Buying a home can be challenging and expensive but it can also be very exciting and rewarding. The Canadian government offers many programs to help you move from renter to buyer. If you have considered buying your first home but are not sure how to start or where to go for help, this page shares resources that may help first-time home buyers move from renting to buying. Before we get started, let's answer a couple of questions. How do you know if you qualify as a first-time home buyer? What type of home qualifies under most of these programs?
Are You A First-Time Home Buyer in Ontario?
You are considered a first-time home buyer if you or your current spouse or common-law partner have not owned or jointly owned a property as your principal place of residence in the past 4 years. For example, if you want to withdraw funds from your RRSP on July 31, 2025, you must not have owned a home from January 1, 2021, to June 30, 2025.
What Types of Home Can You Buy to Help Qualify for First-Time Home Buyers Programs?
To qualify for some of these programs, the home you purchase must be one of the following:
Single-family homes
Semi-detached homes
Townhouses
Mobile homes
Apartments in:
Duplexes
Triplexes
Fourplexes
Apartment buildings
Condominium units
A share of ownership in a co-operative housing corporation
Here are 5 Canadian Government programs that can provide financial support for first-time home buyers and help them move from renter to buyer.
1. RRSP Home Buyers’ Plan
The RRSP Home Buyers’ Plan is mainly for first-time home buyers. It helps by allowing first-time home buyers to borrow money from their RRSP (Registered Retirement Savings Plan) to buy or build a qualified home. In 2024, the withdrawal limit is increased from $35,000 to $60,000. This means that you can withdraw up to $60,000 without a tax penalty.
Read More About RRSP Home Buyers’ Plan
2. First Home Savings Account (FHSA)
First Home Savings Account is a first-time home buyer’s plan that allows you to save up for your first home tax-free, up to a limit. You can claim the amount you contribute to your FHSA as a tax deduction in the following tax year. For example, if you save $10,000 in your FHSA in 2024 up to December 31, 2024, you can claim that amount on your 2024 taxes in 2025.
You are eligible for FHSA if you are a Canadian between 18 and 71 years old at the end of the contribution year and you qualify as a first-time home buyer. You must meet all the criteria to open a FHSA account. You may open a FHSA account with your financial institution and may be able to include investments in your account. Check with your financial institution to see what you can hold in the account.
Read More About First Home Savings Account
3. Land Transfer Tax Rebate
When you buy a home, some provinces, such as Ontario, charge a land transfer tax as a % of the price of the property. If you live in Toronto and the surrounding areas, you pay city land transfer tax as well. To help first-time home buyers, some provinces and cities give you a rebate on the land transfer tax you pay when buying the house. Depending on the price of the house, some first-time home buyers could get a full rebate on the land transfer tax. There are some eligibility criteria to qualify, and you must apply within 18 months of purchase.
Click here to Read More About Land Transfer Tax Rebate
4. GST/HST Rebate on New Homes
If you buy a new construction home, you may be eligible for a rebate on some of the taxes charged on newly built homes. Check with your builder and real estate agent to see if you qualify.
Read More About GST/HST Rebates on New Homes
5. Home Buyers Tax Credit
You may be able to claim a tax credit on your income tax return for a qualified home if you are a first-time buyer.
Read More About Home Buyers Tax Credit
For more information about these programs and how you can move from being a renter to a home buyer, call Patricia Faith Martin at 905-274-3434 or visit Contact Me.