Before you make an offer: check which programs you can use
Several programs use the words “first-time home buyer”, but each defines it differently, so do not assume that one answer covers them all. The federal home buyers’ amount, an FHSA qualifying withdrawal and the Home Buyers’ Plan all look back through the current year and the previous four, though the details of the wording differ. Ontario’s land transfer tax refund is stricter: the purchaser cannot ever have owned a home or an interest in a home anywhere in the world, and the same goes for a spouse while they were your spouse.
Write down who will be on title, whether each person has owned a home, and where each person’s down payment will come from. Then raise the answers with your lawyer and mortgage adviser before you sign. For the FHSA and the HBP you need a written agreement to buy or build, so a mortgage pre-approval alone is not enough.
Move the down payment the right way
For an FHSA qualifying withdrawal, you fill out Form RC725 and give it to your FHSA issuer. The CRA conditions include a written agreement with the home acquired or completed before October 1 of the year after the withdrawal, not buying the home more than 30 days before you withdraw, remaining a Canadian resident until you acquire it, and intending to occupy it as your principal residence within one year.
For the HBP, the limit is currently $60,000, withdrawn from your RRSPs using Form T1036. The CRA says that for a first HBP withdrawal between January 1, 2026 and December 31, 2028, repayment begins in the fifth year after the year of the first withdrawal, so a 2026 withdrawal means the first repayment year is 2031. You can use both an HBP withdrawal and an FHSA qualifying withdrawal for the same home if you meet every condition at the time of each. Our article comparing the two plans covers how to choose.
Collect the closing documents that matter for tax
Ask your lawyer for the signed agreement of purchase and sale, the statement of adjustments, the final account showing legal fees and taxes, and proof that the home was registered in your name or your spouse’s. These support later claims and, eventually, the reporting of a sale. Save them in a folder labelled with the purchase year.
If you qualify for the Ontario land transfer tax refund, the Ministry of Finance says you can claim it when the transfer is registered, or pay the tax and apply for the refund later. The maximum refund is $4,000 for transfers on or after January 1, 2017. It is reduced when a co-purchaser is not a first-time buyer, you must occupy the home within nine months of the transfer date, and for recent purchases the purchaser must be a Canadian citizen or permanent resident. A later claim must be made within 18 months after registration, so do not leave it. If a parent is on title only because the bank requires it, the ministry expects evidence, such as a letter from the lender.
Buying new: ask about GST/HST rebates
A newly built or substantially renovated home carries GST/HST. The CRA’s GST/HST new housing rebate recovers part of it for a home used as your primary residence, and for a house bought from a builder the forms are GST190 and, for Ontario, RC7190 ON. The CRA also describes a first-time home buyers’ GST/HST rebate worth up to 100% of the GST, or the federal part of the HST, up to $50,000 when the home is valued at or below $1 million, reduced between $1 million and $1.5 million.
Ask the builder and your lawyer whether any rebate is handled through the closing documents or whether you have to apply for it yourself, and confirm that you meet the conditions for each rebate. Keep the builder’s statement showing the tax charged.
After you move: your next return
On the return for the year you bought, claim the home buyers’ amount on line 31270 if you qualify. The CRA’s page for 2025 shows up to $10,000 and says the credit is non-refundable, so it only reduces federal tax you would otherwise owe. Confirm the amount for the year you file, and agree who claims it if a spouse or co-owner is eligible. The CRA says not to send supporting documents with the return, so keep them instead.
If you moved at least 40 kilometres closer to a new job, business location or school, the moving expenses deduction on Form T1-M may apply. If you sold your old home because of the move, the CRA includes the legal or notary fees and the land transfer taxes (other than GST/HST) on the new home in the cost of buying. When you later sell, the principal residence designation is reported on your return, and the purchase records above will help.
Your conversation checklist
- Who will be on title and whether each person has owned a home
- Written agreement of purchase and sale
- FHSA Form RC725 or HBP Form T1036, with issuer confirmations
- Statement of adjustments and lawyer’s final account
- Proof of registration in your or your spouse’s name
- Ontario land transfer tax refund claim and any lender letter
- Builder’s statement and GST/HST rebate forms for a new home
- Line 31270 claim split agreed with any co-owner
- Moving expense receipts and Form T1-M, if you qualify
Further reading & sources
- CRA: Withdrawals and transfers out of your FHSAs
- CRA: What is the Home Buyers’ Plan
- CRA: Line 31270, Home buyers’ amount
- CRA: GST/HST new housing rebate
- Ontario: Land transfer tax refunds for first-time homebuyers
Tax rules and administrative requirements can change. Check the applicable official guidance and confirm your circumstances with a qualified adviser. This guide is not an assessment of your filing, payment or legal obligations.