Buying your first home is such a big milestone! It's also the moment a lot of people realize the purchase price is only part of the picture.
There's the down payment, closing costs, mortgage insurance and a few other things nobody mentions until you're halfway through the process.
So, how much do you actually need?
To buy a first home in Listowel, you'll need a down payment of at least 5% on the first $500,000 of the price and 10% on the portion above that, plus closing costs like land transfer tax, legal fees and a home inspection. On a $550,000 home, that's a minimum of $30,000 down plus roughly $8,000 or more set aside for closing. First-time buyer programs can bring that number down.
Hey! I’m Rhea Goetz.
I'm a Listowel realtor, and first-time buyers are some of my favourite people to work with (the excitement is contagious!). Below, I'll break down what it really costs to buy your first home in North Perth and the programs that can help.
Psssst... Want all of this in one place? My free Home Buyers Guide walks you through every step, from pre-approval to getting your keys. Grab the First Time Home Buyers Guide →
How much do I need for a down payment in Ontario?
In Canada, the minimum down payment depends on the price of the home:
| 🏷️ Home price | 💰 Minimum down payment | ✏️ Example |
|---|---|---|
| Up to $500,000 | 5% | A $450,000 home needs $22,500 down |
| $500,000 to $1.5 million | 5% of the first $500,000, plus 10% of the rest | A $550,000 home needs $30,000 down ($25,000 + $5,000) |
| $1.5 million & up | 20% | A $1.5 million home needs $300,000 down |
What is mortgage default insurance and will I need it?
If you put down less than 20%, your mortgage needs default insurance (often called CMHC insurance). The premium is a percentage of your mortgage based on how much you put down. With the minimum down payment, it's usually 4% of the mortgage amount.
The premium gets added to your mortgage, so you don't pay it upfront. In Ontario, though, there's 8% sales tax on the premium and that part is due in cash at closing. It's the cost that surprises first-time buyers the most!
Here's how that looks on a $550,000 home with $30,000 down:
Mortgage amount: $520,000
Insurance premium at 4%: $20,800, added to the mortgage
Ontario sales tax on the premium: $1,664, due at closing
Your mortgage broker or lender will confirm your exact premium, so ask them early.
What closing costs should first-time buyers budget for?
Closing costs are everything you pay on top of your down payment to make the purchase official. Many lenders want to see at least 1.5% of the purchase price set aside for them. On a $550,000 home, that's $8,250.
The big ones:
| Closing cost | What it is | Good to know |
|---|---|---|
| 📝 Land transfer tax | A provincial tax on every home purchase in Ontario | On a $550,000 home, it's $7,475 before any first-time buyer refund |
| ⚖️ Legal fees | Your real estate lawyer handles the paperwork, title search & registration | Ask for a quote early |
| 🛡️ Title insurance | Protects you against issues with the property's title | Usually arranged through your lawyer |
| 🔍 Home inspection | A professional look at the home's condition before you commit | I always recommend one, especially for a first home |
| 🧾 Adjustments | Reimbursing the seller for prepaid property taxes or utilities | Covers the days you'll own the home |
| 📦 The fun extras | Moving costs, utility hookups & first-week essentials | Hello, new shower curtain! |
Do first-time buyers pay land transfer tax in Ontario?
First-time buyers can get a refund of up to $4,000 on Ontario's land transfer tax. That covers the full tax on homes up to about $368,000. Above that, you pay the difference.
On a $550,000 home, the land transfer tax is $7,475. With the full $4,000 refund, a first-time buyer pays $3,475. Your lawyer usually claims the refund for you when the purchase is registered.
What first-time buyer programs can help?
Now for the good news! There are several programs designed specifically to help first-time buyers.
| Program | How much | How it helps |
|---|---|---|
| 🏦 First Home Savings Account (FHSA) | Save up to $8,000 a year, to a lifetime limit of $40,000 | Contributions are tax-deductible and qualifying withdrawals for your first home are tax-free (no paying it back!) |
| 📈 RRSP Home Buyers' Plan | Withdraw up to $60,000 from your RRSP | Repay it over 15 years. You can use it alongside your FHSA for the same purchase |
| 📝 Ontario land transfer tax refund | Up to $4,000 | Covers the full tax on homes up to about $368,000 |
| 🧾 Home buyers' amount | A $10,000 tax credit, worth up to $1,500 | Claimed on your tax return the year you buy |
| 📅 30-year amortization | 5 extra years on an insured mortgage | Lowers monthly payments. You'll pay more interest over time and there's a small premium surcharge |
Buying with a partner? You can each open your own FHSA & use your own Home Buyers' Plan room, which can make a big difference.
Buying a brand-new home?
If you're looking at new construction, there may be extra help. Eligible first-time buyers can get a federal rebate of the GST (or the federal part of the HST) on qualifying new homes, and Ontario has offered its own HST relief on new homes as well. These programs have specific rules and timelines, so check with your lawyer and the builder before you sign.
If you're starting to run the numbers and want to talk through what's realistic for you, I'd love to help. Book a quick chat with Rhea →
Good to know: the numbers in this post were pulled in October 2026 and can change. Every situation is different, so check the official sources below for the most up-to-date details and talk to your mortgage broker, lawyer or accountant about what you qualify for.
Your upfront costs at a glance
Here's a rough example for a first-time buyer purchasing a $550,000 resale home in Listowel with the minimum down payment.
Use this as a planning example. Your lender and lawyer will give you your real numbers.
| Cost | Example amount | Notes |
|---|---|---|
| 💰 Down payment | $30,000 | 5% of the first $500,000, 10% of the rest |
| 📝 Land transfer tax | $3,475 | $7,475 minus the $4,000 first-time buyer refund |
| 🛡️ Sales tax on mortgage insurance | $1,664 | 8% of the $20,800 premium |
| ⚖️ Legal fees, title insurance, inspection & adjustments | Varies | Get quotes early |
| ✅ Recommended closing cost cushion | $8,250 | 1.5% of the purchase price |
Want help figuring out your numbers? Send me a message and we’ll figure it out together. Contact Rhea →
What about monthly costs after I move in?
Your mortgage payment is the big one, but it's worth budgeting for the rest too:
Property taxes: paid to the Municipality of North Perth
Home insurance: your lender will want this in place before closing
Utilities: hydro, gas & water
Maintenance: everything from furnace filters to eavestroughs
It's smart to tuck a little away each month for the unexpected. Homes always find a way to need something!
How do I know when I'm ready to make an offer?
The 3 things my first-time buyers worry about most are financing, knowing if a house is the right one and acting quickly enough when it is. Getting pre-approved before you start looking takes care of the first one and helps a lot with the other 2.
I've had first-time buyers go from a baseball game to an offer submitted within an hour (true story!) because the home checked so many of their boxes and they were ready. I've also had clients take their time and look at a lot of homes before the right one came along. Both are completely okay! What matters is knowing your numbers so you can move with confidence when it's time.
This part is so much fun, too. I once had a client bring 4 generations of their family to a home inspection and everyone was just so excited and happy for them. Buying your first home is a big deal and you deserve someone who cares about finding the right one as much as you do.
Frequently asked questions
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On a $550,000 home, plan for at least $30,000 for the down payment plus roughly 1.5% of the price ($8,250) for closing costs. First-time buyer programs like the land transfer tax refund and FHSA can lower what you need out of pocket.
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It depends on the program. For Ontario's land transfer tax refund, you (and your spouse while you've been together) can't have ever owned a home anywhere in the world. For the FHSA and Home Buyers' Plan, the rules generally look at whether you've owned a home you lived in during the past 4 years. Check each program's rules with your lawyer or mortgage broker.
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Yes. You can make a qualifying FHSA withdrawal and a Home Buyers' Plan withdrawal from your RRSP for the same purchase, as long as you meet the conditions for both.
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Yes, I always recommend it! A pre-approval tells you what you can comfortably spend, shows sellers you're serious and means you're ready to act when the right home comes up.
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I recommend one on every purchase. An inspection helps you understand the home's condition, plan for future costs and make your decision with confidence.
Ready to start your home search in Listowel?
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About Rhea
Rhea Goetz is a REALTOR® with Kempston & Werth Realty Ltd. Brokerage, born and raised in Listowel. Since getting her licence in 2020, she has sold over 125 homes and helps buyers and sellers across North Perth, Minto, Howick and the surrounding area.