Ontario First-Time Home Buyer Incentives: What You Need to Know
Buying your first home is a big decision. It also means you can take advantage of first-time home buyer incentives.
The Ontario provincial government, the Canadian federal government, and even some municipalities offer incentives to help turn
renters into first-time home buyers.
Read on to learn what incentives are available and to see if you qualify.

Who Qualifies as a First-Time Home Buyer in Ontario?
To qualify as a first-time buyer in Ontario, you must not have owned a home anywhere in the world; even gifted or inherited homes are disqualifiers when your name is on the title.
What First-Time Home Buyer Programs are Available in Ontario
Let’s look at some first-time home buyer incentives available in Ontario right now.
Land Transfer Tax Rebate
The provincial land transfer tax is part of your closing costs, but as a first-time home buyer, you can get up to $4,000 back if your home is worth more than $368,000. Qualifiers must:
- Be a permanent resident of Canada or a Canadian citizen
- Be 18 years of age or older
- Reside at that property within nine months of registration
- Apply for this rebate within 18 months of registration
Toronto Only — First-Time Purchaser Rebate
If a first-time buyer purchases a residential resale property or a new build in Toronto, they can receive up to $4,475 in tax relief in addition to the land transfer tax rebate using the same qualifiers.
Local Municipality Homeowner Programs
There are programs throughout the different municipalities of Ontario to help people become homeowners. These don’t specifically apply to first-time home buyers, but you can still take advantage if you meet their qualifications.
Simcoe County has a homeownership program that lends up to 10% of the purchase price to help with the downpayment. Here’s the catch:
- The home can’t exceed $593,879
- You must currently be renting and have a combined gross income that doesn’t exceed $103,200
- The lender will forgive the loan if you live in the home for at least 20 years, but penalties will apply if you sell beforehand
Kitchener, Waterloo, and Cambridge offer residents a 5% loan towards the downpayment of a house not exceeding $506,000. This incentive applies to those who have lived in the region for the last 12 months and have a household income not exceeding $101,300.
There are similar programs in other counties and municipalities, such as:
- The County of Frontenac
- The District of Muskoka
- Chatham-Kent Municipality
- Dufferin County
- And more
What Federal Programs are Available in Canada for First-Time Buyers
First-time home buyers have a couple of options from the federal government that will help them purchase a house.
The First-Time Home Buyer Incentive
Eligible buyers with a household income of $120,000 or less, and a mortgage of no more than four times the annual income, can receive a 5% or 10% interest-free loan, depending on the type of home purchased. When paying off the mortgage or selling the home, the homeowner will owe the federal government 5% or 10% of the house's current value.
The Home Buyers Program (HBP)
This program allows first-time home buyers to use up to $35,000 of their RRSPs tax-free as a downpayment. Homeowners must repay the withdrawn RRSPs within 15 years, or penalties will occur.
Home Buyers Tax Credit
Allows eligible Canadians to claim a $10,000 non-refundable income tax credit against purchasing a home.
Ready to Become a First-Time Homeowner in Ontario?
Flowers Team Real Estate can help you navigate the home-buying process from start to finish, including full disclosure on all first-time home buyer incentives available to you.
Looking for meaningful results that last a lifetime? We can help.
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