Buying your first home in Canada in 2026 is more within reach than headlines suggest — if you know the rules. Here is what every first-time buyer needs to know before making an offer.
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 is not available at that threshold.
- $600,000 home: $25,000 + $10,000 = $35,000 minimum
- $1,000,000+ home: $200,000+ minimum (20%)
What Is the FHSA and How Much Can I Put In?
The First Home Savings Account lets you 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 — open yours as early as possible to maximize contribution room.
Can I Also Use My 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. Stack your HBP with FHSA savings for maximum down payment power.
What Closing Costs Should I Budget For?
Budget 1.5%–4% of the purchase price on top of your down payment, advises the Financial Consumer Agency of Canada. Key line items:
- 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
Should I Waive the Home Inspection to Win a Bidding War?
Waiving inspection shifts all risk to you. 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 it, a pre-offer inspection — completed before submitting — is a practical compromise that keeps you protected.
How Do I Compete in a Bidding War Without Overpaying?
Set a firm ceiling before you walk into the showing — not after emotions take over. Escalation clauses can help you compete without blindly overbidding. A strong pre-approval letter and a flexible closing date often matter as much as price.
Ready to Take the First Step?
The Orchestate platform works with first-time buyers from FHSA strategy through closing day. See how it works — reach out for a no-pressure consultation and a clear plan built around your budget.
