Buying your first home in Brampton, Toronto, or the Greater Toronto Area can feel overwhelming, especially with high prices and rising costs. But the good news? Several government-backed programs and incentives can ease the financial pressure and help you take that first step. As a trusted mortgage broker in Brampton, Rakhi Madan helps first-time buyers take full advantage of these options.
Tax-Free First Home Savings Account (FHSA)
This is a powerful way to save for your first home. It’s also a great way for parents and grandparents to help!
- Contribute up to $8,000 per year, with a lifetime limit of $40,000 ($80,000 for a couple).
- Contributions are tax-deductible like an RRSP, and withdrawals are tax-free like a TFSA.
- You can combine the FHSA with the RRSP Home Buyers’ Plan for the same home purchase.
- You can contribute up to $8,000 per year, and unused room carries forward — but only after your FHSA is opened. You can also transfer funds from your RRSP (no deduction, but no impact on RRSP room).
If you don’t end up buying a home, your balance can be transferred to your RRSP with no tax impact.
RRSP Home Buyer’s Plan (HBP)
First-time buyers can withdraw up to $60,000 tax-free per person ($120,000 for couples) from their RRSPs to buy or build a qualifying home. The withdrawal rules are:
- Funds must stay in your RRSP for at least 90 days before you withdraw.
- Normally, repayments would start two years later and spread out over 15 years (minimum 1/15 each year). If repayments aren’t made, the amount that was required to be repaid is added to your taxable income.
Important change (2025):
If your first HBP withdrawal was made between January 1, 2022, and December 31, 2025, your repayment start is deferred. You now have a five-year grace period before you begin repayment and still have 15 years to repay overall.
Pro tip: Contribute to your RRSP before the tax deadline to trigger a nice tax refund — then wait 90 days and withdraw the funds tax-free under the HBP. This may be a good way to put your downpayment funds to work, and it’s a smart way to get the tax man to help with your home purchase.
Land Transfer Tax Rebate
Land transfer tax can catch first-time buyers off guard. Luckily, there’s help:
- Ontario rebate: Up to $4,000
- Toronto rebate (if applicable): Up to $4,475 on top of the Ontario rebate
If you’re buying in Brampton, you’re eligible for the Ontario rebate only — still a meaningful savings at closing.
First-Time Home Buyers’ Tax Credit
The federal tax credit was doubled to $10,000 in Budget 2022, giving you up to $1,500 in tax relief for homes purchased on or after January 1, 2022. This helps offset closing costs and moving expenses.
30-Year Amortization on Insured Mortgages
Effective December 15, 2024, all first-time buyers with less than 20% down can now access 30-year amortizations on insured mortgages—whether buying a new build or resale home.
Previously restricted to new builds, this change means:
- Lower monthly payments
- Larger mortgage qualification
- Available on homes up to $1.5M
Note: A 0.20% mortgage insurance premium surcharge applies, and you’ll still need to pass the stress test. But for many buyers in Brampton, this flexibility is a game-changer.
New $1.5M Cap for Insured Mortgages
As of December 15, 2024, the maximum home price eligible for mortgage default insurance increased from $1 million to $1.5 million — the first update in over a decade. While this isn’t limited to first-time buyers, it’s a major advantage for homebuyers in higher-priced markets like Brampton, Mississauga, and the Greater Toronto Area.
What this means for you:
- You can now finance a home priced between $1 million and $1.5 million with a down payment between 5% and 19.99%, without needing 20% equity, and access lower insured mortgage rates.
- The minimum down payment rules are:
- 5% on the first $500,000
- 10% on the portion between $500,000 and $1.5 million
GST Waiver + HST Rebate: Big Tax Savings on New Builds
As of early 2025, the federal government now waives the full 5% GST for first-time buyers purchasing newly constructed homes priced up to $1 million, potentially saving up to $50,000. This new federal incentive applies to new builds used as a primary residence and is designed to make homeownership more achievable in high-cost markets like Brampton.
In addition to this, Ontario’s HST New Housing Rebate allows buyers (first-time or not) to recover up to $24,000 — that’s 75% of the provincial portion of the HST on the first $400,000 of the home’s value — plus up to $6,000 from the federal portion (if the GST applies). To qualify, the home must be used as your (or an immediate family member’s) primary residence, and the rebate application must be submitted within two years of your closing date.
CMHC Eco Plus, Eco Improvement & Insurer Programs
Going green can cut your mortgage insurance costs by 25%, whether you’re buying a high-efficiency home or renovating to improve energy performance.
✅ CMHC Eco Plus (For energy-efficient home purchases)
Receive a 25% refund on CMHC mortgage insurance when your new or existing home meets one of these standards:
- Certified under programs like ENERGY STAR®, R-2000, Passive House, or/li>
- Demonstrates top performance via EnerGuide ratings for energy use or greenhouse gas emissions.
✅ CMHC Eco Improvement (For renovations)
If you’ve already purchased with CMHC mortgage insurance, you can earn the same 25% refund once you spend $20,000 or more on eligible energy-efficient renovations, documented through receipts and an EnerGuide Renovation Upgrade Report.
Similar Programs from Sagen & Canada Guaranty
Sagen’s Energy Efficient Housing Program and Canada Guaranty’s Energy-Efficient Advantage Program also offer 25% premium refunds, whether you’re purchasing or renovating.
- Sagen: Covers both energy-efficient home purchases and renovation projects with qualifying upgrades.
- Canada Guaranty: Applies to both new/energy-efficient home purchases and energy-efficient renovations, with the same 25% refund for qualifying upgrades .
These programs require documentation (EnerGuide labels, upgrade receipts, etc.) submitted within 24 months of closing.
First-Time Home Buyer Incentive – Cancelled
This shared equity program was officially discontinued in March 2024. While the idea was to help with down payments, most buyers weren’t comfortable with the idea of giving up equity. Only about 23,000 Canadians used it—far short of the government’s original goal.
Why Work with Rakhi Madan, Brampton Mortgage Broker?
Government programs can help, but only if you use them wisely—and that’s where Rakhi Madan comes in.
As an experienced mortgage broker in Brampton, Rakhi helps you:
- Navigate the latest updates, like 30-year amortizations and the GST waiver
- Stack programs like the FHSA and the HBP for maximum impact
- Access multiple lenders and get the best rates for your budget and goals
Whether you’re buying a new build or a resale, Rakhi’s job is to make homeownership more achievable—and that starts with smart mortgage planning tailored to first-time buyers in Brampton.
