Work backwards. Pick the kind of home you want, find its minimum down payment and closing costs, subtract what you already have, and divide the gap by what you can save each month. That number of months is your buy date. Every lever below makes it shorter.
Here is what I believe: most people might not even realize they could buy their own home. They picture a number like $120,000 and stop there. The real number is usually much smaller, and once you see it, you can plan for it.
Why I would start now, not someday
The headlines make first-time buying sound impossible. From where I sit, it is the opposite. Prices in a lot of markets are well off their highs. Investors who stretched to buy two-unit homes are feeling the squeeze, and some of the homes that work best for house hacking are sitting longer and selling for less than they did a few years ago. Meanwhile, first-time buyers have more tools than ever: the FHSA, a bigger Home Buyers' Plan, and 30-year mortgages.
I won't pretend to know where prices go next month. Nobody does. But I have watched this market come back before, and the people who bought a home they could comfortably carry during the quiet years were glad they did. If you can get in now, with a home where the rent helps pay you back, this is the season I would want to start in.
If I were renting today and wanted to own, here is exactly what I would do.
Step 1: Pick the target home, not the dream home
Your first home is a starting point. In Hamilton, the target I would look at first is a home with two or three units: a duplex, a triplex, or a house with a legal basement unit. You live in one and rent the rest. The rent helps carry the mortgage. On a two-unit home the minimum down payment is the same as a regular house; on three or four units it is at least 10%.
To see what two-unit homes sell for and what each unit rents for across Hamilton, grab our free Hamilton house hack guide. Pick a price you would be happy to start at.
Step 2: Find your real number
The minimum down payment in Canada:
- 5% on a home priced up to $500,000.
- Between $500,000 and $1.5 million, 5% of the first $500,000 plus 10% of the rest.
Then add closing costs. Those are your lawyer, a home inspection, land transfer tax, and moving. First-time buyers in Ontario get up to $4,000 of the land transfer tax back. Ask a lawyer for a quote early so you are not guessing.
Step 3: Do the math once
This is a worked example with round numbers. It is not anyone's real situation or a market price.
Say you are renting and:
- You have $8,000 saved.
- You can put away $700 a month.
- Your target is a two-unit home at $600,000. (On a triplex or fourplex, the minimum is 10%, so plan for a bigger number.)
Your minimum down payment is $25,000 on the first $500,000, plus $10,000 on the last $100,000. That is $35,000. For this example, set aside $10,000 for closing costs. Your target is $45,000.
The gap is $45,000 minus $8,000. That is $37,000. At $700 a month, that takes about 53 months. A bit under four and a half years.
That is your starting date. Now we make it shorter.
Step 4: Pull the levers
| Plan (example only) | Monthly saving | Gap | About how long |
|---|---|---|---|
| Save on your own | $700 | $37,000 | 53 months |
| Save in an FHSA and add the tax refund (assume $2,000 a year, about $167 a month) | $867 | $37,000 | 43 months |
| Same, plus a $10,000 gift from family | $867 | $27,000 | 32 months |
| Buy with a friend who has the same savings and saves the same amount | $1,734 together | $29,000 together | 17 months |
Look at that last line. Nothing about your job changed. You just stopped doing it alone.
Here is what each lever really is.
The FHSA. You can put in $8,000 a year, up to $40,000. It comes off your taxable income, so you often get money back at tax time. When you take it out to buy your first home, it is tax-free. The refund in the table is an example only; yours depends on your income. Open it now, even with $10. Your room only starts once the account is open.
The RRSP Home Buyers' Plan. If you have RRSP savings, you can take out up to $60,000 for your first home and pay it back over 15 years. If your first withdrawal is between now and the end of 2028, payments do not start until the fifth year after. You can use it together with your FHSA.
Family help. A gift from immediate family, with a signed gift letter, is an accepted down payment. If your parents might help, show them your plan first. A plan gets a better answer than a request.
A co-buyer. A sibling or a friend doubles the savings and shares the mortgage. It needs a co-ownership agreement and an exit plan, written before you buy.
A cheaper target. Drop the price and the minimum drops too. At $500,000, the minimum is $25,000, not $35,000.
Step 5: Fix what the lender will look at
Saving is half of it. The other half is getting approved. While you save:
- Pay every bill on time. Your credit score is a big part of the decision.
- Pay down high-interest debt. Car loans and credit cards lower how much mortgage you can carry.
- Don't open new credit without asking. A new loan right before you apply can shrink your approval.
- Keep your pay stubs and tax returns. Lenders want proof of steady income.
On a two-unit home, the rent from the second unit can help too. CMHC allows up to 100% of the gross rent from the second unit of an owner-occupied two-unit home to count toward qualifying. Lenders often count less. A two-bedroom unit in Hamilton rents for about $1,900 a month, so this can matter a lot.
If your down payment is under 20%, first-time buyers can also spread the mortgage over 30 years instead of 25. That lowers the monthly payment.
Step 6: Put dates on it
A plan without dates is a wish. Here is how I would lay it out:
- This week: open an FHSA. Write down your real number from Step 3.
- This month: set up an automatic transfer on payday, even if it is small.
- In 3 months: talk to a mortgage professional. Get a pre-approval or a clear list of what to fix.
- Every 6 months: check your gap, update your buy date, and look at which lever you can add.
- About 6 months before your date: start looking at homes, so you know what your money buys.
Here is the kind of plan I see work. Picture a renter who thinks buying is "someday." We write down three numbers: what they have, what they can save each month, and the down payment on the home they actually want. The first answer is four and a half years. Then the small moves start. The FHSA refund goes straight back in. A family member offers a modest gift once there is a real plan to look at. The target home becomes a house with a basement unit, so the rent helps them qualify. The date comes in by more than a year. Nothing about their life changed. The plan just made the date real.
The point
You don't need to know everything today. You need one number and one date. Once you have those, every choice gets easier, because you can see how close you are.
Start the first-home path here: the First Home Money Map. If the two-unit idea fits you, the Hamilton guide is here: the Hamilton House Hack Starter Kit, and the general starter kit is here: the House Hack Starter Kit.
Before you act on your plan, run your numbers with a mortgage professional and have a real estate lawyer look at anything you sign.
Common questions
How much do I need saved to buy my first home in Ontario?
The minimum down payment is 5% on a home up to $500,000, and 5% of the first $500,000 plus 10% of the rest up to $1.5 million. Add closing costs such as your lawyer, inspection and land transfer tax, less the first-time buyer refund of up to $4,000.
How do I work out when I can buy?
Take your target down payment plus closing costs, subtract what you have now, and divide by what you can save each month. That is roughly how many months until you can buy. Each lever, like an FHSA refund, family help or a co-buyer, shortens it.
Should I open an FHSA even if I can't save much yet?
Yes. Your FHSA room only starts building once the account is open, and up to $8,000 of unused room carries into the next year.
Does rent from a second unit help me buy sooner?
It can. On an owner-occupied two-unit home, CMHC allows up to 100% of the gross rent from the second unit to count toward qualifying. Lenders often count less, so ask yours.