2025 Guide to Ontario Down Payment Assistance Programs That Actually Work

Buying your first home in Ontario feels impossible when you're staring at a $100,000+ down payment requirement. But here's what most people don't know: dozens of down payment assistance programs exist specifically to help Canadians like you step into homeownership sooner than you think.

What Are Down Payment Assistance Programs?

A down payment assistance program helps qualified buyers who can't afford the conventional 5-20% down payment. These initiatives include grants, loans, or shared equity plans that significantly lower your initial expenses.

Consider it a financial link between your dream home and your present savings.

Canada Down Payment Assistance Program Options

Federal Programs

First-Time Home Buyer Incentive (FTHBI) The government provides 5% of the purchase price for existing homes and 10% for new construction as a shared mortgage. You don't make payments on this amount, but you'll eventually repay a percentage when you sell or after 25 years.

Home Buyers' Plan (HBP) As of April 2024, you can withdraw up to $60,000 from your RRSP for your down payment without paying taxes immediately. The government extended the repayment start time to 5 years (previously 2 years) for withdrawals made between 2022-2025.

Down Payment Assistance Program Ontario 

Land Transfer Tax Rebates

First-time buyers in Ontario receive up to $4,000 rebate on the provincial land transfer tax. In Toronto, you can get an additional rebate of up to $4,475 on the municipal land transfer tax.

Ontario Renovates Program

Provides forgivable loans up to $25,000 for low-income households to purchase and repair homes in rural and northern communities.

Down Payment Assistance Program Alberta Highlights

Alberta offers some of Canada's most generous programs:

First-Time Home Buyer Program

• Up to $10,000 toward your down payment
• Income limits: $90,000 (individual) or $130,000 (household)
• Must purchase homes under $395,000

Attainable Housing Program 

This program offers down payment loans up to 5% of the purchase price for homes in participating communities.

Down Payment Assistance Program Toronto

Toronto's high housing costs sparked several targeted programs:

HousingTO 2020-2030 creates pathways to homeownership through shared equity mortgages and down payment assistance for middle-income families.

CreateTO Housing Charter Partners with developers to offer affordable ownership units with reduced down payment requirements.

Down Payment Assistance Programs for First-Time Home Buyers: Your Action Plan

Step 1: Check Your Eligibility

Most programs require:

• First-time buyer status (haven't owned a home in the past 4 years)
• Income limits (usually $120,000-$150,000 household income)
• Canadian citizenship or permanent residency
• Completion of homebuyer education courses

Step 2: Your Benefits

Combine multiple programs for maximum impact:

• Federal FTHBI: Up to 5-10% of home value (depending on new vs. existing)
• RRSP withdrawal: Up to $60,000 per person
• Ontario rebates: Up to $4,000 provincial + $4,475 Toronto
• Total potential assistance: Varies significantly by situation

Important: Program amounts, income limits, and eligibility requirements change regularly. For current rates and personalized calculations, consult with a qualified mortgage professional or visit official government websites.

Step 3: Apply Early

Many down payment assistance programs have limited funding that gets distributed first-come, first-served basis. Start your applications 6-12 months before you plan to buy.

Real Numbers That Matter

According to Canada Mortgage and Housing Corporation (CMHC), many first-time buyers in Ontario combine multiple assistance programs. The updated HBP allows withdrawals up to $60,000 with extended repayment timelines, while the FTHBI provides 5% for existing homes and 10% for new construction.

Note: Housing market data changes frequently. The figures above are for illustrative purposes - consult your mortgage advisor for current market pricing and personalized assistance calculations.

Smart Money Moves

Combine Programs Strategically Use federal programs (FTHBI, HBP) alongside provincial rebates and municipal programs. Each program has different repayment terms, so understand the long-term implications.

Time Your Purchase. Some programs reset annually or have seasonal funding cycles. Spring typically offers the most program availability.

Turn Your Down Payment Assistance Into Real Savings

Here's the truth: knowing about these programs is only half the battle. The real challenge? Finding mortgage rates that work with your assistance program benefits.

Rateswise makes this simple. Our mortgage specialists understand exactly how down payment assistance programs integrate with today's best rates. We've helped hundreds of Ontario first-time buyers combine government assistance with competitive mortgage terms.

Why Choose Rateswise?

Program-Savvy Experts Our team knows which lenders work best with FTHBI, HBP withdrawals, and provincial rebate programs. Not all lenders handle these programs equally - we connect you with the right ones.

Rate Comparison That Actually Matters: Compare real mortgage rates from multiple lenders while looking for your assistance program benefits. See your true monthly payments, not just advertised rates.

Free Consultation Worth Thousands. Get personalized advice on maximizing your down payment assistance program benefits alongside the lowest possible mortgage rates.

Ready to Turn Assistance Into Action?

Don't navigate down payment assistance programs and mortgage shopping alone.

Get Your Free Rate Quote at Rateswise.com →

Our mortgage experts will show you exactly how much you can save by combining the right assistance programs with today's best rates. Most clients save $200-$500 monthly compared to going it alone.

Contact us today!

Frequently Asked Questions

Q: What is a down payment assistance program?

Down payment assistance programs offer grants, forgivable loans, or shared equity options to help qualified buyers, often first‑time homeowners, cover the upfront costs of a conventional 5–20% down payment 

Q: How much can I withdraw from my RRSP under the Home Buyers’ Plan (HBP)?

You can withdraw up to $60,000 tax-free per person (up to $120,000 for couples) from your RRSPs to purchase a qualifying home, with repayment required over 15 years.

Q: What are the First-Time Home Buyer Incentive (FTHBI) and Ontario land transfer tax rebate?

The FTHBI offered 5% (resale homes) or 10% (new constructions) in shared equity until March 2024. First-time Ontario buyers also receive up to $4,000 off provincial land transfer tax and up to $4,475 in Toronto municipal rebates.

Q: Can I combine multiple programs for greater down payment support?

Yes. Many Ontario buyers leverage a combination of federal programs (HBP + FTHBI) and provincial/municipal initiatives (land transfer rebates and shared equity loans) to maximize assistance, sometimes exceeding $60,000 in combined value.

Q: When should I apply for down payment assistance programs?

Start applications 6–12 months before your target purchase date. Funding is often limited and granted on a first‑come, first‑served basis. Early prep helps secure your spot.