First-time home buyers
As a first-time home buyer, explore the key steps to buying your first home, from budgeting and mortgage pre-approval to closing the deal. Plus, discover incentives and programs offered by BMO and the government to help make homeownership more affordable.
Explore our latest mortgage offers
From locking in your rate for 130 days‡ to exploring competitive offers, we’ve got options to help you achieve your goals. See what fits your plans.
Learn more
Planning for your first home starts here
Purchasing your first home is a big milestone, and while it’s exciting, it can also feel overwhelming. This guide walks you through the key steps in the home-buying process, from setting your budget to finalizing your mortgage.
Explore your options
Plan your budget and understand your mortgage choices. Start by figuring out how much you can afford using our Mortgage Affordability Calculator. Then, learn the basics of mortgage types (fixed vs. variable rate) to find the right fit for your financial situation.
Tip: Take some time to do your research, learn the terminology and walk through the steps of buying a home. Learn more about applying for a mortgage.
Get pre-qualified
Understanding your budget is the first step toward buying a home. When you choose to get pre-qualified, you’ll gain clarity and confidence when making decisions. Learn more about pre-qualification.
Tip: Getting pre-qualified lets you lock in your rate with our 130-day mortgage rate guarantee‡
Find your dream home
Start your house-hunting journey by exploring neighbourhoods that match your lifestyle and budget. Find the right real-estate agent for you and work closely with them to navigate market trends, find new listings and guide you through the home-buying process.
Tip: Buying a home is a team activity! Reach out to friends, family and mortgage professionals so you can make informed decisions.
Close the deal
Congratulations, you’re a proud new homeowner! You’ve now sealed the deal on your new home by finalizing the purchase agreement, arranging a home inspection and completing all your legal paperwork. To stay on top of your mortgage commitments, you might want to consider paying your mortgage faster or getting mortgage protection insurance.
Tip: Use expert advice to understand the legal and financial steps involved in closing, and stay informed about post-purchase activities like home maintenance and budgeting for future upgrades.
BMO Default Insured Borrowed Down Payment Program
Want to buy a home but don’t have the cash to make a down payment? BMO can help you access the funds you need to save for a down payment.
You may borrow your down payment up to a limit of 9.99% of the purchase price of your home. You may also apply for a loan secured with liquid assets pledged by immediate family members for the purpose of purchasing a home, subject to a maximum down payment of 9.99% of the purchase price of your home.
Government support programs
The Government of Canada also offers specific programs or incentives for first-time home buyers. Some of the available programs are listed below for your knowledge and reference. Please refer to the Government of Canada website for more details.
Home Buyers’ Plan
Borrow up to $60,000 from your RRSP (plus an additional $60,000 from your spouse’s RRSP for a total of $120,000) to buy your first home.
First-Time Home Buyers' Tax Credit
Claim $5,000 non-refundable income tax credit amount for purchasing a qualifying home when you file your taxes.
GST/HST New Housing Rebate
Recover some of the GST or HST you paid to buy, build or renovate your home.
30 Year Amortization
If you’re a first-time home buyer and purchasing a property, you can choose a 30-year amortization which may allow you to lower your payments.
First Home Savings Account
A registered plan that allows first-time home buyers to save for their new home tax-free.
Helpful mortgage calculators
Crunch some numbers to calculate your budget before you start house-hunting.
Calculate how much you’d spend each month to buy a home or renew or refinance your mortgage.
Compare interest rates to understand how they impact your monthly payments over time.
First-time home buyers frequently asked questions
Generally, you're considered a first-time homebuyer in Canada if you haven’t owned a home in the last four calendar years. This applies to programs like the Home Buyers’ Plan and First Home Savings Account.
Eligibility can vary, so it’s best to speak with a financial expert to confirm your situation.
As a first-time homebuyer in Canada, you’ll need a minimum down payment of 5% of the home’s purchase price. However, if you want to avoid paying mortgage default insurance, you’ll need to put down at least 20%. For example, on a $300,000 home, a 20% down payment would be $60,000. If you're unsure how much you’ll need or how to prepare, it’s a good idea to speak with a mortgage advisor who can guide you based on your financial situation.
Yes, with the BMO Default Insured Borrowed Down Payment Program you can borrow your entire down payment subject to a maximum down payment of 9.99% of the purchase price of your home.
If you can’t afford a 20% down payment, you’ll have to get mortgage default insurance to qualify for a mortgage. You can pay the premium up front or add the default insurance premium to the mortgage balance, which may increase your payments and overall interest cost.
Your credit score plays a key role in qualifying you for better mortgage terms and rates that lower your overall payments. It reflects your history of managing debt, and helps lenders gauge the level of risk involved in lending to you. A stronger credit score can lead to more favourable mortgage terms, such as lower interest rates and more flexible repayment options.
Learn more about how to improve your credit score.
A fixed-rate mortgage keeps your interest rate the same throughout the term, offering predictable monthly payments. A variable-rate mortgage (also called variable-rate) can fluctuate with market interest rates, which means your payments may go up or down over time. Fixed rates offer stability, while variable rates may offer savings if rates decrease.
You can learn more from BMO’s guide to fixed vs. variable mortgage rates.
A mortgage pre-qualification can be a great way to start. With BMO, you can get a quick estimate based on your financial information to help you kickstart your home-buying journey, and lock in a 130-day rate guarantee.
If you’re interested in buying a home but you’re not sure where to start, then get pre-qualified! It takes a few minutes to apply for an estimate of what you can afford and get a 130-day rate guarantee. It’s based on a high-level overview of your financial information and a soft credit check. This means that there won’t be any impact to your credit score.
Start by exploring your options, use a mortgage calculator to understand what you can afford and learn about different mortgage types like fixed and variable rates. Next, get pre-approved to know your budget and strengthen your offer when house hunting. Once you find your ideal home, work with a real estate agent to navigate the process. Finally, close the deal and manage your mortgage by staying on top of payments and considering options like mortgage protection insurance.
Helpful resources for your homebuying journey
How to apply for a mortgage
Applying for a mortgage requires some research and preparation. Check out the steps you need to take to apply for a mortgage.
What are down payments?
How much do you actually need for a down payment — and why does it matter? We’ll cover the ins and out of a down payment for a home, including smart savings tips.
What is mortgage amortization?
Mortgage amortization gives you a glimpse into your mortgage payments and the total amount of time to pay off your home.
Get in touch to learn more
Visit us
Book an appointment at your nearest branch to chat about your mortgage options.
Talk to an expert
Schedule a time to talk about your mortgage options.
Call us today
Get expert insight from one of our Home Advisors.
