Your First Home in Canada
Follow these steps to go from saving to keys in hand
About this roadmap
Updated April 2026Buying a first home in Canada in 2026 means navigating the FHSA, the RRSP Home Buyers' Plan, a 5.25%+ OSFI stress test, CMHC insurance rules, province-specific land-transfer tax, and GDS/TDS qualification ratios - all before you ever see a listing. This 5-step roadmap walks you through each piece in order, with a dedicated calculator at every stage. Follow it front-to-back and you'll know exactly what you can afford and how to get there.
Use the Account Optimizer to figure out the best order: FHSA ($8,000/year, $40,000 lifetime), RRSP Home Buyers' Plan ($60,000 limit), and TFSA. A couple can access up to $200,000 in tax-advantaged funds.
Set a target and track your FHSA + RRSP HBP savings with timeline projections. FHSA withdrawals are tax-free with no repayment; HBP must be repaid over 15 years.
Canada's B-20 stress test qualifies you at contract rate + 2% or 5.25% benchmark (whichever is higher). This reduces purchasing power by ~15-20%.
Calculate your mortgage payment, amortization schedule, and total interest cost. Compare fixed vs variable rates.
Factor in property tax, insurance, maintenance, utilities, and land transfer tax to your monthly budget.
🍁 Key Canadian numbers - 2026
- Minimum down payment (under $500k)
- 5%
- FHSA annual limit
- $8,000
- FHSA lifetime limit
- $40,000
- RRSP Home Buyers' Plan
- $60,000 per person
- Couple combined tax-advantaged
- up to $200,000
- OSFI stress test rate
- contract + 2% or 5.25%
- Max GDS ratio
- 39%
- Max TDS ratio
- 44%
- CMHC premium (5–9.99% down)
- 4.00%
Frequently asked questions
How much do I need saved to buy my first home in Canada?
The minimum down payment is 5% on homes under $500,000, 5% on the first $500,000 + 10% on the portion between $500,000 and $1.5M, and 20% on homes above $1.5M. Plus you'll need 1.5–4% of the purchase price for closing costs (land-transfer tax, legal, title insurance). For a $700,000 home in Ontario that's roughly $45,000 + $18,000 = $63,000 minimum cash.
Can I use both FHSA and RRSP Home Buyers' Plan?
Yes. A single person can contribute up to $40,000 lifetime into a FHSA and withdraw up to $60,000 from an RRSP under the Home Buyers' Plan - totalling $100,000 in tax-advantaged first-home funds. A couple with separate accounts can stack up to $200,000 combined. FHSA withdrawals are never taxed; HBP must be repaid over 15 years.
What's the difference between FHSA and RRSP HBP?
Both give you a tax deduction on the way in. The FHSA is better because the withdrawal is never taxed and no repayment is required. The HBP is essentially a tax-free loan from yourself that must be repaid to your RRSP over 15 years - miss a repayment and that year's portion is added to your taxable income.
How much mortgage can I actually qualify for?
Canadian lenders apply the OSFI stress test - they qualify you at the greater of your contract rate + 2% or the 5.25% benchmark floor - and enforce 39% GDS / 44% TDS ratios. As a rough rule, your maximum qualifying mortgage is 4.0–4.5× your gross annual household income after accounting for other debt. The affordability calculator does the exact math for your situation.