Category: Blogs,Mortgage Tips & Advice

First-Time Homebuyer Programs in Ontario: What You’re Eligible For (2025 Edition)

Buying your first home is a huge milestone — and a big financial commitment.  The good news? There are programs, rebates, and tax credits available to help you make that first purchase more affordable.

Here’s a complete list of what you might qualify for as a first-time buyer in Ontario.

Federal First-Time Home Buyers’ Tax Credit (HBTC)

• What it is: A federal tax credit worth up to $1,500.
• How it works: Claim $10,000 as a non-refundable credit on your tax return.
• Who qualifies: You or your spouse haven’t owned a home in the last 4 years and plan to live in the home.

✅ Apply on your tax return — line 31270.

Ontario Land Transfer Tax Refund

• What it is: A rebate of the provincial land transfer tax.
• How much: Up to $4,000.
• Who qualifies: First-time buyers who live in the home and haven’t owned property before.

✅ Applied at the time of closing — less cash needed upfront.

Toronto Municipal Land Transfer Tax Rebate

• What it is: A rebate for homes within the City of Toronto.
• How much: Up to $4,475.
• Stackable: Can be combined with the provincial LTT refund.
• Who qualifies: First-time buyers purchasing within Toronto city limits.

✅ Your lawyer applies this during closing.

First Home Savings Account (FHSA)

• What it is: A new registered savings plan just for first-time homebuyers.
• How much: Contribute up to $8,000/year, $40,000 lifetime.
• Tax benefit: Contributions are tax-deductible, and withdrawals for buying a home are tax-free.

✅ Tip: You can combine FHSA savings with the RRSP Home Buyers’ Plan!

RRSP Home Buyers’ Plan (HBP)

• What it is: Withdraw from your RRSP to fund your down payment.
• How much: Up to $60,000 per person (new limit).
• Tax benefit: No tax on the withdrawal if repaid over 15 years.

✅ Great for couples — withdraw up to $120,000 combined.

GST/HST New Housing Rebate

• What it is: A partial rebate on newly built homes or major renovations.
• Who qualifies: Must be your principal residence.
• Rebate: Up to 36% of the federal portion of HST (conditions apply).

✅ Usually handled by your lawyer or builder at closing.

Local Municipal Down Payment Assistance Programs

Many cities and regions across Ontario offer first-time buyer grants or loans, usually in the form of forgivable loans if you stay in the home for a certain number of years.

Examples:

• Peel Region – Home in Peel Program
• Durham Region – Down Payment Assistance
• Hamilton – Affordable Home Program
• Simcoe County – Secondary suites & ownership support

✅ Check your local municipality’s housing services office or website.

Canada Greener Homes Grant (for buyers planning renovations)

• What it is: Up to $5,000 for making energy-efficient upgrades.
• Bonus: Also covers up to $600 for energy audits.
• Who qualifies: Owners of eligible homes planning to upgrade insulation, windows, heat pumps, etc.

✅ Perfect for buyers renovating a resale home or fixer-upper.

FAQs

You can combine programs together
For example: 

• FHSA + RRSP HBP for the down payment
• Land transfer tax rebates to reduce closing costs
• HBTC on your income tax return

Final Thoughts

Navigating your first home purchase is a big deal — but you don’t have to do it alone. 

These programs exist to help make that step a little easier and more affordable.

Want a personalized breakdown of what you qualify for?
I’m happy to walk you through the numbers and next steps — just reach out.

📞 Let’s review your mortgage solutions—it just makes “cents”!

Talk soon,

Ana

Mortgages can be complicated; we are here to help you make “cents” of it.

We focus on Mortgage Solutions, Period!

To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca