Navigating the real estate market in Ontario can be daunting, especially for first-time homebuyers. Fortunately, several home buyer programs are designed to provide financial assistance, incentives, and benefits, making homeownership more accessible and affordable. This guide explores the key home buyer programs available in Ontario, detailing their benefits and how you can take advantage of them.

Renovation Loans

Transforming your home can be a costly affair, but with renovation loans, particularly the Purchase Plus Improvement Program, you can finance both the purchase of a home and the cost of renovations. This home buyer program allows you to add the estimated renovation costs to your mortgage, turning your new property into your dream home.

Key Benefits:

  • Finance up to 10% of the home’s post-renovation value.
  • Spread renovation costs over the life of the mortgage.
  • Immediate improvements without additional high-interest loans.

How to Apply:

  1. Get pre-approved for a mortgage.
  2. Obtain quotes from contractors for the proposed renovations.
  3. Submit renovation plans and quotes to your lender for approval.
  4. Complete the purchase and start renovations once approved.

First-Time Homebuyer Incentive Program

The First-Time Homebuyer Incentive Program (FTHBI) is a shared-equity mortgage program that helps first-time buyers lower their monthly mortgage payments without increasing their down payment. This home buyer program is a valuable tool for reducing the financial burden of homeownership.

Key Benefits:

  • Government offers 5% or 10% of the home’s purchase price towards the down payment.
  • Reduces monthly mortgage payments.
  • No ongoing repayments; repay the incentive upon selling the home or after 25 years.

How to Apply:

  1. Ensure you meet the eligibility criteria: first-time homebuyer, household income under $120,000, and total borrowing not exceeding 4 times your qualifying income.
  2. Apply for the incentive through your lender.
  3. Use the incentive amount towards your down payment.
  4. Repay the incentive when you sell the home or after 25 years.

Taking Advantage of the RRSP Home Buyers’ Plan

The RRSP Home Buyers’ Plan (HBP) allows first-time homebuyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home without immediate tax penalties. This home buyer program leverages your own savings to make homeownership more attainable.

Key Benefits:

  • Interest-free loan from your own savings.
  • Withdraw up to $35,000 individually or $70,000 per couple.
  • Repay the amount withdrawn over 15 years.

How to Apply:

  1. Ensure you have a valid RRSP account.
  2. Request the withdrawal using Form T1036.
  3. Use the withdrawn funds to purchase or build your home.
  4. Start repayment in the second year after the withdrawal, over 15 years.

How to Apply for the Land Transfer Tax Rebate

One of the significant expenses when purchasing a home is the land transfer tax. Fortunately, there is a Land Transfer Tax Rebate available for first-time homebuyers, which helps reduce closing costs by offering a rebate on the land transfer tax, up to a maximum amount.

Key Benefits:

  • Rebates up to $4,000 on provincial land transfer tax.
  • Additional rebates available in certain municipalities, such as Toronto.

How to Apply:

  1. Confirm your eligibility: first-time homebuyer, and the home is your principal residence.
  2. Complete the land transfer tax affidavit at the time of registration.
  3. Apply for the rebate through your lawyer or online through the Ministry of Finance.

Land Transfer Tax Rebate for Toronto Home Buyers

For those purchasing a home in Toronto, it’s important to understand the additional Municipal Land Transfer Tax (MLTT) on top of the provincial land transfer tax. First-time homebuyers can benefit from a rebate of up to $4,475 on the MLTT. This home buyer program is essential for those purchasing in Toronto, as it offers significant savings.

Key Benefits:

  • Significant reduction in the total land transfer tax payable.
  • Combined with the provincial rebate, potential savings are substantial.

How to Apply:

  1. Confirm eligibility for both provincial and municipal rebates.
  2. Calculate the total potential rebate amount.
  3. Complete the necessary forms and submit them through your lawyer during the purchase process.
  4. Receive the rebate directly or as a reduction in the land transfer tax payable at closing.


Buying a home in Ontario can be more affordable and less stressful with these home buyer programs. By leveraging these incentives, first-time homebuyers and those looking to renovate can achieve their homeownership dreams more easily. For further information on these programs and other financial tools, visit the CMHC Housing Market Information Portal. Ready to make your homeownership dreams come true? Explore these essential first-time home buyer programs in Ontario and start your journey today.

Contact us for personalized guidance and expert advice on taking advantage of these incredible opportunities. Don’t miss out—secure your future home now! By understanding and utilizing these home buyer programs, you can navigate the complexities of the real estate market with confidence and ease.

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