Buying your first home is an exciting milestone—but navigating the financial aspects can feel overwhelming. The good news? Both the federal and provincial governments offer helpful programs and incentives to make homeownership more attainable for first-time buyers.
Below, we break down some of the key programs and incentives available to first-time buyers in Ontario, Canada. We’ve also included a short video overview to help explain how each one works.
Watch: First-Time Home Buyer Programs & Incentives in Ontario, Canada
Available Programs & Incentives for First-Time Buyers
The Home Buyers’ Amount
The Home Buyers’ Amount is a federal tax credit that helps offset some of the costs associated with buying a home, such as legal fees and closing expenses.
Key details:
- Eligible buyers can claim up to $10,000 on their tax return
- At a 15% federal tax rate, this results in a non-refundable tax credit of up to $1,500
The credit is claimed when you file your income tax return for the year you purchased your home and can reduce the amount of income tax you owe.
Home Buyers’ Plan (HBP)
The Home Buyers’ Plan allows eligible first-time buyers to use funds from their RRSP to help purchase or build a home.
Key details:
- You can withdraw up to $60,000 per eligible person tax-free from your RRSP
- The withdrawal is not taxed as long as it is repaid
- Repayments are made over a maximum of 15 years
This is a great way to boost your down payment with funds you’ve already saved — and without triggering immediate tax liabilities.
First Home Savings Account (FHSA)
The First Home Savings Account is a registered savings plan created specifically to help Canadians save for their first home.
Key details:
- You can contribute up to $8,000 per year, to a maximum of $40,000
- Contributions are tax-deductible
- Withdrawals used toward the purchase of your first home are tax-free
- Funds can be invested, allowing your savings to grow over time
This account makes it easier to grow your home savings faster because you get tax relief both on contributions and when you withdraw for your eligible home purchase.
GST/HST New Housing Rebate
If you’re purchasing a newly built home or a substantially renovated home, you may be eligible for a rebate on a portion of the GST or HST paid.
Key details:
- Both federal and provincial rebates may apply
- Provincial rebate amounts may vary
- Eligibility depends on purchase price and location
Purchasers should consult with their legal or tax specialist to check specific rules with the Canada Revenue Agency.
Land Transfer Tax Rebate
Various provinces and some cities offer rebates or exemptions on land transfer tax for first-time buyers. The province of Ontario offers a rebate of up to $4,000.
This rebate can significantly reduce upfront closing costs.
Overview: Key Programs & Incentives
| Program/Incentive | What it helps with | Maximum value | Important Notes |
|---|---|---|---|
| Home Buyers’ Amount | Helps reduce income tax owed to offset legal and closing costs | Up to $1,500 (15% of $10,000) | Non-refundable tax credit. Can be split between partners, but the combined claim cannot exceed $10,000. |
| Home Buyers’ Plan (HBP) | Allows you to use your RRSP savings toward a home purchase, tax-free | Up to $60,000 per individual | Withdrawn amount must be repaid to your RRSP over up to 15 years. |
| First Home Savings Account (FHSA) | Helps you save for your first home with tax-deductible contributions and tax-free growth | Up to $40,000 lifetime per person ($80,000 per couple) | Funds can be transferred to an RRSP or RRIF if not used to buy a home. |
| GST/HST New Housing Rebate | Reduces the GST/HST paid on a new or substantially renovated home | Up to $30,300 in savings | Eligibility depends on purchase price and location. |
| Land Transfer Tax Rebate | Reduces or eliminates land transfer tax for first-time buyers | Up to $4,000 in Ontario | Available only in select provinces and municipalities. Eligibility rules apply. |
Disclaimer
This material is provided for general information purposes only and does not constitute legal, tax, or financial advice. Program details and eligibility requirements may change without notice. References made are to programs and incentives available in the province of Ontario. Other provinces and territories may have different rules. Buyers should consult with a qualified legal, mortgage or tax professional and visit official government websites for the most current and detailed information.
Looking to buy your first home in Hamilton? Visit our Sales Centre at 33 Fletcher Road, Hamilton, and explore what makes Summit Park one of the area’s most sought-after communities. With thoughtfully designed homes, family-friendly streets, and easy access to amenities, there’s no better place to call home.
