First Time Home Buyer
in Markham.

Canada offers several programs designed specifically to help first-time buyers get into the market. Claiming all of them can save you tens of thousands of dollars, yet many buyers miss one or more simply because they did not know they existed. CMS ensures every eligible incentive is part of your purchase strategy.

The minimum down payment in Canada follows a tiered structure. For the first $500,000 of the purchase price, you need five percent. For the portion between $500,000 and $1,499,999, you need ten percent. Properties at $1.5 million and above require twenty percent minimum.

Acceptable down payment sources include personal savings, FHSA withdrawals, RRSP withdrawals through the HBP, gifts from immediate family members (with a signed gift letter), and proceeds from the sale of other assets. Lenders will want to see a clear paper trail showing where the funds came from – typically ninety days of bank statements demonstrating the savings accumulation or the incoming gift deposit.

For many first-time Markham buyers, the condo apartment segment at roughly $625,000 offers the most achievable entry point, requiring approximately $37,500 down. A couple who has been maximizing their FHSA contributions for two years and has RRSP savings available through the HBP can often assemble this amount without outside help.

Before you attend a single open house or book a viewing with a real estate agent, get pre-approved. This step is not optional in Markham's competitive environment – it is essential.

A pre-approval tells you exactly how much a lender is willing to lend you, which sets your budget ceiling and prevents the disappointment of pursuing properties beyond your reach. It also locks in an interest rate for ninety to one hundred twenty days, protecting your budget against rate increases during your search. And it provides the pre-approval letter that accompanies your offer, demonstrating to the seller that your financing is credible.

In a market where multiple offers on desirable Markham properties are common, sellers and their agents pay attention to the strength of financing behind each offer. A pre-approved buyer is taken more seriously than one who has not yet started the qualification process. CMS provides free pre-approvals and can typically complete the process within one to two business days.

Affordability is determined by the interaction of your income, your existing debts, the interest rate, and the down payment you can provide. Lenders apply the stress test – qualifying you at the higher of your contract rate plus two percent or the benchmark rate – which ensures you can handle potential rate increases.

As a rough guideline, a household earning $120,000 gross annually with minimal existing debt might qualify for a mortgage around $500,000 to $550,000 under the stress test. Combined with a down payment of $40,000 to $50,000, that puts a $550,000 to $600,000 property within reach – firmly in the condo apartment or lower-end condo townhouse range in Markham.

Dual-income households with combined earnings of $180,000 and moderate debts could qualify for mortgages in the $700,000 to $800,000 range, opening up a wider selection that includes freehold townhouses and even some semi-detached homes in more affordable Markham pockets. CMS runs these calculations precisely during your pre-approval, accounting for your specific income sources, debts, and down payment.

Your down payment is not the only cash you need at closing. First-time Markham buyers should budget for several additional expenses that arise on closing day and shortly after.

Land transfer tax is the largest closing cost. On a $625,000 purchase, the Ontario provincial LTT is approximately $8,475. After applying the first-time buyer rebate of up to $4,000, your net LTT is roughly $4,475 – far more manageable than the combined provincial and municipal tax a buyer inside Toronto would face at the same price.

Legal fees for a residential purchase typically range from $1,500 to $2,500 including disbursements. A home inspection costs approximately $400 to $600. Title insurance, which most lenders require, runs approximately $300 to $500. If you are putting less than twenty percent down, mortgage default insurance (CMHC or equivalent) is added to your mortgage balance – the premium ranges from 2.8% to 4.0% of the mortgage amount depending on your down payment percentage.

CMS provides a detailed closing cost estimate during your pre-approval so there are no financial surprises on the day you receive your keys.

The journey to your first Markham home begins with a single conversation. CMS will assess your current financial position, identify every government program and incentive you are eligible for, calculate your maximum qualification amount under the stress test, and provide a free pre-approval that positions you to compete in the market with confidence.

Whether you are still in the saving phase and want a roadmap to get mortgage-ready, or you are prepared to start touring properties next weekend, CMS has the expertise and patience to guide you at whatever pace is right. Our financial counselling services are available if you want a deeper dive into credit strategy or budget planning, and our pre-approval process is fast, free, and entirely without obligation.

Call 905-455-5005 or fill out the form above to begin. Thousands of first-time buyers have trusted CMS to help them navigate this milestone since 1988, and we look forward to helping you join them as a Markham homeowner.