Understanding First-Time Home Buyer Grants in Ontario

Ontario offers several programs to assist first-time homebuyers in reducing the financial burden of purchasing a home. Let's explore some of the key programs:

1. Ontario Land Transfer Tax Refund

Who qualifies?

You can claim the refund if:

• You are at least 18 years old

• You haven’t owned a home anywhere in the world

• Your spouse hasn’t owned a home while being your spouse

• You will live in the home as your principal residence within 9 months of the purchase

How it works:

• The refund is applied at the time of registration of your home purchase if you apply through your lawyer or notary.

• If not claimed during registration, you can apply for a refund later (up to 18 months after registration).

You can read full details and access the refund application through the Ontario Government Land Transfer Tax Refund Page.

2. First-Time Home Buyers' Tax Credit (HBTC)

• Buying your first home in Ontario? One of the most powerful tools available to you is the Home Buyers’ Plan (HBP), which allows you to withdraw up to $60,000 tax-free from your Registered Retirement Savings Plan (RRSP) to help buy or build your first home.

  Yes, you’re borrowing from your future self—but it's a smart, interest-free loan that gives many Canadians the edge they need to enter the housing market.

  Who’s eligible?

  You can use the HBP if:

• You're a first-time homebuyer (you or your spouse/common-law partner haven’t owned a home in the past four years)

• You have a written agreement to buy or build a home

• You intend to live in the home as your principal residence within one year

• You are a Canadian resident when you withdraw the money and when you purchase the home

How much can you withdraw?

• As of 2024, the withdrawal limit increased to $60,000 per person

• That means a couple can pull out a combined $120,000 tax-free from their RRSPs

How do repayments work?

• You have up to 15 years to pay the funds back into your RRSP

• Repayments start the second year after you withdraw

• Each year, you must repay at least 1/15th of the total withdrawn amount

• If you skip a repayment, that year’s required amount is taxed as income

How do I apply?

1. Fill out Form T1036 (Home Buyers’ Plan Request to Withdraw Funds)

2. Submit the form to your financial institution that holds your RRSP

3. Withdraw your funds before purchasing the home

For full details and step-by-step instructions, visit the official Home Buyers’ Plan page on Canada.ca.

3. Home Buyers' Plan (HBP)

• Let’s break it down: the Home Buyers’ Plan (HBP) is one of the most popular programs for first-time homebuyers in Ontario (and across Canada). It allows you to borrow from your RRSP without getting taxed on the withdrawal—as long as you pay it back over time.

  This can give your down payment the boost it needs to make homeownership more affordable, especially in today’s market.

  What exactly is the HBP?

  The HBP lets you withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to buy or build your first home. The best part? You don’t get taxed on the withdrawal—as long as you repay it within 15 years.

  That’s right: tax-free access to your own money to help you become a homeowner sooner.

  Who qualifies?

  To be eligible for the HBP, you must:

• Be considered a first-time homebuyer

• This usually means you haven’t owned a home in the past four years

• Have a written agreement to buy or build a qualifying home

• Be a Canadian resident at the time of the withdrawal and when you purchase the home

• Intend to live in the home as your main residence within one year of buying/building it

How much can you take out?

• Up to $60,000 per individual as of 2024 (previously $35,000)

• Couples can withdraw a combined total of $120,000 if both are eligible

How do repayments work?

• You get 15 years to repay what you borrowed

• You start making payments two years after the withdrawal

• Each year, you must repay 1/15th of the amount

• If you miss a repayment, that year’s amount is added to your income and taxed

Be sure to keep track of your repayments using your CRA My Account, where you’ll find a handy HBP statement each year at tax time.

You can find more official info directly on the CRA’s HBP page here.

4. The First Home Savings Account (FHSA): Your Tax-Free Power Tool

• Let’s talk about the newest kid on the block when it comes to homebuyer support in Canada — the First Home Savings Account (FHSA). Introduced in 2023, the FHSA is one of the most powerful tools you can use if you're planning to buy your first home in Ontario — or anywhere in Canada.

  What is the FHSA?

  Think of the FHSA as a hybrid between an RRSP and a TFSA — but specifically for buying your first home.

• Contributions are tax-deductible, like an RRSP.

• Withdrawals are tax-free, like a TFSA — as long as they’re used to buy your first home.

Basically, you get a tax break now and don’t have to pay anything later. Double win.

How Much Can You Contribute?

You can contribute up to $8,000 per year, with a lifetime maximum of $40,000. If you don’t use all your contribution room one year, it rolls over. So if you only manage to put in $5,000 in 2025, you can contribute $11,000 in 2026.

Who’s Eligible?

To open an FHSA, you need to be:

• A Canadian resident,

• At least 18 years old, and

• A first-time homebuyer, meaning you (or your spouse/common-law partner) didn’t own a qualifying home in the current year or the past four calendar years.

How Do Withdrawals Work?

When you're ready to buy:

• You can make a tax-free withdrawal from your FHSA to use as part of your down payment.

• The property must be in Canada and used as your principal residence within one year of purchase.

• Bonus: You can also combine it with the Home Buyers’ Plan (HBP) for even more buying power.

Why It Matters

Let’s say you saved $40,000 in your FHSA. That’s $40,000 you didn’t pay tax on and don’t have to pay tax on when you use it. It’s like getting thousands of dollars in free government support — just for saving smart.

You can read more or open an FHSA through major banks or directly via the Government of Canada’s official page on FHSA.

Local Programs That Can Help First-Time Buyers

Buying your first home in Ontario? Good news! there’s more help out there than just the federal stuff. Many cities and counties, including Wellington County, Guelph, and Toronto, offer their own first-time homebuyer support.

Wellington County & Beyond

If you're looking in Fergus, Guelph, or surrounding areas, check this out:

Wellington’s Down Payment Loan

Get up to 10% of the purchase price (max $20,000) as a forgivable loan; meaning you don’t have to pay it back if you live in the home for 20 years. Income and price limits apply.

Learn more here

Guelph’s Affordable Housing Grants

As of 2025, Guelph offers grants to support affordable housing, especially if you're adding a rental suite or building a new unit.

Toronto

Toronto’s Home Ownership Assistance Program (HOAP) helps low-to-moderate income buyers by covering some fees (like development charges) and offering down payment support through partnered non-profits.

Details on HOAP

Across Ontario

In addition to local programs, don’t forget these province-wide supports:

• Land Transfer Tax Refund: Up to $4,000 back See eligibility

• Home Buyers’ Plan (HBP): Borrow up to $60,000 from your RRSP tax-free How HBP works.

• First Home Savings Account (FHSA): Save up to $40,000 tax-free for your first home. Learn about FHSA

Tip from Kaitlyn: Some of these programs can be combined! Want help figuring it all out? Contact me here and let’s walk through your options together.

Who Can Apply? Here's What You Need to Know

Not every program is the same, but most first-time homebuyer grants and incentives in Ontario follow a few common rules:

• You must be a first-time homebuyer (meaning you haven’t owned a home before).

• The property must be your primary residence—not a rental or investment.

• Your household income must fall within certain limits (these vary by program and region).

• You’ll need a decent credit history to show you can manage your mortgage responsibly.

Each program has its own details, so be sure to double-check the eligibility page before applying. If you’re unsure where to start, feel free to reach out to me directly.

How to Apply for First-Time Buyer Grants in Ontario

Applying for homebuyer grants doesn’t have to feel overwhelming. Here’s a step-by-step breakdown to help you stay on track:

1. Start with Research

   Find out which programs you qualify for—like Ontario’s Land Transfer Tax Refund or the First-Time Home Buyers’ Plan. If you're in Guelph, Fergus, or Wellington County, there may be regional supports too!

2. Gather Your Documents

   You’ll typically need:

• Proof of income

• Government-issued ID

• A copy of your purchase agreement

• And sometimes, proof that you’re a first-time buyer

3. Submit Your Application

   Apply online or through your lawyer, depending on the program. Double-check that everything is filled out correctly to avoid delays.

4. Follow Up and Stay in Touch

   After applying, keep an eye on your email or phone. If any extra info is needed, it’s best to respond quickly to keep things moving.

Need help figuring out where to start? Reach out through my Contact Page.

Smart Tips to Make the Most of First-Time Buyer Programs

Want to get the biggest bang for your buck as a first-time homebuyer? Here’s how to stretch those incentives and make them work for you:

1. Stack Your Savings

   Don’t settle for just one program. You can often combine federal, provincial, and local grants—like Ontario’s Land Transfer Tax Refund and the First Home Savings Account—for even more support.

2. Lean on the Pros

   A good real estate agent (hi, I’m Kaitlyn!) along with a trusted mortgage broker or financial advisor can help you uncover hidden opportunities and avoid costly mistakes. Need a hand? Let’s chat.

3. Keep Your Info Fresh

   Grant rules change often. Make it a habit to check in with trusted sources like Ontario.ca or CRA’s HBP page. Or even better—bookmark my resource hub for local updates in Guelph, Fergus, and across Wellington County.

Explore Homes in Ontario

Fergus offers a variety of homes suitable for first-time buyers. Explore available listings here.

Contact Me for Personalized Assistance

Navigating the first-time home buying process can be complex, but you don't have to do it alone. I'm here to provide personalized guidance and support every step of the way.

• Website: KMG Homes

• About Me: Kaitlyn Goodfellow

• Contact: Get in Touch

Let's make your dream of homeownership a reality!