Video: First Time Home Buyer Programs and Perks

Unlocking Homeownership: Perks & Programs for First-Time Buyers in Ontario!

Becoming a first-time home buyer is an exciting milestone! Not only are you investing in your future, but you can also take advantage of several financial programs and incentives designed to make homeownership more accessible. If you’re purchasing your first home in Ontario, here are the key programs you should know about.

1. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP (Registered Retirement Savings Plan) tax-free to put toward their home purchase.

If you’re purchasing with a partner, each buyer can withdraw up to $60,000 from their respective RRSPs.
You must repay the amount within 15 years to avoid taxation.
You can re-qualify as a first-time buyer if you haven’t owned a home as your principal residence in the year you withdraw funds and the previous four years.

Buying your first home can be exciting and overwhelming at times. But knowledge is power. Here are a few more videos you might find helpful:

2. First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) is a tax-free savings and investment account designed to help you save for a down payment faster. This program combines the benefits of an RRSP and a TFSA (Tax-Free Savings Account).

You can contribute up to $8,000 per year, with a lifetime contribution limit of $40,000.
Contributions reduce your taxable income, just like an RRSP.
If you invest the funds, any growth and withdrawals are tax-free when used for a qualifying home purchase.
You can re-qualify as a first-time home buyer if you haven’t owned a home as your principal residence in the year you withdraw the funds and the previous four years.

3. Land Transfer Tax Rebate

When you buy a home in Ontario, you’re required to pay land transfer tax (LTT) on closing. However, first-time buyers can receive a rebate to help offset this cost.

Provincial Land Transfer Tax Rebate: You can receive up to $4,000 off your land transfer tax.
Municipal Land Transfer Tax Rebate (Toronto Only): If purchasing within Toronto, you can receive an additional rebate of up to $4,475, bringing the total potential rebate to $8,475.
Unlike the other programs, you cannot re-qualify for this rebate if you’ve owned a home anywhere in the world.
If you are a first-time home buyer but your spouse has previously owned a home, you may still qualify for partial benefits, provided your spouse did not own the property while being your spouse.

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4. First-Time Home Buyer’s Tax Credit (HBTC)

The First-Time Home Buyer’s Tax Credit (HBTC) is a non-refundable tax credit from the Canada Revenue Agency (CRA) to help first-time buyers manage closing costs.

You can claim $10,000 on your income tax return, resulting in a tax credit of up to $1,500.
You can re-qualify if neither you nor your spouse owned a home as your principal residence in the year of purchase and the previous four years.

Final Thoughts

These first-time home buyer programs can provide significant financial relief when purchasing your first property in Ontario. To learn more about eligibility requirements and application processes, visit the Government of Canada website for federal programs and the Government of Ontario website for land transfer tax rebates.

For more details, visit the Government of Canada or Government of Ontario websites linked below:

By leveraging these incentives, you can save money, reduce upfront costs, and make homeownership more attainable. If you’re considering buying your first home, now is the perfect time to explore these programs and maximize your benefits!

About Me: I’m a Toronto-based real estate agent passionate about helping first-time home buyers navigate the market and achieve their dreams of homeownership.

Meet Yael