First-Time Home Buyer Tax Credits, Rebates & Programs in Ontario
Beyond mortgage rates and down payments, first-time buyers in Toronto and Ontario can access several government programs that put real money back in your pocket. Knowing them can make a meaningful difference in affordability.
Ontario Land Transfer Tax Rebate (First-Time Buyers)
First-time buyers can receive a full or partial rebate of the provincial land transfer tax. For homes under a certain threshold (currently around $368,000 for full rebate), you can get up to $4,000 back. The rebate phases out at higher purchase prices.
Important: Toronto also has a municipal land transfer tax. The provincial rebate does not cover the city portion.
RRSP Home Buyers' Plan
You and your spouse can each withdraw up to $35,000 from your RRSPs tax-free for a down payment (total $70,000 for a couple). The money must be repaid over 15 years or it becomes taxable income.
GST/HST New Housing Rebate
If buying a newly built home, you may qualify for a rebate of up to $6,300 (or more in some cases) on the GST/HST portion of the purchase price.
Other Programs
- Canada Housing Benefit — Portable housing benefit for some low-income households.
- Shared Equity Programs — Limited programs where government or non-profits help with down payment in exchange for a share of future appreciation.
- First-Time Home Buyer Incentive (federal) — Shared equity program (check current status as it has changed).
How to Claim These Benefits
Work with your lawyer, accountant, and mortgage broker early to understand eligibility and how programs may apply to your purchase. Actual benefits and cash requirements depend on your specific situation and current program rules (which change).