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First Time Home Buyer Credits

Updated: Mar 16, 2019

Being a first time home buyer, especially in our current competitive real estate market, can be daunting. I want to share with you some assistance that is available to first time home buyers in Ontario. I am always so excited to help first time home buyers with their mortgage approval and strive to educate my clients every step of the way.

See below for some of the credits that are available.



Land Transfer Tax Refund When you purchase a property in Ontario, you have to pay land transfer tax at closing. The amount of land transfer tax varies depending on what city the property is in and the purchase price. The good news is, if you are an eligible first time home buyer you do not have to pay land transfer tax on the first $368,000. If the purchase price is more than $368,000 you can receive a refund of up to $4,000. For full details on the Land Transfer Tax Refund CLICK HERE. Home Buyers Plan The federal government allows you to borrow up to $25,000 from your RRSP tax free to go towards your new homes down payment. You are given up to 15 years to repay the funds you took out of your RRSP. This is plenty of time to repay, but if you do not pay it back within the 15 year period you will be taxed on this amount when you do your regular income tax filing. In order to qualify, you must not have owned a home within the last five years. Also, the home you are purchasing must be your primary residence. For full details on the Home Buyers Plan CLICK HERE. First Time Home Buyers Tax Credit When you file your taxes the year following your home purchase make sure to apply the First Time Home Buyers Tax Credit. It is calculated by multiplying the lowest personal income tax rate for the year (15% in 2018) by $5,000. For 2018, the credit will be $750. For full details on the First Time Home Buyers Tax Credit CLICK HERE. Please connect with me if you have any questions or if you would like to explore what your first mortgage may look like. I hope this was informative and I look forward to assisting you with your first mortgage! I also recommend finding a reputable real estate agent to guide you throughout the home purchase process. They are a wealth of knowledge and their services are generally free for purchasers! Ciao for now!


Tess Arpa Mortgage Agent Excel Mortgage 226 King St E Cambridge Ontario 519-820-2734 tess.arpa@excelmtg.ca

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Tessarae (Tess) Velkovska is a Licenced Mortgage Agent at Verico Excel Mortgage Canada Connection
Agent Licence # M16002284
Brokerage FSCO Licence # 11621
Head Office:                                            
1 VICTORIA STREET SUITE 613
KITCHENER, ON N2G 0B5 
BROKER LICENCE ID 11621
Agent LICENCE ID M16002284