A first-time buyer client is more likely to close well when the money conversation happens before the first showing, not after they've fallen for a listing outside their real budget. Here's what to walk them through in that first consultation.
What Is the Minimum Down Payment in Canada in 2026?
The minimum down payment depends on purchase price, per CMHC: 5% on homes up to $500,000, then 10% on the portion between $500,000 and $999,999. Homes at $1M or more require 20% down — mortgage insurance isn't available at that threshold, which is worth flagging clearly for any client shopping near that line.
- $600,000 home: $25,000 + $10,000 = $35,000 minimum
- $1,000,000+ home: $200,000+ minimum (20%)
What Is the FHSA, and How Should You Explain It to a Client?
The First Home Savings Account lets a first-time buyer contribute up to $8,000 per year (lifetime cap: $40,000). Contributions are tax-deductible and qualifying withdrawals are tax-free, according to the Canada Revenue Agency. Unused room carries forward one year — if a client mentions they're a year or more out from buying, this is the single most useful thing you can tell them to open today, since every year they wait costs them contribution room.
Can They Also Use an RRSP Through the Home Buyers' Plan?
Yes. The RRSP Home Buyers' Plan allows each first-time buyer to withdraw up to $60,000 tax-free — $120,000 per couple — with 15 years to repay, per the Government of Canada. Stacking HBP withdrawals with FHSA savings is how a lot of first-time buyers get to a workable down payment faster than they expect — worth walking through together before they assume they can't afford to buy yet.
What Closing Costs Should They Budget For?
Budget 1.5%–4% of the purchase price on top of the down payment, per the Financial Consumer Agency of Canada. The line items to cover in that first conversation:
- Land transfer tax — provincial; Toronto buyers pay a second municipal layer
- Legal fees — typically $1,500–$2,500
- Home inspection — $400–$600
- Title insurance — $150–$400
(See our full closing costs breakdown for Ontario clients for the complete numbers.)
Should a Client Waive the Home Inspection to Win a Bidding War?
Waiving inspection shifts all the risk onto the buyer — make sure a first-time client understands that before they're mid-offer and under pressure. Many Canadian markets have cooled enough in 2026 that inspection conditions are more commonly accepted again, according to CREA. If a seller won't accept an inspection condition, a pre-offer inspection completed before submitting is a practical compromise you can offer as a middle ground.
How Do You Help a Client Compete in a Bidding War Without Overpaying?
Get a firm ceiling from the client before the showing, not after emotions take over mid-negotiation — this is one of the most valuable things you do as their agent. Escalation clauses can help them compete without blindly overbidding. A strong pre-approval letter and a flexible closing date often matter to a seller as much as price, and both are things you can help a first-time buyer put together before they're up against a multiple-offer situation.
A first-time buyer who's had this conversation with you before their first showing closes with fewer surprises — and remembers who walked them through it. Orchestate's CRM lets you save this as a resource and send it to every new first-time buyer client the moment they sign on, so this becomes part of your onboarding instead of a conversation you have to remember to start from scratch each time.
