First-time homebuyers in Ontario have access to several incentives, credits, and benefits that can help reduce the costs associated with purchasing a home.
Here's a comprehensive list:
1. Land Transfer Tax (LTT) Rebate
Provincial LTT Rebate: First-time homebuyers can receive a rebate of up to $4,000 on the provincial Land Transfer Tax. This typically covers the full LTT on homes priced up to $368,000.
Municipal LTT Rebate (Toronto): In addition to the provincial rebate, first-time buyers in Toronto may also receive a rebate of up to $4,475 on the municipal Land Transfer Tax.
2. Home Buyers' Plan (HBP)
The HBP allows first-time buyers to withdraw up to $35,000 per person from their Registered Retirement Savings Plan (RRSP) to use as a down payment on a home. The withdrawn amount must be repaid within 15 years.
3. First-Time Home Buyers' Tax Credit (HBTC)
This is a federal non-refundable tax credit worth $1,500 (based on a $10,000 amount multiplied by the lowest personal income tax rate, which is currently 15%). This credit helps offset the closing costs of purchasing a home.
4. GST/HST New Housing Rebate
First-time buyers of new homes may be eligible for a rebate of a portion of the federal part of the HST paid on the purchase. This rebate is available for new or substantially renovated homes costing $450,000 or less.
5. CMHC Green Home Program
If you’re purchasing an energy-efficient home or making energy-efficient renovations, you can get a refund of up to 25% on your mortgage loan insurance premium from the Canada Mortgage and Housing Corporation (CMHC).
6. Ontario’s Energy and Property Tax Credit
While not specific to first-time buyers, this credit helps low- to moderate-income individuals and families with the sales tax on energy and property taxes.
SOURCE: https://www.ontario.ca/page/ontario-trillium-benefit#section-5
7. Municipal Grants and Programs
Some municipalities in Ontario offer additional incentives, grants, or programs for first-time homebuyers, such as assistance with down payments or home purchase subsidies. These programs can vary widely by region, so it’s worth checking with local municipalities.
SOURCE: [This is Specific to each municipality. If you would like to know what’s available to you, reach out here!]
8. Reduced CMHC Premiums
First-time buyers can benefit from slightly reduced Canada Mortgage and Housing Corporation (CMHC) mortgage insurance premiums when they have a larger down payment (more than 5% but less than 20%).
9. Discounted Mortgage Rates and First-Time Buyer Programs
Many financial institutions offer special mortgage rates or programs specifically tailored to first-time homebuyers, which can include lower interest rates, cashback offers, or flexible payment options.
And as of December 2024, 30-Year Amortization is available to all first time buyer’s buying any home. This can save hundreds per month.