The Complete First-Time Buyer Guide for the GTA (2025)

Buying your first home in the GTA is exciting — but it can also feel overwhelming. Between the stress test, land transfer taxes, down payment rules, and a competitive market, there's a lot to understand before you make an offer.

This guide walks you through every step, in plain language.

Step 1: Understand Your Budget

Before you start looking at homes, you need to know what you can actually afford. The stress test requires you to qualify at either 5.25% or your contract rate plus 2% — whichever is higher.

Use our mortgage calculator to get a rough sense of your maximum purchase price based on your income and down payment.

Step 2: Save Your Down Payment

In Canada, the minimum down payment is 5% for homes up to $500,000, and 10% on the portion between $500,000 and $999,999. For homes $1M+, you need 20%.

The First Home Savings Account (FHSA) lets you contribute up to $8,000/year (lifetime $40,000) and deduct it from your taxes — similar to an RRSP but exclusively for a first home purchase.

Step 3: Get Pre-Approved

A pre-approval tells you exactly how much a lender will lend you, locks in a rate for 90–120 days, and shows sellers you're serious. It's free and takes 24–48 hours.

Book a free consultation and I'll walk you through the pre-approval process and shop your application to 50+ lenders to find the best rate.

Step 4: Find a Realtor & Start Shopping

Once you have your pre-approval, you're ready to work with a realtor. I can refer you to trusted GTA realtors who specialize in first-time buyers if you need one.

Step 5: Make an Offer

When you find a home you love, your realtor will help you structure an offer. Make sure it includes a financing condition — this protects you if your mortgage falls through.

Step 6: Close the Deal

Once your offer is accepted, you'll finalize your mortgage, do a home inspection, and work with a real estate lawyer to close. Typical closing costs include land transfer tax, legal fees, and title insurance.

In Ontario, first-time buyers get a provincial land transfer tax rebate of up to $4,000 — and Toronto buyers get an additional municipal rebate of up to $4,475.