Buying your first home is an exciting milestone, but it can also feel overwhelming—especially in a competitive market like Ontario. The good news? There are several government programs and incentives designed to help first-time home buyers afford their dream home. Whether you’re looking in Vaughan, Maple, Richmond Hill, Markham, or Toronto, here’s a breakdown of the key benefits available to you.
1. First-Time Home Buyer Incentive (FTHBI)
The First-Time Home Buyer Incentive (FTHBI) is a federal program that offers an interest-free loan from the government to help reduce your mortgage payments. Eligible buyers can receive:
- 5% for resale homes (existing properties)
- 5% or 10% for new construction homes
The incentive is shared equity, meaning the government shares in the home’s appreciation or depreciation when you sell.
Eligibility Criteria:
✅ Must be a first-time home buyer
✅ Household income must be $120,000 or less
✅ The total mortgage must be 4 times your household income or lower
2. Home Buyers’ Plan (HBP) – RRSP Withdrawals
The Home Buyers’ Plan (HBP) allows you to withdraw up to $35,000 (or $70,000 for a couple) from your Registered Retirement Savings Plan (RRSP) tax-free to put toward your down payment. You have 15 years to repay the amount to your RRSP.
Key Benefits:
✔️ No immediate tax penalties for withdrawals
✔️ Helps boost your down payment and reduce mortgage costs
3. Land Transfer Tax Rebates
In Ontario, first-time home buyers can receive a rebate of up to $4,000 on land transfer taxes. If you’re buying in Toronto, you may also qualify for an additional $4,475 rebate under the Toronto Land Transfer Tax Rebate Program.
4. First-Time Home Buyers’ Tax Credit (HBTC)
The First-Time Home Buyers’ Tax Credit (HBTC) is a non-refundable tax credit of up to $1,500 to help with closing costs. This can provide a small but helpful financial boost when purchasing your home.
5. GST/HST New Housing Rebate
If you’re buying a new construction home, you may be eligible for a GST/HST rebate, which refunds a portion of the sales tax paid. The rebate varies based on the home’s purchase price and whether it’s your primary residence.
Why Work With an Expert?
As a Realtor in Vaughan, Maple, Richmond Hill, Markham, and Toronto, I specialize in helping first-time home buyers navigate the process, find the best properties, and take advantage of every incentive available. If you’re considering buying your first home, reach out to me for expert guidance and support!
