Are there first-time buyer mortgage programs?
Yes — First-time buyer mortgage programs that save you money and speed approval.
Quick answer
Yes. There are multiple first-time home buyer mortgage programs in Canada that reduce down payment, cut costs, and offer flexible financing. These include government incentives, mortgage insurance options, tax rebates and registered savings plans. Use them together and you can buy sooner and smarter.
Why this matters now
If you’re shopping financing & mortgages, you don’t need theory — you need leverage. The right programs lower upfront cash, reduce monthly costs, and protect your credit. As Toronto’s market expert, I’ve helped buyers combine programs to close faster and pay less over time.
Top first-time buyer mortgage programs (what they do)
- First-Time Home Buyer Incentive (federal): Shared-equity program lowers mortgage payments by co-investing up to 10% (new) or 5% (existing) of purchase price. Reduces monthly carrying costs.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP tax-free to use as a down payment (pay back over 15 years).
- CMHC & Insured High-Ratio Mortgages: Need less than 20% down? Mortgage default insurance (CMHC, Genworth) allows high-ratio mortgages with minimum 5% down.
- Provincial/municipal rebates: Ontario’s land transfer tax rebate and local programs cut closing costs for qualifying first-time buyers.
- GST/HST rebates and energy-efficiency grants: Possible savings on new build purchases.
Key mortgage facts first-time buyers must know
- Minimum down payment: 5% for homes ≤ $500,000; 5–10% between $500k–$1M; 20% over $1M.
- Mortgage insurance required if down payment < 20% and adds a premium to your mortgage.
- Mortgage stress test: You must qualify at a higher rate (the Bank of Canada benchmark or your contract rate +2%).
- Pre-approval is critical: locks your purchasing power and speeds offers.
Action plan — 5 steps to use these programs right now
- Check credit score and fix errors. Lenders look at score and debt-to-income ratio.
- Calculate down payment mix: RRSP (HBP) + savings + gift from family. Use HBP only if you can meet repayments.
- Ask about the First-Time Home Buyer Incentive if you want lower monthly payments and can accept a future repayment tied to property value.
- Get a mortgage pre-approval through a broker who compares multiple lenders and mortgage products (insured vs conventional, fixed vs variable).
- Factor in closing costs, land transfer rebates and possible provincial incentives to your budget before bidding.
Final edge
Financing & mortgages are math plus strategy. The programs exist to help you buy sooner — but only if you plan. Work with an expert who knows local rebates and lender nuances to stack programs legally and efficiently.
Want a tailored plan for your down payment, pre-approval and incentive strategy? Contact the local mortgage-savvy realtor who closes deals fast and gets clients the best financing options.
Tony Sousa — Local Realtor and Financing Guide
Email: tony@sousasells.ca | Call/Text: 416-477-2620 | https://www.sousasells.ca
