Grants, Rebates & Programs for First-Time Buyers in Ontario (2025 Guide)

If you’re planning to buy your first home in Ontario, you’re not alone in wondering how to make it affordable. Between taxes, down payments, and legal fees, every dollar counts—and that’s where government programs and rebates can make a major difference.

Here’s your 2025 guide to every key first-time buyer incentive in Ontario—plus how to combine them for maximum benefit.

🏦 1. First Home Savings Account (FHSA)

What it is: A registered savings account that lets you save up to $40,000 tax-free toward your first home.

• Contribute up to $8,000/year (tax-deductible like an RRSP).
  
  
• Investment growth and withdrawals for your first home are tax-free.
  
  
• You can combine it with the Home Buyers’ Plan (HBP) for even greater impact.
  
  

✅ Max benefit: Up to $40,000 saved, plus tax refunds that can add several thousand dollars more to your buying budget.

💰 2. Home Buyers’ Plan (HBP)

What it is: A program allowing you to withdraw up to $35,000 from your RRSP (per person) tax-free to put toward your home purchase.

• You must repay it within 15 years (starting two years after withdrawal).
  
  
• Great for couples—together, you can access up to $70,000.
  
  

✅ Max benefit: Up to $35,000 (single) or $70,000 (couple) in tax-free RRSP funds for your down payment.

🏙️ 3. Land Transfer Tax Rebates

Ontario Land Transfer Tax (LTT) Rebate

First-time buyers get up to $4,000 off provincial LTT.

• Applies to all eligible homes across Ontario.
  
  

Toronto Municipal Land Transfer Tax (MLTT) Rebate

If you’re buying within Toronto, you may qualify for an additional $4,475 rebate.

✅ Max combined benefit: $8,475 total if you’re a first-time buyer purchasing in Toronto.

🏗️ 4. GST/HST New Housing Rebate

What it is: A federal and provincial rebate for buyers purchasing newly built or substantially renovated homes.

• Applies to both builder-purchased and owner-built homes.
  
  
• Federal rebate: Up to 36% of the 5% GST, capped at a purchase price of $350,000 (partial rebate up to $450,000).
  
  
• Ontario portion: Up to 75% of the 8% provincial component.
  
  

✅ Max benefit: Thousands back—especially helpful for pre-construction buyers.

🌿 5. Energy Efficiency Rebates

With sustainability top of mind, several programs reward buyers who choose energy-efficient upgrades:

• Enbridge Home Efficiency Rebate Plus (HER+): Up to $10,000 in rebates for insulation, windows, heat pumps, etc.
  
  
• Canada Greener Homes Loan: Interest-free loans up to $40,000 for eco-upgrades.
  
  

✅ Max benefit: Combine rebates + loans for up to $50,000 in energy-related improvements.

💡 6. How to Stack These Programs

Many of these incentives can be combined, multiplying your benefits. For example:

A smart buyer can combine:
➡️ FHSA savings ($8K refund) + HBP ($35K withdrawal) + LTT rebates ($8.5K) = Over $50,000+ in total value.

⚠️ 7. Common Mistakes to Avoid

• Not opening the FHSA early: Contributions are annual—don’t lose a year’s room by waiting.
  
  
• Missing closing deadlines: Some rebates (like GST/HST) require timely filing post-closing.
  
  
• Forgetting about tax implications: You must repay the HBP over time, or it becomes taxable.
  
  
• Buying with ineligible co-buyers: If one co-owner isn’t a first-time buyer, rebate eligibility can change.
  
  

🏁 Final Thoughts

These programs can save or return tens of thousands—but only if used strategically and in the right order. The key is planning your financing early, ideally before you start house hunting.

At Ana Bastas Realty, we help first-time buyers pair the right rebates, grants, and lender incentives with their goals—so every dollar of your hard work goes further.

📞 Call 289.670.5888 or visit www.anabastas.ca to build your personalized first-time buyer plan today.