1. The Home Buyers' Plan (HBP) allowance of up to $25,000 for Down Payment
Use your RRSP towards a down payment, and it will help you maximize your tax return. You will be able to withdraw up to $25,000 tax free under the Home Buyers' Plan (HBP) to use towards your down payment. RRSP must be in your account for 90 days.
2. Land Transfer Tax Refund for First-time Home Buyers
Land Transfer Tax applies to all transfers of land in Ontario.
First-time home buyers may be eligible for a refund of all or part of the tax. For transfers where:
- the agreement of purchase and sale was entered into after December 13, 2007, the refund applies to all homes, whether newly constructed or resale.
- the agreement of purchase and sale was entered into before December 14, 2007, the refund only applies on the purchase of a newly constructed home.
NB - Applications for a refund must be made within 18 months after the date of the transfer. The maximum amount of refund is $2,000.
3. FTHB Tax Credit - $5,000 Non-Refundable Income Tax Credit
To assist first-time home buyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.