Canadian Government Programs for Home Buyers

If you're buying a home in Canada, there are several government programs and incentives designed to help you save money and get into the market sooner. RE/MAX Team Sukhvinder helps buyers across Caledon and the GTA take full advantage of every program available to them.

First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) is one of the most powerful tools available to first-time buyers. It combines the benefits of an RRSP and a TFSA:

• Contribute up to $8,000 per year, with a lifetime limit of $40,000
• Contributions are tax-deductible (like an RRSP)
• Withdrawals for a qualifying home purchase are completely tax-free (like a TFSA)
• Unused contribution room can be carried forward by one year

RRSP Home Buyers' Plan (HBP)

The RRSP Home Buyers' Plan allows first-time buyers to withdraw up to $35,000 from their RRSP (tax-free) to use toward a home purchase. Couples can each withdraw up to $35,000 for a combined total of $70,000. The amount must be repaid to your RRSP over 15 years.

First-Time Home Buyer's Tax Credit

First-time home buyers in Canada may be eligible for the Home Buyers' Tax Credit (HBTC) — a non-refundable tax credit worth up to $1,500 on your federal tax return. This applies to qualifying homes purchased by first-time buyers or individuals with a disability.

Land Transfer Tax Rebates

In Ontario, first-time home buyers may qualify for a rebate on the Provincial Land Transfer Tax of up to $4,000. If you're purchasing in Toronto, there may also be a Municipal Land Transfer Tax rebate available. This can add up to significant savings on your purchase.

GST/HST New Housing Rebate

If you're buying a new construction home or substantially renovating a property, you may be eligible for a GST/HST New Housing Rebate. This rebate returns a portion of the HST paid on the purchase price of a new home.

Canada Mortgage and Housing Corporation (CMHC) Programs

The CMHC provides mortgage loan insurance that allows buyers to purchase a home with as little as a 5% down payment. While mortgage insurance does add a premium, it enables buyers to enter the market sooner without a 20% down payment.

Let Team Sukhvinder Help You Maximize Every Dollar

Navigating government programs can be confusing — that's where we come in. RE/MAX Team Sukhvinder works with trusted mortgage brokers and financial advisors who can help you structure your purchase to take full advantage of every available program. Call us at 416-894-6030 to get started.