First-Time Buyer Hacks - Grants, Rebates & Hidden Incentives You Need to Know

Ciao! Welcome to a new episode of Building Wealth Through Real Estate...Brick by Brick with me, Nico James-Bock, Founder of The CondoWiz™ Group and Broker at Keller Williams Co-Elevation Realty in Toronto.  

In this new episode, I broke down what’s happening in the current real estate market, especially the clear divide between the condo and freehold sectors. Right now, condos are firmly in a buyer’s market, thanks to high inventory and softer demand. I also walked through the key federal and provincial incentives available for first-time homebuyers — from grants and rebates to tax credits — and stressed how important it is to meet the specific criteria to qualify.

I touched on some local housing programs and Indigenous housing initiatives that are also worth exploring. And as always, I encouraged listeners to connect with a trusted financial professional and to use my CondoWiz™ Toronto GTA app to dig into the data and make informed decisions.

Takeaways

1. Review federal and provincial definitions of "first-time buyer" to determine their eligibility for various programs.
2. Potential homebuyers to explore the First Home Savings Account (FHSA) and consider contributing up to $8,000 per year.
3. Investigate combining FHSA with RRSP Home Buyers Plan for maximum benefit.
Ontario residents to check eligibility for Land Transfer Tax Rebate of up to $4,000.
Toronto residents to explore additional Municipal Land Transfer Tax Rebate of up to $4,475.

4. Research local housing programs in their regions (e.g., Peel, Durham).
Indigenous first-time homebuyers to investigate specific housing initiatives available to them.
5. GTA homebuyers to consider Ourboro co-investment program for assistance with down payment.

6. If your first purchase is in a multi-unit development or project, download the CondoWiz™ - Toronto GTHA+ app, choose a monthly subscription after the 3-day trial and #savetime. 

Contact me for guidance on finding the right program and home. 

Ciao

Transcript

It's actually a fantastic time to be buying — whether you're a first-time buyer or not. The market today is really two different markets: condos and freeholds. Most freehold segments are still in buyer territory, though in some areas, it's more balanced. But when it comes to the condo sector? We're fully in a buyer's market. There’s high inventory and low demand, largely due to uncertainty — not just about interest rates or inflation, but also around job security. And for many first-time buyers, that’s a big deal.

So in this episode of Building Wealth Through Real Estate, Brick by Brick, I’m diving into everything first-time buyers need to know — all the programs, grants, incentives, and rebates available to help you step into homeownership. We'll look at federal, provincial, and municipal options so you don’t miss a thing.

First, let’s start with what it actually means to be a first-time homebuyer. Because there’s more than one definition.

At the federal level, you’re considered a first-time buyer if you haven’t owned a home anywhere in the world in the last four calendar years. That also includes homes owned by your spouse or common-law partner — if you lived in it during that time, it counts against you. This definition applies to things like the Home Buyers' Plan (HBP), the First Home Savings Account (FHSA), and the CMHC’s first-time buyer incentive (which is currently on pause as of March 2024 but might return in another form).

In contrast, the provincial definition in Ontario is stricter. You’re only considered a first-time buyer if you’ve never owned a home or even a share of one, anywhere in the world — no matter how long ago. And if you’re married or in a common-law relationship, your partner has to qualify as a first-time buyer too. Plus, you need to move into the home within nine months of buying it. This definition is important when it comes to the Ontario Land Transfer Tax Refund, which offers up to $4,000 back — and also applies to things like Tarion’s new home warranty protections.

Now let’s look at the key federal incentives:

🔹 First-Time Home Buyer Incentive (FTHBI)
This is a shared-equity mortgage with the government — they offer 5% of the purchase price for a resale or up to 10% for new builds. You repay the same percentage when you sell, or after 25 years. Your household income must be under $120,000 (or $150,000 in Toronto, Vancouver, and Victoria), and your mortgage has to be less than 4 times your income.

🔹 First Home Savings Account (FHSA)
Launched in 2023, this lets you contribute up to $8,000 annually, with a lifetime max of $40,000. Contributions are tax-deductible, and withdrawals used for buying your first home are tax-free. You can even combine it with the HBP for extra savings.

🔹 Home Buyers' Plan (HBP)
This allows you to withdraw up to $60,000 from your RRSP tax-free to buy a home. You need to repay it over 15 years and, again, qualify as a first-time buyer under the 4-year rule.

🔹 Home Buyers' Tax Credit (HBTC)
This is a non-refundable credit of up to $1,500 (based on a $10,000 claim at 15%). It can be claimed individually or split between spouses. You must live in the home and meet the same 4-year ownership rule.

🔹 CMHC Mortgage Insurance & Green Home Program
If you’re putting down less than 20%, you’ll likely need mortgage insurance from CMHC, Sagen, or Canada Guaranty. CMHC also offers a reduced premium if you’re buying an energy-efficient home.

Let’s talk provincial programs in Ontario:

🔹 Ontario Land Transfer Tax Refund
Up to $4,000 back when you buy. You need to live in the home within 9 months, and again, no previous ownership worldwide — ever. If you’re buying with someone who’s owned a home before, your rebate is prorated.

🔹 Toronto Municipal Land Transfer Tax Rebate
If you're buying in Toronto proper, there’s an additional rebate of up to $4,475 — and you can combine it with the provincial rebate for up to $8,475 total.

There are also additional local incentives:

– Enbridge Save on Energy Rebates
– Local programs from municipalities like Peel, Durham, and others
– Indigenous Housing Initiatives for eligible buyers
– Builder incentives like cashback, capped fees, or flexible deposits
– Ourboro — a unique co-investment company that helps you boost your down payment by up to $250,000, available right here in the GTA. I’ve done a separate podcast episode on Ourboro — and there’s another one coming soon.

So, now you’ve got the full picture — the programs, the grants, the definitions. The key takeaway? You don’t have to go it alone.

I’ll help you find the programs that fit your situation, connect you with the right mortgage pros, and guide you step by step to your first home. If you're looking at condos or co-ops, be sure to check out the CondoWiz Toronto GTHA app — it’s like a search engine on steroids for multi-unit buildings and can save you a ton of time during your research.

All my contact info is in the show notes. Reach out any time.
 And hey — congrats in advance on your first home.

Ciao ciao