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First-Time Buyer

There are several programs and incentives that may be available to you to help make the process of buying a home more affordable.

The First-Time Home Buyer Incentive 

CMHC offers a 5% or 10% Shared Equity Mortgage that allows eligible homebuyers with a minimum down payment to apply for a shared equity mortgage with the Government of Canada. The shared equity mortgage means that the government shares in the upside and downside of the property value up to a maximum gain or loss of 8% per annum.

 

An incentive amount of 5% of the purchase price is available for purchasing an existing home. An incentive of up to 10% is available if the home is newly constructed.

  • No ongoing repayments are required.

  • The incentive is not interest-bearing.

  • Incentives can be repaid at any time without a pre-payment penalty.

  • The incentive must be repaid after 25 years or when the property is sold, whichever is earlier.

Other Conditions Apply

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RRSP Home Buyer’s Plan

You may qualify for the RRSP Home Buyer's Plan if you haven't purchased a home within the last four years (or lived in a spouse's house in that same timeframe). The First Time Home Buyer's Plan benefits Canadians by allowing people to access up to 35K in funds in their RRSP tax-free to put towards their down payment. You have up to 15 years to repay those funds to your RRSP.

 

Funds must be in your RRSP for at least 90 days before purchasing your house.

1st Time Home Buyer’s Tax Credit

The First-time Home Buyers' Tax Credit was introduced as part of 'Canada's Economic Action Plan' to assist Canadians in purchasing their first home. It is designed to help recover closing costs such as legal expenses, inspections, and land transfer taxes.

 

The Home Buyers' Tax Credit is a 10K non-refundable tax credit that can get first-time homebuyers a rebate of up to $1,500.

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Land Transfer Tax Rebate 

Another tax credit available to first-time homebuyers in Ontario of up to $4,000.

 

Each province has rules about who can claim the land transfer tax rebate. The rebate amount depends on which province/city you live in, the home's value, and whether one or both buyers have owned a home.

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