps you understand your budget, locks in a rate, and gives sellers confidence in your offer. It’s your financial passport — don’t skip this step.
Fixed vs. Variable Rate: Which is Better?
This depends on your comfort with risk. In a stable market, a fixed-rate mortgage offers predictable payments — perfect if you value certainty. A variable rate can offer lower costs initially, but might fluctuate.
At Orange Mortgage, we’ll break it down and help you choose the right fit based on your lifestyle and long-term plans.
The Hidden Costs You Should Know
Besides your down payment, be ready for:
- Legal fees
- Appraisals
- Land transfer taxes (partially refundable)
- Home inspections
- CMHC insurance (if putting down less than 20%)
Planning for these ensures you’re not caught off guard come closing day.
How Long Does Buying a Home Take?
From mortgage pre-approval to getting the keys, expect 1 to 3 months. Working with an experienced mortgage agent — like the team at Orange Mortgage — helps you avoid delays and surprises.
Orange Mortgage: Helping First-Time Buyers Succeed
We know buying a home is emotional and often overwhelming. That’s why we walk you through every decision — big and small. From securing the best first home loan Ontario has to offer to managing paperwork and deadlines, we make the journey smooth and stress-free.
Final Thoughts
If 2025 is your year to become a homeowner, there’s no better time to start planning. With market conditions stabilizing and more resources than ever for new buyers, it’s possible to move from renting to owning — without breaking the bank.
Let Orange Mortgage be your first step to homeownership. Your dream home is closer than you think.