Ontario Home Buyer Programs 2025 for Returning Buyers

If you’ve owned a home before and are planning to buy again in Ontario, you might assume most government programs don’t apply to you. The truth is, several programs are still available for returning buyers, especially those re-entering the market after renting, relocating, or downsizing.

This article outlines which incentives remain accessible in 2025 for previous homeowners, and how to make them work for your next purchase.

Who Qualifies as a Returning Buyer?

Returning buyers include anyone who has previously owned a home but is now buying again. You might be:

• Renting after selling a property
• Relocating to another region in Ontario
• Downsizing after retirement
• Transitioning after separation or divorce

While many incentives are geared to first-time buyers, some federal and municipal programs allow previous homeowners to qualify under certain conditions.

Federal Programs for Returning Buyers

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan lets you withdraw money from your RRSP without paying tax, provided the funds go toward your home purchase and are repaid over 15 years.

You may still qualify even if you’ve owned before. To be eligible:

• You must not have owned a home, or lived in one owned by your spouse, during the past four years
• The home must become your primary residence within one year of purchase

This is especially useful for renters returning to the market. We worked with one client who sold her property, rented for five years, then used her RRSP through the HBP to cover most of her down payment.

First-Time Home Buyer Incentive (Shared Equity Program)

Despite the name, this incentive can apply to some returning buyers if you meet the federal definition of a first-time buyer. That includes:

• Not owning a home in the past four years
• Qualifying after separation or divorce
• Having only owned a property that was not your primary residence

Eligible buyers may receive 5 to 10 percent of the purchase price as a shared equity loan. You repay the same percentage later, when you sell or after 25 years.

See eligibility details: Government of Canada – First-Time Home Buyer Incentive

Purchase Plus Improvements

Purchase Plus Improvements allows you to finance renovations by adding the cost to your mortgage. This is a good fit for buyers choosing homes that need updates such as kitchens, bathrooms, flooring, or new windows.

How it works:

1. Get written contractor quotes before your mortgage is finalized
2. Your lender orders an appraisal with an “as-improved” value
3. On closing, funds are held back by the lender or lawyer
4. Complete the work within the lender’s set timeline
5. Submit proof of completion to have the funds released

What qualifies:

• Permanent improvements that increase the home’s value
• Kitchens, baths, flooring, HVAC, insulation, roofing, windows
• Not eligible: furniture, décor, most appliances

Timing and limits:

• Caps and timelines vary by lender and insurer
• Most allow 60 to 120 days for completion
• Improvements must match the quotes provided

Tips:

• Build a 10 to 15 percent buffer into quotes to cover changes
• Confirm lender documentation and inspection requirements
• Line up contractors before closing since funds release only after work is done

Further reading:

• CMHC Improvements
• Sagen Purchase Plus Improvements
• Canada Guaranty Purchase Plus Improvements

Municipal Programs for Returning Buyers

Several Ontario municipalities offer down payment assistance programs. These are typically income-based and don’t always require you to be a first-time buyer.

Peel Region – Affordable Home Ownership Program

Peel Region has previously offered forgivable loans of up to 10 percent of the purchase price. The 2025 intake has closed, but the program is expected to return in 2026.

Program details: Peel Region Housing

Waterloo Region – Down Payment Assistance

Waterloo Region provides up to 5 percent of the purchase price as a forgivable loan. Funding is limited and available on a rolling basis. Income and price caps apply, but prior ownership does not always disqualify you.

Program details: Region of Waterloo – Homeownership Support

Simcoe County – Homeownership Program

Simcoe County’s program remains active in 2025. It offers forgivable down payment loans for eligible renters moving into ownership. Past ownership is not an automatic barrier if other conditions are met.

Program details: Simcoe County Housing

Other Municipal Programs

Cities such as Sudbury, Thunder Bay, and Kingston run similar initiatives depending on their annual housing budgets. Availability changes each year, so it is best to check with your local housing department.

How to Make These Programs Work for You

Even if you’ve owned before, smart use of federal and local programs can reduce your upfront costs. Steps we take with clients include:

• Confirming if you qualify under federal definitions of a first-time buyer
• Reviewing eligibility for local assistance based on income and location
• Coordinating with your mortgage team to align financing and timelines
• Monitoring application windows and funding cycles

Explore more on mortgage options here: Mortgage Financing Simplified for Ontario Homebuyers

Moving Forward

If you’re a previous homeowner thinking of buying again, you may have more support than you realize. From RRSP withdrawals to renovation financing to local programs, these tools can help you move forward sooner and with more confidence.

Contact us to schedule a strategy call. We’ll help you evaluate eligibility and build a plan tailored to your next move.