Are there any government programs to help first-time home buyers in Ontario?
Can the government help you buy your first home in Ontario? Yes — and here's exactly how to use the programs to get funded faster.
Quick answer
Yes. Ontario and the federal government offer several programs to help first-time home buyers reduce costs, access down payment funds, and lower monthly payments. Use them together and you can shave thousands off your closing costs and monthly mortgage bills.
Key government programs every first-time buyer must know
- Home Buyers' Plan (HBP): Withdraw up to $35,000 from your RRSP ($70,000 for a couple) tax-free to use as a down payment. You must repay it over 15 years.
- First-Time Home Buyer Incentive (FTHBI): A federal shared-equity incentive that can contribute 5% (or 10% for qualifying new builds) to your purchase. Lowers your mortgage payments but shares future appreciation.
- First-Time Home Buyers' Tax Credit (HBTC): A non-refundable federal tax credit based on a $5,000 home buyers' amount (helps cover closing costs via a tax refund).
- Ontario Land Transfer Tax (LTT) Rebate: First-time buyers can get up to $4,000 back on provincial land transfer tax. Toronto and some municipalities offer additional rebates.
- GST/HST New Housing Rebate: If buying a new home or substantially renovated home, you may qualify for a partial GST/HST rebate.
- CMHC and other mortgage default insurance: Not a direct grant, but allows lower down payments (as low as 5%) for buyers who qualify. Shop rates and conditions — insurance premiums vary.
How to stack these programs (practical steps)
- Confirm first-time buyer status: You generally qualify if you and your spouse haven’t owned a home in the past four years. Check program rules.
- Use the HBP first to secure a down payment. Move funds into RRSP at least 90 days before withdrawal.
- Apply for the LTT rebate at closing — your lawyer/notary usually files it.
- Consider the FTHBI if you want a lower insured mortgage payment; model the shared-equity trade-off with a mortgage expert.
- Claim the HBTC on your tax return after closing.
- Get mortgage pre-approval and compare CMHC vs private insurer rates and premiums.
Common pitfalls — avoid these expensive mistakes
- Missing the RRSP 90-day rule for the HBP.
- Assuming FTHBI always saves money — shared equity can cost more if home prices rise rapidly.
- Forgetting municipal rebates (Toronto has its own program).
- Not factoring in closing costs, land transfer tax, and CMHC insurance premiums.
Why work with a financing and mortgage specialist
Programs overlap. Timing and sequencing matter. A mortgage strategy that pulls the right mix of HBP, FTHBI, and rebates can lower monthly payments today and protect equity tomorrow.
For clear, no-nonsense mortgage plans tailored to Ontario buyers, contact Tony Sousa — a local mortgage and financing authority who builds step-by-step purchase plans and shops lenders for your best outcome. Email: tony@sousasells.ca | Phone: 416-477-2620 | https://www.sousasells.ca
Take action now: get a free eligibility check, a DETAILED cost comparison, and a step-by-step closing checklist to lock these government benefits in before you buy.
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