Tax Benefits of Buying a Home Early in the Year

Starting the year with a home purchase isn’t just about fulfilling New Year’s resolutions — it’s also a strategic financial move. Buying early in the year unlocks unique tax benefits and incentives that can help first-time buyers and seasoned homeowners save thousands.

First-Time Home Buyers’ Tax Credit: First-time buyers can claim a $10,000 non-refundable tax credit, resulting in up to $1,500 in tax savings. This credit helps offset closing costs, making home ownership more affordable.

Home Buyers’ Plan (HBP): Buyers can withdraw up to $60,000 tax-free from their RRSP to use toward a down payment. Repayment is spread over 15 years, making it a flexible option for financing.

Land Transfer Tax Refund: Eligible first-time buyers can receive a refund of up to $4,000 on land transfer taxes. This significantly reduces upfront costs when purchasing a home.

First Home Savings Account (FHSA): Save up to $8,000 per year, with contributions tax-deductible and withdrawals for a first home completely tax-free. It’s a powerful tool to grow your down payment faster.

Buying a home early in the year isn’t just about finding the perfect property — it’s about making a strategic investment that supports your financial goals. By tapping into Ontario’s tax benefits and planning wisely, you can minimize upfront expenses, maximize savings, and set yourself up for success. Take advantage of these opportunities and make 2025 the year of smart moves and new beginnings.