A first-time buyer in Waterloo Region needs a minimum down payment of 5% on the first $500,000 and 10% on the next $500,000 to $1.5 million, plus roughly 1.5% to 4% for closing costs. Ontario refunds up to $4,000 of land transfer tax, and the FHSA and RRSP Home Buyers' Plan can help fund the down payment.
What is the minimum down payment in Ontario?
The federal minimum is 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% on any home over $1.5 million. Under 20% down means mortgage default insurance.
| Purchase price | Minimum down payment |
|---|---|
| $400,000 | $20,000 |
| $500,000 | $25,000 |
| $600,000 | $35,000 |
| $750,000 | $50,000 |
| $900,000 | $65,000 |
What do homes cost in Waterloo Region right now?
In the first quarter of 2026 the median single-detached sale price in Waterloo Region was $783,500, down 5.6% from a year earlier, and the median apartment-style condo was $360,000, down 14.3% (CREA statistics for the Cornerstone Association of REALTORS). Many first-time buyers start with a condo or townhouse and move up later. See the market report for current conditions.
What first-time buyer programs and credits exist?
- Ontario land transfer tax refund: up to $4,000, which covers the full tax on homes up to about $368,000.
- Federal First-Time Home Buyers' Tax Credit: a $1,500 non-refundable credit claimed on your tax return.
- FHSA (First Home Savings Account): contributions up to $8,000 a year and $40,000 lifetime are tax-deductible, and qualifying withdrawals for a first home are tax-free.
- RRSP Home Buyers' Plan: withdraw up to $60,000 from your RRSP for a first home and repay it over 15 years.
- 30-year amortization: since December 15, 2024, first-time buyers can use a 30-year amortization on an insured mortgage, which lowers the monthly payment.
Limits and eligibility change. Confirm current rules with the CRA, your lender or an accountant.
What are the steps to buying your first home?
- Get a mortgage pre-approval so you know your real budget.
- Sign a buyer representation agreement with your REALTOR®. Ontario's rules under TRESA, in force since December 1, 2023, require it before a brokerage provides client-level services.
- Tour homes and compare neighbourhoods. See the neighbourhood guides.
- Make an offer with a deposit (5% is a common benchmark in the region) and conditions such as financing and inspection.
- Complete conditions, then hand the file to your real estate lawyer.
- Close. Typical closings run 30 to 90 days after acceptance.
Related guides
General information, not legal, tax or financial advice. Rates, limits and rules change; confirm with your lawyer, lender or accountant.
First-time home buyer guide for Waterloo Region: frequently asked questions
5% of the first $500,000 and 10% of the portion from $500,000 to $1.5 million. On a $600,000 home that is $35,000.
For the land transfer tax refund, generally someone who has never owned a home anywhere in the world, and whose spouse has not owned a home while married to them. Confirm details with your lawyer.
Yes. The Home Buyers' Plan lets first-time buyers withdraw up to $60,000 from an RRSP and repay it over 15 years.
The First Home Savings Account lets Canadians save up to $8,000 a year, to a $40,000 lifetime limit, with tax-deductible contributions and tax-free qualifying withdrawals for a first home.
Questions about your situation?
Mario gives straight answers on buying, selling and investing across Kitchener, Waterloo and Cambridge.