Unlock Big Savings: First Time Buyer Benefits You Can't Miss
Buying your first home is a big milestone — and in Ontario, there are several programs designed to help make it more affordable. Whether you’re just starting your search or already browsing listings, here are some key benefits available to first-time buyers:
Land Transfer Tax Rebates
Ontario Land Transfer Tax Rebate: First-time buyers can receive a rebate of up to $4,000 on the Ontario Land Transfer Tax.
Toronto Buyers: If you’re buying in the City of Toronto, you’re eligible for an additional rebate of up to $4,475 on the municipal land transfer tax, amounting to $8,475 in total.
First Time Home Buyers Tax Credit (HBTC)
A federal non-refundable tax credit designed to help offset some of the closing costs associated with purchasing your first home. It’s calculated on a $10,000 Home Buyers’ Amount, which translates into up to $1,500 in tax savings on your income tax return for the year you purchase the property. While it won’t put cash directly in your pocket, the HBTC reduces the amount of income tax you owe, making it a simple but worthwhile way to lower your overall cost of becoming a homeowner.
Home Buyers’ Plan (HBP)
Use your RRSP savings tax-free to buy your first home
Withdraw up to $60,000 (up from $35,000 in 2024!)
Must repay within 15 years
Great way to boost your down payment
First Home Savings Account (FHSA)
A new savings tool launched in 2023 that combines the best of RRSPs and TFSAs.
Contribute up to $8,000/year, to a maximum of $40,000
Tax-deductible contributions + tax-free withdrawals for your first home
Can be combined with HBP for even more purchasing power
Ontario HST Rebate On New Construction
In Ontario, first-time buyers who purchase a newly constructed or substantially renovated home as their primary residence may receive the federal rebate (up to 36% of the GST portion, ~$6,300) and a provincial rebate on up to 75% of the 8% HST provincial portion, up to $24,000. The provincial rebate applies regardless of the home’s price, helping reduce the overall cost of new construction for first-time home buyers.