Thinking About Buying Your First Home? Here’s What You Need to Know

Buying your first home is a huge milestone, and if you’re looking in Durham Region, we know how exciting—and overwhelming—the process can be. The good news? Ontario offers several incentives designed to make homeownership more affordable. Whether it’s rebates, tax credits, or down payment assistance, knowing how to qualify can help you save thousands. Let’s break it all down so you can take advantage of these valuable programs.

First-Time Homebuyer Incentives in Ontario

Ontario has multiple programs to help first-time buyers, each with its own eligibility criteria. Here are some of the most beneficial options:

1. First-Time Home Buyer Incentive (FTHBI)

This federal program provides 5% or 10% of the home’s purchase price through a shared equity mortgage with the government, reducing your monthly mortgage payments.

✅ Eligibility:

  • Must be a first-time homebuyer
  • Household income must be below $120,000 ($150,000 for high-cost areas)
  • The mortgage must be at least 80% of the home’s value
  • The home price cannot exceed four times your income

2. Land Transfer Tax Rebate

Ontario charges a land transfer tax when you buy a home, but first-time buyers can receive a rebate of up to $4,000 to offset this cost.

✅ Eligibility:

  • Must be at least 18 years old
  • Cannot have owned a home before anywhere in the world
  • The home must be your primary residence

3. Home Buyers’ Plan (HBP)

This program allows you to withdraw up to $35,000 from your RRSP tax-free to use as a down payment.

✅ Eligibility:

  • Must be a first-time homebuyer
  • Must repay the amount within 15 years
  • Home must be your primary residence

4. First-Time Home Buyers’ Tax Credit (HBTC)

This federal tax credit provides a $5,000 non-refundable credit, translating to up to $750 in tax savings.

✅ Eligibility:

  • Must be a first-time homebuyer
  • Home must be a qualifying primary residence
  • Must apply within the tax year of purchase

5. HST Rebate on New Homes

If you’re buying a newly built home or substantially renovating one, you may qualify for an HST rebate of up to 36% of the federal portion and 75% of the Ontario portion of HST.

✅ Eligibility:

  • Must be purchasing a new or substantially renovated home
  • Home must be used as a primary residence

Steps to Qualify for These Incentives

✅ Step 1: Determine Your Eligibility
Review the criteria for each program to see which ones apply to you. If you’re unsure, reach out to a real estate or mortgage professional.

✅ Step 2: Gather Your Documents
Most programs require proof of income, residency, and homeownership status. Have documents like your Notice of Assessment, mortgage pre-approval, and purchase agreement ready.

✅ Step 3: Apply Early
Some incentives have strict deadlines, so be sure to submit your applications as soon as possible to avoid missing out.

✅ Step 4: Work with a Mortgage Professional
A knowledgeable mortgage expert can guide you through the application process and help you maximize available incentives.

✅ Step 5: Plan for Repayments
Programs like the Home Buyers’ Plan require repayment within a set timeframe, so be sure to budget for these payments to avoid financial stress.

Common Pitfalls to Avoid

❌ Not Checking Eligibility – Ensure you meet all requirements before applying.
❌ Missing Deadlines – Some rebates require applications within a specific timeframe.
❌ Overlooking Additional Costs – Incentives help, but be sure to budget for closing costs, legal fees, and home maintenance.
❌ Not Seeking Professional Advice – A real estate or mortgage expert can help you navigate the process smoothly.

Let’s Make Your First Home a Reality

Purchasing your first home is a major step, but you don’t have to navigate it alone. At Willows Realty Group, we specialize in helping first-time buyers in Durham Region find the right home—while taking full advantage of available incentives.

Have questions or need guidance? Let’s chat! Contact us today to get started on your path to homeownership.

📲 Call us at (888) 926-2066
📩 Email us at team@willowsgroup.ca
🌐 Visit us at WillowsRealtyGroup.com