First-Time Home Buyer Programs

First-time homebuyers may be eligible for various rebates and tax benefits, such as the land transfer tax refund, that can help fund their down payment. Additionally, the Government of Canada offers programs through Sagen or CMHC that allow a minimum 5% down payment to qualify for a home. It is important for first-time buyers to be aware of these current programs.

Understanding Canada Mortgage and Housing Corporation (CMHC

In Canada, mortgage loan default insurance, also known as CMHC insurance, is required for mortgages with less than a 20% down payment. The three mortgage insurance companies in Canada are CMHC, Genworth (now Sagen), and Canada Guarantee. This insurance protects financial institutions in the event of a borrower defaulting on their mortgage loan and is blended into the mortgage payment and added to the principal balance of the mortgage loan amortized to 25 years. A minimum of 5% down payment is required for a purchase price up to $500,000, with an additional 10% required on the amount over $500,000 but not exceeding $999,999. Mortgage insurance is not available for real estate purchases over $1 million.​
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Land Transfer Tax For First-Time Home Buyers

First-time homebuyers in Canada are exempt from paying land transfer tax up to $4,000. However, in Toronto, there is a double land transfer tax due to the municipal tax in addition to the standard provincial tax. The GST/HST New Housing Rebate offers money back to borrowers who have purchased a new development, rebuilt a property, or rebuilt after a fire. Eligibility for the rebate includes purchasing a new house or substantially renovating a home for use as your principal residence, purchasing shares in a co-op for use as your primary residence, or renovating your own home or hiring someone else to do so if the fair market value of the home when construction is completed is less than $450,000. Get started on owning your own home today with a mortgage pre-approval.​​

Comprehending the RRSP Home Buyer Plan (HBP)

The Government of Canada's Home Buyer Plan provides up to $25,000, which is tax-exempt but must be repaid in 15 years, to fund the down payment for first-time homebuyers who haven't purchased real estate within the last four years. Borrowers are exempt from repaying the RRSP loan for up to fifteen years after withdrawal. Eligibility for the HBP requires being a first-time homebuyer and having a written agreement to buy or build a qualifying home for yourself or a related person with a disability. Obtaining a pre-approved mortgage does not satisfy this condition.

First-Time Home Buyer Government Grants Summary (Ontario) 

First-Time Home Buyer (FTHB) Tax Credit
Source: CHMC

The FTHB Tax Credit offers 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.

Home Buyers' Plan (HBP)

The Home Buyers' Plan (HBP) is a program that allows you to withdraw up to $25,000 in a calendar year from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability.

GST/HST New Housing Rebate

You may qualify for a rebate of part of the GST or HST that you paid on the purchase price or cost of building your new house, on the cost of substantially renovating or building a major addition onto your existing house, or on converting a non-residential property into a house.

Municipalities Offering Home Buyer Grants​

Don't Miss Out on Free Money! Discover Which Ontario Municipalities Offer Grants to Homebuyers Today. Call Our Office at (647) 773-4849!

Understanding the Government of Canada's Shared Equity Program

The Government of Canada's First-Time Home Buyer Incentive provides eligible applicants with a shared equity mortgage, which allows them to finance a portion of their home purchase price and reduce their mortgage payments. To qualify, applicants must have a minimum down payment of 5% of the purchase price, a maximum qualifying income of no more than $120,000 combined, and total borrowing limited to 4 times the qualifying income. The shared equity mortgage is not interest-bearing and does not require ongoing repayments, and can be either 5% or 10% for the purchase of a re-sale or new construction home. The repayment of the incentive is based on the property's fair market value and must be repaid after 25 years or if the property is sold, whichever happens first. If the property value decreases, the borrower is still responsible for repaying the shared equity mortgage based on the current home value at the time of repayment.

Here's Who Can Apply For The Home Buyer's Incentive, Shared Equity Program.

The First-Time Home Buyer Incentive is available to Canadian citizens, permanent residents, and non-permanent residents who are legally authorized to work in Canada. Borrowers must have a maximum qualifying income of $120,000, and at least one borrower must be a first-time homebuyer. Qualifying income includes annual salary, investment income, and rental income. A first-time homebuyer is someone who has never purchased a home before, has gone through a breakdown of a marriage or common-law partnership, or did not occupy a home owned by themselves or their current spouse or common-law partner in the last 4 years. The 4-year period begins on January 1 of the fourth year before the Incentive is funded and ends 31 days before the date the Incentive is funded.

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