Government Incentives for Canadian Homebuyers

Owning a home is a major milestone for many Canadians. However, with rising property prices, breaking into the real estate market has become more challenging.

The good news? You don’t have to face it alone. Several government programs and incentives in Canada are designed to reduce the financial burden and help make homeownership a reality.

Federal Tax Incentives for First-Time Homebuyers

First-Time Home Buyers’ Tax Credit (HBTC)

The First-Time Home Buyers’ Tax Credit (HBTC) is a non-refundable tax credit to help offset some of the initial costs of buying your first home in Canada. This credit provides $5,000, which translates to up to $750 in tax savings for the year of purchase.

Federal Homebuying Incentives in Canada

Home Buyers’ Plan (HBP)

Through the Home Buyers’ Plan (HBP), first-time homebuyers can withdraw up to $60,000 from their Registered Retirement Savings Plan (RRSP) to purchase or build a qualifying home. Couples can combine their withdrawals for a total of $120,000. Repayments to your RRSP must begin the second year after the withdrawal and be completed within 15 years.

Tax-Free First Home Savings Account (FHSA)

The Tax-Free First Home Savings Account (FHSA) merges the benefits of an RRSP and a Tax-Free Savings Account (TFSA) to help you save for a down payment. Annual contributions are capped at $8,000, with a lifetime limit of $40,000. Contributions are tax-deductible, and both investment growth and qualifying withdrawals are tax-free.

Provincial Incentives for Homebuyers

British Columbia: First-Time Home Buyers’ Program

This program provides full or partial exemptions from the Property Transfer Tax for first-time homebuyers. Homes valued up to $500,000 qualify for a full exemption, with partial exemptions available for homes priced up to $525,000.

Alberta: First Place Program

The Alberta First Place Program, offered in Edmonton, repurposes surplus school building sites to develop affordable homes for first-time buyers.

Saskatchewan: First-Time Homebuyers’ Tax Credit

This tax credit offers first-time buyers up to $1,050, calculated as a percentage of qualifying home purchase costs.

Ontario: Land Transfer Tax Refunds

Ontario provides a refund of up to $4,000 on the Land Transfer Tax for first-time buyers.

Quebec: Accès Condos Program and First-Home Tax Credit

The Accès Condos program allows buyers to purchase a condo with a down payment as low as $1,000. Additionally, Quebec’s First-Home Tax Credit offers a non-refundable tax credit to ease the financial strain of purchasing your first home.

Newfoundland and Labrador: First-Homebuyers Program

This initiative covers up to 50% of closing costs (to a maximum of $1,500) and offers a repayable loan of up to 5% of the home’s purchase price, with a cap of $350,000.

Nova Scotia: First-Time Homebuyers Rebate Program

This rebate offsets the Harmonized Sales Tax (HST) on newly built homes or significant renovations, providing up to $3,000.

Prince Edward Island: First-Time Home Buyer Program

The PEI program provides an interest-free loan covering up to 5% of a home’s purchase price for 10 years.

New Brunswick: Home Ownership Program

This initiative provides forgivable loans or grants to assist with down payments for low- and moderate-income families.

Regional & Municipal Homebuying Incentives

Calgary: Attainable Homes Calgary Corporation (AHCC)

The AHCC program offers down payment assistance, with eligible buyers contributing $2,000 toward their down payment. The program provides up to $50,000 in shared-equity loans for qualifying properties.

Toronto: Home Ownership Assistance Program (HOAP)

HOAP provides down payment loans of up to $50,000, repayable upon the sale of the home. Similar programs are available in other cities, including Kingston, Collingwood, and Haldimand-Norfolk.

Homeownership may feel out of reach, but these programs and incentives can bring it closer to reality.

If you’re ready to explore your options, contact me today. As your local RE/MAX Expert and Certified Luxury Home Marketing Specialist (CLHMS), I’m here to guide you every step of the way.

Jay Paramanathan
Broker, CLHMS

Your Local Expert with RE/MAX Experts

📞 416.700.2222

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