Ontario First-Time Home Buyer Calculator
Calculate your total down payment (FHSA + RRSP HBP), CMHC insurance, land transfer tax rebates, and estimated mortgage payment for your first Ontario home purchase.
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How to use this calculator
- 1
Enter the property price and your available cash savings.
- 2
Input your FHSA balance — this can be withdrawn entirely tax-free for a first home purchase.
- 3
Your RRSP balance eligible under the Home Buyers' Plan is capped at $35,000 per person ($70,000 for a couple).
- 4
If your down payment is under 20% of the purchase price, CMHC mortgage default insurance is mandatory and added to your loan.
- 5
The Ontario first-time buyer LTT rebate of up to $4,000 is automatically applied.
Frequently asked questions
What is the FHSA and how does it work for first-time buyers?
The First Home Savings Account (FHSA) was launched in 2023 and lets first-time buyers contribute up to $8,000 per year ($40,000 lifetime) in a tax-advantaged account. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals to buy a first home are completely tax-free (like a TFSA). This makes the FHSA the most tax-efficient savings vehicle in Canada for first-time buyers. You must open the FHSA before you need to use it — the account must be open for at least one calendar year before making a qualifying withdrawal.
How does the RRSP Home Buyers' Plan work in 2025?
The RRSP Home Buyers' Plan (HBP) allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free to buy or build a qualifying home. Couples can each withdraw up to $35,000 for a combined total of $70,000. The HBP was raised from $25,000 to $35,000 in the 2019 federal budget. You must repay the withdrawn amount back into your RRSP over 15 years starting two years after the withdrawal — if you do not repay in any given year, that year's portion is added to your taxable income. Unlike FHSA withdrawals, HBP withdrawals are not forgiven — repayment is required.
When is CMHC mortgage insurance required in Ontario?
CMHC (Canada Mortgage and Housing Corporation) mortgage default insurance is mandatory for all home purchases in Canada where the down payment is less than 20% of the purchase price. The insurance premium is added to your mortgage balance (not paid upfront): 4% if your down payment is 5–9.99%, 3.1% for 10–14.99%, and 2.8% for 15–19.99%. Properties over $1,500,000 are not eligible for CMHC insurance and therefore require a minimum 20% down payment. CMHC insurance protects the lender, not the buyer — but it enables buyers to purchase with less than 20% down at standard mortgage rates.
What other grants or incentives are available for first-time buyers in Ontario?
Beyond the LTT rebate ($4,000 provincial, $4,475 Toronto municipal), first-time buyers in Ontario may be eligible for: the federal First-Time Home Buyer Incentive (shared equity — note this program closed to new applicants in March 2024); the federal First-Time Home Buyers' Tax Credit ($1,500 federal tax credit); the GST/HST New Housing Rebate if buying a newly built home (rebates up to $6,300 on the 8% provincial HST portion and up to $6,000 on federal GST for qualifying homes); and various municipal affordability programs in cities like Toronto and Ottawa.
Ontario First-Time Home Buyer Calculator 2025 — FHSA, RRSP HBP, CMHC & LTT Rebate
Stacking first-time buyer advantages in Ontario
Ontario first-time buyers have more tools available than ever before to assemble a down payment. The FHSA allows up to $40,000 in lifetime tax-deductible contributions that can be withdrawn entirely tax-free — if you started contributing in 2023, you could have up to $24,000 by 2025 (plus investment growth). Layer this with the RRSP Home Buyers' Plan ($35,000 per person) and personal savings, and a couple can potentially assemble $94,000+ for a down payment from tax-sheltered accounts alone. Add the Ontario first-time buyer LTT rebate of $4,000 (plus up to $4,475 in Toronto) and the federal First-Time Home Buyers' Tax Credit of $1,500, and the savings stack meaningfully. Every dollar saved on down payment reduces your CMHC premium and long-term interest costs.
CMHC insurance — cost vs. benefit for Ontario buyers
Many first-time buyers in Ontario are priced out of the 20% down payment threshold, particularly in Toronto and the GTA where average prices exceed $1,000,000. CMHC mortgage insurance allows buyers to enter the market with as little as 5% down, at the cost of a premium of 2.8–4% added to the mortgage. On a $650,000 home with 5% down ($32,500), the CMHC premium is approximately $24,700 — rolled into the mortgage, this adds roughly $130/month to your payment over 25 years. While this is a real cost, it often compares favourably to years of additional saving while prices potentially continue rising. Note that properties over $1,500,000 do not qualify for CMHC insurance, making a full 20% down payment ($300,000+) mandatory for luxury-tier homes.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →