✅ 1. First-Time Home Buyers’ Tax Credit (HBTC)
- Benefit: $10,000 non-refundable tax credit
- Tax savings: Up to $1,500 (based on 15% of $10,000)
- Eligibility: You (or spouse) didn’t own a home in the past 4 years
✅ 2. Home Buyers’ Plan (HBP)
- Withdraw up to: $60,000 (NEW limit for 2024, increased from $35,000)
- From: Your RRSP, tax-free
- Repayment: Over 15 years, starting 2nd year after purchase
- Eligibility: First-time buyer or haven’t owned a home in past 4 years
✅ 3. Tax-Free First Home Savings Account (FHSA)
- Annual contribution limit: $8,000/year
- Lifetime limit: $40,000
- Major perks:
- Contributions are tax-deductible (like an RRSP)
- Withdrawals are tax-free for buying a first home (like a TFSA)
- Can combine FHSA + HBP to maximize your down payment
❌ [Phased Out] First-Time Home Buyer Incentive (Shared Equity Program)
- This program is being wound down in 2024/2025 due to low uptake
- It offered 5–10% of a home’s value as a shared-equity loan
- Not available anymore to new applicants in most regions
🏙️ ONTARIO First-Time Home Buyer Incentives
✅ 1. Ontario Land Transfer Tax Refund
- Maximum refund: $4,000
- Applies only to Ontario’s portion of the land transfer tax
- If the home costs ≤ $368,000, you may pay zero Ontario LTT
- You must:
- Be 18+
- Never owned a home before
- Live in the home as your principal residence
✅ 2. Toronto Land Transfer Tax Rebate (if buying in Toronto)
- Max rebate: $4,475 (on top of Ontario’s $4,000)
- Applies only if you buy in Toronto proper (subject to double land transfer tax)
🧮 Example – What a First-Time Buyer Can Access in Ontario:
| Program | Amount / Benefit |
|---|---|
| RRSP HBP | Up to $60,000 (per person) |
| FHSA | Up to $40,000 tax-free (per person) |
| HBTC | $1,500 tax refund |
| Ontario LTT Rebate | Up to $4,000 |
| Toronto LTT Rebate | Up to $4,475 (if buying in Toronto) |
🔐 Other Supports (not just for first-time buyers):
🔹 CMHC Insurance Flexibility
- With as little as 5% down payment
- Premium is lower if you’re using the HBP or FHSA
🔹 GST/HST New Housing Rebate
- Available if buying a new build or substantially renovated home
- Can refund part of the HST paid (up to $6,300 federally, plus provincial portion)
If you have any questions about these first-time home buyer programs or need help navigating the process, feel free to reach out. I’m Soheil Shivarani, a licensed real estate agent in Vaughan and the Greater Toronto Area, specializing in helping first-time home buyers in Ontario. Whether you’re looking for expert advice, local market insights, or step-by-step support, I’m here to help you make confident decisions.
