First Time Home Buyer

More than 67% of households in Canada owned their home in 2016. You can be one of them!
Congratulations! You have made the right choice. Buying your home vs. renting has endless self rewards. Now that you have made that choice, here is what to consider next…

  • What is your price range?
  • What is the amount of down-payment you would like to invest?
  • How much would you be comfortable paying on a monthly basis?
  • How long do you think you will live in the home?
  • When are you planning on making the move into your new home?

Use the Mortgage Calculator to help establish how much you can afford.

Once you have established these preliminary boundaries, it would be beneficial to speak with me; together, we can determine the optimal mortgage amount and program best suited to your needs.

first time home buyer family

Government Programs Help First Time Home Buyers


First-Time Home Buyer Incentive (FTHBI)

Introduced in the 2019 Federal Budget, the Incentive enables first-time homebuyers to reduce their monthly mortgage payment without increasing their down payment. The Incentive is not interest bearing and does not require ongoing repayments.
Through the First-Time Home Buyer Incentive, the Government of Canada will offer:

  • 5% for a first-time buyer’s purchase of a re-sale home
  • 5% or 10% for a first-time buyer’s purchase of a new construction
  • Qualifying: You or your spouse must not have owned a home in the last 4 years.
  • Repaying: You have 25 years to repay the amount or at the time of sale of the home.
  • Essentially, the Government will own 5% or 10% of your home.  Learn  about how the FTHBI works.

Home Buyers’ Plan (HBP)

This program allows you to withdraw up to $35,000 from your RRSP tax free to fund your purchase. If both you and your spouse qualify, you can each withdraw a total of $75,000. Make sure the money is in your RRSP for at least 90 days prior to closing.

  • Qualifying: You or your spouse must not have owned a home in the last 5 years. You must have a signed agreement to purchase or build a home as your principal residence.
  • Repaying: You have 15 years to repay the amount you borrowed from your RRSP. There are no interest charges. Each year, you have to repay 1/15, or more, of the total amount you withdrew. Learn  about how the HBP works.

Land Transfer Tax (LTT) Refund

You may receive a refund from the Ontario government of up to $4,000 of the land transfer tax you paid on your first home. Here’s how it works:

  • You must be at least 18.
  • You cannot have previously owned a home, or an interest in a home, anywhere in the world.
  • Your spouse cannot have owned a home, or an interest in a home anywhere while they were your spouse.
  • You may receive the refund at the time you register your home purchase. If not, you must apply for it no later than 18 months after the registration date.

Learn more about how the LTT Refund works.


First Time Home Buyers’ Tax Credit (HBTC)

You or your spouse can claim this tax credit on your annual income tax return. The credit is based on an amount of $5,000. To calculate, multiply the lowest personal income tax rate for the year (15% in 2011 and 2012) by $5,000. For these years, the maximum credit is $750. Here’s how it works:

  • You or your spouse must have acquired a qualifying home acquired after January 27, 2009.
  • You cannot have lived in another home owned by you or your spouse in the year you buy your first home – or in any of the 4 preceding years.

Learn more about how the HBTC works.


HST New Housing Rebate

This rebate is available to to all buyers, not just first timers. If you’re buying a new home (new build) you can receive a 36% rebate of the federal portion of the HST, to a maximum of $6,300 on a home costing less than $350,000. Homes costing more than this receive less of a rebate and homes over $450,000 do not qualify. However, you can also apply for a rebate of 75% on the Ontario portion of the HST up to a maximum of $24,000. For more information, check out the federal website and the provincial site.

Make sure you also check if your municipal government also offers programs to help first-time home buyers!

Why Not Contact Me Today for a No-obligation Mortgage Quote?

My normal business hours are 9am to 9pm. If you contact me during those times I guarantee a response within 30 minutes. Outside of these regular business hours It may be a few hours until you get a reply. If you're really in a hurry - like your bank just refused to approve your mortgage - please text me a quick message with the story and I will try to get back to you ASAP.

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