First-Time Home Buyers

The definition can vary by program. Some federal programs use a look-back period, while Ontario's land transfer tax refund has its own eligibility rules. I recommend checking the specific program rather than assuming one definition applies to every benefit.

For an eligible owner-occupied purchase, the minimum is generally 5% up to $500,000, then 10% of the portion above $500,000 for a price below $1.5 million. At $1.5 million or more, at least 20% is generally required. Property type, lender, insurer and borrower circumstances may require more. A minimum down payment does not establish mortgage eligibility.

Potentially, if the property and application meet mortgage-insurance requirements. Below 20% down, default insurance is generally required; it protects the lender, not the borrower. The premium may be paid upfront or added to the mortgage. Ontario sales tax on the premium cannot be added to the insured mortgage and needs to be budgeted separately.

The First Home Savings Account is a registered plan for eligible first-time buyers. Current rules provide $8,000 of participation room in the year you open your first FHSA and a $40,000 lifetime contribution limit; qualifying withdrawals can be tax-free and contributions are generally deductible. Your exact eligibility and tax treatment should be confirmed with CRA or a tax professional.

Eligible buyers may use the Home Buyers' Plan to withdraw up to $60,000 from an RRSP toward a qualifying home. The program has eligibility, timing and repayment rules, so it is important to review them before withdrawing funds.

Yes, eligible buyers can use a qualifying FHSA withdrawal and the Home Buyers' Plan for the same qualifying home, provided all requirements for both programs are met.

Eligible first-time buyers and buyers of eligible newly built homes may qualify for insured amortizations of up to 30 years under the federal rules. Other lender and insurer criteria still apply. On the same loan and rate, a longer amortization generally lowers scheduled payments while increasing total interest.

Eligible first-time buyers may receive an Ontario land transfer tax refund of up to $4,000. New homes may also qualify for federal or Ontario GST/HST relief under separate programs. Those programs have different eligibility, agreement dates, value limits and application rules. Ask your lawyer or tax adviser to check the current CRA and Ontario guidance for your purchase before counting a rebate in your budget.