Ontario Home Buyer Incentives 2025

Ontario buyers in 2025 have more support than ever when it comes to affording a home. From rebates on land transfer tax to programs that let you borrow against your RRSP, these incentives are designed to ease the upfront costs of purchasing and even help with renovations. Understanding which ones you qualify for can make a significant difference in your budget and long-term financial planning.

Below you’ll find a breakdown of the key incentives available, how they work, and real-life examples of how Ontario and Niagara Region buyers are putting them to use.

Quick Comparison of Ontario Home Buyer Programs

Program	Benefit	Key Details	Repayment Rules
Home Buyers’ Plan (HBP)	Access your RRSP for down payment	Withdraw up to $60,000 per person ($120,000 per couple)	Repay over 15 years. Withdrawals made by Dec 31, 2025 have a grace period before repayment begins.
First Home Savings Account (FHSA)	Combines tax-free growth + tax-deductible contributions	Lifetime limit $40,000 per person ($80,000 per couple)	No repayment required. Unused funds can transfer to RRSP/RRIF.
First-Time Home Buyers’ Tax Credit (HBTC)	Helps offset legal & closing costs	Credit of $1,500 (15% of $10,000)	Non-refundable. Can be shared by partners but total remains $10,000.
Land Transfer Tax (LTT) Rebate	Refund on Ontario land transfer tax	Up to $4,000 for first-time buyers	Applied at closing by your lawyer.
CMHC Shared Equity Programs	Reduces mortgage size	Varies by program, limited availability	Repayment required when you sell or refinance.
Purchase Plus Improvements	Finance renovations right into your mortgage	Add approved reno costs to mortgage (e.g., kitchens, flooring, roof)	Repaid as part of mortgage. Lender approval required.
Ontario Secondary Suite Program	Funding to add a rental suite or in-law unit	Municipal programs (e.g., St. Catharines offers forgivable loans for creating secondary suites)	Terms vary; some forgiven if conditions met.

Key Federal Programs Every Buyer Should Know

Home Buyers’ Plan (HBP)

The HBP lets you withdraw up to $60,000 from your RRSP ($120,000 for couples) to put toward your down payment. You’ll need to repay it over 15 years, but withdrawals made by the end of 2025 benefit from a temporary repayment grace period.

Example:
If you’ve been contributing to an RRSP for years, this program could unlock a six-figure boost to your down payment. A Toronto couple with $100,000 combined RRSP savings can access it now to buy in St. Catharines, while spreading repayment over time.

First Home Savings Account (FHSA)

This newer program combines the best of an RRSP and TFSA: contributions are tax-deductible, and withdrawals for your first home purchase are tax-free. The lifetime contribution limit is $40,000 per person.

Why it matters: Unlike the HBP, the FHSA has no repayment requirement. Even if you don’t buy, funds can roll into your RRSP/RRIF. Learn more in our First-Time Home Buyer Guide.

First-Time Home Buyers’ Tax Credit (HBTC)

This federal credit reduces your tax payable after purchasing. It’s worth $1,500 per household, based on 15% of a $10,000 eligible amount. It’s designed to help offset legal fees and closing costs.

GST/HST New Housing Rebate

If you’re buying new construction or doing substantial renovations, you may be eligible for a partial rebate on the GST or HST portion of your purchase.

Provincial & Municipal Incentives in Ontario

Ontario Land Transfer Tax Rebate

First-time buyers in Ontario can receive a rebate of up to $4,000 on land transfer tax. Your lawyer usually applies this automatically on closing.

Purchase Plus Improvements Program

This program allows you to finance approved renovation costs directly into your mortgage. For example, if you’re buying a $600,000 home in Niagara and want to budget $40,000 for updates, you can roll the improvements into your mortgage instead of paying upfront.

Secondary Suite Incentives (e.g., St. Catharines Program)

Some Ontario municipalities encourage affordable housing by offering grants or forgivable loans for creating rental or in-law suites.

In St. Catharines, the Secondary Dwelling Unit Program offers financial assistance to homeowners who build legal secondary suites. This can be a smart way to create an income stream with rental property. Learn more at the City of St. Catharines.

How to Stack Programs Effectively

The real benefit comes from combining incentives:

• Use your FHSA + HBP to maximize down payment power.
• Claim the HBTC and LTT rebate to reduce closing costs.
• If buying a home that needs updates, use Purchase Plus Improvements to renovate right away.
• In cities like St. Catharines, apply for a secondary suite program to create rental income, offsetting mortgage costs.

Scenario:
A first-time buyer couple from Mississauga moves to St. Catharines. They use their combined FHSA savings, withdraw from RRSPs under the HBP, claim the land transfer tax rebate, and tap into the local secondary suite program to add an in-law suite. Their total upfront costs shrink by more than $25,000, while creating long-term income potential.

FAQs About Ontario Home Buyer Incentives

Q. Can I use both the FHSA and the Home Buyers’ Plan together?
A. Yes. You can withdraw from your FHSA and your RRSP (under the HBP) for the same purchase, maximizing your down payment.

Q. Do I need to repay the FHSA funds?
A. No. FHSA withdrawals are tax-free and don’t need to be repaid.

Q. Are municipal programs available everywhere in Ontario?
A. No. Programs like secondary suite funding vary by city. St. Catharines, for example, offers its own incentives, while other municipalities may not.

Q. What if I buy a pre-construction condo?
A. You may still qualify for many of these incentives, including the HBP, FHSA, and HBTC. Be sure to confirm with your lawyer how timing of closing and deposits affects eligibility.

Final Takeaway

Ontario’s 2025 home buyer programs are designed to reduce upfront costs, make saving easier, and even support renovations or rental suites. While federal programs apply broadly, municipal incentives in Niagara and the GTA add extra opportunities that many buyers overlook.

Ready to Explore Your Options?

If you’re buying in the GTA or relocating to Niagara, we can help you:

• Assess which incentives you qualify for
• Connect with lenders who understand specialized programs like Purchase Plus Improvements
• Explore communities where local incentives add even more value
• Build a long-term strategy that fits your lifestyle and financial goals

👉 Contact us today to book your buyer consultation and learn how to make the most of Ontario’s 2025 programs and rebates.