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Government Programs for Home Buyers

🏠 First-Time Home Buyer in Toronto? Here’s How to Get Government Help in 2025

Buying your first home in the Toronto area can feel overwhelming—but the good news is, there are a lot of programs to help you get started! Whether it’s saving for your down payment, reducing closing costs, or getting tax breaks, both the federal and Ontario governments offer great support.

Here’s a simple breakdown of what’s available in 2025:


💰 1. First Home Savings Account (FHSA)

This is a newer savings plan made just for first-time buyers. Think of it as a mix between a TFSA and an RRSP.

  • Contribute up to $10,000 per year, max $50,000 total

  • Your contributions are tax-deductible

  • Withdrawals to buy your first home are tax-free

Best strategy? Open one as early as possible and start saving monthly.


🏦 2. Home Buyers’ Plan (HBP)

You can take money out of your RRSP tax-free to help buy your first home.

  • Withdraw up to $60,000 per person

  • Must be repaid over 15 years

Tip: You can use both HBP and the FHSA together to boost your down payment.


🎁 3. Federal Down Payment Match Program (Pilot)

This new 2025 federal pilot program gives first-time buyers a 5% match on your down payment (up to $25,000).

  • You don’t have to pay it back

  • No shared ownership or interest

Note: It may only be available in certain provinces—check if Ontario is included when you apply.


🧾 4. Ontario Land Transfer Tax Rebate

When you buy a home in Ontario, you have to pay land transfer tax. But if you’re a first-time buyer, you can get money back:

  • Up to $4,000 off Ontario’s land transfer tax


🏙️ 5. Toronto Municipal Land Transfer Tax Rebate

If you buy in the City of Toronto, you pay an extra local tax—but you can get more rebate here too:

  • Up to $4,475 rebate from the City of Toronto

Together, you can save up to $8,475 on land transfer taxes!


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

After you buy, the federal government gives you a $1,500 tax credit to help with closing costs.


🛠️ 7. GST/HST New Housing Rebate

Buying a new home or a major renovation? You may get some of the HST or GST back.


🏘️ 8. Local Programs & Grants

Some cities and regions in the GTA offer help for first-time buyers with lower or moderate incomes.

For example:

  • Toronto’s Home Ownership Assistance Program (HOAP) may give you up to $50,000 as a loan toward your down payment.

  • Other towns (like Hamilton or Oshawa) may offer $10,000 grants—ask your realtor or mortgage broker.


✅ Smart Steps for a First-Time Buyer in GTA
  1. Open a First Home Savings Account (FHSA) and start saving now

  2. Use the RRSP Home Buyers’ Plan (HBP) for extra down payment

  3. Ask about the new Down Payment Match program (federal)

  4. Claim your land transfer tax rebates (Ontario + Toronto)

  5. Apply for the $1,500 tax credit after buying

  6. Explore local grants or loans in your city

  7. Work with a realtor and mortgage professional who knows these programs


⚠️ Disclaimer

This blog is for informational purposes only. Government programs and eligibility rules can change at any time. Always speak with a licensed mortgage professional, real estate agent, or financial advisor for the most up-to-date and personalized advice.

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