First-Time Home Buyer? The Programs and Rebates You Can Actually Use
Buying your first home is exciting — and a little overwhelming. The good news: as a first-time buyer in Ontario or Alberta, there’s a whole stack of programs built to help you get in the door with less cash and a lower monthly payment. Most people only use one or two of them. Let’s make sure you use every one you qualify for.
You can buy with as little as 5% down
You don’t need 20% to buy your first home. On a purchase price up to $500,000, the minimum down payment is just 5%. Between $500,000 and $1.5 million, it’s 5% on the first $500,000 and 10% on the rest. With less than 20% down your mortgage is insured, which is what makes those low down payments possible — and it often comes with the best rates available.
The First Home Savings Account (FHSA)
The FHSA is the newest and one of the most powerful tools out there. You can contribute up to $8,000 a year (to a lifetime max of $40,000), your contributions are tax-deductible like an RRSP, and the money comes out completely tax-free when you buy — like a TFSA. It’s the rare account that’s a win going in and coming out. If you’re even a year or two away from buying, opening one is usually a smart first move.
The Home Buyers’ Plan (RRSP)
The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP (per person) toward your first home without paying tax on it, as long as you pay it back over 15 years. For a couple, that’s up to $120,000 in down payment power. Paired with the FHSA, it can seriously accelerate your timeline.
Land transfer tax rebates
First-time buyers in Ontario can claim a rebate of up to $4,000 on provincial land transfer tax — and if you’re buying in Toronto, up to another $4,475 on the municipal tax. It’s money straight back at closing that a lot of buyers don’t realize they’re owed.
How I put it all together for you
The programs are great, but the real value is in stacking them correctly around your income, your timeline, and the home you actually want. That’s my job. I’ll map out exactly what you qualify for, get you a pre-approval with a rate hold, and make sure nothing is left on the table.
Helpful next steps
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Tyler Salmon — Mortgage Agent Level 2 (Ontario & Alberta), License #M21003803. This post is general info, not advice — every file is different, so let’s talk yours through.
Every mortgage is personal. Book a free 30-minute call and I’ll give you a straight answer based on your actual numbers — no pressure, no obligation.
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