First Time Home Buyer Incentives in Ontario 2021

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Proposed Increases to the CMHC First-Time Home Buyer Incentive

In their 2021 budget, the Liberals have proposed to increase the maximum home price for the CMHC First-Time Home Buyer Incentive from about $505,000 to $722,000 for buyers in Toronto, Vancouver, and Victoria. Their proposals include an increase in the income eligibility threshold from $120K to $150K and the home price limit from 4 times household income to 4.5 times. These changes come as Toronto`s housing market and Vancouver real estate climb to new all-time highs.

These changes are still preliminary and have not been approved by Parliament. We have updated our calculator to help you prepare for these new changes.

First Time Buyer Calculator Ontario

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I live in the city of Toronto

Property Type

Existing/ResaleNew Construction

You could qualify for...

First-Time Buyer Land Transfer Tax Rebate
$8,4758.48k
Shared-Equity Incentive
$25,00025k
2021 Shared-Equity Results: Eligible
Under the proposed 2021 budget, you could qualify for up to $25,000 as part of the expanded CMHC FTHBI
Click here for more info
Home Buyer's Plan (RRSP)
up to $35,00035k
Find out more about national incentive programs
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Interest Rate

The annual interest rate on the mortgage loan amount. A lower interest rate can drastically reduce your mortgage payments.

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Goverment Incentive Option

Your Monthly Payment
$1,9651.96k
/month
Down Payment
(Incl. Incentive)
$50,00050k
Mortgage Amount
(Incl. CMHC Premium)
$463,950464k

Ontario First-Time Home Buyer Incentive

The Government of Ontario provides incentives to its citizens who are first-time home buyers. You can receive a land transfer tax refund in Ontario of up to $4,000. What this means is if the purchase price of your home is less than $368,000, you would pay no land transfer tax. If the purchase price is greater than $368,000, then you would receive the maximum refund of $4,000. This incentive applies for both new construction and resale homes.

Frequently Asked Questions

Who qualifies as a first-time home buyer in Ontario?

To qualify as a first-time home buyer, you must not have owned a home previously anywhere in the world, or have any interest or stake in a home. Your spouse must not have owned or have an interest in a home while they were your spouse. To be eligible for Ontario's land transfer tax refund, you must also be at least 18 years old.

How do I qualify for Ontario’s Land Transfer Tax Refund?

In addition to being a first-time home buyer and being 18 years old, you must also be a Canadian citizen or a permanent resident. If you are currently not a Canadian citizen or a permanent resident, you have 18 months after your home registration to become one to qualify for the refund. The home you are purchasing must be your principal residence within nine months.

While you can claim the refund when registering your property to offset the land transfer tax payable, you have up to 18 months after registration to claim the refund

If one or more purchasers of the home is not a first-time home buyer, you may still be eligible for the transfer tax refund. For example, if two individuals purchase a home but only one of them is a first-time home buyer, then only 50% of the transfer tax refund can be claimed.

Toronto First-Time Home Buyer Incentive

The City of Toronto also provides a Municipal Land Transfer Tax Rebate for first-time home buyers purchasing a home in Toronto. A rebate of up to $4,475 is given to first-time home buyers purchasing newly constructed or resale residential properties.

The home buyer will need to be a Canadian citizen or a permanent resident to qualify for the rebate. The buyer will also qualify if they become a Canadian citizen or a permanent resident within 18 months. While you can claim the rebate at the time of registration, you have up to 18 months to claim the rebate.

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This calculator is provided for general information purposes only. WOWA does not guarantee the accuracy of information shown and is not responsible for any consequences of the use of the calculator.