First-Time Buyer Programs For Markham Condo Purchases

Buying your first condo in Unionville or Markham can feel exciting and a little overwhelming. You want to make a smart move, keep monthly costs in check, and use every program available to stretch your budget. In this guide, you’ll learn how first-time buyer programs work in Ontario, what condo-specific costs to expect, and the steps to take from pre-approval to keys in hand. Let’s dive in.

First-time buyer programs

First Home Savings Account (FHSA)

The FHSA is a registered account that blends RRSP-style tax deductions with TFSA-style tax-free withdrawals when you buy your first home. The lifetime contribution limit is $40,000, and qualifying withdrawals for a first home are tax-free. You must be a Canadian resident and meet first-time buyer rules to open and use an FHSA.

In practice, you need funds in the account before you withdraw them for your purchase. Many first-time buyers pair the FHSA with the RRSP Home Buyers’ Plan to increase their down payment. Build your timeline so contributions and withdrawals line up with your closing date.

RRSP Home Buyers’ Plan (HBP)

The HBP lets you withdraw up to $35,000 from your RRSP to buy or build a qualifying home without immediate tax, as long as you repay the amount over time. You must meet first-time buyer criteria, and RRSP contributions often need to be held for a minimum period before withdrawal.

You can use the HBP together with your FHSA. Your lender and lawyer will coordinate the documents so the funds are available when you need them.

Ontario Land Transfer Tax rebate

Ontario offers a land transfer tax rebate for eligible first-time buyers. The maximum provincial rebate is $4,000. In Markham and across York Region, there is no municipal land transfer tax. The City of Toronto charges its own municipal land transfer tax, but that does not apply in Markham.

Your lawyer typically applies for the provincial rebate at closing if you qualify. Ask early about the documents you will need so there are no surprises on closing day.

Mortgage insurance and down payments

If your down payment is less than 20 percent of the purchase price, your mortgage will typically require default insurance from CMHC or a private insurer. This insurance protects the lender, and you pay the premium. Most buyers add the premium to the mortgage amount rather than paying it in cash at closing.

Premiums are based on your loan-to-value ratio. Higher loan-to-value usually means a higher percentage premium. This raises the effective cost of borrowing, so include it in your affordability planning.

Minimum down payment rules are set federally and depend on purchase price tiers. Many first-time condo buyers in Markham use the minimum required down payment, which is often 5 percent for lower-priced condos. If you are receiving a gifted down payment from family, your lender will likely require a gift letter confirming it is not a loan.

Deposits: resale vs new-build

• Resale condo: You typically submit a deposit with your offer. In Markham, this is often around 5 percent of the purchase price, though it can vary with negotiation. The balance of your down payment and closing costs are due on closing day.
• New-build condo: Deposits are paid in stages to the builder according to a schedule in your purchase agreement. There is often an interim occupancy period before final closing, which changes when some costs are due.

Review the deposit schedule carefully and plan how your FHSA and HBP funds will be accessed. Timing matters more with pre-construction purchases because of staged deposits and interim occupancy.

Condo costs to budget for

Monthly condo fees

Condo fees are part of your monthly carrying costs along with your mortgage and property taxes. Fees vary by building and amenities. Include them in your affordability checks from the start so you are comparing buildings on a true monthly basis.

Status certificate and reserve fund

When you buy a resale condo in Ontario, you should obtain and review the status certificate. It summarizes the condo corporation’s financial and legal health, including current fees, the reserve fund balance, recent budgets, bylaws, and any special assessments or litigation.

A strong reserve fund can reduce the risk of future fee increases or special assessments. Your lawyer and agent will help you review the status certificate and decide if you should proceed, negotiate, or walk away.

Special assessments

A special assessment is an extra contribution owners must pay for major repairs or shortfalls. This can affect affordability, so pay close attention to any recent or proposed assessments in the status certificate.

HST on new condos

New condos purchased from a builder are generally subject to HST. Many builders advertise HST-included pricing or pricing net of rebate for buyers who will occupy the unit as a primary residence. Confirm whether the price already factors in HST and any applicable rebate, and when those rebates are applied.

Interim occupancy

For new-builds, you may take possession before the building is registered. This is called interim occupancy. During this period, you pay occupancy fees that can feel similar to mortgage payments but do not build equity. Final closing occurs when the building is registered and title transfers.

Interim occupancy can delay when you can use FHSA and HBP funds because those withdrawals usually align with final closing. Plan for this gap in your cash flow.

Other closing costs

• Land transfer tax, less any first-time buyer rebate
• Legal fees and disbursements
• Title insurance
• Status certificate and review costs for resale
• Adjustments for prepaid condo fees and utilities
• Home inspection for resale units
• Moving costs and contents insurance

Markham and Unionville context

Unionville and Markham offer a mix of boutique low-rise buildings near historic Main Street and mid to high-rise options in growth corridors. The Highway 7 and Unionville GO areas often feature newer developments that appeal to commuters and transit users.

Proximity to transit can influence pricing and condo fees. As you compare buildings, factor in commute times, local amenities, and planned municipal investments across York Region that may shape future value and livability.

Step-by-step timeline

1. Get pre-approved Start with a mortgage pre-approval. Your lender will review your income, debts, and credit, and confirm the down payment you need. You will need to qualify under the mortgage stress test at a higher rate than your contract rate.

2. Set up FHSA and HBP Open an FHSA and plan contributions, or confirm your eligibility for the HBP and the holding time required for RRSP funds. Make sure your timing aligns with your expected closing date.

3. Shop and offer Tour buildings, review recent sales, and compare condo fees and status certificate risks. When you find the right unit, include conditions for financing and status certificate review. For new-builds, negotiate your deposit schedule and confirm the builder’s approach to HST and interim occupancy.

4. Firm up and fund Once your offer is firm, deliver your deposit. Work with your lender and lawyer to finalize documents, arrange mortgage insurance if needed, and prepare for the Ontario land transfer tax rebate application at closing.

5. Close with confidence On closing day, your lawyer registers the transfer, applies eligible rebates, and finalizes adjustments. Coordinate FHSA and HBP withdrawals so funds arrive on time. For pre-construction, expect interim occupancy before final closing.

6. After closing Begin any required HBP repayments and keep records of FHSA contributions and withdrawals for tax reporting. Update your insurance and set reminders for fee and tax due dates.

Smart ways to combine programs

• Use both FHSA and HBP to increase your down payment. This can reduce your loan-to-value and the mortgage insurance premium you pay.
• Align account timing with your transaction timeline. Ensure contributions are in your FHSA before withdrawal and that RRSP funds meet holding requirements for the HBP.
• Let your lawyer handle the Ontario land transfer tax rebate at closing. Provide documents early so your rebate is applied on time.

Common pitfalls to avoid

• Rushing past the status certificate. Hidden issues like low reserve funds or pending litigation can strain your budget later.
• Misreading HST on new-build pricing. Confirm whether HST and any rebates are already reflected in the price and closing adjustments.
• Underestimating condo fees. Compare total monthly costs, not just the mortgage. Fees vary and can affect affordability.
• Missing timing rules for FHSA and HBP. RRSP withdrawals used under the HBP often require a minimum holding period for contributions, and FHSA funds need to be in the account before you withdraw.

Your local condo partner

Buying your first condo in Unionville or Markham is easier when you have a local team guiding each step. From comparing buildings and fees to structuring your offer and coordinating FHSA, HBP, and your land transfer tax rebate, you deserve clear, caring advice.

If you are ready to explore options, schedule a friendly, no-pressure chat with Walker Parker Real Estate. We know the buildings, the timelines, and the small details that make a big difference.

FAQs

What programs help first-time buyers of Markham condos?

• Key options include the FHSA, the RRSP Home Buyers’ Plan, and the Ontario land transfer tax rebate. You can often use FHSA and HBP together.

How does mortgage insurance affect my condo purchase?

• If your down payment is under 20 percent, you will likely need default insurance. The premium is added to your mortgage and increases your total borrowing cost.

Do I pay a municipal land transfer tax in Markham?

• No. Markham and York Region do not charge a municipal land transfer tax. Only the provincial land transfer tax applies, and a first-time buyer rebate may reduce it.

What is an interim occupancy period for new condos?

• It is the time between moving into a new-build and the final closing when the building is registered. You pay occupancy fees during this period instead of a mortgage.

Why is the status certificate important for resale condos?

• It outlines the condo corporation’s financial and legal health, including fees, reserve fund, and any special assessments or litigation. It helps you avoid costly surprises.

Can I use both FHSA and the RRSP HBP?

• Yes. Many first-time buyers combine both to increase their down payment, but you need to follow the timing and documentation rules for each program.