First-Time Homebuyer Guide: Navigating Mortgages in Ontario
First-Time Homebuyer Guide: Navigating Mortgages in Ontario
Buying your first home in Ontario? If your head’s spinning from terms like pre-approval, CMHC insurance, and fixed vs variable rates, you’re not alone.
As someone who’s been in the mortgage trenches for over a decade, helping first-time buyers from Mississauga to Markham, I’ve seen it all — the nervous questions, the excited “We got the keys!” text, and everything in between. So, let’s break this down like we’re having coffee and I’m sliding a napkin across the table to sketch out the game plan.
Step 1: Understand What You Can Afford
Before scrolling through MLS listings, run your numbers.
A general rule? Your monthly mortgage payments should be no more than 32% of your gross income. But that’s not the whole picture. Lenders also consider your Total Debt Service Ratio (TDSR), which includes car loans, student loans, and credit card debt. Aim to keep this under 40%.
Pro tip: Don’t just calculate what the bank approves. Think about what lets you sleep at night.
Step 2: Get Pre-Approved — the Right Way
A pre-approval isn’t just a golden ticket to home shopping; it shows sellers you’re serious. But not all pre-approvals are equal.
At Anton Mortgage, we don’t just plug your numbers into a form. We go deeper — into your employment history, your credit profile, and even future goals. Why? Because we want that pre-approval to stick when you finally put in an offer.
Bonus: A true pre-approval holds your mortgage rate for up to 120 days — even if rates rise.
Step 3: Know Your Mortgage Types
There’s no one-size-fits-all mortgage. Here’s a quick cheat sheet:
| Type | What It Means | Good For |
|---|---|---|
| Fixed-Rate | Rate stays the same | Budget-conscious buyers |
| Variable-Rate | Rate moves with market | Risk-tolerant buyers |
| High-Ratio | Down payment < 20% | First-timers with limited savings |
| Conventional | Down payment ≥ 20% | Avoids CMHC insurance |
Still unsure? That’s where a broker earns their keep — by matching the mortgage to the life you want, not the other way around.
Step 4: Don’t Let the Down Payment Discourage You
In Ontario, the minimum down payment is:
- 5% for homes under $500,000
- 10% for any amount over $500,000 up to $999,999
- 20% for homes $1M+
So, if you're eyeing a $600,000 home, you’ll need $35,000 down.
It sounds daunting, but first-time buyers can tap into:
- RRSP Home Buyers’ Plan (up to $35,000 tax-free)
- First Home Savings Account (FHSA)
- Land Transfer Tax Rebates (up to $4,000 for Ontario, and up to $4,475 for Toronto)
Step 5: Choose a Mortgage Broker Who’s in Your Corner
Here’s the truth most banks won’t tell you: they only offer their own products.
We work with over 60 lenders — from major banks to niche credit unions. That means better rates, flexible terms, and solutions even if you’re self-employed or have credit challenges.
And we don’t stop at 5 p.m. or take weekends off. Because buying your first home doesn’t happen on a schedule — and neither should your support team.
Final Thoughts
Buying your first home in Ontario can feel like learning a new language — fast.
But here’s what I tell every first-time buyer I meet: You don’t have to figure this out alone.
Let’s have that conversation. No pressure, no jargon. Just real advice that moves you closer to homeownership — and maybe, just maybe, unlocks the door to your new front porch.
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Want to take the first step?
Just send us a message. We’ll be here when you’re ready.