Both the federal and provincial governments have set up programs to help people purchase their first home. The following is a list of the programs along with their respective rules.

LAND TRANSFER TAX REFUND
The Deal
A refund of the land transfer tax up to a maximum $2,000.

The Rules

• You are a first time home buyer.
• You are buying a newly constructed home, (not a resale).
• You are not receiving an OHOSP based refund of land transfer tax.

ONTARIO HOME OWNERSHIP SAVINGS PROGRAM (OHOSP)
The Deal
A refundable tax credit of up to $500 for an individual or $1,000 for a couple.

The Rules

• You must be a first time home buyer.
• You must earn less than $40,000 a year or $80,000 in the case of a couple.
• You must open a home ownership plan prior to completing the purchase.
• You may contribute up to a maximum of $2,000 a year for five consecutive years.
• You must purchase your home not later than the end of year seven.

Canadian Government's Home Buyers' Plan
The Deal
You and your spouse can borrow up to $20,000 each from your RRSP to use as a down payment on a home, without the usual tax consequences of withdrawal (i.e. no tax is payable).

The Rules

• You must be a first time home buyer.
• The RRSP funds must be on deposit for at least 90 days.
• Beginning two years after the funds are withdrawn, you must repay annually, 1/15 of the amount borrowed.

FIRST HOME LOAN INSURANCE PROGRAM
The Deal
You can purchase a home with a down payment of just 5% of the purchase price.

The Rules

• You must be a first time home buyer.
• You must be purchasing in an urban area.
• You must meet the price range limits established by CMHC/GE.