First-Time Home Buyer Programs Every Hamilton Buyer Should Know About

After several years of rapidly rising home prices, many Hamilton buyers are finally seeing more opportunities enter the market. While affordability remains a challenge, moderating prices and lower interest rates have made homeownership more attainable for many first-time buyers.

If you’re thinking about purchasing your first home, it’s important to take advantage of the government programs designed to reduce your upfront costs and improve your purchasing power.

As Hamilton mortgage brokers, we regularly help first-time buyers combine several of these programs to maximize their savings.

Here are five of the most valuable programs available.

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1. First Home Savings Account (FHSA)

The First Home Savings Account (FHSA) has quickly become one of the best savings vehicles available for prospective homebuyers.

Key benefits include:

• Contribute up to $8,000 per year
• Lifetime contribution limit of $40,000
• Contributions are tax deductible
• Qualified withdrawals are completely tax-free
• Investment growth is also tax-free

The FHSA combines the best features of both an RRSP and a TFSA, making it one of the most powerful tools available for saving toward your first home.

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2. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows eligible buyers to withdraw funds from their RRSP to help purchase a home.

Current features include:

• Withdraw up to $60,000 per person
• Couples may withdraw up to $120,000
• Funds must generally be repaid to your RRSP over 15 years
• Can be combined with the FHSA

Although repayments are required, the HBP allows buyers to access their retirement savings without immediate tax consequences.

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3. Ontario Land Transfer Tax Refund

Ontario offers a land transfer tax refund for eligible first-time home buyers.

Benefits include:

• Refund of up to $4,000
• Applies to most residential purchases in Ontario
• Can significantly reduce your closing costs

For many buyers, this refund covers most—or even all—of their provincial land transfer tax.

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4. First-Time Home Buyers’ Tax Credit

The federal government also offers a First-Time Home Buyers’ Tax Credit.

Eligible buyers may claim a non-refundable tax credit worth up to $1,500.

Generally, you must:

• Be a first-time home buyer
• Not have owned and lived in another home during the previous four years (subject to CRA eligibility rules)

While this credit won’t reduce your closing costs immediately, it can provide valuable tax savings after you purchase your home.

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5. GST/HST New Housing Rebate

If you’re purchasing a newly constructed home, you may qualify for the GST/HST New Housing Rebate.

Depending on the purchase price and eligibility requirements, this rebate can significantly reduce the amount of GST/HST paid on a new home.

Not every buyer or property will qualify, so it’s important to review your eligibility before purchasing.

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Which Programs Can You Combine?

Many buyers are surprised to learn that several of these programs can be used together.

For example, you may be able to:

• Save using an FHSA
• Withdraw RRSP funds through the Home Buyers’ Plan
• Receive the Ontario Land Transfer Tax Refund
• Claim the Federal First-Time Home Buyers’ Tax Credit

Combining these programs can save thousands of dollars and make purchasing your first home much more affordable.

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Talk to a Hamilton Mortgage Broker Before You Buy

Every buyer’s situation is unique. Income, down payment, credit history, and the type of property you’re purchasing can all affect which programs you’re eligible for.

Working with experienced Hamilton mortgage brokers ensures you understand every available option before making one of the biggest financial decisions of your life.

If you’re considering buying your first home in Hamilton or the surrounding area, we’d be happy to review your situation and help you maximize every government incentive available.