Government Incentives

Government incentive programs geared towards first time home buyers getting into the real estate market are constantly changing. Here is a brief overview of whats available in 2019. 

First-Time Home Buyer Federal Incentive

Qualified first-time home buyers can now borrow 5%-10% of the home's purchase price from the Government, interest free! However there is a catch, the government requires an equity stake in your property for the corresponding amount.

The loan is interest free, and must be paid back in 25 years or when the property is sold, whichever comes first. 

This program is designed for first-time home buyers wanting to lower their monthly payments. Depending on the property's value, this incentive could lower your monthly payments by over $300. 

Property Transfer Tax Program

The First Time Home Buyers' Program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home. If you qualify for the program, you may be eligible for either a full or partial exemption from the tax.

If one or more of the purchasers don’t qualify, only the percentage of interest that the first time home buyer(s) have in the property is eligible.

For example, if you qualify and purchase a property with a fair market value of $400,000 with a person who doesn’t qualify you would still qualify. If you owned a 60% interest in the property, 60% of the tax amount would be eligible for the exemption.

For more information on if you qualify for this tax exemption please click HERE


Federal Home Buyers Plan (RRSP Withdrawal)

The HBP is a program that allows an individual to withdraw funds from their Registered Retirement Savings Plan (RRSP), with no immediate tax consequences, to buy or build a qualifying home for themselves or for a related person with a disability. The individual (or the related person with a disability) must have a written agreement to buy or build the qualifying home before the time of the withdrawal.

  • Withdraw up to $35,000 from your RRSP tax-free
  • Funds must be in the account for 90 days prior to purchasing 
  • Funds withdrawn are to be repaid within 15 years

For more information on this program click HERE

Home Buyers' Tax Credit (HBTC)

You can claim a $5,000 tax credit for the purchase of a qualifying home in the year if both of the following apply:

  • you or your spouse or common-law partner acquired a qualifying home
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer)
  • The tax credit equals approximately $750 

For more information about this tax credit click HERE

New housing GST/HST rebate

You may be eligible for a new housing rebate for some of the GST/HST paid if you are an individual who:

  • purchased new housing or constructed or substantially renovated housing, which could include housing on leased land (if the lease is for at least 20 years or gives you the option to buy the land), for use as your (or your relation’s) primary place of residence
  • purchased shares in a co-operative housing (co-op) complex for the purpose of using a unit in the co-op for use as your (or your relation’s) primary place of residence
  • constructed or substantially renovated your own home, or hired someone else to construct or substantially renovate your home for use as your (or your relation’s) primary place of residence and the fair market value of the house when the construction is substantially completed is less than $450,000

For more information on the GST/HST rebate click HERE.