Buy my first home
Five steps from your first tax-sheltered dollar to the monthly cost of actually owning the place.
Who it is forRenters within five years of buying a first property in Canada.
- 01
Fill the FHSA before anything else
An FHSA dollar is deducted like an RRSP dollar and withdrawn tax-free like a TFSA dollar. Nothing else in the Canadian system does both.
Do thisOpen the account this calendar year even if you fund it with $100 — opening it starts the contribution room clock.
FHSASaving & investing - 02
Put a date on the down payment
Stack the FHSA, a Home Buyers’ Plan withdrawal of up to $60,000, and ordinary savings against the tiered minimum down payment.
Do thisWork out the monthly contribution that lands your target on a specific month, then automate it.
Down payment planHousing - 03
Find out what a lender will actually approve
Your qualifying rate is your contract rate plus two points, or 5.25%, whichever is higher. GDS and TDS do the rest of the work.
Do thisNote the binding ratio. If TDS binds, paying off a car loan raises your price more than saving does.
Home affordabilityHousing - 04
Price the mortgage itself
Canadian fixed mortgages compound semi-annually, and anything under 20% down adds a CMHC premium to the loan.
Do thisCompare 25 and 30 year amortizations on total interest, not just on payment.
Mortgage paymentHousing - 05
Budget for ownership, not for rent
Property tax, insurance, utilities and a maintenance reserve typically add 30% to 40% on top of the mortgage payment.
Do thisRebuild your budget at the new number before you sign anything.
Budget plannerIncome & tax
The two mistakes that cost the most
First, buying at the maximum a lender will approve. Approval is a legal ceiling, not a recommendation — it takes no account of daycare, a second car, or a rate reset in five years.
Second, forgetting closing costs. Land transfer tax alone runs past $16,000 on a $1,000,000 Toronto purchase before legal fees. Budget it as cash on top of the down payment, because it cannot be financed.
Run it on your own numbersHome affordabilityClosing costs are itemised by province in the affordability tool.