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First Time Homebuyer Program

The government offers several programs designed to help first time buyers with the purchase of a home. Every first time buyer should take advantage of these programs in order to lighten their load.

Ontario land transfer tax credit. Land transfer tax applies to all transfers of land in Ontario. First time homebuyers are eligible to receive a refund for all or part of that tax as a way to encourage home ownership. How do you qualify?

  • You must be 18 years or older.
  • You or your spouse cannot have previously owned a home anywhere in the world.
  • This refund applies to all homes, whether newly constructed or resale.
  • If you qualify, as of January 1, 2017, you are eligible to receive a maximum amount of $4,000 (based on a home valued at $368,000 or less).
  • Limitations? If your spouse, parent or other co-signee is not a first time homebuyer, you are only able to claim 50% of the maximum allowable refund.

Toronto land transfer tax rebate. First time buyers also qualify for a Municipal Land Transfer Tax Rebate that can be applied to all newly constructed or re-sale home purchases in the City of Toronto. This rebate allows you to claim up to a max of $3,725 (vs. $4,000 for the Province). How do you qualify?

  • You must be 18 years or older.
  • You must occupy the home as your principal residence no later than (9) months after the date of transfer.
  • You or your spouse cannot have previously owned a home anywhere in the world.

Homebuyers plan (HBP) – RRSP’s. The Homebuyers Plan is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plan (RRSP) to buy or build a qualifying home for yourself. How do you qualify?

  • You must be a first time homebuyer.
  • You must have a written agreement to buy or build a qualifying home for yourself.
  • You must intend to occupy the qualified home as your principal residence within (1) year after buying or building it.
  • Unlike other programs, if your spouse has previously owned a home you may still qualify OR if you have not purchased a home in the past 4-year period, you could qualify as a first time homebuyer again.

Energy efficient housing. The Canadian Mortgage and Housing Corporation offers a premium refund of up to 25% to borrowers who either buy, build or renovate for energy efficiency using CMHC-insured financing. Visit the CMHC website to find out if you qualify for a 15% premium refund or 25% premium refund.