First-Time Homebuyer’s Guide to the Greater Toronto and Hamilton Area (GTHA) in 2025
Buying your first home is a major milestone—especially in the dynamic and competitive Greater Toronto and Hamilton Area (GTHA). Whether you’re searching in downtown Toronto, suburban Burlington, or fast-growing Hamilton, this guide will walk you through what to expect and how to prepare for homeownership in 2025.
Why Buy in the GTHA?
The GTHA remains one of Canada’s most desirable regions for homeownership. Here’s why:
Growing Communities
From Mississauga Real Estate to Milton and Hamilton Real Estate to Oshawa, the region is expanding rapidly with new developments, public infrastructure, and schools.
Strong Long-Term Value
Despite short-term market fluctuations, real estate in the GTHA has historically appreciated over time, making it a solid investment.
Steps to Buying Your First Home in the GTHA
1. Assess Your Financial Readiness
Before house hunting, make sure you have:
- A stable income
- A manageable debt-to-income ratio
- Savings for a down payment (minimum 5% for homes under $500,000)
- Budget for closing costs (approx. 1.5%–4% of the purchase price)
2. Get Pre-Approved for a Mortgage
A mortgage pre-approval will:
- Set your budget
- Strengthen your offer in a competitive market
- Help you lock in an interest rate
3. Choose the Right Neighbourhood
Each GTHA community offers something unique:
Toronto:
Urban lifestyle, condos, and access to major employers and amenities.
Hamilton:
Affordable options, historic charm, and growing arts and innovation sectors.
Halton/Peel (e.g., Oakville, Mississauga):
Family-friendly, good schools, and suburban living with proximity to Toronto.
Durham Region (e.g., Ajax, Whitby):
More value for your money with great commuter access to the city.
4. Work with a Local Real Estate Agent
A REALTOR® with GTHA experience will help you:
- Understand local market trends
- Identify hidden gem properties
- Negotiate effectively
First-Time Homebuyer Incentives in Ontario
Take advantage of government programs to ease the financial burden:
First-Time Home Buyer Incentive (FTHBI)
Offers 5% or 10% of the home’s purchase price to put toward a down payment.
Land Transfer Tax Refund
Get up to $4,000 back as a refund on your Ontario land transfer tax.
Home Buyers’ Plan (HBP)
Withdraw up to $35,000 from your RRSP tax-free to buy your first home.
What to Watch for in 2025
Interest Rate Environment
Keep an eye on Bank of Canada rate decisions, as even small changes can impact mortgage affordability.
Inventory Shortages
Some areas in the GTHA continue to face low housing supply, which can lead to bidding wars—so be prepared to act quickly.
Urban vs. Suburban Shift
Post-pandemic preferences have reshaped demand. Some buyers prioritize space and remote-work flexibility over urban convenience.
Final Tips for GTHA First-Time Buyers
- Don’t skip the home inspection – especially for older homes.
- Be flexible with location or type of home if inventory is tight.
- Think long-term – buy where you see potential, not just hype.
The GTHA offers first-time buyers a wealth of opportunities, whether you’re drawn to vibrant city living or peaceful suburban streets. With the right planning, support, and knowledge, your dream of homeownership in one of Canada’s hottest markets can become a reality.
