Buying your first home is one of the largest investments of your life. Fortunately, there are
several incentive programs provided to first-time home buyers that will help you realize your
dream of homeownership a little bit easier.

First-Time Home Buyers’ (FTHB) Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes,
can be a particular burden for first-time homebuyers who must pay these costs, as well as save money
for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a
home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable
income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible
individual, the credit will provide up to $750 in federal tax relief starting in 2009.

For more information, click here.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan is a program that allows you to withdraw up to $25,000 ($50,000 per couple)
from your registered retirement savings plan to buy your home. The stipulations are:

  • RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them
    under the HBP.
  • Generally, you have to repay all withdrawals from your RRSPs within a period of no more than
    15 years.
  • You must repay an amount to your RRSPs each year until your HBP balance is zero. If you do not
    repay the amount due for a year, it will be included in your income for that year.

For more information, click here.

Ontario Land Transfer Tax Credit

Land Transfer Tax applies to all transfers of land in Ontario. First-time homebuyers may be eligible for a refund of all or part of the tax, up to a maximum credit amount of $4,000. Applications for a refund
must be made within 18 months after the date of the transfer.

To learn more about land transfer taxes you may owe and the rebates for which you could be eligible, visit the Land Transfer Tax Calculator.

For more information, click here.

Toronto Municipal Land Transfer Tax Credit

The rebate for first-time home purchasers is up to a maximum of $4,475. If you are eligible for a rebate of all or a portion of the MLTT you owe, your lawyer will be able to claim the rebate electronically when he/she registers your transfer/deed.

For more information, click here.

Enhanced New Housing Rebate – New Homes ONLY

The Ontario New Housing Rebate is available to home buyers of newly constructed or substantially renovated homes.  These individuals are entitled to claim an Ontario new housing rebate of 75% of the provincial part of the HST, subject to a maximum of $24,000.

For more information, click here.