How Much Money Do You Need to Buy Your First Home?

The biggest first-home myth is that you only need a down payment. In reality, the cash you bring to the table is a stack of separate costs: your down payment, your closing costs, and a sensible buffer for the unexpected. This guide adds up exactly what you need to buy your first home in Ontario, using real numbers so you can set a savings target that won't fall short on closing day.

Key takeaways

• Your upfront cash = down payment + closing costs (roughly 1.5%–4% of price) + a buffer.
• The minimum down payment is 5% up to $500,000, then 10% on the portion above, and 20% at $1.5M+.
• First-time buyers can tap the FHSA ($40,000 lifetime) and the RRSP Home Buyers' Plan ($60,000).
• Closing costs include land transfer tax, legal fees, title insurance, and inspection.
• HOMEH gives eligible buyers the industry's highest Cashback Rebate — real money toward your first home.

The three buckets of cash you need

Plan your savings around three buckets. Skip any one of them and you risk being short on closing day.

• Down payment — the equity you put down, from 5% to 20% depending on price.
• Closing costs — one-time fees of roughly 1.5%–4% of the price, due at closing.
• Buffer — moving, immediate repairs, and a few months of cushion.

For the full picture from offer to keys, start with our first-time home buyer guide for Ontario.

Bucket 1: the down payment

Canada's minimum down payment is tiered. For a home under $500,000 you need 5%. Between $500,000 and $1,499,999 you need 5% on the first $500,000 plus 10% on the portion above. At $1,500,000 or more, the minimum is 20% and the mortgage cannot be insured.

Under 20% down? You'll pay CMHC insurance

With less than 20% down you need mortgage default insurance, which is added to your loan. Learn how the premium is calculated in what is CMHC mortgage insurance, and see the tiers in how much down payment you need in Ontario.

Bucket 2: closing costs

Closing costs are separate from your down payment and paid from your own funds. Budget 1.5% to 4% of the purchase price. Land transfer tax is usually the largest line item — and Toronto buyers pay both a provincial and a municipal version.

Good news for first-timers: you can claim a provincial land transfer tax rebate of up to $4,000 (plus up to $4,475 in Toronto). See the full list in the land transfer tax rebate guide and the complete cost breakdown in closing costs in Ontario explained.

Programs that stretch your savings

First-time buyers have two powerful tax-advantaged tools. The FHSA lets you contribute up to $8,000 per year, $40,000 lifetime, with tax-deductible contributions and tax-free qualifying withdrawals. The RRSP Home Buyers' Plan lets you withdraw up to $60,000 per person ($120,000 per couple) tax-free, repaid over 15 years.

Stack the FHSA and HBP

You can use both programs together — the FHSA and the Home Buyers' Plan are not mutually exclusive — to build your down payment faster. Plan your contributions with the down payment calculator.

How HOMEH lowers the bar

Saving the cash is the hard part — so it helps when money comes back. HOMEH gives eligible buyers the industry's highest Cashback Rebate, which can offset your closing costs or top up your down payment. Estimate yours with the cashback calculator, then confirm your target with the down payment calculator.