House Buyer Incentives in Ontario
Buying a home? Don’t miss these programs and incentives that can save you money and make your dream of homeownership a reality.
1. First-Time Home Buyer Incentive (FTHBI)
What It Is:
The Canadian government offers a shared equity program to help first-time buyers reduce mortgage costs.
How It Works:
- Buyers can receive:
- 5% or 10% of the purchase price for newly built homes.
- 5% for resale homes.
- The government holds an equity stake in the property, repayable when you sell the home or after 25 years.
Key Benefit: Lower monthly mortgage payments.
Learn More & Apply: First-Time Home Buyer Incentive (Government of Canada)
2. Home Buyers’ Plan (HBP)
What It Is:
Withdraw up to $35,000 from your RRSP to use toward a down payment.
How It Works:
- Up to $70,000 can be withdrawn for a couple.
- Must be repaid within 15 years to avoid tax penalties.
Key Benefit: Access to savings to lower upfront costs.
Learn More & Access Forms: Home Buyers' Plan (CRA)
3. Ontario Land Transfer Tax Refund
What It Is:
A rebate program for first-time buyers to offset land transfer tax costs.
How It Works:
- Rebates up to $4,000 for eligible first-time buyers.
Key Benefit: Covers the full land transfer tax for homes purchased for $368,000 or less.
Learn More & Check Eligibility: Land Transfer Tax Refunds (Ontario)
4. GST/HST New Housing Rebate
What It Is:
Rebates on the GST/HST paid for newly constructed or substantially renovated homes.
How It Works:
- Rebates vary based on the purchase price and taxes paid.
Key Benefit: Saves you money on new builds or major renovations.
Learn More & Apply: GST/HST New Housing Rebate (CRA)
5. First-Time Home Buyers’ Tax Credit (HBTC)
What It Is:
A federal tax credit to help offset closing costs like legal fees and inspections.
How It Works:
- Claim a $10,000 tax credit, providing up to $1,500 in savings.
Key Benefit: Provides financial relief during closing.
Learn More & Apply: First-Time Home Buyers' Tax Credit (CRA)
6. Energy-Efficiency Rebates and Grants
What They Are:
Programs that fund energy-efficient upgrades.
Examples:
- Canada Greener Homes Grant: Up to $10,000 for upgrades like insulation and solar panels.
- Enbridge Home Efficiency Rebate: Rebates for energy-efficient windows, heating systems, and insulation.
Key Benefit: Reduce energy costs and enhance home value.
Canada Greener Homes Grant: Learn More
Enbridge Rebates: Learn More
7. Municipal Homeownership Programs
What They Are:
Local initiatives to help with down payments or affordable homeownership.
Examples:
- Peel Affordable Ownership Program: Provides up to $30,000 in down payment assistance.
- Toronto Affordable Housing Programs: Offers funding for first-time buyers of affordable units.
Additional Programs: - Waterloo Region Home Ownership Program: Learn More
- Wellington County Down Payment Assistance: Learn More
- Stratford and Perth County Homeownership Program: Learn More
Key Benefit: Tailored support for local buyers in competitive markets.
8. CMHC Mortgage Loan Insurance for 5% Down Payment
What It Is:
Allows homebuyers to purchase with as little as 5% down for homes under $1 million.
How It Works:
- Pay an insurance premium added to your mortgage.
Key Benefit: Lower upfront costs for entry-level buyers.
Learn More & Calculate Your Premium: CMHC Mortgage Loan Insurance
Take Advantage of These Programs
Understanding and leveraging these incentives could save you thousands and make your dream home a reality.
Contact us today! Let us guide you through the process and find programs that work for you.
“The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today.“