1. Choose a low down payment loan.
There’s no law that says you must put 20% down.
In Canada, the legal minimum is 5% down on the first $500,000 of the purchase price, and 10% on the portion between $500,000 and $1.5 million (this applies to homes you’ll live in yourself, priced up to $1.5 million). Above that, or for a property you won’t live in, you’ll need at least 20% down.
This is attractive for three reasons:
- It’s hard to save for a large down payment
- You could earn more interest on that money than you’re paying in interest on the loan
- It’s nice (and sometimes necessary) to have cash on hand after buying a home.
2. Have someone give you money to pay closing costs.
A relative may be able to give you money to help cover closing costs — this is often called a gifted down payment, and most lenders will want a simple letter confirming the funds don’t need to be repaid. First time homebuyers may be able to take advantage of government incentives to help minimize their closing costs.
3. Look into first-time buyer programs before you shop.
If this is your first home, Ontario offers a land transfer tax rebate worth up to $4,000, and Canada’s Home Buyers’ Plan lets you withdraw up to $60,000 tax-free from your RRSP toward your down payment. There’s also the First Home Savings Account (FHSA), which combines the tax benefits of an RRSP and a TFSA specifically for saving toward your first home. These programs can add up to real savings — ask your mortgage professional or accountant which ones you qualify for.
We also do our best to keep this page current with programs available.
Vendor Take Back (VTB)
Sellers may also wish to offer you a mortgage option. This is where the seller becomes your lender, not the bank. Often, you can receive very favourable terms in these situations.
4. Compare more than one lender’s rate.
Your bank isn’t always the best source for your mortgage rate. A mortgage broker can shop your application across multiple lenders at once, often turning up a lower rate or better terms than what you’d get walking into a single bank branch — and in most cases, the lender pays the broker’s fee, not you. It only costs you a bit of extra time upfront, and even a small rate difference can save you thousands over your mortgage term.
5. Remember, the homes that you are looking at don’t belong to your agent.
You must be straightforward about your likes and dislikes in order for the agent to do the best job for you.
Your agent should show you everything available that meets your requirements.
Tip: Review the Multiple Listing printout with your agent to make sure that you are getting a COMPLETE list.
Don’t make a decision on a house until you feel that you’ve seen enough to pick the best one.
6. Shop around for your home insurance.
A little shopping might be able to save you money.
7. You can make your mortgage tax deductible in Canada.
See an accountant or financial planner for more information. This generally only applies to money borrowed for investment purposes — sometimes called the “Smith Manoeuvre” — not to the mortgage on the home you actually live in, so it’s not automatic.
Summary: 7 Money-Saving Secrets
- ✅ Low Down Payment: Keep cash on hand.
- ✅ Gifts: A relative’s gift can help with closing costs.
- ✅ First-Time Perks: Land transfer rebates, the RRSP Home Buyers’ Plan, FHSA, and VTB deals can all help.
- ✅ Shop Your Rate: A mortgage broker can compare lenders for you at no extra cost.
- ✅ Be Honest: Don’t settle just to please the agent.
- ✅ Shop Around: Compare insurance rates.
- ✅ Tax Deductions: Ask a pro about Canadian tax laws.
Using just a few of these secrets can save you thousands of dollars upfront and over the life of your mortgage.
Want early access to serious buyers?
If you’re going to be moving in the next six months, what you might not realize is that there are a significant number of buyers searching for homes like yours.
In fact, for every buyer actively viewing homes right now, there are 5-10 more about to begin their search, or eagerly waiting for the perfect property to come up.
If you’re interested in getting a head start on finding a buyer for your home, leave us some details below… We’ll see if we can find a match!
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Before you put your house on the market, you need to find out how much it’s worth in today’s market, so you can make your plans based on the most current information available.
We can prepare a detailed Pin-Point Price Analysis for you that shows the most current market activity in your area for homes like yours, and we can recommend an optimal marketing price range that will give you the best odds of selling quickly – and for top dollar!
