In Ontario, you can usually count as a first-time buyer if you have not lived in a home you or your spouse owned in the last four years. Then lenders check your income, credit and down payment. Here is who qualifies and what you need.
Summary: Most first-time buyer programs use a four-year rule, but Ontario’s land transfer tax refund is stricter: you must never have owned a home anywhere. You also need steady income, decent credit and savings for the down payment and closing costs.
Who counts as a first-time buyer in Ontario?
For the federal programs, such as the Home Buyers’ Plan and the First Home Savings Account (FHSA), you are a first-time buyer if you did not live in a home that you or your spouse or common-law partner owned this year or in the past four years.
So you may qualify even if you owned a home before, as long as you have been renting for long enough. Separated or divorced? You may qualify again once you no longer live in a home your former partner owns.
The Ontario land transfer tax refund is different. To get it, you must never have owned a home, or an interest in one, anywhere in the world.
For more on the programs, see our guide to first-time buyer programs in Canada.
What do the programs require?
| Requirement | What it means | How to prepare |
|---|---|---|
| Ownership history | No home you lived in and owned in the past four years (never, for the Ontario refund) | Check your dates carefully |
| Live in the home | It must be your main home, not a rental | Plan to move in after closing |
| Program limits | Some programs cap price or income | Confirm before you apply |
What help is available?
- Ontario land transfer tax refund: up to $4,000 back for eligible first-time buyers.
- Home Buyers’ Plan: take up to $60,000 from your RRSP for your down payment and pay it back over 15 years.
- First Home Savings Account: save up to $8,000 a year, $40,000 in total. Deposits are tax-deductible and withdrawals for your first home are tax-free.
- Home Buyers’ Amount: a federal tax credit worth up to $1,500.
You can often use several of these together.
What do lenders need to see?
- Steady income and a stable job history
- Manageable debts, since they reduce how much you can borrow
- Good credit, which affects both approval and your rate
- Savings for the down payment plus closing costs of about 1.5% to 4% of the price
See how much down payment you really need and how to find the best mortgage rates in St. Catharines.
Common mistakes
- Looking only at the price and forgetting property tax, utilities, insurance and upkeep
- Buying a car or running up cards before closing, which can sink an approval
- Skipping advice and missing programs you qualify for
How to get ready
- Set a budget you are comfortable with, not just the most a lender will approve.
- Open an FHSA if you qualify and start saving.
- Keep your credit steady and avoid new debt.
- Get pre-approved before you shop. See how to get pre-approved in Ontario.
Talk to us
Fusion Mortgage Group helps first-time buyers across Ontario qualify and use every program they can. Book a call or phone 289-723-2126.
Common questions
Who is a first-time home buyer in Ontario?
For the Home Buyers’ Plan and FHSA, you qualify if you have not lived in a home you or your spouse owned this year or in the past four years. Ontario’s land transfer tax refund requires that you have never owned a home anywhere.
How much is the Ontario land transfer tax refund for first-time buyers?
Up to $4,000 for eligible first-time buyers who have never owned a home anywhere in the world.
Can I be a first-time buyer again after divorce?
Often yes for the federal programs, once you no longer live in a home your former partner owns. The Ontario refund still requires that you have never owned a home.