First-time home buyer mortgages in Toronto
There is real money available to first-time buyers in Toronto, and most of it has to be claimed rather than given. Here is the complete list, and who actually counts as a first-time buyer.
- Land transfer tax rebates up to $4,475 municipal + $4,000 provincial
- 30-year amortization available on an insured mortgage
- Up to $50,000 GST rebate on a qualifying new build
- You may count as a first-time buyer even if you've owned before
- Free review, no credit check to start
Thank you
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- A 10-minute call to confirm your goals and numbers.
- I check your file against 30+ lenders and send you the realistic options.
- If it makes sense, we apply. If it doesn't, I tell you that too.
You may be a first-time buyer even if you have owned a home
The definitions are looser than most people assume, and they differ slightly between programs — which means it is worth checking each one rather than assuming you are disqualified.
For the 30-year amortization on an insured mortgage, at least one borrower qualifies if they have never owned a home, or have not occupied a home owned by themselves or their current spouse or common-law partner in the current year or the previous four years, or have recently separated (at least 90 days). So a previous owner who has been renting for five years is a first-time buyer again for this purpose.
For the GST rebate on new homes, the test is similar: 18 or over, a Canadian citizen or permanent resident, and not having lived in a home owned by you or your spouse in the current calendar year or the four preceding ones.
For the Toronto municipal land transfer tax rebate the test is much stricter: you must never have owned a home or any interest in one anywhere in the world, and your spouse must never have owned or held an interest in a home anywhere in the world while married to you. That worldwide condition catches a lot of people who qualify for everything else.
So the answer is frequently "you qualify for some of these and not others." Worth going through properly rather than guessing.
What's actually available
Toronto municipal land transfer tax rebate — up to $4,475
If you buy inside the City of Toronto, which includes North York, Scarborough, Etobicoke, York and East York, you pay a municipal land transfer tax on top of the provincial one. First-time buyers can claim up to $4,475 back. You must be 18 or over, occupy the home as your principal residence within 9 months, and meet the worldwide never-owned test. A buyer who becomes a citizen or permanent resident within 18 months of the transfer may still apply.
Ontario land transfer tax rebate
A separate provincial first-time buyer rebate applies across Ontario, including the 905. I'll confirm the current maximum against the Ministry of Finance for your closing — the figure is one worth getting from the source rather than from a blog.
30-year amortization
Available on an insured mortgage if at least one borrower is a first-time buyer or the property is newly built. Lowers your monthly payment and therefore helps you qualify. CMHC charges a 0.20% premium surcharge for first-time buyers taking 30 years, and you pay more interest over the life of the loan — a real trade-off, not free money.
First-Time Home Buyers' GST rebate — up to $50,000
On a qualifying new build: full GST relief on homes up to $1,000,000, phasing out linearly between $1M and $1.5M (a $1.25M home gets about 50%, up to $25,000), and nothing at $1.5M or above. The agreement must have been signed on or after 27 May 2025. At least one buyer must be the first occupant and use it as their primary residence.
The Home Buyers' Plan (RRSP withdrawal)
Lets you withdraw from your RRSP toward a first home without immediate tax, repayable over time. Funds generally need to have been in the RRSP for 90 days before withdrawal, so this needs planning ahead of your closing, not during it.
First Home Savings Account (FHSA)
A registered account combining a deduction on the way in with tax-free growth and withdrawal for a qualifying first home. If you are more than a year from buying, opening one is usually the highest-value thing you can do — contribution room starts accruing only once it is open.
The number that decides your search
Before you look at a single listing, work out your cash requirement. Down payment is tiered: 5% up to $500,000, then 5% of the first $500,000 plus 10% of the portion above it, up to $1.5 million, where the minimum becomes 20% and mortgage insurance stops being available.
Then add closing costs. Inside Toronto that means both land transfer taxes, less whatever rebates you can claim; legal fees; and the PST on your mortgage insurance premium, which cannot be added to the mortgage and must be paid in cash. Across the GTA outside Toronto there is no municipal land transfer tax at all, which is a genuine several-thousand-dollar difference on the same purchase price.
Get pre-approved first and you will know both numbers — your ceiling and your cash — before you start.
Honest answers
Am I still a first-time buyer if I owned a home years ago?
How much is the first-time buyer land transfer tax rebate in Toronto?
Can I get a 30-year amortization as a first-time buyer?
How does the first-time buyers' GST rebate work?
What's the minimum down payment for a first-time buyer in Toronto?
Should I use the Home Buyers' Plan or an FHSA?
Related
Find out which programs you qualify for
The definitions differ between programs and most people qualify for more than they think. One conversation sorts it out.
Aleksey Tsoy · Mortgage Agent (Level 1) · Licence #M20001520 · Centum Financial Services LP · Brokerage Licence #13054