Your search results

Government Incentives

First-Time Home Buyers' Tax Credit

Through Canada’s Economic Action Plan, the federal government has introduced a First-Time Home Buyers’ Tax Credit (HBTC) to help with the purchase of a first home. This measure is expected to cost $30 million in 2008-2009, $175 million in 2009-2010 and $180 million in 2010-2011.

About the Initiative

The HBTC will assist first-time homebuyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes, which are a particular burden for first-time homebuyers, who must also save for a down payment.
The $5,000 non-refundable HBTC amount will apply to qualifying homes acquired after January 27, 2009, and will provide up to $750 in federal tax relief.
A qualifying home is generally considered to be a housing unit located in Canada that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence no later than one year after its acquisition.
Any unused portion of an individual’s HBTC may be claimed by the individual’s spouse or common-law partner. When two or more eligible individuals jointly purchase a home, the credit may be shared but the total credit amount claimed cannot exceed $5,000.

How It Works

First-time homebuyers purchasing a home will be able to claim the HBTC on their income tax returns, starting in 2009. Claimants should ensure that documentation supporting the purchase transaction is available if requested by the Canada Revenue Agency. Claimants are also responsible for making sure that all applicable eligibility conditions are met.

Who Is Eligible

First-time homebuyers are eligible. An individual is considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of the home purchase or in any of the four preceding calendar years. Special rules apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit. In these situations, the HBTC can be claimed, even if the first-time homebuyer requirement is not met.

How to Find Out More

For more information, please visit the Canada Revenue Agency website.

The Home Buyers' Plan

Through Canada’s Economic Action Plan, the federal government is providing first-time homebuyers with access to their registered retirement savings plans (RRSPs) to buy or build a qualifying home through the Home Buyers’ Plan (HBP).

About the Initiative

The HBP allows first-time homebuyers to withdraw up to $25,000 from an RRSP to purchase or build a home without having to pay tax on the withdrawal. The RRSP contributions must remain in the RRSP for at least 90 days before they can be withdrawn under the HBP, or they may not be deductible for any year. Amounts withdrawn are repayable in instalments over a period not exceeding 15 years, starting the second year following the year the withdrawal was made.

How It Works

First-time homebuyers can visit their financial institution to withdraw RRSP funds under the HBP.

Who Is Eligible

First-time homebuyers are eligible. An individual is generally considered a first-time homebuyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year the HBP withdrawal is made, or in any of the four preceding calendar years.
Special rules apply for the purchase of homes that are more accessible or better suited to the personal needs and care of an individual who is eligible for the Disability Tax Credit. In these situations, withdrawals may be made under the HBP, even if the first-time homebuyer requirement is not met.

How to Find Out More

For more information, please visit the Canada Revenue Agency website.

Provincial Land Transfer Tax Refunds for First-Time Homebuyers

Land transfer tax applies to all transfers of land in Ontario. First-time homebuyers may be eligible for a refund of all or part of the tax payable.

How It Works

Qualifying taxpayers may claim an immediate refund at time of registration as follows:

  • If registering electronically, by completing the required statements under the Explanation tab of the electronic land transfer tax affidavit, or
  • If registering on paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes at the Land Registry Office.
  • If the refund is not claimed at registration, the tax must be paid and a claim for the refund may be submitted directly to the Ministry of Revenue. No interest is paid on this refund.

Note: Applications for a refund must be made within 18 months after the date of the transfer.

Amount of Refund

The amount of the refund claimed will, if granted, offset the land transfer tax payable. The maximum amount refundable is $4,000.

No land transfer tax would be payable by qualifying first‑time purchasers on the first $368,000 of the value of the consideration for eligible homes. First‑time purchasers of homes greater than $368,000 would receive a maximum refund of $4,000

Examples:

Cost of Home Tax Payable Tax Refund Net Tax Payable
$300,000 $2,975 $2,975 $0
$400,000 $4,475 $4,000 $475
$500,000 $6,475 $4000 $2,275

Who Is Eligible

First-time homebuyers, who are at least 18 years of age are eligible. The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition. The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world, while he or she was the purchaser’s spouse. If this is the case, no refund is available to either spouse.
The refund will be reduced if one or more of the purchasers are not a first-time home purchaser. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.
For example, where a parent who is not a first-time purchaser and a child who is a first-time purchaser, purchase a home with equal 50/50 interests, the child may claim 50% of the land transfer tax refund. The child’s claim cannot exceed 50% of the maximum allowable refund (i.e. 50% of $4,000).
A qualifying purchaser may also claim a refund in proportion to his or her spouse’s interest if that purchaser’s spouse has owned a home before becoming the purchaser’s spouse, but not while that purchaser’s spouse.

How to Find Out More

For more information, please visit the Ministry of Revenue website.

Municipal (Toronto) Land Transfer Tax Refunds for First-Time Homebuyers

First-time homebuyers may be eligible for a refund of all or part of the tax payable for both new and existing residential properties.

How It Works

Qualifying taxpayers may claim an immediate refund at time of registration through their real estate lawyer.
Note: Applications for a refund must be made within 18 months after the date of the transfer.

Amount of Refund

A rebate to a maximum of $4,475.00, will apply to first-time purchasers of both new and existing residential properties.
This means that first-time purchasers of residential properties with a consideration value of $400,000.00 or less will receive a maximum rebate of $4,475.00.
A first-time purchaser of a residential property with a consideration value of $600,000.00 would pay a land transfer tax of $8,475.00 and receive a rebate of $4,475.00.
A first-time purchaser of a residential property with a consideration value of $300,000.00 would receive a rebate of $2,975.00.
There is no interest paid on this refund.

Who Is Eligible

First-time homebuyers, who are at least 18 years of age are eligible. The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition. The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.
If the purchaser has a spouse, the spouse cannot have owned a home, nor had any ownership interest in a home, anywhere in the world, while he or she was the purchaser’s spouse. If this is the case, no refund is available to either spouse.
The purchaser is a Canadian citizen or permanent resident of Canada. If the purchaser becomes a Canadian citizen or permanent resident within 18 months of the transfer, they may apply for and may qualify for the rebate.
The refund will be reduced if one or more of the purchasers are not a first-time home purchaser. The refund will be proportionate to the interest acquired by the individuals who qualify for the refund.
For example, where a parent who is not a first-time purchaser and a child who is a first-time purchaser, purchase a home with equal 50/50 interests, the child may claim 50% of the land transfer tax refund. The child’s claim cannot exceed 50% of the maximum allowable refund.
A qualifying purchaser may also claim a refund in proportion to his or her spouse’s interest if that purchaser’s spouse has owned a home before becoming the purchaser’s spouse, but not while that purchaser’s spouse.

How to Find Out More

For more information, please visit the City of Toronto website.

  • Property Search

    $0 to $10,000,000