First-Time Home Buyer Programs in Ontario: What You Should Know

By Andrea Jolly | Mortgage Broker

First-Time Home Buyer Programs in Ontario

Buying your first home is an exciting milestone, but it can also feel overwhelming. Fortunately, several programs are available to help first-time buyers with their down payment, taxes, and overall affordability.

If you’re planning to buy your first home in Ontario, understanding these programs may help reduce some of the upfront costs associated with purchasing a property.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows eligible first-time buyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to help purchase a home.

Under this program, buyers may withdraw up to $60,000 per person from their RRSP to use toward a down payment.

The amount withdrawn must typically be repaid to the RRSP over time.

This program is administered by the Canada Revenue Agency.

First-Time Home Buyers’ Tax Credit

The First-Time Home Buyers’ Tax Credit is a federal tax credit designed to help offset some of the costs associated with purchasing a home.

Eligible buyers may claim a tax credit based on a qualifying amount when filing their taxes for the year they purchased their home.

This program is also administered through the Canada Revenue Agency.

Land Transfer Tax Rebate (Ontario)

When purchasing a home in Ontario, buyers typically pay a land transfer tax. However, first-time buyers may qualify for a rebate that can help reduce this cost.

The province of Ontario offers a rebate of up to $4,000 on the provincial portion of the land transfer tax for eligible first-time buyers.

If purchasing a home in Toronto, buyers may also qualify for an additional municipal land transfer tax rebate.

First Home Savings Account (FHSA)

The First Home Savings Account is a newer savings program designed specifically for first-time homebuyers.

This account allows individuals to contribute funds toward a future home purchase while receiving tax advantages.

The FHSA combines features of both an RRSP and a Tax-Free Savings Account (TFSA), allowing contributions to be tax-deductible while withdrawals for a qualifying home purchase may be tax-free.

Other Assistance Programs

Depending on the situation, some buyers may also have access to additional support programs through employers, municipalities, or regional housing initiatives.

Mortgage professionals can help review available programs and determine which options may apply based on a buyer’s financial situation.

Planning Your First Home Purchase

While these programs can help reduce upfront costs, qualifying for a mortgage still depends on factors such as income, credit history, and debt levels.

Understanding both mortgage requirements and available assistance programs can help first-time buyers make informed decisions.

If you’re planning to purchase your first home in Ontario, speaking with a mortgage professional can help you understand what programs may apply to your situation.