Homebuyer Grants in Ontario: What You Need to Know
- Sebastien Turini
- Feb 24, 2025
- 3 min read
Buying a home is one of the most significant financial decisions you'll make in your lifetime. Fortunately, there are several homebuyer grants available in Ontario to help make homeownership more accessible. These grants provide financial assistance to both first-time homebuyers and those looking to purchase an affordable home. If you're looking to enter the real estate market, these grants can make the process easier and less financially stressful.
In this blog post, we'll take a closer look at the top homebuyer grants in Ontario, their benefits, eligibility criteria, and how to apply for them.
1. First-Time Home Buyers' Tax Credit (FTHBTC)
The First-Time Home Buyers’ Tax Credit (FTHBTC) is designed to assist first-time homebuyers by offering a non-refundable tax credit. This grant helps ease the burden of purchasing your first home.
Grant Amount:
The FTHBTC allows for a tax rebate of up to $750 for qualifying first-time homebuyers.
Eligibility:
The applicant must be a first-time homebuyer (someone who has not owned a home in the last four years).
The home must be purchased in Ontario.
The buyer must live in the home as their primary residence within one year of purchasing.
How to Apply:
The FTHBTC is claimed on your income tax return for the year in which you purchased your home. You can claim the credit once your home is purchased and meet the qualifications.
2. First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) is a new government program designed to help first-time homebuyers save for a down payment. This savings account offers a tax-free way to set aside money for your first home, making it easier to accumulate the funds you need for a down payment.
Grant Amount:
The FHSA allows you to contribute up to $8,000 annually, with a lifetime contribution limit of $40,000.
Contributions are tax-deductible, and withdrawals made to purchase a first home are tax-free.
Eligibility:
Available to first-time homebuyers who are at least 18 years old.
Must be a Canadian resident and have not owned a home in the previous four years.
The funds must be used to purchase your first home.
How to Apply:
To apply for an FHSA, you will need to open an account with a participating financial institution. Once your account is open, you can begin contributing and saving for your first home. You will be able to claim tax deductions for your contributions and take advantage of tax-free withdrawals once you purchase your home.
3. Land Transfer Tax Refund for First-Time Homebuyers
The Land Transfer Tax Refund is available to first-time homebuyers in Ontario. This refund helps to alleviate the cost of the land transfer tax, which is typically paid when purchasing a home.
Grant Amount:
First-time homebuyers can receive up to $4,000 in Land Transfer Tax Refunds.
Eligibility:
This refund applies to first-time buyers of a home in Ontario.
The home being purchased must be the primary residence of the buyer..
How to Apply:
To apply for this refund, you must submit a Land Transfer Tax Refund application at the time of purchase. The process is part of the closing procedure when the property title is transferred to the buyer.
4. Ontario Energy and Property Tax Credit (OEPTC)
The Ontario Energy and Property Tax Credit (OEPTC) helps eligible homeowners with the costs of energy and property taxes. While it’s not exclusively a homebuyer grant, it’s a great benefit for those purchasing a home in Ontario who may need assistance with ongoing costs.
Grant Amount:
The OEPTC offers a maximum of $1,095 for single individuals, and $1,655 for couples or families.
Eligibility:
You must be a resident of Ontario.
The amount depends on income, age, and whether you own or rent your home.
You must meet certain income thresholds to qualify for the credit.
How to Apply:
This credit is applied for through your income tax return. You can claim it as part of the Ontario Trillium Benefit.
Conclusion: Making Homeownership More Achievable in Ontario
Purchasing a home in Ontario can feel overwhelming, but with the array of homebuyer grants available, it is more attainable. From the First-Time Home Buyer Incentive to various tax credits and rebates, Ontario provides numerous opportunities to reduce your costs on the road to homeownership.
We understand that navigating the home buying process can be complex, whether you’re a first-time buyer or a seasoned homeowner. We’re here to guide you through every step and help you make the most of available grants and financing options. Reach out today to learn how we can assist you in finding the perfect home and maximizing your benefits!
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