Ontario First-Time Home Buyer Incentives: What You Need to Know

Alisha Zoethout • April 21, 2023

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.

A kitchen with white cabinets , stainless steel appliances , a refrigerator and a microwave.

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.


Get in touch today

Amy Flowers

About the Author

Amy Flowers

Broker, CEO & Team Leader — Flowers Team Real Estate

Amy Flowers is the Broker, CEO, and Team Leader of Flowers Team Real Estate, Milton's most-awarded real estate team. A licensed REALTOR® since 2001, Amy has spent more than two decades helping Milton families buy and sell with confidence. Under her leadership, the Flowers Team has been ranked #1 in Milton since 2009 and recognized in the top 1% of Royal LePage agents nationwide. The team offers full turnkey service, including in-house staging, professional photography, and a dedicated marketing department, so every client gets a seamless, concierge-level experience from first showing to closing day.

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