Eden  Mesganaw

Eden Mesganaw

Sales Representative


(416) 918-5979
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The 4 First Time Home Buyer Incentive by the Federal Government in 2019

1. The First-Time Home Buyer Tax Credit

The First-Time Home Buyer Tax Credit amount is valued at $750 for all first-time home buyers.

How do you get it, and what are the eligibility requirements?

First Time home buyer tax credit must be claimed on your personal tax return for the year affiliated with your home purchase.

Any qualification necessary aside from being a first-time home buyer?

To be eligible for this First-Time Home Buyer Tax Credit rebate, the purchaser:

       • Must be buying a home within Canada
       • Must intend to occupy the home within one year of purchase
       • Cannot have lived in a home owned by you or your spouse within the previous 4 years


The First Time Home Buyers Land Transfer Tax Rebate – I would say is the best of all the other offers by government

First time home buyers may be able to save up to $8,475 with the Land Transfer Tax Rebate. Eligible first-time home buyers can receive a maximum land transfer tax rebate amount of $4,475 on their Municipal Land Transfer Tax and up to $4,000 on their Provincial Land Transfer Tax.

How Much is Land Transfer Tax on a home? How do you calculate land transfer tax on your purchase?

Ontario Land Transfer Tax Rate 2019:

Up to and including $55,000: 0.5%

$55,000 up to and including $250,000: 1.0%

$250,000 up to and including $400,000: 1.5%

$400,000 to $2,000,000: 2.0%

Over $2,000,000: 2.5%

So how do you get the Land Transfer Tax Rebate?

We have a form or link for them to fill out and I’ll be happy to email or fax, or their Real Estate lawyer can submit.

When can they apply for the Land Transfer Tax Rebate?

Purchasers must apply within 18 months of purchase to obtain their First-Time Home Buyer Land Transfer Tax rebate.


In regards to RRSP, using RRSP investment as downpayment for a home, right?

Eligible home buyers can now withdraw up to $35,000 from their RRSPs as an interest-free loan (up from $25,000) to assist with the down payment on a property. The loan needs to start being repaid two years after the year of withdrawal, with a total of 15 years to repay the amount that was withdrawn.

So what’s the fourth incentive?

4. CMHC Shared Equity Mortgage is the final one

The government also announced they will dedicate $1.25 billion dollars over the next three years through the introduction of the CMHC Shared Equity Mortgage.

What this means is that home buyers earning $120,000 or less per year who are applying for an uninsured mortgage (anything less than a 20% down payment) may be eligible for an interest-free loan from the Canadian Mortgage Housing Corporation (CMHC) of up to 10% of the purchase price for newly built and 5% to resale homes.

So what are the rules required by the government to qualify for shared equity mortgage?

In a nutshell, the details of the incentive are:

  1. Buyers must have a minimum down payment of 5%
  2. Uninsured mortgages on resale properties can get a loan of 5% of the purchase price
  3. Uninsured mortgages on new build properties can get a loan of 10% of the purchase price
  4. The total mortgage amount can’t exceed four times the household income which is capped at $480,000

Do you have to payback this money? When and how?


What’s still unclear regarding the CMHC loan is how and when it gets repaid. The loan is being called a “shared equity mortgage”, which could yield some interesting rules around repayment.

It seems unlikely that CMHC would simply want the five or ten percent loan back with no financial benefit to them. If it’s an “equitable loan”, it could mean that they would be owed five or ten percent of the profits earned when the buyer sells their property.


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