First-Time Home Buyer Mortgages
Mortgage help for first time home buyers in Toronto, the GTA and across Ontario. Down payment rules, programs and pre-approval. Karla Badillo, Mortgage Broker, FSRA #12176, Sherwood Mortgage Group.
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Know exactly what you can afford, understand every available program and get pre-approved with confidence before you start shopping
For most people, buying a home is the biggest financial decision they’ll ever make. Having the right mortgage strategy from the beginning can save thousands over the life of your mortgage. Questions about down payments, mortgage approvals, closing costs and first-time home buyer programs can quickly become overwhelming. Karla helps first-time buyers understand exactly what they can afford, which programs they qualify for and what steps to take next.
Whether you’re just starting to save, actively house hunting or already have an accepted offer, you’ll receive clear advice, realistic numbers and access to mortgage solutions from banks, credit unions and alternative lenders.
Buying soon? Lock in your buying power before rates or home prices change
- Licensed Mortgage Broker (FSRA #12176)
- 13+ Years Helping First-Time Buyers
- Access to Banks, Credit Unions & Alternative Lenders
- Free No-Obligation Mortgage Review
- Helped Hundreds of Ontario Families
Karla Badillo serves first time buyers, newcomers and self-employed borrowers throughout Toronto, the GTA and Ontario.
Are You a First Time Home Buyer?
You may qualify for first time buyer programs and pricing if you:
- Have not owned a home you lived in during the current year or the past four calendar years
- Are buying the property as your principal residence
- Are eligible to buy under the lender's residency requirements.
- Are buying with a partner who also has not owned recently
- Are a newcomer who has rented since arriving in Canada
- Owned a home years ago and have been renting since
The four-year rule catches many buyers off guard. Owning a home in 2019 does not automatically disqualify you today, and that one detail can be worth thousands at closing.
Let’s Find Out What You Can Comfortably Afford
Your options should not be limited to the products offered by one branch. Tell Karla what you are trying to buy, and she will review your income, credit, savings and the property type against confirmed lender guidelines. Karla Badillo works with a broad lender network so your file goes to the right desk the first time.
How can Karla help?
- Pre-Approval
- Down Payment Planning
- FHSA & RRSP Guidance
- Self-Employed Mortgages
- Gifted Down Payments
- Bank Declines
A Pre-Approval Is About More Than the Lowest Advertised Rate
Your first mortgage sets your payment, your amortization and your borrowing position for years. That is why Karla looks past the rate on its own. She helps you understand the full picture, including the insurance premium, the closing costs and what the payment feels like once property tax and utilities land on top.
A cheap rate on a mortgage you cannot carry is not a win. The goal is a first home that still works in year three, when the term is not up yet and life has changed. Karla will tell you honestly if the number you are stretching toward is too far, because the wrong first purchase is expensive to undo.
What Is a First Time Home Buyer Mortgage?
The Same Mortgage, With Rules Written in Your Favour
There is no separate first time home buyers loan issued by the government. You apply for the same mortgage everyone else does. What changes is the access: a lower minimum down payment, a longer amortization on insured files, tax credits and rebates that repeat buyers do not get.
Karla Badillo maps those advantages onto your actual file before you make an offer. Some of them show up as cash back weeks after closing, not on closing day, and that timing matters when you are counting every dollar.
The First Time Home Buying Process
The process starts with a pre-approval, which confirms roughly what a lender will lend and holds a rate while you look for a home. From there you make an offer, ideally with a financing condition, then the lender underwrites the deal itself against the property and your documents. A lawyer handles the closing, the land transfer tax and the keys.
Timelines depend on how complete your file is. A buyer with two years of tax returns, a clean bank statement history and a documented down payment moves quickly. A thin file gets questions. Karla tells you which documents to gather before an agent ever books a showing.
Buying With Less Than 20 Percent Down
Putting less than 20 percent down means your mortgage is insured, which is not a punishment. Insured files often price better than uninsured ones, and the insurance is what makes a 5 percent down purchase possible at all. The premium is added to your mortgage balance rather than paid up front.
The catch in Ontario is the provincial sales tax on that premium, which is due in cash at closing and cannot be rolled in. It is a few thousand dollars that surprises buyers who budgeted only for the down payment. Karla builds it into your closing cost estimate from the start.
A Bank’s Decision Is Based on Its Guidelines, Not Your Whole Financial Picture
Being declined by one bank does not mean you cannot buy. A bank works from a rulebook. If your income is new, your credit is thin or your job is commission based, the answer is often no with very little room to move.
Other lenders read the same file differently. One is comfortable with self-employed income. Another looks harder at the property or at how long you have been in the country.
Karla can review your application to help you understand:
- Why the bank may have declined it
- If the file can be strengthened before reapplying
- Whether a co-signer or a larger down payment changes the answer
- What price range is realistic right now
- What steps could improve your position over the next year
Quick note: All mortgages remain subject to lender qualification and approval.
Why Work with Karla
Personal Mortgage Advice. Broader Lending Options. A Clearer Path Forward.
More Than One Lending Option
Karla is not limited to the products offered by one bank. She can explore solutions through banks, credit unions, alternative lenders and private mortgages when a file needs a different route.
Personal, One-to-One Guidance
First time buyers ask a lot of questions, and they should. Karla answers them in plain language, by phone, email or message, without making you feel like you should already know.
Applications Built Around the Complete Picture
A pre-approval is only as good as the file behind it. Karla packages your income, credit and down payment properly so the lender sees the whole story instead of one weak detail.
Clear Explanations Without the Pressure
You will hear what a mortgage costs, what it commits you to and what could go wrong. No pressure to buy sooner or bigger than you should.
Programs for First Time Home Buyers in Ontario Canada
There is no single first time home buyers program that covers everything. There is a stack of federal and provincial measures, and most buyers qualify for several at once without knowing it. Used together, they can be worth tens of thousands of dollars.
People search for a first time home buyers grant expecting a cheque from the government. Canada does not work that way. What exists instead is tax-sheltered savings, tax credits and rebates that either reduce what you pay at closing or come back to you afterward.
First Home Savings Account
The FHSA lets you contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions are tax deductible like an RRSP, and withdrawals for a qualifying first home come out tax free. A couple can hold one each, which doubles the room.
Home Buyers’ Plan
The Home Buyers’ Plan lets you withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) toward a first home, so a couple may access up to $120,000 together. The money is repaid to your RRSP over 15 years. You are borrowing your own RRSP savings, not receiving free money, and lenders will still count the payment picture.
First-Time Home Buyers’ Tax Credit
You claim $10,000 on your tax return for the year you buy, which is worth up to $1,500 back. It arrives at tax time, not on closing day. Small, but it covers a chunk of your legal fees.
Land Transfer Tax Refunds
Ontario refunds first time buyers up to $4,000 of provincial land transfer tax. Buying inside the City of Toronto adds a municipal land transfer tax with its own rebate of up to $4,475, so a Toronto first time buyer may save up to $8,475 combined. Outside Toronto, only the provincial refund applies.
GST and HST Rebate on New Builds
Eligible first time buyers of newly built homes may have the full federal GST rebated on homes valued up to $1 million, worth as much as $50,000, with the benefit phasing out toward $1.5 million. Ontario has moved to rebate its provincial portion on new builds as well. Resale homes do not qualify. Confirm the current rules with your lawyer before you sign a builder agreement.
| Program | What It Does | Roughly Worth |
|---|---|---|
| FHSA | Tax-free savings toward a first home | Up to $40,000 in room per person |
| Home Buyers’ Plan | RRSP withdrawal toward your down payment | Up to $60,000 per person |
| First-Time Home Buyers’ Tax Credit | Tax credit claimed after closing | Up to $1,500 |
| Ontario Land Transfer Tax Refund | Reduces provincial tax at closing | Up to $4,000 |
| Toronto Municipal Rebate | Reduces Toronto tax at closing | Up to $4,475 |
| FTHB GST and HST Rebate | Applies to new builds only | Up to $50,000 |
The shared-equity First-Time Home Buyer Incentive is closed and no longer accepting applications, so ignore any blog still promoting it. There is also no official first time home buyers association that approves mortgages or hands out funding in Canada, whatever the search results suggest.
Wondering which programs you qualify for? Speak with Karla before you start house hunting.
First Time Home Buyer in Ontario Down Payment Rules
The first time home buyer in Ontario down payment minimum is set federally, not provincially, so the same tiers apply in Toronto, Hamilton and Sudbury. Below 20 percent down, the mortgage must be insured, and default insurance is not available at all above $1.5 million.
On a $700,000 purchase that works out to $45,000, being 5 percent of the first $500,000 and 10 percent of the remaining $200,000. Land transfer tax, legal fees and the sales tax on your insurance premium sit on top of that.
| Purchase Price | Minimum Down Payment |
|---|---|
| $500,000 or less | 5 percent of the price |
| $500,001 to $1,499,999 | 5 percent of the first $500,000 plus 10 percent of the rest |
| $1.5 million and above | 20 percent, insurance not available |
First time home buyers’ down payment assistance in Ontario mostly comes from three places: your own FHSA and RRSP savings, a documented gift from an immediate family member, and in some municipalities a small local program. Lenders accept gifted funds, but they want a signed gift letter and the money sitting in your account before closing.
First time buyers also get a longer runway. An insured mortgage is normally capped at 25 years, but first time buyers and new build purchasers may stretch to 30. The payment drops. The total interest rises. Karla will show you both columns before you choose.
Rates for First Time Buyers Are Priced on Risk, Not on Posted Bank Rates
Your rate reflects the risk attached to your file, not a number on a billboard. Insured files often price better than uninsured ones, because the lender carries less exposure. Credit, income stability and property type do the rest.
Every application also has to clear the stress test, which qualifies you at the greater of 5.25 percent or your contract rate plus two percent. That test, not your comfort level, sets your maximum price. It is the single biggest reason a pre-approval comes back lower than buyers expect.
Karla can review what drives your pricing:
- Credit score, credit history and any missed payments
- Income type, whether salaried, hourly, commission or self-employed
- Down payment size and where the funds came from
- Property type, location and marketability
- Your total debt load, including car loans and student debt
- The amortization you choose and any insurance surcharge
Karla does not quote rates on a web page, and neither should anyone else. Bring her your file and she will get you accurate numbers, subject to lender qualification and approval.
Knowing Which Desk to Send Your File To Is Most of the Job
Banks will approve strong first time buyer files, but they are not the only place a mortgage can come from. Below the banks sit credit unions, monoline lenders and alternative lenders, each with a lending box that is not published anywhere. One will take a two year self-employed history. Another wants three.
That matters more for first time buyers than for anyone else, because your file is usually the thinnest it will ever be. No mortgage history. Maybe a short job tenure. Karla has spent years learning which lender says yes to which story, which keeps unnecessary credit inquiries to a minimum.
Karla reaches lenders who do not deal with the public directly. That access does not mean approval for everyone, but it does mean more doors than a single branch can open. One lender’s no is not the final answer.
Buying Within Your Means Is Always the Better Decision
Qualifying for a number and comfortably living on that number are two different things. Lenders measure your gross debt service and total debt service ratios, but they do not know about your daycare bill or the trip you take every year. Karla builds the workable budget with you, not the maximum one.
There is also the question of buying too early. If your credit needs six months of repair, or your down payment is one bonus away from clearing the insurance tier, waiting can be worth more than any rate you would get today. Karla will say so.
- Can you carry the payment if rates are higher at renewal
- Do you have money left after closing, or are you at zero
- Is the down payment documented the way a lender needs
- Does a condo fee change what you can afford
- Would waiting six months put you in a materially better position
Meet Karla Badillo
Mortgage Guidance Built Around Real People and Real Financial Goals
Karla believes a first mortgage should start with a conversation, not a sales pitch. She started her career as a financial advisor, which taught her to plan for clients over both the short and long term. That planning mindset matters most on a first purchase, because the decisions you make now follow you into renewal.
With over 13 years in the mortgage industry, Karla Badillo has worked closely with buyers across Toronto and Ontario to build the right plan for their circumstances. If you are saving, house hunting or already holding an accepted offer, she will provide clear explanations and personal guidance throughout. You will get honest communication, responsive service and a strategy built around your goals.
A Simpler Way to Buy Your First Home
Step 1. Tell Karla What You Want to Buy
Complete the secure application or start with a short conversation about your income, savings and the kind of property you have in mind. Karla listens first, then maps what is realistic.
Step 2. Get Pre-Approved and Hold a Rate
Karla will assess the file, identify suitable lenders and secure a pre-approval with a rate hold. You will know your ceiling, your payment and your closing cash before you view your first home.
Step 3. Make Your Offer With Confidence
Once you find the home, Karla coordinates the application, the documents and the lender requirements. She keeps you informed through approval, legal and closing day.
Mortgage Advice That Puts Clients First
See what homebuyers and homeowners have said about Karla’s communication, guidance and commitment to helping them understand their mortgage options.
Karla is amazing at what she does and is able to provide solutions that fit everyone. Karla is very knowledgeable and helpful when it comes time to secure a good mortgage with a good rate. My husband and I really appreciate everything that Karla has done for us and couldn’t have asked for a better experience. Karla is always available for questions and provides excellent customer service every step of the way. Thank you Karla!
I’m impressed with your level of professionalism and comprehension of your client needs. I have worked with many other brokers and one way or another they always made me feel they were working for their commission and not with their client needs. Thank you very much for your time and the services you provided me and my wife. Will definitely recommend you with my friends and network
As first-time home buyers, we learned the importance of having the best mortgage agent on our side! Karla Badillo found us a great interest rate for our mortgage, better than banks were offering us. Our credit score wasn’t great, but she worked on other possibilities to make our credit improve. During the process, we had endless questions, but she was available via email, phone, or WhatsApp to guide us and answer each one. Thank you, Karla Badillo for all your help and hard work. You made our dream came true!
Karla Does More Than First Mortgages
Helping first time buyers is one part of a full set of financing solutions for Ontario homeowners. Whatever comes next, there is usually more than one way to get there.
Ready to Buy Your First Home?
Every month you spend guessing is a month you could be planning. Whether you are two years from buying or holding an accepted offer right now, the first step is knowing what you qualify for and what the day costs. Karla Badillo will review your situation honestly and tell you if buying makes financial sense yet.
One lender’s no is not the final answer.
Speak directly with Karla Badillo and receive a clear review of your options.
Rates, terms and approvals are subject to lender qualification and may change without notice. Additional lender, legal, appraisal or brokerage fees may apply depending on the mortgage product and application.
FREQUENTLY ASKED QUESTIONS
More general questions are answered on the main FAQ page. The answers below focus on buying your first home.
Who counts as a first time home buyer in Canada?
You count as a first time home buyer if you have not owned a home you lived in during the current year or the previous four calendar years. Your spouse or partner is assessed the same way, so their history can affect your eligibility. Owning a property years ago does not disqualify you forever. Individual programs may apply slightly different tests, so eligibility gets confirmed case by case.
How much do first time home buyers in Ontario Canada need for a down payment?
The minimum is 5 percent of the first $500,000 of the purchase price and 10 percent of any portion above that, up to $1.5 million. Above $1.5 million, you need at least 20 percent, because default insurance is not available. On a $700,000 home that means $45,000. Closing costs are separate and are usually the part buyers underestimate.
Is there a first time home buyers grant in Ontario?
No, Ontario does not offer a general cash grant to first-time home buyers. Instead, buyers may qualify for rebates and tax credits, including up to $4,000 off Ontario land transfer tax, up to $4,475 more inside Toronto, the First-Time Home Buyers’ Tax Credit worth up to $1,500, and, for eligible new homes, the federal First-Time Home Buyers’ GST/HST Rebate. Some municipalities also offer local assistance programs. Karla can help you identify which ones apply to your purchase.
Can I use my RRSP for my down payment?
Yes, the Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP toward a qualifying first home. A couple may access up to $120,000 between them. The funds must generally have been in the RRSP for 90 days, and you repay the amount over 15 years. It works alongside an FHSA rather than instead of it.
Do first time home buyers still pay HST on a new home?
Eligible first time buyers of newly built homes may now have the federal GST rebated in full on homes valued up to $1 million, with the benefit phasing out toward $1.5 million. Ontario has moved to rebate its provincial portion as well. Resale homes are not subject to HST on the purchase price at all. Builder contracts vary, so have your lawyer confirm before you sign.
What credit score do I need to buy my first home?
Most insured lenders look for a score around 680, though approvals happen below that with strong income or a larger down payment. Score is only part of it, since lenders also read your payment history, your balances and how long your credit has been open. A thin file can be as much of an obstacle as a low score. Karla can review your credit and tell you if waiting a few months would materially improve your options.
How long does a mortgage pre-approval last?
Most pre-approvals hold a rate for 90 to 120 days, depending on the lender. If rates fall during that window you generally get the lower rate. If your income, debts or down payment change, the pre-approval has to be reassessed. It is a strong indication of what you can borrow, not a guarantee of final approval.
Does submitting an application guarantee approval?
No. All applications are subject to lender qualification, documentation, property requirements and final approval.