First Time Home Buyer Programs Ontario 2025

Ontario first-time buyers can access up to $8,475 in land transfer tax rebates on top of all federal programs. Here's everything available to you.

Ontario Land Transfer Tax Rebate

Ontario charges a provincial Land Transfer Tax (LTT) on all real estate purchases. First-time buyers are eligible for a rebate of up to $4,000 on this provincial tax. The rebate is applied at closing — your lawyer handles it automatically — so you never pay the full LTT if you qualify. Here's how Ontario's LTT is calculated:

Purchase Price	Ontario LTT	First-Time Buyer Rebate	Net LTT Paid
$400,000	$4,475	$4,000	$475
$600,000	$8,475	$4,000	$4,475
$800,000	$12,475	$4,000	$8,475
$1,000,000	$16,475	$4,000	$12,475

Toronto Municipal Land Transfer Tax Rebate

If you buy within the City of Toronto, you pay a second municipal LTT in addition to the provincial one. Toronto's first-time buyer rebate is up to $4,475 on the municipal LTT. Combined with the provincial rebate, Toronto first-time buyers can receive up to $8,475 in total LTT savings. This is applied at closing through your lawyer — ensure they know you are a first-time buyer.

Ontario First-Time Buyer Eligibility

To claim the Ontario LTT rebate, you must:

• Be a Canadian citizen or permanent resident
• Be at least 18 years old
• Occupy the home as your principal residence within 9 months of closing
• Never have owned an eligible home previously (anywhere in the world)
• If purchasing with a spouse, neither of you can have owned an eligible home while being a spouse

Ontario New Housing Rebate (HST)

If you're buying a newly constructed home in Ontario, you may be eligible for the Ontario New Housing Rebate, which reimburses the provincial component of HST on homes up to $400,000. For new homes above $400,000, a partial rebate may apply. This rebate is typically factored into the builder's purchase price — ask your builder or lawyer to confirm how it is applied.

Tarion Warranty Protection

All newly built homes and condos in Ontario are covered by Tarion (Home Warranty) protection. Tarion provides statutory warranty coverage including one-year coverage for defects in workmanship and materials, two-year coverage for water penetration and electrical/plumbing systems, and seven-year major structural defect coverage. This is automatic — you don't apply for it. As a first-time buyer of new construction, this warranty significantly reduces your risk compared to buying a resale home.

Federal Programs Available to Ontario Buyers

• First Home Savings Account (FHSA): $8,000/year, $40,000 lifetime — tax-deductible contributions, tax-free withdrawals for a first home
• Home Buyer's Plan (HBP): withdraw up to $60,000 from RRSP ($120,000 per couple)
• First-Time Home Buyer Tax Credit: $1,500 federal credit claimed on your T1 return
• GST/HST New Housing Rebate: up to $6,300 federal portion for newly constructed homes

Ontario Market Context

Ontario is Canada's most expensive housing market outside of BC. The average resale home price in the Greater Toronto Area hovers around $1.1 million, though suburban and smaller markets offer significantly more affordable entry points. Cities like Hamilton, London, Kingston, and Ottawa provide options in the $600,000–$800,000 range. Property taxes in Toronto are approximately 0.66% annually — among the lowest rates in Canada despite high values. In Hamilton, rates are closer to 1.3%.

Checklist for Ontario First-Time Buyers

• Open FHSA and contribute up to $8,000 (or $16,000 with carry-forward)
• Build RRSP for Home Buyer's Plan — ensure funds held 90+ days
• Get mortgage pre-approval from lender or broker
• Work with a buyer's real estate agent (no cost to you in Ontario)
• Budget for Ontario LTT (you'll get $4,000 back as a first-timer)
• Budget for Toronto municipal LTT if buying in the 416 (you'll get $4,475 back)
• Budget for legal fees: $1,500–$2,500
• Budget for home inspection: $400–$600
• Claim Home Buyer's Amount ($1,500 federal credit) on your next tax return