The Canadian government and various provincial or municipal agencies offer programs to assist first-time buyers—but these can change quickly. Here’s what’s currently available in 2025—and what’s no longer open to new applicants.

1. Home Buyers’ Plan (HBP)

• What It Is

The HBP lets you withdraw up to $60,000 from your Registered Retirement Savings Plan (RRSP) (or $120,000 for a couple) for a down payment, tax-free at the time of withdrawal.

Learn more on the Canada.ca Home Buyers’ Plan (HBP) page

• Key Details

1. No Immediate Tax: You won’t pay tax on the withdrawal if you’re buying a qualifying home.

2. 15-Year Repayment: You must repay the withdrawn amount over 15 years or have it added to your taxable income for that year.

   Details on HBP repayment

• Why It Helps

If you’ve contributed regularly to your RRSP, the HBP can significantly boost your purchasing power.

Pro Tip: After using the HBP, consult a financial advisor or mortgage specialist to set up a practical RRSP repayment plan.

2. Land Transfer Tax (LTT) Rebates

• Provincial LTT Rebate (Ontario)

First-time buyers in Ontario can get up to $4,000 off their provincial land transfer tax.

Details at the Ontario Ministry of Finance site

• Municipal LTT Rebate (Toronto Only)

Toronto charges an additional municipal LTT, effectively doubling what you’d pay in the rest of Ontario. First-time buyers can qualify for up to $4,475 off the municipal portion.

See the City of Toronto Municipal LTT page

• Why It Matters

In Toronto, combining the provincial and municipal rebates can save you up to $8,475—significantly reducing closing costs.

Pro Tip: Ensure your lawyer files for these rebates during closing to lower your initial out-of-pocket expense.

3. First-Time Home Buyers’ Tax Credit (HBTC)

• What It Is

A non-refundable tax credit worth 15% of $10,000, equaling up to $1,500 in federal tax relief.

Check eligibility at Canada.ca’s First-Time Home Buyers’ Tax Credit page

• Eligibility & Benefits

1. First-Time Homeowner: You or your spouse must not have owned a home recently.

2. Tax Return Claim: Reduce your taxable income in the year of purchase.

3. Helpful Boost: Although modest, it offsets some closing costs.

Tax Insight: Combine the HBTC with the Home Buyers' Plan  for a broader financial advantage.

4. Energy-Efficiency Rebates (Program Status Varies)

• Program Changes

The Canada Greener Homes Grant stopped accepting new applications in early 2024. Homeowners who already applied may still receive rebates.

• New Options Coming

The government has proposed new energy initiatives, such as the Oil to Heat Pump Affordability Program, with possible future rebates for eco-upgrades.

• Condo Considerations

In-unit retrofits like windows or HVAC may require condo board approval. Shared systems often fall outside the homeowner’s responsibility.

• Why Consider Energy Upgrades?

1. Lower Utility Bills

2. Higher Resale Value

3. Reduced Environmental Impact

Pro Tip: Some lenders offer green mortgage incentives for energy-efficient homes—ask before you apply.

5. Municipal and Regional Assistance

• Local Grants & Programs

Some municipalities offer down payment help, property tax deferrals, or other supports. Each region has its own rules, so keep an eye on local housing authority pages.

• Stay Alert

These programs can appear as short-term pilots or one-off grants, so timing your home purchase to take advantage can be a bonus.

Example: Certain regions provide forgivable loans if you remain in the home for a set number of years. Terms vary widely.

6. The First-Time Home Buyer Incentive (FTHBI): No Longer Accepting Applications

• What It Was

A shared-equity initiative to reduce monthly mortgage costs through partial government co-ownership of your property.

• Current Status

As confirmed on the CMHC’s page, the program closed permanently as of March 21, 2024, and is no longer available.

• Alternatives

1. HBP & LTT Rebates: Combine these if applicable.

2. Cash-Back Mortgages: Certain lenders may help cover initial costs.

Final Thoughts: Navigating Today’s Incentives

Although certain programs have wrapped up, several cornerstone incentives remain to ease the financial strain of first-time homeownership:

1. Leverage Your RRSP (HBP): A potentially large source of down payment funds.

2. Maximize LTT Rebates: Especially critical in Toronto, where you face both provincial and municipal taxes.

3. Claim Tax Credits: The HBTC can cushion part of your purchase expenses.

4. Explore Energy-Efficiency Grants: Qualify for upgrades that boost both home comfort and value (including condos, in many cases).

Key Tips:

• Research Early: Determine which programs suit your situation and plan accordingly.

• Consult Professionals: Mortgage advisors, financial planners, and ethical real estate agents can help align these incentives with your home-buying strategy.

• Stay Informed: Government incentives can shift, so regularly check official sites for updates or re-introduced programs.

With the right combination of thorough planning and expert guidance, first-time buyers can still find meaningful savings on the road to homeownership in Canada.

Buying your first home in Toronto? It’s exciting — but yeah, it can feel like a lot. With so much happening in the market, it’s important to know your numbers and understand what you’re walking into. After 13 years helping buyers at one of Toronto’s top brokerages, I’ve put together a game plan to help you feel confident, prepared, and ready to make a smart move.

1. Gauge Your Financial Readiness

Check Your Credit Score

A healthy credit score often secures better mortgage rates. Aim for 700+ to access more favorable financing options. According to Equifax Canada, the national average hovers around 660–670.

Toronto’s Current Market Snapshot

The Toronto Regional Real Estate Board (TRREB) reports that average home prices were around $1,080,000 as of January 2025—a 4.2% year-over-year increase. Condos in bustling downtown areas may average $750,000, while detached homes can exceed $1.3 million.

Pro Tip: Keep your monthly housing expenses—mortgage, taxes, utilities—within 30–35% of your gross income for a comfortable budget.

1. Gauge Your Financial Readiness

Check Your Credit Score

A healthy credit score often secures better mortgage rates. Aim for 700+ to access more favourable financing options. According to Equifax Canada, the national average hovers around 690–740.

Toronto’s Current Market Snapshot

The Toronto Regional Real Estate Board (TRREB) reports that average home prices were around $1,080,000 as of January 2025—a 4.2% year-over-year increase. Condos in bustling downtown areas may average $750,000, while detached homes can exceed $1.3 million.

Pro Tip: Keep your monthly housing expenses—mortgage, taxes, utilities—within 30–35% of your gross income for a comfortable budget.

2. Compare Lenders and Secure Pre-Approval

Fixed vs. Variable Rates

• Fixed-Rate Mortgage: Provides stable payments throughout the term. Recent offerings range from 4.00–4.50% for qualified applicants, according to Ratehub.

• Variable-Rate Mortgage: Fluctuates with the Bank of Canada’s policy rate, which is currently 2.75% (Q1 2025).

Shop Around for the Best Rates

Explore major Canadian banks known for their competitive mortgage products. A pre-approval typically locks in a rate for 90–120 days, increasing your credibility during negotiations.

Mortgage Insight: Some reputable lenders like RBC offer a wide array of mortgage solutions tailored to first-time buyers. Choosing a well-known institution can streamline your approval process.

3. Budget for the Down Payment

Down Payment Requirements

• 5% on properties up to $500,000

• 10% on any portion between $500,000 and $999,999

• 20% for properties $1 million+ (to avoid mortgage insurance, per the Government of Canada)

First-Time Buyer Incentives

• Home Buyers’ Plan (HBP): Withdraw up to $35,000 from your RRSP for a down payment.

• First-Time Home Buyer Incentive: A shared-equity program that can reduce your monthly mortgage payments.

Market Fact: CMHC data shows that around 42% of first-time buyers in Canada use government programs to offset initial costs.

4. Account for Toronto’s Land Transfer Taxes

Provincial + Municipal LTT

Toronto imposes both an Ontario and a municipal land transfer tax, effectively doubling the bill. For example, a $600,000 purchase could incur around $16,950 in combined LTT, before rebates. Use the Homes of Willowdale Mortgage calculator for estimates.

First-Time Buyer Rebates

Eligible buyers may receive up to $4,475 off the municipal portion and $4,000 off the provincial portion—significantly reducing your closing costs.

Pro Tip: Budget for these taxes early. Buyers in Toronto often face higher closing costs than those in other Ontario cities.

5. Research Neighborhoods and Market Conditions

Location Priorities

Proximity to TTC, GO Transit, and job hubs can boost value and convenience. A Statistics Canada survey reveals that 70% of urban homebuyers rank transit access as a top priority.

Market Updates

Keep an eye on TRREB’s monthly market reports for average days on market and list-to-sale price ratios to understand local momentum.

Local Insight: Toronto’s sub-markets shift quickly, so having up-to-date data helps you strategize your offers.

6. Work with an Experienced, Ethical Realtor

Why Representation Matters

A seasoned agent helps with market analysis, offer strategy, and closing negotiations. A survey by a major Canadian bank found that 87% of buyers relied on their agent to simplify the process.

What to Look For

Find someone who’s known for honesty, local expertise, and solid communication. They’ll protect your interests while guiding you through every step.

Broker Perspective: After over a decade matching buyers to homes, I’ve seen how knowledge and integrity can make or break the buying experience.

7. Strategize Your House Hunt

Clarify Must-Haves

Define your must-haves: bedroom count, parking, amenities, or future LRT access. A 2024 poll on buyer preferences found that 53% of first-time buyers wished they’d focused more on key features early on.

Act Quickly—But Wisely

In hot zones, listings can receive multiple offers in days. Have your finances ready—but don’t overextend. Pre-approvals from established lenders give you an edge.

Pro Tip: Balance urgency with smart decision-making. A well-timed, informed offer beats rushed bidding any day.

8. Prepare for Closing and Beyond

Finalizing Paperwork

Closing costs may include legal fees, title insurance, and appraisals—typically 1.5–4%+ of the purchase price. With double LTT in Toronto, this number climbs higher than in other regions (Toronto & Ontario LTT tools).

Post-Move Budget

Include moving costs, condo fees (if applicable), upgrades, and furnishings. A solid emergency fund—covering 3–6 months of expenses—can keep you protected.

After the Close: Regular maintenance keeps your home’s value intact. Plan seasonal checkups like HVAC servicing to avoid bigger bills later.

Final Thoughts: Your Path to Toronto Homeownership

Toronto’s real estate market moves fast, but with solid preparation—understanding your finances, comparing mortgage products, and partnering with a trusted Realtor—you’ll be in a great position to succeed. With my 13 years of experience helping first-time buyers navigate this city, I’m ready to guide you with honesty, clarity, and confidence.

Thinking about buying your first home? Let’s connect for a no-pressure chat. I’ll answer your questions, walk you through the process, and help you take that first step with confidence.

Call, text, or email me anytime — your journey to homeownership starts here.

In a promising turn for both homebuyers and investors, the Bank of Canada has recently announced a reduction in its key lending rate to 4.25 percent, marking the third consecutive cut. This strategic move, fueled by the encouraging signs of inflation stabilizing, signals a potential easing of borrowing costs and a more accessible real estate market. Governor Tiff Macklem stands ready to fine-tune the pace of future rate adjustments, ensuring a responsive and adaptable monetary policy that could further enhance the financial landscape for purchasing property. This proactive approach by the Bank of Canada could usher in a wave of optimism and renewed confidence in the housing market, presenting a golden opportunity for those looking to enter the market or expand their real estate portfolios.

The recent report from RBC reveals an intriguing trend within the Greater Toronto Area's housing market. Despite rate cuts, there's been little movement, leaving many to wonder about the perfect time to make their real estate moves. However, the report may not fully encompass the impact of seasonality on the market. Historically, the spring season breathes new life into real estate, suggesting a potential uptick in activity just around the corner.

This could be the opportune moment for sellers to capitalize on the upcoming surge in buyer interest. For sellers, this lull presents a golden opportunity to prepare and list your home, positioning it ahead of the curve when the market gains momentum. A well-timed sale could result in a faster transaction and potentially better offers as buyers compete in a less saturated market.  On the flip side, buyers might also find this period advantageous, with less competition and more room to negotiate. A savvy buyer could secure a favourable deal before the market heats up.

Whether you're considering selling your home or looking to purchase in the GTA, it's essential to arm yourself with the latest market insights and a robust pricing strategy. I invite you to reach out for an updated home evaluation and to discuss how we can navigate the current market conditions together. With expert guidance and a personalized approach, we can turn the market's subtleties to your advantage.

With recent changes in Canadian tax laws, understanding capital gains tax has become more crucial than ever for investors. Capital gains tax in Canada applies to the profit made from the sale of an asset, such as real estate, stocks, or other investments. In this blog, we will break down what the new capital gains tax entails and provide strategies for investors to mitigate their tax burden.

What is Capital Gains Tax?

Capital gains tax is the tax paid on the profit made from selling a capital asset. The gain is calculated as the difference between the selling price and the purchase price of the asset. In Canada, only 50% of the capital gain is taxable, which means you include half of the capital gain in your income and pay tax at your marginal tax rate.

Recent Changes to Capital Gains Tax in Canada

Recent legislative changes have altered the landscape for capital gains tax in Canada. Here are the key points you need to know:

1. Increase in Capital Gains Inclusion Rate: Starting June 25, 2024, individuals with capital gains of more than $250,000 are subject to a 67% inclusion rate, up from the previous 50%. This means a larger portion of the gain is taxable. For corporations, all capital gains are now subject to the two-thirds inclusion rate (CTV News) (MoneySense).

2. Principal Residence Exemption: The rules regarding the principal residence exemption have tightened. Homeowners must ensure they meet all the requirements to claim this exemption, as any deviation could result in significant tax liabilities.

3. Reporting Requirements: Enhanced reporting requirements have been introduced to increase transparency and reduce tax evasion. Accurate and timely reporting of capital gains is now more critical than ever.

Strategies to Minimize Capital Gains Tax

1. Utilize Tax-Free Savings Accounts (TFSA): Investments held within a TFSA are not subject to capital gains tax. Maximizing your TFSA contributions can help you shelter some of your investment gains from taxes.

2. RRSP Contributions: Contributions to a Registered Retirement Savings Plan (RRSP) are tax-deferred. This means you do not pay tax on the money until it is withdrawn, potentially allowing for a lower tax rate in retirement.

3. Consider Holding Periods: Holding investments for more than a year can sometimes result in favourable tax treatment. Additionally, planning the timing of your asset sales to coincide with years when you have lower income can reduce the overall tax impact.

4. Use Capital Losses to Offset Gains: If you have investments that have lost value, consider selling them to realize the loss. Capital losses can be used to offset capital gains, reducing the overall tax payable.

5. Gifting and Estate Planning: Proper estate planning and the strategic gifting of assets can help reduce capital gains tax. Consult with a tax advisor to explore options like spousal rollovers and other estate planning tools.

6. Income Splitting: Income splitting with family members in lower tax brackets can help reduce the overall tax burden. This strategy is particularly effective for families where one spouse has a significantly lower income.

How Capital Gains Are Calculated

To calculate capital gains, you need to know the adjusted cost base (ACB), outlays and expenses, and proceeds of disposition:

• Proceeds of Disposition: The asset’s value at the time of sale.
• Adjusted Cost Base (ACB): The original purchase price plus acquisition costs.
• Outlays and Expenses: Necessary costs before selling, like renovations and legal fees (MoneySense).

The formula is:

Capital Gain=Proceeds of Disposition−(ACB+Outlays and Expenses)

Final Thoughts

Navigating the complexities of capital gains tax in Canada requires careful planning and a solid understanding of the current tax laws. By staying informed about recent changes and implementing effective tax strategies, investors can minimize their tax liabilities and maximize their returns. Always consult with a tax professional or financial advisor to tailor strategies to your specific situation and ensure compliance with Canadian tax laws.

Homeowners who need to sell their house before the end of their mortgage term face a challenging decision regarding their mortgage. There are three primary paths: breaking the mortgage, porting the mortgage, or having the mortgage assumed. Each option has its unique pros and cons, and the best choice depends on individual circumstances.

Breaking Your Mortgage

Breaking a mortgage involves ending your current mortgage agreement. This might be necessary if other options aren't suitable. It usually incurs a prepayment penalty.

Example: Imagine Jane, who has a 5-year mortgage term. Two years in, she gets a job offer in another city. The job opportunity is too good to pass up, so she decides to sell her house and move. Since she's ending her mortgage term early, she chooses to break her mortgage, understanding that a prepayment penalty is involved. It's a cost she's willing to bear for her career advancement.

Porting Your Mortgage

Porting involves transferring your existing mortgage to a new property. This is only possible when buying a new property simultaneously with selling your current one. It's beneficial if your existing mortgage rate is lower than current rates.  If you need a higher mortgage amount, your mortgage rate will be a blended rate, calculated between your existing mortgage rate and the current market rate.

Example: John and Emily bought a house with a fantastic mortgage rate. Three years later, they need a bigger home due to their growing family. They find a new house but don't want to lose their great mortgage rate. So, they opt to port their mortgage to the new property. This way, they transfer their existing mortgage, with its favourable rate, to their new home, saving them money in the long run.

Assuming a Mortgage

Mortgage assumption occurs when the buyer of your property takes over your current mortgage. This is a good option in a rising interest rate environment, allowing the buyer to benefit from a lower rate.  The buyer must also be approved by the same lender before he/she can assume the mortgage. In certain instances, the seller may still be responsible for the mortgage payment if the buyer is unable to make payment. Check your assumption clauses in your mortgage documents before making this offer.

Example: Alex is selling his home in a market where mortgage rates have risen significantly since he bought his house. His current mortgage rate is much lower than what's available now. The buyers of his house, seeing the advantage of the lower rate, agree to assume Alex's mortgage. This makes the property more attractive to the buyers, and Alex benefits from not having to break or port his mortgage.

Comparison Chart

Conclusion

Selecting the appropriate option requires careful consideration of your financial situation, the nature of your mortgage, and future housing plans. Consultation with a mortgage professional is highly recommended to make an informed decision that best suits your needs and goals.