Short answer: first-time buyers in Brampton can combine several programs: the FHSA (save up to $40,000 tax-free), the RRSP Home Buyers’ Plan (withdraw up to $60,000), the Ontario land transfer tax refund (up to $4,000), the federal Home Buyers’ Tax Credit ($1,500), and 30-year amortizations on insured mortgages. If you are buying a newly built home, GST/HST relief may also apply.
1. First Home Savings Account (FHSA)
- Contribute up to $8,000 a year, to a $40,000 lifetime limit.
- Contributions are tax-deductible, and qualifying withdrawals for a first home are tax-free, with no repayment.
- You must be 18 or older and a first-time buyer when you open it. Room only starts building once the account is open, so opening early helps even if you contribute later.
2. RRSP Home Buyers’ Plan (HBP)
- Withdraw up to $60,000 per person from your RRSP ($120,000 for a couple who both qualify).
- Repay it over 15 years, starting the second year after the withdrawal. Missed repayments are added to your taxable income.
- Funds must have been in the RRSP at least 90 days. The HBP can be combined with the FHSA on the same purchase.
3. Ontario land transfer tax refund
Eligible first-time buyers can get up to $4,000 back on Ontario land transfer tax, which is usually applied by your lawyer at closing. Unlike Toronto, Brampton has no municipal land transfer tax, so Brampton buyers pay only the provincial tax.
4. First-Time Home Buyers’ Tax Credit
A $10,000 non-refundable federal credit, worth about $1,500, claimed on your tax return for the year you buy (line 31270).
5. 30-year amortization and the $1.5M insured cap
Since December 15, 2024, all first-time buyers can choose a 30-year amortization on an insured mortgage (less than 20% down), and homes up to $1.5 million can qualify for mortgage insurance. A longer amortization lowers the monthly payment and can help you qualify, but you pay more interest over the life of the mortgage.
6. GST/HST relief on new homes
If you are buying a newly built home (not resale), the federal First-Time Home Buyers’ GST rebate and Ontario’s HST relief for new homes can significantly reduce the tax, with full relief announced for qualifying homes up to $1 million and partial relief above that. These programs have specific signing, construction and occupancy dates, and some parts depend on legislation, so check eligibility with your builder and real estate lawyer before you sign.
Putting it together: a simple order of steps
- Open an FHSA now, even with a small amount, to start building room.
- Check your RRSP balance and the 90-day rule if you plan to use the HBP.
- Get a pre-approval so you know your budget under the mortgage stress test.
- Budget for closing costs: land transfer tax (after the refund), legal fees, title insurance and adjustments.
- Read Jatin’s guide on how much down payment you need.
Talk it through with Jatin
Want to know how this applies to your situation? Book a free 15-minute mortgage check with Jatin Sood in Brampton. He explains your options in English, Punjabi or Hindi. Call or WhatsApp 647-569-8109 or use the free mortgage readiness check. Please don’t send documents or account numbers by text or social media; Jatin will share a secure way to provide them.
Frequently asked questions
How much is the Ontario land transfer tax refund for first-time buyers?
Eligible first-time buyers can get a refund of up to $4,000 of Ontario land transfer tax. That fully covers the provincial tax on a home priced up to about $368,000; above that you pay the difference. Your lawyer normally applies it at closing. Brampton has no separate municipal land transfer tax, unlike Toronto.
Can I use both the FHSA and the RRSP Home Buyers’ Plan?
Yes. You can use both on the same qualifying purchase. The FHSA allows $8,000 of contributions a year up to $40,000, with tax-free qualifying withdrawals and no repayment. The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSP, which you repay over 15 years.
Can first-time buyers get a 30-year amortization?
Since December 15, 2024, all first-time buyers can choose a 30-year amortization on an insured mortgage (less than 20% down), and the insured-mortgage price cap is $1.5 million. A longer amortization lowers the payment but increases total interest.
Is there an HST rebate for first-time buyers in Ontario?
Yes, for newly built homes only, not resale. The federal First-Time Home Buyers’ GST rebate and Ontario’s new HST relief for new homes can reduce the tax on a qualifying new home, with full relief on homes up to $1 million under the programs announced. Eligibility depends on dates, price and occupancy, and some measures depend on legislation, so confirm with your builder and lawyer.
Sources: Department of Finance Canada (2024); Osler: Ontario’s new HST rebate (March 2026); CRA guidance on the FHSA and Home Buyers’ Plan.
Jatin Sood, Mortgage Agent Level 2, Licence #M24002757. The Mortgage Centre – Hard Money Approvals, Brokerage #12880. Independently owned and operated. This article is general information, not financial, legal or tax advice. Mortgage approval, rates, terms and eligibility depend on the borrower, the property and lender criteria. Programs and rules can change; confirm details with your lender, lawyer or accountant before you act.