FIRST TIME HOMEBUYERS

Clear Guidance. Smart Planning. Confident Homeownership.

Buying your first home is exciting — and it can also feel overwhelming. There are a lot of moving parts, unfamiliar terms, and financial decisions that can feel intimidating if you don’t know where to start.

At Mainstream Mortgages, our role is to guide first-time home buyers through the process with clarity, honesty, and a plan that actually fits real life — not just lender formulas.

This page outlines the key programs, preparation steps, and financial considerations every first-time buyer should understand before purchasing a home.

What Is a First-Time Home Buyer?

In Canada, you’re generally considered a first-time home buyer if:
You’ve never owned a home before, or
You haven’t owned a home in the past four years, or
You experienced a breakdown of a marriage or common-law relationship and no longer own a home

Being classified as a first-time buyer can make you eligible for important programs and tax incentives designed to make homeownership more accessible.

Government Programs & Incentives for First-Time Buyers

First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit allows eligible buyers to claim a non-refundable tax credit of up to $1,500 on their income tax return.
This credit is intended to help offset some of the costs associated with buying your first home, such as legal fees, inspections, and land transfer expenses.

First Home Savings Account (FHSA)

The FHSA is one of the most powerful tools available to first-time buyers.

Key features include:
Contribute up to $8,000 per year
Lifetime contribution limit of $40,00
Contributions are tax deductible
Withdrawals for a first home are tax free

The FHSA combines the best features of an RRSP and a TFSA and is an excellent way to build a down payment efficiently.

RRSP Home Buyers’ Plan (HBP)

First-time buyers can withdraw up to $60,000 per person from their RRSP to use toward a home purchase.

Important details:
Withdrawn funds are not taxed at the time of withdrawal
You must repay the amount to your RRSP over time
If repayments aren’t made, the amount becomes taxable income

Used strategically, RRSP withdrawals can significantly strengthen a down payment — but they must be planned carefully.

Preparing Financially to Buy Your First

Home Budgeting: The Foundation of Homeownership

A strong budget isn’t about restriction — it’s about clarity.

Before buying, it’s important to understand:

Your current spending habits
What monthly payment feels comfortable
How property taxes, utilities, insurance, and maintenance fit into your lifestyle
A realistic budget helps ensure your mortgage supports your life — not the other way around.

Credit: What You Should Know

Credit plays a role in determining:
Whether you qualify for a mortgage
Which lenders and rates are available
How much flexibility you have in structuring your mortgage

Your credit doesn’t need to be perfect to buy a home, but understanding your credit early gives you time to improve it if needed.

Down Payment Requirements

In Canada, minimum down payments typically start at:

5% for homes under $500,000
Higher percentages for more expensive properties
Your down payment source matters, too. Lenders will verify where the funds came from and how long they’ve been in your account.

The Importance of a Mortgage Pre-Approval

A true mortgage pre-approval:
Confirms what you can afford based on lender rules
Helps protect you from surprises
Strengthens your offer when you find the right home
Allows you to shop with confidence

Not all pre-approvals are equal — working with a mortgage broker ensures your pre-approval is reliable and fully reviewed.

Common First-Time Buyer Mistakes to Avoid

Some of the most common mistakes we see include:
Buying before understanding the full cost of ownership
Relying solely on online calculators
Not reviewing mortgage options beyond the rate
Making financial changes during the buying process
Waiting too long to speak with a mortgage professional

The right guidance can help you avoid costly missteps and unnecessary stress.

How a Mortgage Broker Helps First-Time Buyers

As mortgage brokers, we work for you, not a single bank.

We help first-time buyers by:
Explaining every step in plain language
Reviewing multiple lenders and programs
Helping structure the right mortgage from the start
Coordinating with realtors, lawyers, and insurers
Providing ongoing support beyond possession day

Our goal is not just to get you approved — it’s to help you succeed as a homeowner.

Final Thoughts

Buying your first home is a major milestone. With the right preparation, programs, and guidance, it can also be a positive and empowering experience.

If you’re thinking about buying your first home — or just want to understand your options — we’re here to help.

💬 We’d Love To Be Your Mortgage Brokers.