First-time home buyers can have this day-time image of Toronto's skyline from across Lake Ontario

Toronto Skyline


About Toronto’s New Mortgage Rules:


Starting January 1st, 2018, Canada’s new housing laws will go into effect, making it harder to qualify for mortgages.


Under the new rules, uninsured mortgages (ones that need a 20% or higher down payment), now have to pass a so-called “stress test.”


The stress test says if you’re buying or refinancing a home, you have to:


a) qualify for mortgage loans at the HIGHER end of the Bank of Canada’s 5-year posted rate (currently 4.89%)




b) meet the mortgage rate offered by your lender PLUS 2%


For example: if you get a mortgage with an interest rate of 3%, your lender has to add an extra 2% (for a total of 5%) in order for you to qualify.


While these new rules seem tough, first-time home buyers are in luck: Toronto is offering several money-saving incentives to make buying a house or condo more affordable!


First-Time Home Buyers’ Tax Credit


Image of money depicting a stack of coins and miniature wooden house, illustrating tax savings

Ontario’s offering big savings with the First-Time Home Buyers’ Tax Credit


If you haven’t owned a home in the past 4 years, you can qualify for the Home Buyers’ Tax Credit (HBTC).


The HBTC is a non-refundable tax credit for first time home buyers. It’s calculated by multiplying the lowest personal income tax rate (15% in 2017) by $5,000.


So for 2017, new home buyers can receive a tax credit of $750!


Toronto’s Tax Refunds for First Time Home Buyers


Image render of a keychain with silver keys and green house

Toronto’s tax refunds makes buying your first home affordable


Ontario residents must pay a Land Transfer Tax (LTT) when buying property. So to help first-time home buyers, Toronto is doubling its Land Transfer Tax refund from $2000 to $4000!


With this refund, you won’t have to pay any Land Transfer Tax on the first $368,000 of your home’s value.


To qualify for a refund:


  • You must be at least 18 years old
  • Must be a Canadian citizen or permanent resident
  • Make the home your main residence within 9 months of purchase
  • You or your spouse must never have previously owned a home anywhere in the world


Home Buyers’ Plan


Image of whiteboard with word "Approved" written in green marker

Toronto’s Home Buyers’ Plan makes it easy to get your mortgage approved


The Home Buyers’ Plan (HBP) lets you withdraw up to $25,000 a year from your RRSP and use it towards your home.


Even better, couples can withdraw a COMBINED $50,000 from their RRSPs, allowing them to make a huge down payment on their new house or condo.


These withdrawals are also non-taxable (as long as they’re repaid in 15 years).


To qualify for the HBP:


  • You must be a resident of Canada
  • Must not have lived in a home owned by you or your spouse during the past 4 years
  • Must not withdraw funds from your RRSP for 90 days since they were first deposited


Image of young woman resting her head on balcony overlooking busy streets

Thanks to amazing incentives, you can own your dream house or condo in Toronto


New home buyers don’t have to worry about changes to Canada’s mortgage laws.


Thanks to tax credits, refunds and other helpful programs, buying a house or condo in Toronto has never been more attractive!


So if you’re a first-time home buyer and would like more information on refunds or tax credits, just contact me below!


Click Here to Contact Me


Wins Lai
Real Estate Broker
Living Realty Inc., Brokerage
m: 416.903.7032

p: 416.975.9889
f: 416.975.0220
a: 7 Hayden Street Toronto, M4Y 2P2
w: e: [email protected]
*Top Producer, President’s Award and New Home Sales Silver – 2017

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