{"id":228675,"date":"2024-07-08T11:33:31","date_gmt":"2024-07-08T15:33:31","guid":{"rendered":"https:\/\/www.livabl.com\/articles\/?p=228675"},"modified":"2024-07-09T15:03:17","modified_gmt":"2024-07-09T19:03:17","slug":"buying-a-house-in-ontario-2024","status":"publish","type":"post","link":"https:\/\/www.livabl.com\/articles\/guides\/buying-a-house-in-ontario-2024","title":{"rendered":"Everything you need to know about Ontario\u2019s first-time homebuyer incentives"},"content":{"rendered":"

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Known for its booming economy, world-class universities, diverse landscapes and bustling cities, Ontario is one of the most popular provinces to live and work. The province consistently attracts new residents from all over the world each year, including many prospective first-time homebuyers.<\/p>\n\n\n

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However, due to Ontario\u2019s higher home prices, surging demand and generally low inventory, buying a house in Ontario is a challenge. In June 2024, the average price tag for a home in Ontario was around $890,000 \u2013 meaning first-time buyers today are in for a costly mortgage and a much higher down payment than previous generations. <\/p>\n\n\n\n

Thankfully, there are federal, provincial and municipal programs that can help give first-time buyers an extra boost. Here are some first-time homebuyer opportunities in Ontario to consider.<\/p>\n\n\n\n

Who is a first-time homebuyer in Ontario?<\/strong><\/h2>\n\n\n\n

Generally, one is considered a first-time homebuyer if they have never owned a home, and not occupied a home that was owned by either themselves or by their current common-law partner or spouse in the last four years. Exceptions are made for persons living with a disability or persons who have recently experienced the breakdown of a marriage or common-law partnership. <\/p>\n\n\n\n

How a first-time homebuyer is defined may differ from program to program, so it\u2019s important to double-check eligibility criterion before applying. <\/p>\n\n\n\n

Federal programs <\/strong><\/h2>\n\n\n\n

The Home Buyer\u2019s Plan<\/strong><\/h3>\n\n\n\n

The Home Buyers\u2019 Plan (HBP) is a federal program that allows first-time homebuyers to withdraw up to $60,000 tax-free from their registered retirement savings plans (RRSPs) to put towards a down payment on a primary residence.<\/p>\n\n\n\n

Couples purchasing a home together would be able to cumulatively withdraw up to $120,000 from their RRSPs. <\/p>\n\n\n\n

It is important to note that funds withdrawn under the HBP must be repaid to the RRSP within a 15-year period, with at least 1\/15th<\/sup> of the withdrawal amount paid back into the account each year. <\/p>\n\n\n\n

First Home Savings Account <\/strong><\/h3>\n\n\n\n

A First Home Savings Account (FHSA) is a registered savings account which functions similarly to RRSPs and tax-free savings accounts (TFSAs). Deposits are tax-deductible, and any investment returns in that account are tax-free.<\/p>\n\n\n\n

Deposits into an FHSA are capped at $8,000 per year, with a lifetime limit of $40,000. <\/p>\n\n\n\n

GST\/HST New Housing Rebate<\/strong><\/h3>\n\n\n\n

The GST\/HST New Housing Rebate allows purchasers and homeowners to recover some of the GST or the federal portion of the HST paid for a newly constructed or substantially renovated primary residence. <\/p>\n\n\n\n

Different rules apply depending on the property type and location, so it\u2019s important to check eligibility criteria before applying. <\/p>\n\n\n

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Provincial programs <\/strong><\/h2>\n\n\n\n

Ontario Land Transfer Tax Refund <\/strong><\/h3>\n\n\n\n

First-time homebuyers in Ontario are eligible for a full or partial refund of the provincial land transfer tax, which typically applies to the closing costs of any land or land-interest purchase in Ontario. <\/p>\n\n\n\n

To be eligible for the Ontario Land Transfer Tax Refund, an individual must:<\/p>\n\n\n\n