Your Neighbourhood REALTOR®: Government Initiatives to Assist Homebuyers and Homeowners

Sunday, May 14, 2023

Programs for first-time home buyers:

First-Time Home Buyer Incentive (FTHBI): Provides a shared equity mortgage with theh Government of Canada to help first-time home buyers lower their monthly mortgage payments without increasing their down payment.
First-Time Home Buyers’ Tax Credit (HBTC): Budget 2022 proposed increasing the amount used to calculate the First-Time Home Buyers’ Tax Credit to $10,000 (from $5,000), which would provide a tax credit of up to $1,500 to eligible home buyers. This amendment applies to the 2022 and subsequent taxation years.
Home Buyers’ Plan (HBP): Allows eligible home buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to put towards the down payment of their first home.
Tax-Free First Home Savings Account (FHSA): Designed to give first-time home buyers the ability to save $40,000 on a tax-free basis with an annual contribution limit of $8,000. The government is working with financial institutions to have the infrastructure in place for individuals to be able to open an FHSA and start contributing at some point in 2023.

Multigenerational Home Renovation Tax Credit: A refundable credit that allows families to claim up to $7,500 to build a secondary unit in their home to accommodate seniors or adults living with disabilities. Any expenditures to be claimed should be incurred after January 1, 2023.
Home accessibility tax credit (HATC): A non-refundable credit that helps support seniors and individuals living with a disability with a rebate on mobility renovations for their home for up to $10,000 in qualifying expense.
GST/HST new housing rebate: Offers a rebate on the GST or the HST for new homes. The rebate is available to home buyers who purchase a new-build home, preconstruction, or who make substantial renovations to an existing home.

Canada Greener Homes Grant: Helps homeowners save money and lower their footprint while creating new jobs across Canada for energy advisors.
Greener Homes Loan: Helps Canadians make their homes more energy-efficient, by offering interest-free financing in addition to the Canada Greener Homes Grant to help you complete major retrofits recommended by your energy advisor.
Oil to Heat Pump Affordability Program: Helps Canadians who heat their home by oil switch to new, energy efficient heat pumps.
Energy Savings Rebate Program: Energy Savings Rebate program makes energy-efficient products more accessible to people across Ontario.