First Time Home Buyer Programs
Where Can I Learn About Them?

The Canadian Home Buyer Plan (HBP) is one of the First Time Home Buyer Programs available that allows a first time home buyer to withdraw up to $25,000 (after January 27, 2009) from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home for themselves or for a related person with a disability.

Under this plan, qualified buyers under the first time home buyer programs would be permitted to withdraw funds from their Registered Retirement Savings Program (RRSP), tax-free, to be applied toward the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.

For more detailed information, please visit the Canada Revenue Agency's (CRA) website accessible by clicking the link below.

First Time Home Buyer Tax Credit HBTC

For 2009 and subsequent years, another of the first time home buyer programs is the HBTC, a non-refundable tax credit, based on an amount of $5,000, for certain home buyers who buy (close) a qualifying home after January 27, 2009.

If you, your spouse or common-law partner haven't owned a home in the preceding 5 years, or you are disabled or buying a home for a disabled person, you may qualify for this credit. And it applies to brand new or resale homes. For more info, please click the link below.

Land Transfer Tax Refunds for First Time Home Buyers

Land Transfer Tax (LTT), or Property Transfer Tax (PTT), applies to all conveyances of land in Canada. First-time home buyers in Ontario may be eligible for a refund of all or part of the tax payable. For agreements of purchase and sale entered into before December 14, 2007, the refund applies only on the purchase of a newly constructed home. For agreements of purchase and sale entered into after December 13, 2007, the refund applies to all brand new or resale homes. Any approved refund will offset the tax payable, with a maximum refund of $2,000.

For a more detailed explanation of the Land Transfer Tax, Property Transfer Tax and the Toronto Municipal Land Transfer Tax (TMLTT), as well as other closing costs, click here. Click this link for info on the Canadian First Time Home Buyer Tax Credit. Click this link for information from the Ontario Ministry of Revenue regarding the Ontario Land Transfer Tax Rebate Program. Click this link for info from Canada Revenue Agency (CRA) on Canada's Home Buyer Plan. Click this link for more information from Canada Mortgage and Housing Corporation on Canada's first time home buyer programs. And click here for more on Canada's first time home buyer programs from Service Canada.

I'll try to keep this info current, but I advise you to research diligently on your own. If I can assist you, please feel free to contact me.

Return to Home Page