First-time homebuyer programs in Toronto and the GTA

Buying your first home is an exciting milestone! But, a lot of people also find it to be a daunting process. As a mortgage broker, I’m here to help you in securing the right mortgage. Additionally, I consider myself to be an educator. My many years in the financial industry mean I can’t just look at your home purchase as an isolated transaction. I believe it’s a key component of your financial well being. So I hope to also be a resource for you. A big part of this is to make sure you don’t miss out on the various first-time homebuyer programs available to first-time buyers in Toronto and the greater Toronto area. Whether you’re definitely planning to buy a home in the next year, or just starting to explore your options, here’s a list of the various programs which you can take advantage of.

The federal Home Buyers’ Plan (HBP)

If you’re a Canadian first-time home buyer, you can withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to put towards the purchase of a home. You can take this money out tax-free, but you have to pay it back over the next 15 years. This program can be a great way to boost your down payment and reduce your mortgage amount. I have several posts you can check out to learn more about strategies for making the most of your RRSP.

Ontario Land Transfer Tax Rebate

Possibly the best of the first-time homebuyer programs are the land transfer tax rebates. If you’re a first-time home buyer in Ontario, you’re eligible for a rebate on the provincial land transfer tax. This rebate can be up to $4,000, which can significantly reduce your closing costs.

Toronto Land Transfer Tax Rebate

If you’re buying a home in Toronto, you may also qualify for an additional rebate on the municipal land transfer tax. The rebate is up to $4,475.

First-time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit provides up to $750 in tax relief to help with the costs associated with purchasing a home. This credit can be claimed on your income tax return in the year you purchase your home. The credit is designed to assist first-time home buyers with the extra costs associated with buying a home, like legal fees, disbursements and land transfer taxes. You qualify if neither you nor your spouse (or common-law partner) have owned and lived in another home for the past five years. If you have a disability – or are purchasing the home for a relative with a disability – you may also qualify for the program, even if you are not a first-time buyer.

First Home Savings Account (FHSA)

The tax-free First Home Savings Account is a new program that allows you to save up to $40,000 towards their home purchase. Contributions to the FHSA are tax-deductible, and withdrawals for the purpose of buying a home are tax-free. This program combines the benefits of an RRSP and a Tax-Free Savings Account (TFSA).

Please get in touch if you’d like to chat about your plans to buy your first home. In the meantime, happy house hunting!

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