Programs and Incentives for First-Time Home Buyers in Ontario

Buying your first home in Ontario? Great news! You have access to a variety of programs and incentives designed to make homeownership more affordable. Here’s a breakdown of the key options available:

1. Home Buyer Plan (HBP)

• What It Is: Withdraw up to $35,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home, with no immediate tax implications.
• Repayment: Repay the withdrawn amount into your RRSP over 15 years, starting two years after withdrawal.
• Eligibility: Must be a first-time buyer and a resident of Canada.

2. Land Transfer Tax Refund for First Time Home Buyer

• What It Is: A refund of up to $4,000 on Ontario’s land transfer tax for first-time buyers.
• Eligibility:
• Must be at least 18 years old.
• Must occupy the home as your principal residence within 9 months of purchase.
• Cannot have owned a home anywhere in the world.
• If you have a spouse, they must not have owned a home during your marriage.

3. Tax-Free First Home Savings Account (FHSA)

• What It Is: Save up to $40,000 tax-free toward your first home, with an annual contribution limit of $8,000.
• Eligibility: Must be a resident of Canada and at least 18 years old.

4. GST/HST New Housing Rebate

• What It Is: Get a rebate on a portion of the GST or HST paid on a new or substantially renovated home.
• Eligibility: Available for owner-built homes or homes purchased from a builder, subject to specific conditions.

5. CMHC Programs

• What They Are: The Canada Mortgage and Housing Corporation (CMHC) offers programs like mortgage loan insurance with a minimum down payment of 5%.
• Eligibility: Requirements vary; consult CMHC for details.

6. First-Time Home Buyer Incentive (FTHBI)

• What It Is: A shared-equity mortgage with the Government of Canada, offering 5% or 10% of the purchase price to reduce your mortgage costs.
• Eligibility:
• Your total annual income must be $120,000 or less.
• Total borrowing is capped at 4x your qualifying income.

Pro Tips for a First-Time Buyer

• Use transition words to guide your home-buying journey: “First, explore your budget.” “Next, review available programs.”
• Break the process into manageable steps—save, apply, purchase!
These programs are here to make your dream of homeownership easier and more affordable. Start exploring today!