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FIRST TIME HOME BUYER GUIDE

MANITOBA

The home buying process can seem overwhelming if you've never been through it before. Hopefully this guide can act as a useful resource and answer some questions you may have. If you want more tailored advice, reach out anytime!

How Much of a Down Payment Do I Need?

A down payment is a sum of money you put towards purchasing the home right off the bat. Not many people are able to afford a house with what’s in their bank accounts, so instead, they save up as much as they can (down payment) and take out a loan (mortgage) for the rest. In general, the higher the down payment, the lower the overall mortgage.


A good rule of thumb is to save up about 20% of the listing price as your down payment. If your amount is less than 20%, you may need to get additional Mortgage Loan Insurance from your broker. For many first time home buyers in Manitoba 20% saving 20% is not a realistic option. Buying a home with 5% for your down payment is very much possible.

If you want a home that's $250k:

You'd need $12,500 for 5%, and $50,000 for 20%

If you want a home that's $350k:

You'd need $17,500 for 5%, and $70,000 for 20%

If you want a home that's $500k:

You'd need $25,000 for 5%, and $100,000 for 20%

Ways to Save

FHSA

First Home Savings Account

A First Home Savings Account (FHSA) is a registered plan in Canada that lets first-time home buyers save up to $40,000 tax-free for a home down payment, with an annual limit of $8,000. It mixes the tax deduction of an RRSP with the tax-free growth and withdrawals of a TFSA.

TFSA

Tax-Free Savings Account

A registered Canadian account where money grows and can be withdrawn completely tax-free. The 2026 annual contribution limit is $7,000, and any Canadian aged 18 or older with a SIN can open one. Contributions are made with after-tax dollars (not tax-deductible), but earnings and withdrawals are tax-free.

RRSP

Tax-Free Savings Account

Drawing out money from your RRSP is an option under the Home Buyers’ Plan (HBP). The catch is that you can only take out a maximum of $60,000, and you will need to repay it over 15 years.

Incentives & Credits

  • Homebuyers in Canada looking to purchase their first home can benefit from the First-Time Home Buyer Incentive. The program provides between 5%-10% of the home’s purchase price for the buyer to put towards a down payment. This reduces the overall cost, meaning a slightly lower mortgage payment right from the beginning.
  • The First Time Home Purchase Program is available for Metis residents of Manitoba. If approved, the program covers the down payment and a portion of the closing costs.
  • The First Time Home Buyers Tax Credit is available for Manitoba residents purchasing their first home and homebuyers with disabilities.

remember to factor in hidden costs

First time home buyers in Manitoba should be aware that there are extra costs to buying a home, which refer to the bits and pieces here and there that all add up. 

Some examples of extra costs:

appliances

Stoves, washers, dryers, etc. don’t always come with the house, or may need to be replaced soon after purchasing.

Closing Costs

Closing Costs include land transfer taxes, utility adjustment costs, property taxes, and legal fees, and can amount to over $5,000.

Insurance

Insurance costs can depend on a number of factors like home age, size, or location.

maintenance

Some problems or wear-and-tear situations may arise shortly after moving in or in the months to follow.

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