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First Time Home Buyer Incentives

Buying a house for the first time is a big and important decision in your life. As someone who represents you and looks out for your best interest, I would like to let you know about the various programs and incentives that are available.

1. First Time Buyers Tax Credit:

You can claim $5,000 for the purchase of a qualifying home in the year if both of the following apply:

  • you or your spouse or common-law partner acquired a qualifying home
  • you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years (first-time home buyer)
  • How is the new tax credit calculated?

The Home Buyers Tax Credit is calculated by multiplying the lowest personal income tax rate for the year (15% in 2021) by $5,000. For 2021, this amount is $750

2. Home Buyer’s Plan:

The Home Buyers’ Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a related person with a disability. Budget 2019 increased the HBP withdrawal limit to $35,000. This applies to withdrawals made after March 19, 2019.

3. Land Transfer Tax Rebate:

Land transfer tax applies to all conveyances of land in Ontario. Firsttime home buyers may be eligible for a refund of all or part of the tax payable.

Beginning January 1, 2017, the maximum amount of the refund is $4,000. The increased limit of $4,000 applies only to conveyances or dispositions that occur on or after January 1, 2017, regardless of the date the agreement of purchase and sale was signed.

Beginning January 1, 2017, no land transfer tax would be payable by qualifying firsttime purchasers on the first $368,000 of the value of the consideration for eligible homes. Firsttime purchasers of homes greater than $368,000 would receive a maximum refund of $4,000.

First-time home buyers in Toronto can also receive a municipal land transfer tax rebate of up to $4,475

4. First Time Home Buyer Incentiv

With this incentive, Government of Canada provides:

  • 5% or 10% for a first-time buyer’s purchase of a newly constructed home
  • 5% for a first-time buyer’s purchase of a resale (existing) home
  • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home
  • The incentive is available to first-time home buyers with qualified annual incomes of $150,000 or less. A participant’s insured mortgage and the incentive amount cannot be greater than 4.5 times the participant’s qualified annual income.

5. New housing GST/ HST Rebate (Applies to all Buyers, First time or not):

This rebate offers money back to Canadians who buy a newly built home, substantially renovate an existing home, or rebuild a home that was destroyed due to fire. In all three cases, an individual will incur GST/HST on their purchase. The GST portion of a new home purchase or renovation can be rebated to all Canadians who qualify.

The GST/HST new housing rebate allows an individual to recover some of the goods and services tax (GST) or the federal part of the harmonized sales tax (HST) paid for a new or substantially renovated house that is for use as the individual’s, or their relations, primary place of residence, when all of the other conditions are met. Additionally, other provincial new housing rebates may be available for the provincial part of the HST whether the GST/HST new housing rebate for the federal part of the HST is available or not.

In certain circumstances, a transitional new housing rebate may be available in addition to any GST/HST new housing rebate and provincial new housing rebate for which you may be eligible, even if the house is not your primary place of residence.

The new housing rebate is not available to a corporation or a partnership.

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    Alyssa Notta
    Alyssa Notta
    2021-09-29
    gayathri krishna
    I would like to thank Imraz and his team for the all the work they have done to make our dream come true. What ever I have put down here is very much less than what you guys as a team did. Appreciate all your help. Above and Beyond As a first time home buyers, we had so many questions and concerns, Imraz was so patiently guided us when is the correct time to go ahead and always provided right information and helped us in making our decision. He and his team worked tirelessly to get our things organized and sorted even after our deal was closed. He and his team was always ready to get the necessary information that we requested.They just exceeded and went beyond our expectations through this process. I will recommend him to anyone who is looking for a property
    gayathri krishna
    2020-02-10
    shatrav tej
    For a first time home buyer, Toronto's real estate market can be really intimidating. Having already done considerable online research, I still had several unanswered questions and was looking for a professional to talk to. This is when I met Imraz who gave me an insider's perspective of the market and the things to be aware of when purchasing. Since I wasn't in a rush, Imraz took the time to show me tens of properties over the course of a year so I have considerable information to make the right choice. He was always enthusiastic even after a long day's work and loaded me with information during every visit. The relation Imraz builds with his clients is truly appreciative. Over the past year, Imraz has provided me several friendly and personal pieces of advice but at the same time made sure I was never compelled or rushed to make a decision. After my offer has been accepted for a property, the admin team has been prompt in their emails with documents and follow-ups to ensure a smooth closing. With the quality of service I received, I've recommended Imraz to several of my friends and their friends who were looking to both buy or rent properties. I would definitely recommend the Ramani group for anyone hoping to get into the real estate market.
    shatrav tej
    2019-01-08
    Elsie Xynos
    Working with Imraz Ramani and his team was an awesome experience! Selling your home is always a stressful time, full of questions and worry and decisions. Imraz took the time to truly listen to our needs and worked with us to create a sales strategy that was best for us. He went above and beyond the standard realtor expectations, worked tirelessly to get my Mom's condo ready to sell and made sure we were kept in the loop every step of the way. The condo sold in less than two weeks at significantly above the asking price .I would highly recommend working with Imraz Ramani. He is honest, hard working and passionate about what he does! ~ Elsie & Mary
    Elsie Xynos
    2018-12-18
    Shilpa
    We highly recommend Imraz and his entire team. Having dealt with a number of realtors now after a long home search, he is a cut above the rest. Imraz was recommended to my husband and I through friends. From the moment we met him, he was professional, precise and always generous with his time. My husband and I were first time home buyers, and Imraz took his time explaining the process to us right from the outset. We went for a few home viewings over the course of a month before we realized we hadn’t talked “money.” Imraz quickly told us that his job was to find us a home we liked, and that was it. No complicated talk of contracts or money... The good: Irma has a wealth of experience, is patient (can’t emphasize this enough), respectful of time, detail-oriented and thorough. He has a calm demeanor and isn’t aggressively trying to ‘make a buck.’ The great: Imraz and his team take care of details from start (viewing the home) to finish (moving in to your new home). They continue to follow up one year on after we’ve bought the home, to check-in if there’s anything we need. Imraz is quick to respond to questions we may have, even though we are no longer his “client.”
    Shilpa
    2018-10-20
    3G Farms
    From start to finish Imraz and his team were there handling all the small details. Professional and attentive to any concerns we had, which were addressed straight away. Thank you for delivering on everything we agreed to and providing an easy and smooth transition from selling to buying our new home. Highly recommend if you are looking for a realtor who is not just professional, and has your best interest in mind, accurate and will deliver, then Imraz is that guy.
    3G Farms
    2018-10-11
    Rehana Karmali
    Dear Imraz, my wholehearted thank you to you and your team for,  not only renting out the River City property in such an amazingly short time, but the manner in which you took on the entire process. It was simply superb! You communicated with the old tenant to ensure that her move out was smooth. You identified the maintenance work that needed to be done and oversaw the maintenance through your resources. You worked with the new tenant and made sure that he moved in without any issues and he was happy. And finally, during this entire process, you kept us informed and sought our approval before any expenses were incurred. I have done many real estate transactions over the years and I must tell you that I have never come across an individual who is as professional and caring as you. You can rest assured that I will be conducting all my future transactions through you. I will also recommend your team to my family and friends. Once again, thank you for your fantastic service. I wish you and your team lots of success in the future. With Best Regards - Azim and the Karmali Family
    Rehana Karmali
    2018-09-17
    Tasnim Shariff
    We’ve used Imraz’s services multiple times and will continue to do so in the future. They are friendly, quick to respond, and knowledgeable. I highly recommend him and his team for your real estate needs.
    Tasnim Shariff
    2018-02-08
    Alexey Shumkin
    From start to finish, Imraz and his team have taken full accountability of the process. From the first consultation, until the end of our move, every step of the process was treated with utmost attention to detail and thorough follow up, making the whole experience for us completely headache free and a breeze! Having met with multiple realtors at the start of our sale, Imraz stood out amongst all others by not only having a most thorough home evaluation and pricing model, but the best and most competitive sales strategy to stand by his numbers. Imraz inspired confidence by going far and above our expectations in his marketing, customer outreach and sales exposure approach. With undiminishing enthusiasm, Imraz was there for us every step of the way, hour of the day and day of the week! Imraz and his team took the time to explain every detail of the process, and prepare us for everything to come ahead! We were a first time home seller and found the entire experience of working with Imraz and his team an absolute pleasure! Imraz and his team have not only met, but exceeded every expectation we had going through this process. I would not only recommend Imraz and his team to family and friends, but look forward to working with them again in the near future!
    Alexey Shumkin
    2018-02-05
    Nevin&Nadir Kassam
    It is our absolute pleasure to have the opportunity to recommend Imraz Ramani, a truly exceptional real estate agent. It is rare in this day to find a person with an impeccable work ethic, who is hard working, honest, and who possesses a sincere desire to deliver exactly what his clients are searching for. If these are the qualities you seek in a realtor, you have found them in Imraz. Imraz provides the highest quality of service, is extremely well versed in the industry as a whole, and brings remarkable knowledge of the Ajax/Pickering market. During our extensive search for a realtor, Imraz diligently strove to present us with endless ideas on ways to maximize the sale of our house, always maintaining an enthusiastic approach and outlook. He arranged for the upgrades to our house, physically helped us de-clutter our home of 25 years worked hard every day to sell our house. He staged our house with class, so much so that it sold in 1 week for 99.9% of asking. His experience was also evident in how he approached the negotiations of sale where his level headed approach got us exactly what we wanted. In addition, he has numerous contacts that makes selling your house an easy and wonderful experience. We whole heartedly recommend Imraz with reservation. He is the best, he will sell your house and you will have a smile throughout the whole experience
    Nevin&Nadir Kassam
    2017-05-07
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