First Time Home Buyer Benefits in Ontario

1. Ontario Land Transfer Tax Rebate

When you buy a home in Ontario, one of your closing costs is the land transfer tax (LTT) — a tax paid when the property title is registered.

If you’re a first-time home buyer, you qualify for an Ontario Land Transfer Tax Rebate of up to $4,000.

That means:

• If your purchase price is $368,000 or less, you’ll pay no land transfer tax at all.
• If your home costs more than $368,000, you’ll receive the $4,000 discount from the total amount owed.

Example:
If you buy a home for $750,000, your total land transfer tax would be about $11,475. With the first-time buyer rebate, that drops to $7,475.

If your property is in Toronto, you’ll also get a municipal land transfer tax rebate of up to $4,475, for a combined savings of $8,475.

Bottom line: Save $4,000 in Ontario, or up to $8,475 if you’re buying in Toronto.

2. First-Time Home Buyer Tax Credit (HBTC)

When you file your taxes for the year you bought your home, you can claim the Home Buyers’ Tax Credit worth up to $1,500.

This is a federal non-refundable credit, meaning it reduces your taxes owing but cannot create a refund.

You’ll claim it on Line 31270 of your tax return by entering the $10,000 Home Buyers’ Amount.
If you buy with a spouse or common-law partner, you can split the claim, but the total can’t exceed $10,000.

Bottom line: Reduce your taxes by up to $1,500 in the year you buy your first home.

3. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan (HBP) lets you withdraw funds from your RRSP tax-free to use toward your down payment.

You can withdraw up to $35,000 from your RRSP, or up to $70,000 total if two buyers qualify.

This is an interest-free loan to yourself, repayable over time. You now have five years before the first repayment is due, and up to 15 years in total to pay it back.

Your annual CRA Notice of Assessment will show how much you’ve repaid and what’s left owing.

Example:
If you withdraw $35,000, you’ll need to repay roughly $2,333 per year over 15 years (starting after the 5-year grace period).

You can also combine this with the FHSA (below) for maximum impact.

Bottom line: Access up to $35,000 per person from your RRSP — tax-free — to help with your down payment.

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

The Tax-Free First Home Savings Account (FHSA) combines the best parts of both the RRSP and the TFSA.

It’s specifically designed to help first-time buyers save for their down payment faster:

• Contributions are tax-deductible (like an RRSP)
• Withdrawals and investment growth are tax-free (like a TFSA)

You can contribute up to $8,000 per year, with a lifetime limit of $40,000.
Unused contribution room (up to $8,000) carries forward once your FHSA is opened.

Funds must be used within 15 years, and can hold the same investments as your TFSA (cash, GICs, ETFs, mutual funds).

Smart strategy:
Combine your FHSA and HBP — for example, $40,000 from your FHSA plus $35,000 from your RRSP equals $75,000 tax-free for your first down payment.

If you don’t end up buying, you can transfer the FHSA balance to your RRSP or RRIF tax-free and without affecting RRSP room.

Bottom line: Save up to $40,000 tax-free toward your first home, and combine it with your RRSP for even greater savings.

5. 30-Year Insured Amortization for First-Time Buyers

As of August 2024, the federal government allows insured 30-year amortizations for first-time homebuyers purchasing new-build homes.

Previously, insured mortgages were limited to 25 years. This change makes monthly payments lower and improves affordability for new buyers.

Key details:

• Applies to first-time buyers only
• Applies only to newly built homes
• Can be used with as little as 5% down
• Must be insured through CMHC, Sagen, or Canada Guaranty

Bottom line: First-time buyers purchasing new builds can now stretch payments over 30 years, lowering their monthly costs and improving qualification.

More Things Worth Knowing for First-Time Home Buyers

In addition to the official government benefits, here are a few other advantages that make buying your first home easier:

• Lower minimum down payment: You can buy with as little as 5% down (on homes up to $1.5 million).
• Access to insured mortgage rates: First-time buyers purchasing their own home qualify for insured rates, which are often lower than conventional rates.
• Gifted down payments accepted: Lenders commonly allow gifted funds from immediate family for your down payment, making it easier to get started.

These aren’t programs, but they are key differences that work in your favour as a first-time buyer.

Final Thoughts

When combined, these programs can save you tens of thousands of dollars and help you become a homeowner sooner.

If you’re not sure which benefits you qualify for — or how to use them together — we can help you understand your options and build a clear plan.

Ready to Get Pre-Qualified?

Click Apply Now to start your secure pre-qualification. It only takes a few minutes and won’t affect your credit.

Once submitted, we’ll confirm which programs and rebates you qualify for and show you what your homeownership journey could look like.

Start your pre-qualification today and take the first step toward your new home with confidence.