Ontario offers several first-time home buyer savings programs and incentives to help make home ownership more accessible and affordable. Here is a summary of the different programs available to first-time homebuyers in Ontario.
Home Buyers’ Plan (HBP)
The Home Buyers’ Plan is a federal program that allows eligible first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) tax-free to put towards a down payment on a home. To be eligible, applicants must meet certain criteria, such as being a Canadian resident and a first-time homebuyer or not having owned a home in the last four years.
First-Time Home Buyer Tax Credit
The First-Time Home Buyer Tax Credit is a federal program that provides a non-refundable tax credit of up to $750 for eligible first-time homebuyers in Canada. To be eligible, applicants must have purchased a qualifying home and not have lived in another home owned by themselves or their spouse in the same year or the previous four years.
Ontario First-Time Home Buyer Incentive
The Ontario First-Time Home Buyer Incentive is a program that provides financial assistance to eligible first-time homebuyers in Ontario. The program provides a shared equity mortgage with the Government of Canada, allowing first-time homebuyers to reduce their monthly mortgage payments without increasing their down payment. To be eligible, applicants must meet certain criteria, such as having a maximum qualifying income of $120,000 per year and a minimum down payment of 5%.
Land Transfer Tax Rebate
The Land Transfer Tax Rebate is an Ontario program that provides a rebate of up to $4,000 for eligible first-time homebuyers in Ontario. The rebate is available for both provincial and municipal land transfer taxes and is based on the purchase price of the home. To be eligible, applicants must meet certain criteria, such as being a Canadian citizen or permanent resident and having never owned a home anywhere in the world.
First-Time Homebuyer’s Credit (FTHBC)
The First-Time Homebuyer’s Credit is an Ontario program that provides a refundable tax credit of up to $5,000 for eligible first-time homebuyers in Ontario. The credit is based on a percentage of the home’s purchase price and is meant to help cover closing costs such as legal fees and land transfer taxes. To be eligible, applicants must meet certain criteria, such as being a Canadian resident, having never owned a home anywhere in the world, and purchasing a qualifying home.
Ontario offers several first-time homebuyer savings programs and incentives that can help make home ownership more accessible and affordable. From the Home Buyers’ Plan to the Land Transfer Tax Rebate, each program offers unique benefits for eligible first-time homebuyers in Ontario. It is important to research and understand the different programs available to determine which one(s) may be right for you.
