First-time home buyer Canada: what to put in the calculator
Last updated:
By Editorial team
A couple buying a $650,000 home in Ontario can stack $70,000 from the RRSP Home Buyers Plan and $60,000 from First Home Savings Accounts to reach 20% down, skipping CMHC insurance entirely. Use only the stepped minimum of $40,000 instead and the same home triggers a $24,400 CMHC premium rolled into the loan. At 5.10% fixed over 25 years, that gap pushes monthly P&I from $3,054 to $3,726, a difference of $672/month. This guide maps which Canadian first-time programs change your calculator inputs and which ones only affect closing-day cash.
The scenario modeled
Both tabs use a $650,000 Ontario purchase, 5.10% fixed rate, 25-year amortization, and a 5-year term. Property taxes, insurance, and land transfer tax are excluded from the payment figures so you can see pure loan math. The 20% path assumes each borrower withdraws $35,000 from an RRSP under the Home Buyers Plan and the couple contributes $60,000 from combined FHSA balances saved before closing.
| How the 20% down payment is sourced (not entered separately in the calculator) | |
|---|---|
| RRSP Home Buyers Plan (borrower 1) | $35,000 |
| RRSP Home Buyers Plan (borrower 2) | $35,000 |
| FHSA withdrawals (combined) | $60,000 |
| Total down payment at closing | $130,000 (20%) |
| Canadian minimum down payment (stepped rule) | |
|---|---|
| Up to $500,000 | 5% of full price |
| $500,001 to $999,999 | 5% on first $500k + 10% on remainder |
| $1,000,000 and above | 20% (insured mortgages not available) |
On this $650,000 price the stepped minimum is $40,000: 5% of $500,000 ($25,000) plus 10% of $150,000 ($15,000). That is what the minimum-down tab uses, not a flat 5% of the full price.
| Input | Stepped minimum down (CMHC) | 20% down (no CMHC) |
|---|---|---|
| Purchase price | $650,000 | $650,000 |
| Down payment | $40,000 (stepped minimum) | $130,000 (20%) |
| Base loan before CMHC | $610,000 | $520,000 |
| CMHC premium | $24,400 (4.00%) | None |
| Total mortgage balance | $634,400 | $520,000 |
| Interest rate | 5.10% fixed | 5.10% fixed |
| Amortization | 25 years | 25 years |
| Term | 5 years | 5 years |
| Province | Ontario | Ontario |
The findings
The minimum-down path finances $114,400 more principal than the 20% path because of the smaller down payment plus the capitalized CMHC premium. Monthly P&I runs $3,726 versus $3,054, a gap of $672/month.
Over the first 5-year term, the insured borrower pays $151,524 in interest compared with $124,200 at 20% down, a difference of $27,324. Across the full 25-year amortization at the same rate, total interest is $483,370 versus $396,205, or $87,165 more on the insured path.
HBP and FHSA do not change how the calculator prices the loan. They change how much cash you can assemble before closing. Once you know your down payment total, enter it as a dollar amount or percentage and let CMHC logic apply automatically when you are under 20%.
| Stepped minimum down (CMHC) | 20% down (no CMHC) | Difference | |
|---|---|---|---|
| Monthly P&I | $3,726 | $3,054 | $672/month more |
| Interest over 5-year term | $151,524 | $124,200 | $27,324 |
| Total interest (25 years) | $483,370 | $396,205 | $87,165 |
| Schedule length | 300 months (25 years) | 300 months (25 years) | Same amortization |
Ontario first-time buyers may also qualify for up to $4,000 in provincial land transfer tax rebate and up to $4,475 in Toronto municipal rebate. Those credits reduce closing-day cash but not the loan balance. See our closing costs guide for how rebates fit beside CMHC and legal fees.
Canadian context
Federal rules cap RRSP withdrawals under the Home Buyers Plan at $35,000 per person for a qualifying first home. That is separate from the First Home Savings Account, which allows $8,000 in annual contributions up to a $40,000 lifetime limit per person. Neither program removes the CMHC premium when your equity at closing stays below 20% on an eligible purchase under $1,000,000.
Source: Canada Revenue Agency, "Home Buyers' Plan (HBP)," accessed June 2026. URL: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan.html
When this applies - and when it doesn't
This guide applies when: You are a Canadian first-time buyer modeling a purchase between $500,000 and $999,999, weighing minimum-down entry against stacking HBP and FHSA withdrawals to reach 20%. You have RRSP room for HBP and have not yet used your FHSA lifetime cap.
It does not apply when: Your purchase price is $1,000,000 or above, where 20% down is mandatory and CMHC insurance is unavailable. British Columbia offers a full land transfer tax exemption on qualifying first homes under a provincial threshold, which changes closing costs but not the mortgage math modeled here. If you are comparing how lenders qualify you at the stress-tested rate rather than your contract rate, use our stress test guide alongside this one.
Remember: HBP withdrawals must be repaid over 15 years. FHSA accounts must be closed by the end of the year you turn 71 or 15 years after opening, whichever comes first. Neither program reduces your monthly P&I in the calculator. They only change how much equity you bring to the table on day one.
Related articles
Frequently asked questions
- How much can I withdraw from my RRSP under the Home Buyers Plan in Canada?
- Each eligible first-time buyer can withdraw up to $35,000 tax-free from an RRSP for a qualifying home purchase. A couple can combine withdrawals for up to $70,000. You must repay the amount over 15 years starting the second year after withdrawal, or the missed amounts are taxed as income.
- What is the First Home Savings Account and how does it affect my down payment?
- The FHSA lets you contribute up to $8,000 per year with a $40,000 lifetime cap per person. Contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free. In the calculator, FHSA cash counts the same as any other down payment dollars once it lands in your account before closing.
- What is the minimum down payment for a first-time buyer in Canada?
- There is no separate legal minimum for first-time buyers. On homes under $500,000 you need 5% of the price. From $500,001 to $999,999 you need 5% on the first $500,000 plus 10% on the remainder. Above $1,000,000 you need 20%, and CMHC insurance is not available at that price.
- Does CMHC insurance apply if I use RRSP or FHSA money for my down payment?
- CMHC looks at your equity at closing, not where the cash came from. If your down payment is below 20% on an eligible purchase under $1,000,000, the premium still applies and is rolled into the mortgage balance. At 20% or more, you avoid the premium regardless of HBP or FHSA use.
- Can first-time buyers get land transfer tax rebates in Ontario?
- Ontario offers a provincial rebate of up to $4,000 on land transfer tax for qualifying first-time buyers. Toronto adds a municipal rebate of up to $4,475 on top. Rebates reduce closing-day cash but do not change the down payment or loan amount you enter in the mortgage calculator.