First-time homebuyers in Toronto should prepare for costs beyond down payments and mortgages, including Land Transfer Tax (provincial and municipal), legal fees (around $2,000), and closing adjustments for prepaid expenses. Minimum down payments vary by home price, with mortgage insurance required if under 20%. Buyers can access rebates on some taxes. Pre-approval for mortgages is crucial to avoid financing issues. Additional incidentals like moving costs should also be budgeted.