First-Time Home Buyer Cheat Sheet: Rebates & Incentives

July 15, 2025

If you're buying your first home in Ontario — especially in Toronto — there are a number of government programs, rebates, and incentives that can help ease the cost.

This cheat sheet breaks them down into three stages: Before you buy. At closing. After you move in. Straightforward, fact-based, and easy to follow.

Before You Buy

First Home Savings Account (FHSA)

  • Contribute up to $8,000/year, with a lifetime limit of $40,000

  • Contributions are tax-deductible, like an RRSP

  • Withdrawals are tax-free if used toward a qualifying first home purchase

  • Must be a Canadian resident, at least 18 years old, and a first-time home buyer (no home ownership in past 4 years)

Checkpoint: Open your FHSA early. Unused contribution room carries forward, and withdrawals must be used within 15 years of opening the account.

Home Buyers’ Plan (HBP)

  • Withdraw up to $60,000 from your RRSP tax-free (or $120,000 for a couple)

  • You’ll need to repay it gradually over 15 years

  • Must be a first-time home buyer (not owning a home in the last 4 years)

  • The funds must sit in your RRSP for at least 90 days before withdrawal

Checkpoint: Keep track of your repayments — if you skip a year, it’ll count as taxable income that year.

At Closing

Ontario Land Transfer Tax Refund

  • Refund of up to $4,000 on the provincial portion of land transfer tax

  • Applies to both new and resale homes

  • To qualify, you must be 18+, have never owned a home anywhere in the world, and plan to live in the home

Checkpoint: You can apply for this through your lawyer on closing day — don’t miss it or you’ll have to file afterward for reimbursement.

Toronto Land Transfer Tax Rebate

  • If you’re buying in the City of Toronto, you’ll also pay a municipal land transfer tax

  • First-time buyers may receive a rebate of up to $4,475

  • Eligibility is the same as the provincial rebate

Checkpoint: If you're buying in Toronto, these two rebates combined can save you up to $8,475 right off the top.

After You Move In

GST/HST New Housing Rebate

  • Applies if you’re buying a new build or substantially renovated home

  • You can recover part of the 5% GST and provincial HST

  • Full federal rebate available for homes priced under $350,000, partial rebate up to $450,000

  • Ontario portion may apply up to $750,000

Checkpoint: Check with your builder — many include this rebate in the purchase price. If not, you’ll need to apply for it yourself.

First-Time Home Buyers’ GST Rebate (Federal)

  • Additional federal rebate that may apply to new homes used as a primary residence

  • Amount varies depending on the price and type of property

Checkpoint: Applies only if you’re actually moving into the home — not for investment properties.

What Does This Add Up To?

If a first-time buyer couple purchases a new $800,000 condo in Toronto and fully uses their FHSA and HBP, here’s what they might access:

Program Benefit FHSA (combined) $40,000 tax-free savings HBP (combined) $120,000 tax-free RRSP withdrawals Ontario LTT Rebate $4,000 Toronto LTT Rebate $4,475 GST/HST New Housing Rebate ~$6,000 (estimate) Total Support Up to $270,000+ in tax-sheltered money and rebates

Note: Your numbers will vary based on property price, whether it’s a resale or new build, and your personal eligibility.

Summary Checklist

Here’s what to review before you close your first deal:

Open an FHSA and contribute early

Confirm RRSP funds meet HBP withdrawal requirements

Ask your lawyer to apply for both land transfer tax rebates

If buying new, ask your builder if GST/HST rebate is already applied

Make sure the home will be your principal residence (most rebates require this)

Understand repayment timelines for HBP