First-Time Home Buyer Canada:
What You Need to Know
📅 Date: June 18, 2024
Becoming a first-time home buyer in Canada can feel overwhelming — but with the right tools, you can buy smart, stay on budget, and take advantage of government programs designed just for you.
This guide walks you through the key steps, programs, and tips to buy your first home in 2024.
Who Qualifies as a First-Time Buyer?
You’re considered a first-time home buyer in Canada if:
➤ You’ve never owned a home anywhere in the world
➤ OR you haven’t owned a home in the last 4 years
➤ OR you’re recently divorced and buying alone for the first time
Government Incentives to Know
1. First-Time Home Buyer Incentive (FTHBI)
➞ Shared equity program — government contributes 5–10% toward your purchase
➞ You repay it when you sell or after 25 years
➞ Helps reduce your mortgage and monthly payments
2. Home Buyers’ Plan (HBP)
➞ Withdraw up to $60,000 from your RRSP tax-free
➞ Must repay over 15 years
➞ Great way to fund your down payment
3. First Home Savings Account (FHSA)
➞ Contribute up to $8,000/year (lifetime max $40,000)
➞ Tax-deductible like RRSP, but withdrawals are tax-free like TFSA
➞ Best long-term savings tool for buyers
Documents You’ll Need
✔︎ Government ID
✔︎ Proof of income (pay stubs, T4s)
✔︎ Recent bank
✔︎statements
✔︎ Info on debts or loans
✔︎ Employment letter
✔︎ Proof of down payment source
Tip: Get pre-approved early to lock in your rate and understand your budget.
How Much Do You Need to Buy?
| Home Price | Minimum Down Payment Required |
|---|---|
| Up to $500,000 | 5% |
| $500K–$999,999 | 5% of first $500K + 10% of rest |
| $1M+ | 20% (no CMHC insurance allowed) |
✅ You’ll also need 1.5–2.5% extra for closing costs (legal fees, land transfer tax, home inspection, etc.)
Should You Use a Mortgage Broker?
Absolutely. A broker will:
➤ Shop multiple lenders for the best rate
➤ Help you qualify for incentives
➤ Simplify your paperwork and pre-approval
➤ Give you expert guidance from start to close
Final Thoughts
If you’re a first-time home buyer in Canada, 2024 offers real opportunity — if you plan smart. Take advantage of the programs, get pre-approved, and work with a mortgage broker who understands your goals.