Over the years the Government of Ontario (and Toronto) have introduced a few programs in order to assist First Time Home Buyers with their first home purchase and ease their entry into the housing market.  Here are some details regarding the incentives & programs.

These programs include:

  • First-Time Home Buyers’ Plan
  • Ontario Land Transfer Tax (LTT) Rebate
  • Toronto Land Transfer Tax  (LTT) Rebate

First-Time Home Buyer Refund for Ontario LTT

Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.

Beginning January 1, 2017, no land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

To learn more about the Ontario Land Transfer Tax Refunds for First-Time Homebuyers click here.

First-Time Home Buyer Refund for Toronto LTT

For conveyances and dispositions of beneficial interest in land of an eligible home on or after March 1, 2017, First-Time Home Buyers qualify for a rebate of up to $4,475.00.

To learn more about the Ontario Land Transfer Tax Refunds for First-Time Homebuyers click here.

If you are a first time home buyer and you are buying your house alone, you are entitled to:

  • Withdraw up to $35,000, tax-free, from your Register Retirement Saving’s Plan (RRSP), under the First Time Home Buyer’s Plan.
  • Receive a rebate up to $4,000 on your provincial LTT
  • Receive a rebate up to $4,475 on your municipal LTT

If you are a first time home buyer and you are buying a house with a partner who is also a first time home buyer, then you are entitled to:

  • Withdraw up to $70,000, tax-free, from your Register Retirement Saving’s Plan (RRSP), under the First Time Home Buyer’s Plan.
  • Receive a rebate up to $4,000 on your provincial LTT
  • Receive a rebate up to $4,475 on your municipal LTT

The refund would be reduced if one (or more) of the purchasers is not a first‑time homebuyer. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.

Requirements to qualify for the refund

To qualify for a refund:

  • The purchaser must be at least 18 years old.
  • The purchaser must occupy the home as their principal residence within nine months of the date of transfer.
  • The purchaser cannot have ever owned an eligible home, or an interest in an eligible home, anywhere in the world, at any time.
  • If the purchaser has a spouse, the spouse cannot have owned an eligible home, or had any ownership interest in an eligible home, anywhere in the world, while he or she was the purchaser's spouse. If this is the case, no refund is available to either spouse.

Additional requirement

Beginning January 1, 2017, eligibility for the first‑time homebuyers refund program is restricted to Canadian citizens and permanent residents of Canada.

Time limit to apply for the LTT Refund

A qualifying purchaser must apply for the refund within 18 months after the date of registration of the conveyance or the date the unregistered disposition occurs.

New First-Time Home Buyer Incentives to be Introduced (2019)

As of March 2019, the Liberal Federal Government announced a new First-Time Home Buyer Incentive that is expected to take place starting September 2nd, 2019.

Under the plan, the government would help some first-time buyers by advancing an interest-free loan of up to 5% of the purchase price of an existing home, and up to 10% of the cost of a new home. This would allow the homebuyers to take out a smaller mortgage and keep their monthly payments lower. To learn more regarding the details please visit the following news article: New details emerge about federal First-Time Home Buyer Incentive