Are you buying your first home in Windsor, Tecumseh, LaSalle, Leamington or the Essex County area? Team Zanet can help. Rob Zanet, Sandra Zanet and Gina Smith have guided first-time buyers for more than 20 years, and they do not expect you to arrive knowing how it works. Below is a plain-language guide to the Ontario rebates, the savings programs and the mortgage process — part of our full range of mortgage services in Windsor-Essex.
Top 3 Reasons First-Time Buyers Work With a Broker
Better Pricing Than One Bank Will Show You
Lenders compete for broker business, and that competition tends to work in your favour. We cannot promise a particular rate — pricing depends on the lender, the market and your qualifying details — but we can make sure you see more than one offer. Compare current mortgage rates in Windsor and Essex County with us.
Access to Many Lenders, Not One Decision
Walk into your bank and you get one set of products and one answer. We shop your file to many lenders, which matters most when your file is new: one lender saying no is not the market saying no. Structure matters too — a fixed rate mortgage holds your payment steady, a variable rate mortgage offers flexibility.
Expert Guidance Through an Unfamiliar Process
A first purchase comes with all the strange words: pre-approval, conditions, firm commitment, adjustments, closing costs. We translate, tell you what happens next, and flag what trips up first-time buyers before it becomes a problem. Test some numbers in our mortgage payment calculator, then bring us your questions.
Ontario Programs and Rebates for First-Time Home Buyers
Several programs exist specifically to help first-time buyers, and most are underused because people do not know about them. Here is how each one works in general terms. One caution: the maximums, thresholds and eligibility rules are set by government and they change. Confirm the current-year figures with the Ontario Ministry of Finance, the Canada Revenue Agency or a qualified tax or legal professional.
The Ontario Land Transfer Tax Refund for First-Time Buyers
Buy a home in Ontario and you pay provincial land transfer tax on closing, based on the purchase price in brackets. Eligible first-time buyers can claim a refund of some or all of that tax, up to a maximum set by the province. Eligibility turns on never having owned a home before, and on your spouse’s history as well. Your lawyer normally claims the refund at registration, so the money never leaves your pocket; if that is missed, a limited window remains to apply directly to the province.
Eligibility
Do you qualify for the Ontario first-time buyer land transfer tax refund?
Five questions, about thirty seconds. Nothing is sent anywhere — the answers stay in your browser.
The short version: the refund turns on four things — that you have never owned a home anywhere, that your spouse has not owned one while you were spouses, that you are a Canadian citizen or permanent resident of legal age, and that you will live in the home yourself. Your lawyer claims it at closing. Eligibility rules and the maximum refund are set by the province and can change; confirm current details with your lawyer or the Ontario Ministry of Finance.
The Toronto Municipal Rebate — and Why Windsor-Essex Buyers Come Out Ahead
Buyers in the City of Toronto pay a second, municipal land transfer tax on top of the provincial one, with its own separate first-time buyer rebate. The good news for you: there is no municipal land transfer tax in Windsor, Tecumseh, LaSalle, Lakeshore, Amherstburg, Leamington or anywhere in Essex County. You pay one land transfer tax, not two — a genuine local advantage. Weighing neighbourhoods? See our Windsor, LaSalle and Tecumseh mortgage page.
Local advantage
One land transfer tax, not two
Every buyer in Ontario pays provincial land transfer tax on closing. Buyers inside the City of Toronto pay a second, municipal one on top of it.
One tax
land transfer tax
Two taxes
land transfer tax
land transfer tax
Windsor, Tecumseh, LaSalle, Lakeshore, Amherstburg, Leamington — all of Essex County
Provincial tax only.
City of Toronto
Provincial tax plus the city’s own.
Toronto is the only municipality in Ontario with a land transfer tax of its own. It has had one since 2008, under powers the province granted the city.
The municipal tax broadly mirrors the provincial one at ordinary home prices, which is why Toronto buyers describe it as paying twice.
There is a first-time buyer rebate against each tax. Toronto buyers can claim both. You claim the provincial one.
Neither tax can be added to your mortgage. It is cash you bring to closing — so one tax instead of two is real money in your pocket.
How to read this: the bars show the structure of the tax, not an amount. Both taxes are calculated in brackets on the purchase price, so the actual figures depend on what you pay for the home. Rates and rebate maximums are set by the province and the city and can change — your lawyer calculates the exact tax owing on closing.
The First Home Savings Account (FHSA)
The FHSA is a registered account built for one job: saving a down payment for a first home. Contributions are generally tax-deductible, the way an RRSP contribution is, and qualifying withdrawals to buy a first home come out tax-free, the way a TFSA withdrawal does. Annual and lifetime contribution limits are set federally, unused room can carry forward within limits, and the account has a maximum lifespan before the funds must be used or transferred.
The Home Buyers’ Plan (RRSP Withdrawal)
If you already hold an RRSP, the Home Buyers’ Plan lets an eligible first-time buyer withdraw from it, without immediate tax, to buy or build a qualifying home. A federal maximum applies per person, and two qualifying buyers can generally each withdraw. What people forget is that this is a loan from yourself: you repay it into your RRSP over a set number of years after a grace period, and a missed annual repayment is added to your taxable income.
Down Payment and What You Actually Need
The down payment is rarely the only thing you need ready. Lenders look at the whole picture: where the money came from, whether your income is provable, and how you handle credit. Use our mortgage calculator to test amounts against a realistic monthly payment.
- Your down payment and its source. Savings, an FHSA, a Home Buyers’ Plan withdrawal, the sale of an asset or a gift from immediate family are all commonly accepted. Lenders ask for statements confirming the funds and their source, so keep a tidy paper trail.
- Mortgage default insurance, and when it applies. If your down payment falls below the threshold for conventional financing, your mortgage must be insured, usually through CMHC. The premium reflects your loan size against the home’s value and is normally added to the mortgage.
- Closing costs beyond the down payment. Legal fees, title insurance, land transfer tax, a home inspection, an appraisal if required, and adjustments for prepaid taxes or utilities all come due near closing. Lenders want to see funds available for these too.
- Proof of income. Salaried employees are typically asked for a recent pay stub and an employment letter. Commission, bonus, overtime or part-time income usually needs a longer history. Self-employed buyers document things differently — see our self-employed mortgage options.
- Credit history. Lenders want to see that you pay on time and are not carrying more debt than your income comfortably supports. You do not need perfect credit, but you do need to know where you stand — better now than after you have made an offer.
Cash on closing day
The down payment is not the only cash you need
Two separate piles of money come due, and the second one surprises most first-time buyers. Neither can be added to your mortgage.
Lenders care where it came from as much as how much it is. Keep a tidy paper trail.
- Savings you have accumulated
- An FHSA withdrawal
- A Home Buyers’ Plan withdrawal from your RRSP
- The sale of an asset
- A gift from immediate familylenders usually want this confirmed in writing
All due at or near closing, usually by certified cheque. Your lawyer sends a statement of adjustments listing the total.
- Legal fees
- Title insurance
- Land transfer taxless your first-time buyer refund, where you qualify
- A home inspection
- An appraisal, if the lender requires one
- Adjustments for prepaid property taxes or utilities
Two more things a lender checks, which cost you nothing but can stop a deal
Provable income. Salaried buyers are typically asked for a recent pay stub and an employment letter. Commission, bonus, overtime or part-time income usually needs a longer history. Self-employed buyers document it differently.
Credit history. Lenders want to see that you pay on time and are not carrying more debt than your income comfortably supports. You do not need perfect credit — you do need to know where you stand, and better now than after you have made an offer.
Worth knowing: if your down payment falls below the threshold for conventional financing, your mortgage must be insured, and that premium is normally added to the mortgage rather than paid in cash. Minimum down payments and insurance thresholds are set federally and change — send us your numbers and we will tell you what applies to your purchase.
The Mortgage Process, Step by Step
01. Get Pre-Approved Before You Shop
We review your income, down payment, credit and debts, then tell you the price range a lender is likely to support. A pre-approval is not a guarantee of final approval, which comes once a real property is involved, but it tells you where you stand and usually holds a rate while you look.
02. House Hunt With a Budget You Trust
Now the fun part, with guardrails. Knowing your ceiling stops you falling for a home you cannot finance, and it makes your offer credible to sellers. Run scenarios through the mortgage calculator: a slightly smaller mortgage you barely notice usually beats stretching to your maximum.
03. The Offer and the Firm Mortgage Approval
An accepted offer normally includes a financing condition. In that window we submit the full file with the property details, the lender underwrites it, an appraisal may be ordered and remaining documents get supplied. A firm commitment from the lender satisfies the condition, and the deal is firm.
04. Your Lawyer, Closing Costs and the Rebate Claim
Your lawyer handles title, registers the mortgage, calculates land transfer tax and claims your Ontario first-time buyer refund at registration where you qualify. Tell your lawyer in writing that you are a first-time buyer. You will also get a statement of adjustments listing the funds to bring, usually by certified cheque.
05. Keys, and Your First Payment
On closing day the funds move, the transfer registers and the keys are yours. Your first payment lands on the schedule you chose. Keep our number: as your term nears its end we will help you plan the mortgage renewal rather than signing whatever arrives in the mail.
Why First-Time Buyers Choose Team Zanet
More Than 20 Years, and Three Brokers on Your File
Rob Zanet, Sandra Zanet and Gina Smith work as one team, so your file is never parked on one desk while someone is away. In more than 20 years we have seen most of what a first purchase can throw at you. Learn more about the Team Zanet mortgage brokers.
Lender Access Through Indi Mortgage
We operate under Indi Mortgage, FSRA licence 12403, which gives us a broad lineup of lenders — banks, credit unions, monoline lenders and, where a situation calls for it, options such as a second mortgage or private mortgage lenders.
We Live and Work Here
Financing a century home in Walkerville is not the same as new construction in LaSalle, a rural property outside Harrow or a condo in Tecumseh, and we do all of it weekly. See the communities we serve across Windsor-Essex, including Lakeshore and Belle River and Amherstburg, Harrow and Colchester.
First-Time Home Buyer Questions We Hear Most
Who counts as a first-time home buyer in Ontario?
It depends which program you are asking about. For the Ontario land transfer tax refund you generally must be of legal age and never have owned a home anywhere in the world, and your spouse must not have owned one while you were spouses. Federal programs such as the FHSA and the Home Buyers’ Plan use the CRA definition, which can let you qualify again after years of not owning.
How do I claim the Ontario land transfer tax rebate?
In almost every case your lawyer claims it electronically when the transfer registers on closing, so the refund is applied against the tax owing and you simply pay less. Tell your lawyer early and in writing that you are a first-time buyer, and be ready to sign a declaration. If the claim is missed, a limited period remains to apply directly to the Ontario Ministry of Finance.
What is an FHSA, and should I use one?
A First Home Savings Account is a registered account for saving a down payment. Contributions are generally tax-deductible and qualifying withdrawals to buy a first home come out tax-free, which is a rare combination. Whether it suits you depends on your income, your existing RRSP or TFSA savings and your timeline — a question for a tax professional, not one we can answer for you. We will factor it into your mortgage planning.
How much down payment do I need?
Canada sets minimum down payments as a percentage of the purchase price, with a higher minimum on the portion above a certain level, plus a price ceiling above which insured financing is unavailable. Below the conventional threshold, mortgage default insurance is required and the premium is normally added to your mortgage. The honest answer is that it moves with the price of the home, so send us your numbers.
How long does pre-approval take, and how long is it good for?
Once we have your documents, a pre-approval is often turned around in a day or two, sometimes the same day. It typically holds a rate for a set number of days, commonly a few months, depending on the lender. If it expires while you are still looking, we refresh it. Remember that it rests on the information supplied at the time: a change in income, debts or credit can change the outcome.
Does using a mortgage broker cost me anything?
On a typical residential purchase with a standard lender, the lender pays the broker, so there is no fee to you for our advice, our applications or our time. Some situations, such as certain alternative or private lending arrangements, do involve fees. In those cases the fees are disclosed to you in writing before you agree to anything, as FSRA rules require.
Let’s Get Your First Mortgage Started
Buying your first home is a big step, and you do not have to work it out alone. Whether you are ready to make an offer or only want to know what you could afford, the conversation costs you nothing. Rob, Sandra and Gina help first-time buyers throughout Windsor, Tecumseh, LaSalle, Leamington, Amherstburg, Harrow, Colchester, Lakeshore, Belle River and Essex County.
