1. RRSP Home Buyers’ Plan

One great source of funding for your mortgage down payment is a Registered Retirement Savings Plan (RRSP). The Canadian government’s Home Buyers’ Plan (HBP) allows first time home buyers to borrow up to $35,000 from your RRSP for a down payment, tax-free. If you’re purchasing with someone who is also a first time homebuyer, you can both access $35,000 from your RRSP for a combined total of $70,000. However, since the HBP is considered a loan, it must be repaid within 15 years.

2. Land Transfer Tax Rebate

In the province of Ontario and the city of Toronto, there is a rebate available to help first-time homebuyers offset the cost of their land transfer tax.

Maximum rebate$4,000$4,475
Rebate will cover LTT to a maximum home value of$368,333$400,000
Partial refund available?50% refund if spouse does not qualify50% refund if spouse does not qualify
You must meet the following criteria:
  • You must be a Canadian citizen or permanent resident of Canada,
  • You must be 18 years of age or older,
  • You must live in the home within 9 months of purchasing it,
  • You cannot have owned a home before, and
  • If you have a spouse, they cannot have owned a home during the time they have been your spouse.