Table of Contents
If you are a first time home buyer in the Greater Toronto Area, 2025 could be your year. With prices still challenging, every dollar saved matters. The good news is there are multiple programs offering a first time home buyer rebate or other financial support to help you move forward.
This guide breaks down these programs by the stages of your home buying journey so you know exactly what help is available at every step.
Before You Buy
First Home Savings Account (FHSA)
The FHSA allows you to contribute up to $40,000 toward your first home with tax free growth. Contributions reduce your taxable income and withdrawals used for a qualifying home purchase are not taxed.
Why it matters: Couples can combine accounts for up to $80,000 of tax sheltered savings, helping to build a larger down payment faster.
Learn more: Canada Revenue Agency – First Home Savings Account
Home Buyers Plan (HBP)
The HBP lets you withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) to use as a down payment. The withdrawal is tax free as long as you repay the funds within 15 years. Couples can access up to $120,000.
Why it matters: This gives you immediate access to your RRSP savings, reducing the need for high interest loans and helping you reach your down payment goal.
Learn more: Canada Revenue Agency – Home Buyers Plan
Reduce Costs At Closing
Ontario Land Transfer Tax Refund
This first time home buyer rebate provides a flat $4,000 refund off the provincial land transfer tax. It fully cancels the land transfer tax on homes priced up to $368,000 and applies the full rebate on more expensive homes, reducing the tax owed by $4,000.
Why it matters: Reduces upfront closing costs and makes it easier to manage cash flow at a critical time in the purchase process.
Learn more: Ontario – Land Transfer Tax Refund for First‑Time Home Buyers
Toronto Municipal Land Transfer Tax Rebate
For buyers in Toronto, there is an additional municipal land transfer tax. First time buyers can get up to $4,475 back. When combined with the Ontario refund this means a total of up to $8,475 in land transfer tax savings.
Why it matters: Significant savings for buyers in Toronto where closing costs are higher due to the extra municipal tax.
Note: Other GTA cities such as Mississauga, Brampton, and Vaughan currently do not offer municipal rebates or incentives for first time home buyers.
Learn more: City of Toronto – Municipal Land Transfer Tax Rebate
Get Money Back After You Move In
GST/HST New Housing Rebate
This program allows you to recover part of the federal GST and Ontario HST paid on a new or substantially renovated home. The Ontario portion can refund up to $24,000 and the federal rebate can return thousands more depending on the home price.
Why it matters: Provides major savings on newly built homes, helping first time buyers afford a higher quality or more energy efficient property.
Learn more: CRA – GST/HST New Housing Rebate
First Time Buyers GST Rebate (New in 2025)
This first time home buyer rebate introduced in 2025, refunds the full 5% GST on new homes priced up to $1 million. Homes priced between $1 million and $1.5 million receive a partial rebate.
Why it matters: On a new $800,000 home this could save you $40,000 in tax, lowering your overall cost of ownership.
Learn more: Department of Finance Canada – GST Relief for First Time Buyers
How to Stack Programs for Maximum Savings
Many first time buyers do not realize that most of these programs can be used together. By stacking them you could dramatically reduce the upfront and ongoing costs of buying a home.
Here is how a buyer in Toronto purchasing a new $800,000 condo could combine programs:
- Use the FHSA and HBP to fund the down payment with up to $200,000 in combined tax sheltered savings and RRSP withdrawals.
- Apply the Ontario and Toronto land transfer tax rebates to save $8,475 at closing.
- Claim the First Time Buyers GST Rebate for a $40,000 refund on the GST.
- Claim the GST HST New Housing Rebate for up to $24,000 on the provincial HST portion.
Total potential financial support in this example: Over $270,000 including tax free savings and rebates.
Final Thoughts
By understanding when and how to use these programs, you can make your first home purchase much more affordable. Before you buy, speak to your mortgage broker or lawyer about which programs you qualify for and how they can be combined.
These financial tools are designed to lower barriers to homeownership and help you build equity faster. With careful planning you can take full advantage of the support available in 2025.
Do not limit your first home search to new builds. Many first time home buyer rebates also apply to resale and Power of Sale properties.
👉 Get Power of Sale listings delivered to your mailbox
Disclaimer:
The information provided in this blog post is for general informational purposes only and does not constitute financial, legal, or tax advice. While we strive to ensure the accuracy and timeliness of the information, laws and programs can change rapidly. Readers are strongly encouraged to consult with a qualified mortgage broker, real estate lawyer, and/or tax professional to determine their eligibility for any mentioned programs and to receive personalized advice tailored to their specific circumstances. Reliance on the information provided herein is at your own risk. This blog post does not create a client-advisor relationship.