First-Time Condo Buyers Guide

In Ontario, the minimum down payment depends on the purchase price. For condos priced up to $500,000, the minimum down payment is 5%. For prices between $500,000 and $999,999, it is 5% on the first $500,000 and 10% on the portion above $500,000. For condos priced at $1,000,000 or higher, a minimum 20% down payment is required by federal Canadian regulations.

The FHSA is a registered savings account that allows eligible Canadian first-time buyers to contribute up to $8,000 per year, up to a lifetime maximum of $40,000. Contributions are tax-deductible (reducing your taxable income like an RRSP), and all capital gains and withdrawals used for a qualifying home purchase are 100% tax-free (like a TFSA). Unused contribution room up to $8,000 can carry forward to the next year.

First-time home buyers in Ontario are eligible for a Provincial Land Transfer Tax rebate of up to $4,000 (which completely covers LTT on homes priced up to $368,000). If you buy a condo within the City of Toronto, you also qualify for a Municipal Land Transfer Tax rebate of up to $4,475. Combined, a first-time buyer in Toronto can receive up to $8,475 in direct tax rebates at closing.

Yes! You can combine withdrawals from both programs. Under the updated 2024 rules, an individual first-time buyer can withdraw up to $60,000 tax-free from their RRSP under the HBP, plus up to $40,000 (plus accumulated growth) tax-free from their FHSA. A buying couple can combine these to access up to $200,000+ in tax-free down payment capital.

A Status Certificate is a comprehensive legal document (typically 100-200 pages) issued by the condo corporation. It details the building's financial health, reserve fund balance, upcoming major repairs, pending lawsuits against the corporation, special assessment history, bylaws, pet rules, and monthly maintenance fee allocations. Your offer should always include a condition allowing your real estate lawyer to review it before firming up the deal.

As a general rule, first-time buyers should budget between 1.5% and 3% of the purchase price for closing costs. Key expenses include legal fees ($1,500–$2,500), title insurance ($300–$500), land transfer taxes (net of rebates), home/condo property insurance ($500–$1,000/yr), and property tax or utility adjustments paid at closing.

No. In Ontario real estate transactions, real estate commissions are paid by the seller out of the sale proceeds. Hiring a licensed buyer's realtor to represent your interests, schedule condo viewings, analyze market comparables, review status certificates, and negotiate your offer is 100% free of charge to you as the buyer.

Condo maintenance fees (or condo fees) cover shared building operations, common area cleaning, building insurance, amenity maintenance (gym, concierge, pool), and mandatory contributions to the building's Reserve Fund. Depending on the building, maintenance fees may also include utilities like heat, air conditioning, water, or high-speed internet. In the GTA, fees average between $0.65 and $0.90 per square foot per month.

The HBTC is a federal non-refundable income tax credit of $10,000 for qualifying first-time home buyers. When claimed on your annual T1 income tax return for the year of purchase, it results in a direct tax refund/reduction of up to $1,500. Spouses or co-buyers can split the claim as long as the total credit does not exceed $10,000.

Resale condos are existing properties where you take ownership on closing (usually 30 to 90 days) and pay a standard 5% to 20% down payment upfront. Pre-construction condos are bought before building completion, requiring a extended deposit structure (e.g. 15%-20% spread over 1 to 2 years) followed by an Interim Occupancy period before final title transfer. Pre-con purchases also involve development charges and HST rebate considerations.