5 Things First-Time Homebuyers Should Know Before the Year Ends

If you’ve been thinking about buying your first home, the last few months of the year might actually be your best window of opportunity. The market tends to shift in your favour, incentives reset in January, and timing your move strategically can save you thousands.

Here are five important things first-time homebuyers in Ontario should know before 2025 comes to a close.

🏦 1. Interest Rates Are Easing—But Timing Still Matters

With the Bank of Canada gradually reducing its key rate, borrowing is becoming more affordable. But even a quarter-point rate difference can change your monthly payment significantly.

Example:

• $700,000 home at 5.5% = ~$4,260/month
  
  
• $700,000 home at 5.25% = ~$4,150/month
  
  

That’s a savings of $1,300+ per year just from a small drop in rates.

✅ Pro tip: Secure a 120-day rate hold through a trusted mortgage broker. It protects you from future hikes while giving you flexibility to shop.

💰 2. You Can Still Leverage 2025 Buyer Incentives

Don’t wait until January—some programs are annual and reset with the calendar year. Contributing before December 31st can increase your buying power.

• FHSA (First Home Savings Account): Contribute up to $8,000 this year for a 2025 tax refund.
  
  
• RRSP Top-Up for HBP: Deposit before year-end to boost next year’s refund and withdrawal room.
  
  
• Energy Rebates: Secure quotes before the year ends for maximum eligibility.
  
  

✅ Pro tip: Stack your FHSA + HBP to access up to $75,000 tax-free toward your first home.

🏠 3. Fewer Buyers = More Negotiating Power

As temperatures drop, so does competition. Fall and winter often see 20–30% fewer active buyers, which can give you leverage.

That means:

• More flexible sellers.
  
  
• Greater chance of conditional offers being accepted.
  
  
• Better odds of securing credits or repairs.
  
  

✅ Pro tip: Look for homes that have been on the market 30+ days—these sellers are often open to negotiating on price or closing costs.

📋 4. Pre-Approval Isn’t Optional

With lender requirements changing, getting pre-approved early is key.
It gives you:

• A clear budget ceiling.
  
  
• Rate protection.
  
  
• Confidence to move fast when the right listing appears.
  
  

✅ Pro tip: Avoid new credit applications (car loans, store cards) before pre-approval—they can lower your score and affect your rate.

🧾 5. Year-End Planning Helps You at Tax Time

Your closing date determines which tax year certain credits apply to.
Closing before December 31st could mean qualifying for:

• Land Transfer Tax Rebates (for first-time buyers).
  
  
• Home Buyers’ Amount Tax Credit ($10,000) on your 2025 tax return.
  
  
• GST/HST New Housing Rebate (if buying new construction).
  
  

✅ Pro tip: Ask your lawyer and accountant to review your timeline to maximize your tax advantages before year-end.

💡 Final Thoughts

Buying your first home isn’t about timing the perfect market—it’s about making the most of the conditions in front of you.

As the year wraps up, it’s a great time to plan strategically, lock in low rates, and position yourself for a confident start to 2026.

At Ana Bastas Realty, we guide first-time buyers through every step—from pre-approval to keys in hand—so your first purchase feels simple, informed, and rewarding.

📞 Call 289.670.5888 or visit www.anabastas.ca to start your journey before the year ends.