First Time Buyer's Guide to Markham: FHSA, Down Payment, Closing Costs and Offer Strategy
First Time Buyer's Guide to Markham: FHSA, Down Payment, Closing Costs and Offer Strategy
Buying your first home is exciting, and a little overwhelming. This guide walks you through the money, the paperwork, and the offer, one step at a time.
The Short Answer
First time buyers in Markham can save with a First Home Savings Account, which allows $8,000 a year up to $40,000, and can also use the RRSP Home Buyers' Plan, which allows up to $60,000 per person. The minimum down payment is 5 percent of the first $500,000 and 10 percent of the rest. First time buyers get an Ontario land transfer tax rebate of up to $4,000, and Markham has no municipal land transfer tax. In September 2026, the median Markham condo apartment sold for $535,000 and the median condo townhouse for $735,000.
Neeraj Moolchandani and the Kaizen Real Estate Team help many first time buyers in Markham, and we know how much there is to learn. Our approach is simple: explain everything, answer every question, and never rush you.
Step 1: Save With the Right Accounts
First Home Savings Account (FHSA)
- Contribute 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.
- Unused room can carry forward, but room only starts once you open the account. Open it early, even with a small deposit.
RRSP Home Buyers' Plan
- Withdraw up to $60,000 from your RRSP for a first home.
- You must repay it to your RRSP over time.
- You can use the FHSA and the Home Buyers' Plan together.
A couple who both qualify could use up to $40,000 each from an FHSA and $60,000 each from RRSPs. Confirm the details with your financial advisor and the CRA.
Step 2: Know Your Down Payment
In Canada, the minimum down payment is 5 percent of the first $500,000 and 10 percent of the portion above that, up to $1.5 million. Homes at $1.5 million or more need 20 percent down.
| Purchase Price | Minimum Down Payment | Typical Markham Home Type |
|---|---|---|
| $550,000 | $30,000 | Condo apartment |
| $750,000 | $50,000 | Condo townhouse |
| $925,000 | $67,500 | Freehold townhouse |
Prices chosen near September 2026 TRREB medians for Markham. With less than 20 percent down you pay mortgage insurance, which is added to the mortgage.
First time buyers with an insured mortgage can choose a 30 year amortization, which lowers the monthly payment. Lenders still test you at the higher of 5.25 percent or your contract rate plus 2 percent.
Have questions about your savings or budget? Neeraj is happy to walk you through it. Call or text Neeraj at (647) 370 8885.
Step 3: Budget for Closing Costs
Closing costs are paid in cash on top of your down payment. Plan for:
- Ontario land transfer tax. First time buyers get a rebate of up to $4,000. Markham does not charge a municipal land transfer tax.
- Legal fees and title insurance. Your lawyer handles the closing and registers the home in your name.
- Home inspection. Worth every dollar on a resale home.
- Tax on mortgage insurance. In Ontario, the 8 percent provincial sales tax on the insurance premium is paid in cash at closing.
- Adjustments. Prepaid property tax or condo fees from the seller.
- Moving and setup costs.
Example: a $750,000 condo townhouse
Ontario land transfer tax is $11,475. After the first time buyer rebate of $4,000, you would pay $7,475. Then add your lawyer, title insurance, inspection, and other costs. Ask your lawyer for a full estimate before you make an offer. Figures are illustrative.
Step 4: Buying a New Build?
First time buyers of newly built homes can get a full rebate of the federal GST on homes up to $1 million, with a reduced rebate up to $1.5 million. Ontario has also announced rebates of the provincial portion of the HST on new homes. Rules, dates, and eligibility matter, so confirm the current status with your lawyer before you sign. Learn more about new construction in Markham.
Step 5: Build a Smart Offer
- Get pre approved. It sets your real budget and holds a rate for a period of time.
- Study the sales, not the listings. Recent sold prices tell you what a home is really worth.
- Protect yourself with conditions. In Markham's balanced market, many buyers can include financing and inspection conditions.
- Prepare your deposit. The deposit is usually due within one business day of acceptance. The amount is negotiable.
- Buying a condo? Make the offer conditional on your lawyer reviewing the status certificate.
- Know your walk away number. Decide it before you are in the room, not after.
Want a second set of eyes before your first offer? Call or text Neeraj at (647) 370 8885.
Where First Time Buyers Are Looking
In September 2026, Markham condo apartments had a median price of $535,000 and about 6.4 months of supply, which gives buyers choice and negotiating room. Condo townhouses had a median of $735,000. Many first time buyers look at Downtown Markham condos near Highway 7 transit, and townhouses in Cornell, Greensborough and Box Grove.
Read our Markham condo buyer's guide before you tour your first condo.
First time buyers get education, not pressure. Start with a simple call. Call or text Neeraj at (647) 370 8885.
Related Markham Guides
First Time Buyer Questions, Answered
How much can I put in an FHSA?
You can contribute up to $8,000 a year to a First Home Savings Account, to a lifetime limit of $40,000. Contributions are tax deductible, and qualifying withdrawals for a first home are tax free.
Can I use the FHSA and the Home Buyers' Plan together?
Yes. Eligible first time buyers can use both. The RRSP Home Buyers' Plan allows up to $60,000 per person, which must be repaid over time. FHSA withdrawals for a qualifying home do not need to be repaid.
What is the land transfer tax rebate for first time buyers in Ontario?
Eligible first time buyers get an Ontario land transfer tax rebate of up to $4,000. Markham does not charge a municipal land transfer tax, so there is no second tax to pay.
How much do I need to buy a condo in Markham?
On a $550,000 condo, near the September 2026 Markham median of $535,000, the minimum down payment is $30,000. Plan for land transfer tax, legal fees, and other closing costs on top of that.
Can first time buyers get a 30 year mortgage in Canada?
Yes. First time buyers with an insured mortgage can choose a 30 year amortization on new or resale homes. Lenders still qualify you at the higher of 5.25 percent or your contract rate plus 2 percent.
Your First Home Should Feel Exciting, Not Confusing
Neeraj will explain every step in plain language, so you know exactly what is happening and why.
Call or text (647) 370 8885 · info@kaizenrealestate.ca
Kaizen Real Estate Team, eXp Realty, Brokerage · 9763 Markham Rd, Markham, ON L6E 1A4
Market statistics: TRREB Market Watch, Markham, September 2026. Program details current as of October 2026 and subject to change; confirm with the CRA, your lender, and your lawyer. This article is general information, not legal, tax, mortgage, or financial advice. Market commentary describes current conditions and is not a promise of future prices. Information is believed accurate but should be independently verified. Not intended to solicit properties currently under contract.
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