First Time Home Buyer Programs & Incentives For Toronto Home Buyers

First Time Home Buyer Programs & Incentives For Toronto Home Buyers

Are you a first time home buyer in Toronto? Here is a list of programs and incentives from the government that may be available to you to help you buy your first home in Toronto!

Canada Home Buyers' Plan (HBP)

This plan allows first time home buyers to borrow up to $35,000 from your RRSP on a tax-free basis and you intent to live in your home within one year after buying it. Funds must be returned back to your RRSP within 15 years time.

Learn more: Canada.ca

CMHC Insured Mortgages

Home buyers can qualify for a lower downpayment if you purchase Canada Mortgage and Housing Corporation (CMHC) mortgage insurance. The mortgage insurance premium varies based on your loan to value (LTV) ratio and is added to your mortgage amount:

  • LTV up to 65% requires a 0.6% insurance premium
  • LTV up to 75% requires a 1.7% insurance premium
  • LTV up to 80% requires a 2.4% insurance premium
  • LTV up to 85% requires a 2.8% insurance premium
  • LTV up to 90% requires a 3.1% insurance premium
  • LTV up to 95% requires a 4.0% insurance premium

The minimum downpayment is 5% for the first $500,000 of home value, and then 10% for the remainder portion of the home value. This program is only available for homes costing less than $1,000,000. Note that the maximum borrowing amount can be limited based on your income and existing debt.

Learn more: CMHC

CMHC First Time Home Buyer Incentive

The government will be a shared-equity owner of a first time home buyer’s home. The government can be a shared owner with you for a:

  • 5% or 10% ownership for a newly constructed home
  • 5% ownership for a resale home

In Toronto, the annual qualifying income cap is $150,000 and your total borrowing, including the shared-equity incentive portion, cannot exceed 4.5 times of your annual qualifying income for a maximum total borrowing of $675,000. This means this program is only available for properties that are less than $800,000.

Learn more: CMHC

Toronto & Ontario Land Transfer Tax Rebates

First time home buyers can get a land transfer tax rebate from the City of Toronto for up to $4,475 if you live in your home within nine months after buying it.

First time home buyers can get a land transfer tax rebate from the Province of Ontario for up to $4,000 if you live in your home within nine months after buying it. 

Learn more: Toronto.ca and Ontario.ca

Canada Home Buyers Tax Credit (Updated For 2022)

Home buyers can claim 15% of up to $10,000 of the cost of buying a home (for a maximum of $1,500 in tax credits), provided that you did not live in a home owned by you in the preceding 4 years.

Learn more: budget.gc.ca

Canada First Home Buyers Savings Program (New For 2023)

First time home buyers under age 40 can contribute up to $8,000 a year into a new savings account, which is tax-deductible just like an RRSP account. Withdrawals for the purchase of a home will also be tax-free, just like the TFSA account. If the funds are not used by age 40, these funds will be merged with the RRSP account. 

Learn more: budget.gc.ca

Canada Multi Generational Home Renovation Tax Credit (New For 2023)

Families can claim 15% of up to $50,000 (for a maximum of $7,500 in tax credits) in eligible renovation and construction costs incurred in order to construct a secondary suite for multi-generational living.

Learn more: budget.gc.ca

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