Rebates & Financing

First Home Savings Account (FHSA)

A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits).

The First Home Savings Account (FHSA) is a type of registered savings plan introduced by the federal government in 2022. An FHSA is designed to help you save for your first home, tax-free and help you reach your vision of owning a home faster!

An FHSA combines some of the features of an RRSP and TFSA. Contributions will generally be tax-deductible, and when a qualifying withdrawal is made, the amount withdrawn is not-taxable.

Am I eligible for an FHSA?
To open a First Home Savings Account, you must be:

A Canadian resident
18 years or older
A first-time home buyer

How does an FHSA work?
Annual contributions are capped at $8,000 up to a $40,000 lifetime contribution limit.
A maximum of $8,000 unused contribution room can carry forward to the following year.
The account can stay open for a maximum 15 years or until the end of the year you turn 71

FHSA vs. Other Plans
How is the FHSA different from the Home Buyers’ Plan?
With the current Home Buyers' Plan, Canadians can withdraw up to $35,000 from their RRSP subject to eligibility and conditions. The funds must be paid to the RRSP over 15 years.
With an FHSA, eligible withdrawals do not need to be paid back.

For more information and details please visit Canada.ca on FHSA here.

Home Buyer's Plan (HBP)

The Home Buyer’s Plan (HBP) is a government program allowing home buyers to withdraw up to $25,000 from their Registered Retirement Saving Plan (RRSP) to buy or build a new home.

Before withdrawing funds, you have to enter into a written agreement specifying whether you will buy or build your new home. You also must occupy this space no later than a year after buying or building this new home.

It would be best if you were considered a first-time buyer to take advantage of this program. However, you are not a first-time home buyer if you (or your spouse) have owned a home you have occupied as your principal residence in the past five years.

Once those conditions are met, people can withdraw up to $25,000 tax-free from their RRSP for a new home. Couples, including common-law, can withdraw up to $50,000. You will not pay income tax on these amounts if these funds are repaid into an RRSP.

Existing homeowners can also use this program to purchase an accessible home or a home for a disabled dependent relative. The intended individual must qualify for the Disability Tax Credit (DTC), and this home must be more accessible or better suited to the care of this individual.

Land Transfer Tax Rebates

First-time buyers of new and re-sale homes are eligible for provincial and Toronto land transfer tax rebates. The maximum that first-time home buyers can receive for local land transfer tax (LTT) is $2,000; for the Toronto LTT, it is $3,725.

The provincial LTT is payable anywhere in Ontario, including Toronto. As mentioned before, the maximum that a first-time buyer can receive for the provincial LTT is $2,000. For re-sale homes, the provincial rebate only applies to first-time buyers who entered Agreements of Purchase and Sale after December 13, 2007.

Toronto LTT is payable only for properties in the City of Toronto. Therefore, the maximum a first-time home buyer can receive is $3,725. The Toronto LTT rebates are in addition to any provincial LTT rebate the buyer qualifies for.

The buyer is considered a first-time buyer for the provincial and Toronto LTT if they are at least 18 years of age and must not have previously owned a home anywhere in the world. In addition, if a spouse is involved, they cannot have held a home or had any ownership interest in a home while they were the purchaser’s spouse.

GST/HST New Housing Rebate

First-time buyers of new and re-sale homes are eligible for provincial and Toronto land transfer tax rebates. The maximum that first-time home buyers can receive for local land transfer tax (LTT) is $2,000; for the Toronto LTT, it is $3,725.

The provincial LTT is payable anywhere in Ontario, including Toronto. As mentioned before, the maximum that a first-time buyer can receive for the provincial LTT is $2,000. For re-sale homes, the provincial rebate only applies to first-time buyers who entered Agreements of Purchase and Sale after December 13, 2007.

Toronto LTT is payable only for properties in the City of Toronto. Therefore, the maximum a first-time home buyer can receive is $3,725. The Toronto LTT rebates are in addition to any provincial LTT rebate the buyer qualifies for.

The buyer is considered a first-time buyer for the provincial and Toronto LTT if they are at least 18 years of age and must not have previously owned a home anywhere in the world. In addition, if a spouse is involved, they cannot have held a home or had any ownership interest in a home while they were the purchaser’s spouse.

First-Time Home Buyers' Tax Credit (HBTC)

Did you know you can reduce your income taxes for the year you buy a home? If you, your spouse or common-law partner haven’t owned a home that you've lived in, in the past 4 years, or haven’t ever owned one, you may qualify for the First-Time Home Buyers’ Tax Credit (HBTC). It's also called the Home Buyers’ Amount.

The First-Time Home Buyers’ Tax Credit is a $10,000 federal non-refundable tax credit. Up until 2021, the tax credit amount was $5,000, but in 2022 legislation was passed to increase this to $10,000 for that year and all subsequent tax years. If you’re buying a home for the first time, claiming the first-time homebuyer credit can land you a total tax rebate of $1,500 (it was $750 prior to the 2022 Federal Budget being approved).

It encourages Canadians to enter the real estate market by making home buying more affordable. While $1,500 isn’t a life-changing amount of money, it can make buying your first home a little bit easier. The First-Time Home Buyers’ Tax Credit was first introduced in 2009, and is available to all qualifying Canadian taxpayers.

The purchased home must be in Canada and registered with the appropriate land registry office in your name, or in your and your spouse's or common-law partner's names. You may be surprised to find out who qualifies as a first-time home buyer. Eligible people sometimes miss out on the tax benefits. They assume the HBTC only applies to those who have never owned a home. Not so. If you haven’t owned a home in the past 4 years, you may also qualify for the benefits.

Almost all types of properties you buy as your main residence in Canada qualify for the HBTC, including:

Single-family houses
Semi-detached houses
Townhouses
Mobile homes
Condo units
Apartments in duplexes, triplexes, fourplexes or apartment buildings
An ownership share in a housing co-op that gives you an equity interest in the co-op

Homes under construction also qualify. You must move into the finished property within one year of the purchase closing date.

For more information about the HBTC, click here