Why Stacking Matters
Each individual first-time buyer program provides modest savings. But stacked together, these programs can reduce your out-of-pocket cash requirement by $30,000–$80,000+ on a duplex purchase. Most first-time buyers use one or two. The buyers who use all applicable programs simultaneously gain a significant financial advantage.
Program 1: First Home Savings Account (FHSA)
Lifetime limit: $40,000. Tax benefit: contributions deductible + withdrawals tax-free for qualifying purchase. Best for: anyone 18+ who hasn't owned a home in 4 years. Open one immediately even if you're not buying for 2–3 years — the clock starts when you open the account.
Program 2: RRSP Home Buyers' Plan (HBP)
Withdrawal limit: $35,000 per person. Tax treatment: tax-free withdrawal, repayable over 15 years starting 2 years after withdrawal. Best combined with FHSA for maximum down payment. Combined with partner HBP: $70,000 available from two RRSPs.
Program 3: Ontario Land Transfer Tax Rebate
First-time buyers receive a rebate of the provincial LTT up to $4,000. On a $600,000 purchase, this covers the full LTT up to approximately $368,000. Above that, you pay the remainder. Toronto buyers also get up to $4,475 in Toronto Municipal LTT rebate.
Program 4: CMHC First-Time Buyer Insurance Advantage
While CMHC insurance is not technically a rebate (it's a cost), the ability to buy with 5–9.99% down is itself a major program advantage. Without CMHC, first-time buyers buying investment properties need 20% down. The owner-occupied duplex route opens access to CMHC, reducing the down payment requirement by 10–15 percentage points on a typical duplex purchase.