Unlocking the Door: Who is a First Time Home Buyer in Canada/Ontario?

There is specific criteria to be considered when applying for Federal and/or Provincial programs, rebates, mortgages. In this episode of Building Wealth Through Real Estate...Brick by Brick, I outline the different categories and qualifying criteria if you want to purchase property in Canada and specifically in Ontario as a First Time Home Buyer.

Transcript

Nico James-Bock (00:12.407)
Welcome to another episode of Brick by Brick, building wealth through real estate. My name is Nico James-Bock. I'm a broker with Royal LePage Signature in downtown Toronto. I want to talk about first-time buyers. What is a first-time homebuyer? How do you qualify to be a first-time homebuyer? There are several categories that distinguish first-time homebuyers. I want to go through those categories with you today.

Nico James-Bock (01:12.181)
If we divide the groups into what is applicable to a first-time homebuyer, we divide them into what is available to Canadian homebuyers and breaking it down further to those specific to each province because the rules vary from province to province.

So Canada in general has these rules for first-time home buyers. They categorize home buyers by the fact that they have to be at least 18 years of age. You must be a Canadian citizen or a permanent resident to qualify as a first-time home buyer. The property, the home that you bought must be in Canada.

You cannot have owned a home within the last four years if you're buying with a spouse or a common law partner who is not a first-time homebuyer. You cannot have lived in a house that they owned within the last four years. So the four-year time limit is what differentiates a first-time homebuyer in Canada for them to apply or to qualify for first-time homebuyers tax credit and the RRSP homebuyers plan. If they're looking for a mortgage, then these will apply. Moving on, you must have documentation verifying that you have purchased a home within Canada and you must intend to live in that home as your primary residence within one year of purchase. So you cannot qualify for any of these programs or credits if you do not intend to live in the home, in the first home that you are purchasing.

Nico James-Bock (03:23.093)
Moving on to Ontario, which has several different rules as they apply to not the home buying process, but whether you qualify as a first time home buyer to take advantage of the provincial and

Toronto land transfer tax rebates. So this is specific to those rebates. So again, in Ontario, in order to qualify for as a first-time homebuyer, in order to take advantage of the provincial and municipal land transfer tax rebates, you must be, again, at least 18 years of age. You must be either a Canadian citizen or a permanent resident of Canada.

You have to occupy the home as your primary residence within nine months of the date of transfer, so the date of purchase or closing. You cannot have ever previously owned a home either in part or in full anywhere in the world. So this is a key factor that differentiates a first time homebuyer in Ontario that wants to qualify for the provincial and Toronto land transfer rebates. Okay? If you're married, your spouse cannot have ever previously owned a home, either in part or in full, anywhere in the world. So there you have it. It's relatively simple. The distinctions between a first time home buyer in Canada and specifically in Ontario.

Nico James-Bock (05:28.011)
I will have an explanation or a summary of these distinctions in my various channels. You can also reach out to me directly to ask any questions you have. If you qualify as a first time homebuyer, whether you are applying for a mortgage or one of the federal or provincial programs or whether you are considered to be a first-time homebuyer and want to qualify for the provincial and municipal land transfer tax rebate. That's it for this episode. Ciao ciao!