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The cash a first-time buyer actually needs.

The down payment is the number everyone plans for. Land transfer tax, legal fees, title insurance, the provincial tax on your mortgage insurance and the adjustments on closing are the ones that arrive later — in cash, on a fixed date, and not financeable. Here is the whole requirement, split by when each piece is due.

The purchase

Purchase price $ Down payment % Where are you buying? Interest rate % Amortization A 30-year amortization with less than 20% down is available to first-time buyers and to buyers of new construction. It lowers the payment and adds a 0.20% premium surcharge.

What you have saved

Cash available today $ Everything you could put toward this purchase — savings, FHSA, RRSP under the Home Buyers’ Plan, and any gift.

Buying a new build?

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The order it happens in

Five stages, and what
each one costs.

Nothing here is a surprise if you know it is coming. Almost all of it is a surprise if you do not.

01 —

Pre-approval

Costs nothing. Establishes your real budget, holds a rate for a period, and makes your offer credible. Do this before you look at a single house — not after you find one you love.

02 —

The offer

A deposit, usually within 24 hours of acceptance and by certified cheque or wire. It is part of your down payment, not extra — but it leaves your account weeks before closing, so it has to be liquid.

03 —

Conditions

Inspection and financing, typically five business days. An inspection runs a few hundred dollars and is paid whether or not you proceed. Attend it if you can.

04 —

Closing

The balance of the down payment, land transfer tax, legal fees, title insurance, the provincial tax on your mortgage insurance, and adjustments for prepaid taxes and utilities. All in certified funds, on the day.

05 —

Moving in

Movers, utility connections, locks, immediate repairs and the things you discover in week one. Budget something here rather than nothing — it is never zero.

06 —

Afterwards

Your first-time buyer land transfer tax rebate is usually claimed by your lawyer at registration, so it nets off on closing rather than arriving as a cheque. Confirm that with them in advance.

The FHSA, the Home Buyers’ Plan and the two together

A First Home Savings Account gives you a deduction going in and tax-free growth coming out for a qualifying home. The Home Buyers’ Plan lets you withdraw from an RRSP and repay it over time. You can use both for the same purchase, which is the single most useful thing most first-time buyers do not know. Amounts and rules change — confirm the current limits with your accountant or bank before you count on a figure.

Why 20% down is not automatically the goal

Below 20% your mortgage must be insured, which adds a premium to the loan — but it also opens a lower interest rate than many uninsured products, and it gets you into the market sooner. Above 20% you avoid the premium and its provincial sales tax. Which is better depends on your rate, your timeline and what else you would do with the money. It is worth actually comparing rather than assuming.

The tax on the insurance premium

The premium itself is added to your mortgage. The 8% Ontario provincial sales tax on that premium is not — it is due in cash at closing. On a typical first purchase that is a four-figure amount that appears on the closing statement and nowhere in most online calculators. It is in the figure above.

What a lender will actually approve

You are qualified at the greater of your contract rate plus two percentage points, or 5.25%, and your existing debts count against you. A car loan can move your maximum price by a surprising amount. Run the carrying cost ↗

Estimates for planning only, and not legal, tax or financial advice. Legal fees, title insurance and adjustments vary by transaction. Programme limits and eligibility rules change. Confirm every figure with your lawyer, lender and accountant before you rely on it.

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01 —Monthly carrying costMortgage, tax, condo & POTL fees → 02 —Land transfer taxWith the bracket-by-bracket working → 03 —Pre-construction vs resaleFive scenarios, and the break-even → 04 —HST rebate on a new buildWhat it is worth, and who pays it back → 05 —Pre-construction depositsEvery cheque, on a date → 06 —First-time buyer roadmapThe real cash you need, and when → 07 —Sell first or buy firstA reasoned recommendation → 08 —What’s my home worth?A written opinion from a real agent →