Updated: April 2025  |  bremo.io financial guides

First-Time Home Buyer Guide for Hamilton Ontario 2025

Buying your first home in Hamilton is achievable, but it requires understanding the programs available to you, the costs involved, and how to navigate a market that — while more affordable than Toronto — still demands careful financial planning.

This guide covers every first-time buyer program available to Hamilton purchasers, what you'll pay at closing, and a step-by-step process for getting into the market.

Ontario Land Transfer Tax Rebate — Up to $4,000

As a first-time buyer in Ontario, you qualify for a provincial LTT rebate of up to $4,000. Hamilton has no municipal LTT, so you only pay and receive rebates on the provincial portion. To qualify:

• Must be a Canadian citizen or permanent resident
• Must be 18 years of age or older
• Must never have owned a home anywhere in the world
• The home must be your principal residence

If buying with a spouse or partner who has previously owned property, your rebate is reduced proportionally based on ownership share.

First Home Savings Account (FHSA)

The FHSA is one of the best savings tools available to Canadian first-time buyers. Introduced in 2023, it allows you to contribute up to $8,000 per year (lifetime maximum $40,000) in a tax-free account where:

• Contributions are tax-deductible (like an RRSP)
• Investment growth is tax-free (like a TFSA)
• Withdrawals for a first home purchase are tax-free

Open an FHSA as soon as possible. Even if you're 2–3 years away from buying, getting the account open and contributing starts the clock on your contribution room.

RRSP Home Buyers' Plan (HBP)

The Home Buyers' Plan lets first-time buyers withdraw up to $35,000 from their RRSP tax-free for a home purchase ($70,000 per couple). The withdrawn amount must be repaid over 15 years starting two years after the year of withdrawal, or it's added to your taxable income annually.

First-Time Home Buyer Tax Credit

The federal First-Time Home Buyers' Tax Credit (HBTC) provides a non-refundable tax credit of $100, translating to up to $1,500 in federal tax savings. You claim this on your tax return for the year you purchase.

Down Payment Requirements

For a $650,000 Hamilton home, the minimum down payment is $25,000 (5% of $500K) + $15,000 (10% of $150K) = $40,000. Note: purchases under $1M with less than 20% down require CMHC mortgage default insurance (0.6%–4% of the mortgage amount added to your loan).

Estimated Closing Costs in Hamilton

• Ontario Land Transfer Tax: ~$9,475 on $700K (after $4,000 rebate: ~$5,475)
• Legal fees: $1,500 – $2,500
• Home inspection: $450 – $650
• Title insurance: $250 – $400
• Adjustments (property tax, utilities): varies
• Moving costs: $1,000 – $4,000

Step-by-Step Buying Process

1. Check your credit score and pay down any high-interest debt
2. Open an FHSA if you haven't already
3. Get mortgage pre-approval (shop multiple lenders or use a broker)
4. Define your budget including all closing costs
5. Hire a Hamilton buyer's agent (free to you — seller pays commissions)
6. Search and view properties
7. Make an offer with conditions (financing, inspection recommended)
8. Complete inspection, satisfy conditions
9. Work with your lawyer to close
10. Move in and claim your HBTC and LTT rebate on your taxes