Buying your first home in Toronto? It’s exciting — but yeah, it can feel like a lot. With so much happening in the market, it’s important to know your numbers and understand what you’re walking into. After 13 years helping buyers at one of Toronto’s top brokerages, I’ve put together a game plan to help you feel confident, prepared, and ready to make a smart move.

1. Gauge Your Financial Readiness

Check Your Credit Score

A healthy credit score often secures better mortgage rates. Aim for 700+ to access more favorable financing options. According to Equifax Canada, the national average hovers around 660–670.

Toronto’s Current Market Snapshot

The Toronto Regional Real Estate Board (TRREB) reports that average home prices were around $1,080,000 as of January 2025—a 4.2% year-over-year increase. Condos in bustling downtown areas may average $750,000, while detached homes can exceed $1.3 million.

Pro Tip: Keep your monthly housing expenses—mortgage, taxes, utilities—within 30–35% of your gross income for a comfortable budget.

1. Gauge Your Financial Readiness

Check Your Credit Score

A healthy credit score often secures better mortgage rates. Aim for 700+ to access more favourable financing options. According to Equifax Canada, the national average hovers around 690–740.

Toronto’s Current Market Snapshot

The Toronto Regional Real Estate Board (TRREB) reports that average home prices were around $1,080,000 as of January 2025—a 4.2% year-over-year increase. Condos in bustling downtown areas may average $750,000, while detached homes can exceed $1.3 million.

Pro Tip: Keep your monthly housing expenses—mortgage, taxes, utilities—within 30–35% of your gross income for a comfortable budget.

2. Compare Lenders and Secure Pre-Approval

Fixed vs. Variable Rates

• Fixed-Rate Mortgage: Provides stable payments throughout the term. Recent offerings range from 4.00–4.50% for qualified applicants, according to Ratehub.

• Variable-Rate Mortgage: Fluctuates with the Bank of Canada’s policy rate, which is currently 2.75% (Q1 2025).

Shop Around for the Best Rates

Explore major Canadian banks known for their competitive mortgage products. A pre-approval typically locks in a rate for 90–120 days, increasing your credibility during negotiations.

Mortgage Insight: Some reputable lenders like RBC offer a wide array of mortgage solutions tailored to first-time buyers. Choosing a well-known institution can streamline your approval process.

3. Budget for the Down Payment

Down Payment Requirements

• 5% on properties up to $500,000

• 10% on any portion between $500,000 and $999,999

• 20% for properties $1 million+ (to avoid mortgage insurance, per the Government of Canada)

First-Time Buyer Incentives

• Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP for a down payment.

• First-Time Home Buyer Incentive: A shared-equity program that can reduce your monthly mortgage payments.

Market Fact: CMHC data shows that around 42% of first-time buyers in Canada use government programs to offset initial costs.

4. Account for Toronto’s Land Transfer Taxes

Provincial + Municipal LTT

Toronto imposes both an Ontario and a municipal land transfer tax, effectively doubling the bill. For example, a $600,000 purchase could incur around $16,950 in combined LTT, before rebates. Use the Homes of Willowdale Mortgage calculator for estimates.

First-Time Buyer Rebates

Eligible buyers may receive up to $4,475 off the municipal portion and $4,000 off the provincial portion—significantly reducing your closing costs.

Pro Tip: Budget for these taxes early. Buyers in Toronto often face higher closing costs than those in other Ontario cities.

5. Research Neighborhoods and Market Conditions

Location Priorities

Proximity to TTC, GO Transit, and job hubs can boost value and convenience. A Statistics Canada survey reveals that 70% of urban homebuyers rank transit access as a top priority.

Market Updates

Keep an eye on TRREB’s monthly market reports for average days on market and list-to-sale price ratios to understand local momentum.

Local Insight: Toronto’s sub-markets shift quickly, so having up-to-date data helps you strategize your offers.

6. Work with an Experienced, Ethical Realtor

Why Representation Matters

A seasoned agent helps with market analysis, offer strategy, and closing negotiations. A survey by a major Canadian bank found that 87% of buyers relied on their agent to simplify the process.

What to Look For

Find someone who’s known for honesty, local expertise, and solid communication. They’ll protect your interests while guiding you through every step.

Broker Perspective: After over a decade matching buyers to homes, I’ve seen how knowledge and integrity can make or break the buying experience.

7. Strategize Your House Hunt

Clarify Must-Haves

Define your must-haves: bedroom count, parking, amenities, or future LRT access. A 2024 poll on buyer preferences found that 53% of first-time buyers wished they’d focused more on key features early on.

Act Quickly—But Wisely

In hot zones, listings can receive multiple offers in days. Have your finances ready—but don’t overextend. Pre-approvals from established lenders give you an edge.

Pro Tip: Balance urgency with smart decision-making. A well-timed, informed offer beats rushed bidding any day.

8. Prepare for Closing and Beyond

Finalizing Paperwork

Closing costs may include legal fees, title insurance, and appraisals—typically 1.5–4%+ of the purchase price. With double LTT in Toronto, this number climbs higher than in other regions (Toronto & Ontario LTT tools).

Post-Move Budget

Include moving costs, condo fees (if applicable), upgrades, and furnishings. A solid emergency fund—covering 3–6 months of expenses—can keep you protected.

After the Close: Regular maintenance keeps your home’s value intact. Plan seasonal checkups like HVAC servicing to avoid bigger bills later.

Final Thoughts: Your Path to Toronto Homeownership

Toronto’s real estate market moves fast, but with solid preparation—understanding your finances, comparing mortgage products, and partnering with a trusted Realtor—you’ll be in a great position to succeed. With my 13 years of experience helping first-time buyers navigate this city, I’m ready to guide you with honesty, clarity, and confidence.

Thinking about buying your first home? Let’s connect for a no-pressure chat. I’ll answer your questions, walk you through the process, and help you take that first step with confidence.

Call, text, or email me anytime — your journey to homeownership starts here.