Mortgage Mondays: First-Time Homebuyers’ Credits

At we recognize that buying a home can be challenging, especially when it is your first time. What if we told you that we could guide you through understanding the government grants, rebates, tax-credits and promotions that are available to first-time homebuyers? In other words, you would be looking at potential savings. Find out what you may be eligible for!
We have provided a list that outlines several options available to Ontario residents that are buying a home for the first time.

First-Time Home Buyer’s (FTHB) Tax Credit:
In 2009, the Government of Canada introduced the (FTHB) tax credit, a $5,000 non-refundable income tax credit on a qualifying home purchased after January 27, 2009. This credit provides up to a maximum of $750 in federal tax relief. Remember to claim this credit when you are filing your taxes—it can be filed under line 369.

First Time Home Buyers Plan (HBP):
Since 2009, Canadians are able to borrow up to $25,000 from a qualified registered retirement savings plan (RRSP). These funds can help you with your down payment, renovations, closing costs, or even furniture expenses. Once you withdraw your money from your RRSP, you generally have 15 years to pay it all back. Your first payment is due on the second year following your redemption and each year Revenue Canada (CRA) will send you a Home Buyers’ Plan (HBP) Statement of Account to keep you informed.

Ontario Land Transfer Tax Rebate for First-Time Homebuyers:
Anyone buying a home for the first time in Ontario is eligible for this tax rebate, as long as you (or your spouse) have never owned a home anywhere in the world. In order to qualify, you must also be over 18 years of age and you must be purchasing this property as your primary residence (sorry, no rentals).

Toronto Land Transfer Tax Rebate for First-Time Homebuyers:
Similar to the Ontario Land Transfer Tax rebate, the Toronto rebate helps cover costs associated with purchases made in Toronto. The tax rebate is capped at $3,750 – however properties purchased prior to December 31, 2007, will be exempt from paying this tax.

GST / HST New Housing Rebate:
You may be eligible to receive a portion or all of the GST/HST that you have paid when building, renovating, or even purchasing your new construction home. In most cases, builders are able to pay or credit the new housing rebate directly to you; this would avoid an immediate out-of-pocket expense for the homeowner. If the builder pays or credits you with the amount of the rebate, you have to complete and sign Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder, when filing your taxes.

Additional Grants from Municipalities

In addition to your Federal and Provincial incentives, some municipalities also offer additional grants. It is always a good idea to speak with your realtor, mortgage broker, accountant and/or your solicitor, to find out if you qualify for any additional offers.

Cash Rebate
Imagine receiving a cash rebate on your mortgage! Simply visit, start your application, and you would receive a cash rebate on your approved mortgage. Similar to the First Time Home Buyers Plan, you could use the funds to help you with renovations, furniture, or any other expense. However, the cash rebate that you receive from “doing your own mortgage” is yours; there are no funds that need to be paid back. Visit to start your application and to find out how much you would receive from your approved mortgage.

We are here to help you through this new and often overwhelming experience.

For more information, visit us at

Lionel Khoury AMP

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