Module 6 of 6 · Final Module · Canadian Edition · 2026

Closing Costs, Rebates & Your Complete Summary

Every closing cost explained, every first-time buyer rebate and program available in Canada in 2026, and a complete recap of everything you have learned across all six modules.

01Closing Cost Budget

02Land Transfer Tax

03Provincial Rebates

04Federal Programs

05Complete Savings Summary

+Bonus Series Recap & Next Steps

Presented by Shanna Davis
Mortgage Broker · Licence #500549 · Licensed Since 2013

Module 6 · Lesson 1 — Closing Costs

What Are Closing Costs and How Much Should You Budget in Canada?

Closing costs are the fees, taxes, and expenses you pay on top of your down payment to legally complete your home purchase. They must be available in cash — they cannot be added to your mortgage in most cases. Underestimating them is one of the most common and stressful surprises first-time buyers face.

1.5–4%

Of purchase price — budget this for closing costs on top of your down payment

$8,000

Maximum BC PTT exemption for eligible first-time buyers — applied to the first $500,000 of purchase price

$8,475

Maximum combined LTT refund for Toronto first-time buyers

$1,500

Federal First-Time Home Buyers' Tax Credit — available to all Canadians

The Golden Rule of Closing Cost Budgeting

Budget 1.5% to 4% of your purchase price in closing costs on top of your down payment. The exact amount varies by province, municipality, property type, and purchase price. A $600,000 home in Ontario could have closing costs of $9,000 to $24,000 — a wide range. Your mortgage broker and real estate lawyer will calculate your precise closing costs before closing day so there are no surprises. The earlier you know this number, the better you can plan.

Closing Cost Item	Typical Range in Canada	Notes
Legal / Lawyer Fees	$1,500 — $2,500	Includes lawyer's fee plus disbursements — title searches, registration fees, couriers
Title Insurance	$200 — $400	One-time premium — typically required by lenders and strongly recommended
Home Inspection	$400 — $700	Paid directly to inspector during condition period — not at closing
Property Tax Adjustment	Varies	Reimburse seller for prepaid taxes from closing date to year end — or receive credit if taxes are in arrears
Land / Property Transfer Tax	Varies by province	One of the largest closing costs — first-time buyer exemptions and rebates apply in most provinces
CMHC Insurance PST	Varies by province	Provincial sales tax on the CMHC premium — paid in cash at closing in Ontario and Quebec — cannot be added to mortgage
Home Insurance (First Year)	$1,200 — $3,000+	Annual premium — first year typically paid upfront or monthly depending on insurer
Moving Expenses	$500 — $5,000+	Varies significantly by distance, volume, and whether you hire movers or rent a truck
Immediate Repairs / Setup	Budget separately	New locks, paint, minor repairs, appliances — plan a reserve for first 90 days

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Ask Your Broker for a Closing Cost Estimate EarlyAs your mortgage broker I can provide you with a detailed closing cost estimate based on your specific purchase price, province, and situation — well before closing day. Knowing your full number early means you can plan with confidence and avoid last-minute stress.

Module 6 · Lesson 2 — Land Transfer Tax

Land Transfer Tax and Property Transfer Tax in Canada — Province by Province

Land Transfer Tax — called Property Transfer Tax in BC — is typically the single largest closing cost for home buyers. The amount varies significantly by province and municipality. Understanding what applies in your province is essential for accurate budget planning.

Which Provinces Charge Land Transfer Tax?

Provinces WITH Land or Property Transfer Tax: Ontario, British Columbia, Quebec, Manitoba, Prince Edward Island, Nova Scotia, New Brunswick, and Newfoundland and Labrador each charge some form of land transfer or deed transfer tax on residential property purchases.

Provinces WITHOUT provincial Land Transfer Tax: Alberta and Saskatchewan do not charge a provincial land transfer tax — a significant financial advantage for buyers in those provinces. Buyers in Alberta pay a small land title transfer fee instead, which is substantially less than LTT in other provinces.

Ontario Land Transfer Tax — 2026 Rates

Purchase Price Portion	Ontario LTT Rate
First $55,000	0.5%
$55,001 to $250,000	1.0%
$250,001 to $400,000	1.5%
$400,001 to $2,000,000	2.0%
Over $2,000,000	2.5%

Source: Ontario Ministry of Finance · Current 2026 rates

🏙️ City of Toronto — Additional Municipal LTT

Toronto buyers pay a second land transfer tax — the municipal Toronto LTT — on top of the provincial Ontario LTT
Toronto LTT rates mirror Ontario LTT rates in most brackets
Combined provincial + municipal LTT on a $700,000 Toronto home can exceed $20,000
First-time buyers in Toronto qualify for both provincial and Toronto LTT rebates — see Slide 4

🏔️ BC Property Transfer Tax — 2026 Rates

1% on the first $200,000 of the fair market value
2% on the portion from $200,001 to $2,000,000
3% on the portion above $2,000,000
Additional 2% on residential properties over $3,000,000
First-time buyers may qualify for a full or partial PTT exemption — see Slide 4

ℹ️

LTT Example — $700,000 Home in Ontario (Outside Toronto)On a $700,000 purchase in Ontario, the provincial LTT would be approximately $9,475. For a first-time buyer, the maximum $4,000 provincial LTT refund reduces this to approximately $5,475. In Toronto, add the municipal LTT and a Toronto first-time buyer rebate of up to $4,475 — total LTT in Toronto before rebates on a $700,000 home would be approximately $19,000, reduced to approximately $10,000 after both rebates. This is a significant cost that many buyers underestimate.

Module 6 · Lesson 3 — Provincial Rebates & Exemptions

First-Time Buyer Property Transfer Tax Exemptions — Province by Province, 2026

Canada's provinces offer meaningful rebates and exemptions specifically for first-time buyers. Knowing which programs apply in your province — and confirming your eligibility with your lawyer before closing — can save you thousands of dollars.

British Columbia

First-Time Home Buyers' Program — PTT Exemption

Up to $8,000

How it works: The exemption applies to the PTT on the first $500,000 of the purchase price only — not the full purchase price. On a home valued at $500,000 or less, the full PTT is eliminated. On homes above $500,000 up to $835,000, the $8,000 exemption is applied and you pay PTT on the portion above $500,000.

Example — $750,000 home: Total PTT = $13,000. Exemption = $8,000 (covering the first $500,000). PTT still owing = $5,000 on the remaining $250,000 above $500,000.

Full exemption threshold: Homes with a fair market value of $835,000 or less qualify. Must be your principal residence. Must never have owned a principal residence anywhere in the world. Must be a Canadian citizen or permanent resident and meet BC residency requirements.

Partial exemption: Available on homes $835,001 to $860,000 — the exemption reduces proportionally. No exemption above $860,000 on resale.

Newly built homes: A separate exemption applies on new builds up to $1,100,000 — different eligibility criteria apply.

Ontario

First-Time Home Buyers' Land Transfer Tax Refund

Up to $4,000

Eliminates Ontario LTT entirely on homes purchased for $368,333 or less. On homes above this amount the $4,000 refund is applied and the buyer pays the remaining balance.

Must be a Canadian citizen or permanent resident, at least 18 years old, must occupy the home as principal residence within 9 months of closing, and must never have owned a home anywhere in the world previously.

Applied at closing — your lawyer applies this automatically as a credit on your Statement of Adjustments.

City of Toronto

Toronto First-Time Home Buyer Municipal LTT Refund

Up to $4,475

Toronto buyers pay a second — municipal — Land Transfer Tax on top of the provincial Ontario LTT. First-time buyers in the City of Toronto qualify for a municipal LTT refund of up to $4,475 in addition to the provincial $4,000 refund.

Combined Toronto saving: Up to $8,475 between provincial and municipal LTT refunds — one of the most significant first-time buyer financial advantages in any Canadian city.

Same eligibility criteria as the provincial Ontario LTT refund apply.

Prince Edward Island

PEI First-Time Buyer Transfer Tax Exemption

Partial

First-time buyers in PEI may be exempt from the provincial real property transfer tax on the first $200,000 of the purchase price. Eligibility criteria apply — confirm with a PEI real estate lawyer at time of purchase.

Alberta & Saskatchewan

No Provincial Land Transfer Tax

$0 Tax

Alberta and Saskatchewan do not charge a provincial land transfer tax. Alberta buyers pay a Land Title Transfer Fee which is a small administrative fee — significantly less than LTT in other provinces. This is an inherent financial advantage for buyers in these provinces that often goes unrecognized.

Other Provinces

Quebec, Manitoba, Nova Scotia, NB, NL

Varies

Quebec charges a Welcome Tax (Taxe de bienvenue) with varying rates by municipality. Manitoba, Nova Scotia, New Brunswick, and Newfoundland each have their own transfer tax or deed transfer structures. Some have first-time buyer programs. Always confirm current rates and eligibility with a locally licensed real estate lawyer at time of purchase.

Sources: BC Ministry of Finance · Ontario Ministry of Finance · City of Toronto · Current 2026 rates and thresholds · Confirm all figures with your real estate lawyer at time of purchase as thresholds are subject to change.

Module 6 · Lesson 4 — Federal First-Time Buyer Programs

Federal First-Time Buyer Programs Available to All Canadians — 2026

On top of provincial rebates, the federal government offers programs and tax incentives available to first-time buyers anywhere in Canada. These stack on top of provincial savings for maximum advantage.

🏛️

First-Time Home Buyers' Tax Credit (HBTC) — $1,500 Savings

Available to every Canadian first-time buyer regardless of province. You claim $10,000 on line 31270 of your federal income tax return for the year you purchase your home. At the 15% federal tax rate, this translates to a $1,500 non-refundable tax credit. If you are purchasing with a partner who also qualifies as a first-time buyer, you can split the claim between your returns but the combined total cannot exceed $10,000. The home must be your principal residence and you must be a first-time buyer as defined by the CRA. Claim this on the tax return for the year your home closes — not the year you sign the offer.

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First Home Savings Account (FHSA) — Up to $40,000 Tax-Free

As covered in Module 2, the FHSA allows first-time buyers to contribute up to $8,000 per year — $16,000 in 2026 if 2025 room was unused — to a lifetime maximum of $40,000. Contributions are tax-deductible. Qualifying withdrawals including all investment growth are completely tax-free. No repayment required. This is the most powerful ongoing federal savings tool available to Canadian first-time buyers and should be opened as early as possible. Contributions must be made by December 31st of each year.

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RRSP Home Buyers' Plan (HBP) — Up to $60,000 Per Person

Updated April 16, 2024 from the previous $35,000 limit. First-time buyers can withdraw up to $60,000 per person from their RRSP tax-free toward a first home purchase. Couples where both qualify can access up to $120,000 combined. Funds must have been in the RRSP for at least 90 days before withdrawal. Repaid over 15 years starting the second calendar year after withdrawal. For withdrawals made between April 16, 2024 and December 31, 2025, a 5-year grace period applies before repayments must begin.

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GST/HST New Housing Rebate — New Builds Only

If you are purchasing a newly built home, HST/GST applies to the purchase price. The federal government offers a New Housing Rebate that partially offsets this cost. The federal portion of the rebate returns 36% of the 5% federal GST paid on the first $350,000 of the purchase price, to a maximum federal rebate of $6,300. Provincial HST rebates may also apply depending on your province. The rebate is typically applied by the builder at closing — confirm this with your real estate lawyer and builder before closing.

🌱

Canada Greener Homes Grant — Energy Efficiency Upgrades

While not exclusively a first-time buyer program, the Canada Greener Homes initiative provides grants and interest-free loans to homeowners who complete eligible energy efficiency improvements — insulation, heat pumps, windows, and doors. As a new homeowner, this can offset the cost of making your home more energy efficient after purchase. Confirm current program availability and funding levels at canada.ca as program details are updated periodically.

⭐

Stack Everything You Qualify ForThe most financially savvy first-time buyers use multiple programs simultaneously — FHSA withdrawals plus RRSP HBP plus provincial PTT exemption plus federal HBTC all on the same purchase. Your mortgage broker and real estate lawyer ensure every applicable program is identified and applied at closing. Never assume something does not apply to you without checking.

Sources: Canada Revenue Agency (CRA) · Government of Canada · canada.ca · 2024 Federal Budget · Current as of 2026

Module 6 · Lesson 5 — Complete Savings Summary

Your Complete First-Time Buyer Savings Summary — Every Dollar Available to You

When you combine every Canadian first-time buyer program, rebate, and tax advantage available, the total financial benefit is extraordinary. Here is the complete picture for 2026.

💰 Maximum Available Benefits — Canadian First-Time Buyer 2026

Program / Benefit	Single Buyer	Qualifying Couple
First Home Savings Account (FHSA) — principal contributions	$40,000	$80,000
FHSA investment growth — tax-free on withdrawal (varies by growth)	Varies +	Varies +
RRSP Home Buyers' Plan — updated April 2024	$60,000	$120,000
BC PTT First-Time Buyer Exemption — on first $500,000 of purchase price (homes ≤ $835,000)	Up to $8,000	Up to $8,000
Ontario Provincial LTT Refund	Up to $4,000	Up to $4,000
Toronto Municipal LTT Refund (Toronto buyers only)	Up to $4,475	Up to $4,475
Federal First-Time Home Buyers' Tax Credit (HBTC)	$1,500	$1,500
GST/HST New Housing Rebate (new builds only)	Up to $6,300	Up to $6,300
Combined Maximum (single buyer — BC, using all programs)	$100,000+ savings tools + $14,500 rebates	—

Important Context on These Numbers

The FHSA and RRSP HBP figures represent savings tools — money you access that you have already saved, not money given to you. The rebates and tax credits (PTT exemption, LTT refunds, HBTC) represent actual savings on costs you would otherwise pay. Not all programs apply in every province simultaneously — your lawyer and broker confirm exactly which combination applies to your specific purchase. Every dollar saved through these programs is a dollar that stays in your pocket or goes toward your home.

All figures current as of 2026. Thresholds and program availability subject to change — confirm all details at time of purchase with your mortgage broker and real estate lawyer. Sources: CRA, Government of Canada, BC Ministry of Finance, Ontario Ministry of Finance, City of Toronto.

Module 6 · Lesson 5 Continued — Real Examples

Real Closing Cost Examples — What First-Time Buyers Actually Pay in Canada

Abstract percentages can be hard to visualize. Here are three realistic closing cost scenarios for first-time buyers at different price points across Canada, after applicable first-time buyer rebates are applied.

Example 1 — $500,000 Home in Ontario (Outside Toronto)

Cost Item	Amount
Down Payment (10% — separate from closing costs)	$50,000
Legal Fees and Disbursements	$1,800
Title Insurance	$300
Ontario Land Transfer Tax	$6,475
Less: Ontario First-Time Buyer LTT Refund	— $4,000
Home Inspection (paid during condition period)	$500
CMHC PST on Insurance Premium (Ontario)	$1,116
Property Tax Adjustment (estimated)	$600
Total Estimated Closing Costs	~$6,791

Example 2 — $750,000 Home in British Columbia

Cost Item	Amount
Down Payment (10% — separate from closing costs)	$75,000
Legal / Notary Fees and Disbursements	$1,600
Title Insurance	$300
BC Property Transfer Tax — 1% on first $200,000 + 2% on remaining $550,000	$13,000
Less: BC First-Time Buyer PTT Exemption — applies to first $500,000 only (1% of $200K + 2% of $300K)	— $8,000
PTT still owing on portion above $500,000 ($250,000 × 2%)	$5,000
Home Inspection	$600
Property Tax Adjustment (estimated)	$700
Total Estimated Closing Costs	~$8,200

Important: The BC first-time buyer PTT exemption applies only to the first $500,000 of the purchase price — not the full amount. On a $750,000 home the exemption saves $8,000 but $5,000 in PTT is still owed on the portion above $500,000. Do not assume the exemption eliminates PTT entirely on homes above $500,000.

Example 3 — $900,000 Home in Toronto

Cost Item	Amount
Down Payment (20% — no CMHC — separate from closing costs)	$180,000
Legal Fees and Disbursements	$2,200
Title Insurance	$350
Ontario Provincial LTT	$13,475
Toronto Municipal LTT	$13,475
Less: Ontario First-Time Buyer LTT Refund	— $4,000
Less: Toronto First-Time Buyer LTT Refund	— $4,475
Home Inspection	$600
Property Tax Adjustment (estimated)	$900
Total Estimated Closing Costs	~$22,525

⚠️

These Are Estimates OnlyActual closing costs vary based on your specific transaction, lawyer, municipality, and property type. Always request a precise closing cost estimate from your lawyer and broker before your closing date. Do not use these examples as your planning number — use them as a general framework to understand what categories of costs to expect.

Module 6 · Series Recap

Your Complete Six-Module Series — Everything You Have Learned

You have completed the entire First-Time Homebuyer Blueprint series. Here is a complete recap of every major topic covered across all six modules — your permanent reference guide for the Canadian homebuying journey.

1

Readiness & Credit Foundation

The 5 readiness questions
3-year employment history requirement
Equifax and TransUnion explained
Canadian credit score ranges
Credit improvement strategies
Broker pulls Equifax on your behalf

2

Your Canadian Money Plan

FHSA — $8,000/year, $40,000 lifetime
RRSP HBP — $60,000 per person (April 2024)
Combined: $100,000 single, $200,000+ couple
Down payment rules — updated Dec 2024
CMHC mortgage default insurance
30-year amortization for first-time buyers

3

Getting Preapproved

Preapproval vs. prequalification
Full Canadian document checklist
GDS and TDS debt service ratios
The mortgage stress test — OSFI B-20
Rate hold — 90 to 120 days
Broker vs. bank advantage

4

Finding Your Home & Offering

Needs vs. wants framework
Canadian property types
Working with a buyer's agent
Showing inspection checklist
New build vs. resale differences
Anatomy of a Canadian offer
Conditions and multiple offers

5

Accepted Offer to Keys

Complete closing timeline
Condition period — 5 priority steps
Mortgage finalization and underwriting
Lender appraisal — 3 outcomes
Real estate lawyer's role in Canada
Statement of Adjustments
Closing day step by step

6

Closing Costs & Rebates

Budget 1.5–4% for closing costs
Land transfer tax — province by province
BC PTT exemption — up to $8,000 on first $500,000
Ontario LTT refund — up to $4,000
Toronto LTT refund — up to $4,475
Federal HBTC — $1,500 tax savings
Real closing cost examples

What Makes You Different Now

You started this series as a first-time buyer with questions. You finish it knowing the stress test, the FHSA, the rate hold, the three closing dates, the PTT exemption, the Statement of Adjustments, and everything in between. That knowledge is yours permanently. The Canadian homebuying process has not changed — but your ability to navigate it with confidence absolutely has.

Module 6 · Your Action Plan

Your Personalized Next Steps — From Learning to Doing

Knowledge without action does not buy a home. Here are your concrete next steps — organized in the sequence that sets you up for the strongest possible outcome as a Canadian first-time buyer.

🏦

Step 1 — Today

Open Your FHSA

If you have not already, open your First Home Savings Account today. Contribution room accumulates from the date you open it. Every month you delay is money left on the table.

📊

Step 2 — This Week

Review Your Credit

Your broker pulls Equifax on your behalf during preapproval — but knowing your approximate score now tells you how much time you may need to prepare before applying.

📞

Step 3 — This Week

Call Shanna

Book your free initial consultation. Bring your income, debt, and savings picture. I will give you a clear assessment of where you stand and a precise roadmap to your preapproval.

📄

Step 4 — After Consultation

Gather Documents

Use the Module 3 document checklist. Gather your NOAs, T4s, pay stubs, and bank statements. Having these ready means your preapproval can be issued in 1 to 3 business days.

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Step 5 — Preapproval

Lock Your Rate

Get fully preapproved and lock in your rate hold. Now you know your exact budget, your rate is protected for 90 to 120 days, and you are ready to search seriously.

🏠

Step 6 — The Search

Find Your Home

With your preapproval in hand, engage a buyer's agent, build your needs vs. wants list, and begin your search on realtor.ca with a focused and confident strategy.

🍁 A Note from Shanna

After 13 years as a Canadian mortgage broker, the most rewarding moment in this work is still the same — handing someone their mortgage commitment letter and watching the reality sink in that they are about to own their first home. Every module in this series was built from real conversations with real first-time buyers who had real questions and real concerns. If this course has brought you closer to that moment, then it has done exactly what it was designed to do. When you are ready to take the next step — I am here. Let's build your path to homeownership together.

Bonus Resource · Module 6 Action Checklist

Module 6 Action Checklist — Closing Costs & Final Preparation

Your final module checklist — closing costs, rebates, and your complete homebuying preparation. Check off each item as you go.

0% Complete

💰 Closing Cost Preparation

Calculated my estimated closing costs with my broker — confirmed I have sufficient funds on top of my down payment

Understand that closing costs are separate from my down payment and must be available in cash

Confirmed the land transfer tax or property transfer tax rate applicable in my province

Understand what CMHC PST applies in my province and whether it must be paid in cash at closing

🎁 First-Time Buyer Rebates — Confirmed Eligibility

Confirmed eligibility for BC PTT full exemption (homes ≤ $835,000) — or partial exemption ($835,001 to $860,000)

Confirmed eligibility for Ontario LTT refund (up to $4,000) — lawyer will apply at closing

Confirmed eligibility for Toronto municipal LTT refund (up to $4,475) if purchasing in City of Toronto

Plan to claim Federal First-Time Home Buyers' Tax Credit ($1,500) on my income tax return for the year of purchase

If purchasing a new build — confirmed GST/HST New Housing Rebate eligibility with my lawyer and builder

Confirmed all applicable rebates will be applied by my real estate lawyer at closing

🏦 Savings Programs — Action Items

FHSA is open and I am contributing regularly toward the annual $8,000 limit

RRSP HBP withdrawal strategy confirmed with my broker — funds seasoned for 90 days

Total down payment from all sources confirmed and documented for my lender

📋 Complete Series — Final Action Items

Completed all six modules of the First-Time Homebuyer Blueprint series

Reviewed and understand the complete closing timeline from Module 5

Have identified and engaged my mortgage broker, real estate agent, and real estate lawyer

Preapproval is complete — rate hold confirmed and expiry date noted

Needs vs. wants list is written and shared with my real estate agent

I am ready — confident, informed, and equipped to buy my first Canadian home 🏠🍁

Bonus Resource · Frequently Asked Questions

Module 6 FAQs — Closing Costs & Rebate Questions Answered

The most common questions Canadian first-time buyers ask about closing costs, land transfer tax, and first-time buyer programs.

How do I know if I qualify as a first-time buyer for rebate purposes in Canada? ▾

The definition of a first-time homebuyer varies slightly between programs but generally means you have not owned a principal residence anywhere in the world at any time during the relevant lookback period. For federal programs like the FHSA and HBTC, the CRA defines a first-time buyer as someone who has not occupied a home they or their spouse or common-law partner owned as a principal place of residence in the current calendar year or the preceding four calendar years. For provincial programs like the Ontario LTT refund, you must never have previously owned a home anywhere in the world. For the BC PTT exemption you must never have owned a principal residence anywhere in the world. Important note — if you are purchasing with a partner, both of you must individually meet the first-time buyer definition for each of you to claim the benefit. Your real estate lawyer confirms your eligibility for each specific program based on your situation before closing.

Do I have to pay land transfer tax on a new construction home? ▾

Yes — land transfer tax applies to new construction purchases as well as resale. In provinces that charge LTT or PTT, the tax applies based on the purchase price of the new home. First-time buyer exemptions and rebates apply to new construction in the same way they apply to resale in most provinces — though eligibility criteria and thresholds may differ slightly. In BC, there is a specific and separate PTT exemption for newly built homes that extends to a higher price threshold than the resale exemption — up to $1,100,000 for qualifying first-time buyers. In addition to LTT, new construction purchases are also subject to HST/GST which does not apply to resale homes. The GST/HST New Housing Rebate partially offsets this cost. Your real estate lawyer and builder work together to explain the tax implications specific to your new build purchase.

Can I use my FHSA and RRSP HBP and still qualify for the provincial LTT rebate? ▾

Yes — these programs are completely independent of each other and can all be used on the same qualifying home purchase simultaneously. Using your FHSA or RRSP Home Buyers' Plan does not affect your eligibility for the Ontario LTT refund, the BC PTT exemption, the Toronto municipal LTT refund, or the federal Home Buyers' Tax Credit. Similarly, claiming your provincial LTT rebate does not affect your ability to use your FHSA or HBP. Each program has its own eligibility criteria that you must meet individually, but meeting the criteria for one does not disqualify you from any other. This is exactly why working with an experienced mortgage broker and real estate lawyer is so valuable — they ensure every applicable program is identified and applied on your behalf so nothing is missed.

What happens if I forget to claim the First-Time Home Buyers' Tax Credit on my taxes? ▾

The good news is that you can claim the First-Time Home Buyers' Tax Credit retroactively by filing a T1 Adjustment — also called a Request for Adjustment — with the CRA for the tax year in which your home purchase closed. The CRA generally allows adjustments for up to 10 years. You would file a T1ADJ form requesting to add the $10,000 HBTC claim to your original return, which would result in a $1,500 refund or reduction of taxes owed. The process is straightforward and can be done through CRA My Account online, by mail, or through a tax professional. If you are purchasing with a partner and neither of you claimed it, both of you can file adjustments for your respective shares — as long as the combined claim across both returns does not exceed $10,000. Always keep a copy of your closing documents as they confirm the purchase year for your records.

Are closing costs tax deductible in Canada? ▾

For most first-time buyers purchasing a principal residence — no, closing costs are generally not tax deductible in Canada. Legal fees, land transfer tax, home inspection fees, and moving expenses are personal expenses when related to a principal residence and cannot be deducted from income. However, there are two important exceptions. First, the First-Time Home Buyers' Tax Credit provides a non-refundable tax credit — not a deduction — worth $1,500 on your federal return. Second, if you are purchasing an income-producing property such as a rental property, some closing costs and mortgage interest may be deductible — but these rules apply to investment properties, not your principal residence. If you have questions about the tax implications of your specific purchase, consult with a tax professional or accountant in addition to your mortgage broker and lawyer.

How far in advance should I have my closing cost funds ready? ▾

You should have your closing cost funds confirmed and accessible at least 5 to 7 business days before your closing date. Your lawyer will request a wire transfer to their trust account, and wire transfers typically take 1 to 3 business days to process depending on your bank. Your lawyer will give you the exact amount required — based on the finalized Statement of Adjustments — typically 2 to 3 business days before closing. As soon as you receive that amount, initiate the wire transfer immediately to ensure funds clear in time. Do not wait until the day before closing to arrange funds. Last-minute wire transfer issues are one of the most common — and most stressful — causes of closing day delays in Canada. Funds from an RRSP HBP withdrawal should also be in your bank account well before closing — the funds must be confirmed received and not still processing.

If I buy a home now and sell it within a few years, does the first-time buyer designation reset? ▾

For most Canadian first-time buyer programs the answer is no — once you have owned a principal residence, you generally lose your first-time buyer status for future purchases. This applies to the FHSA, the RRSP HBP, the Ontario LTT refund, the BC PTT exemption, and the federal HBTC. However, there is an important nuance for the federal programs including the FHSA and HBTC — the CRA's definition of a first-time buyer looks back only 4 calendar years. This means if you owned a home but sold it and have not owned a principal residence in the current year or the preceding 4 calendar years, you may regain your first-time buyer status for federal program purposes. This is sometimes called the "repeat first-time buyer" situation and can apply to people who owned a home years ago, sold, and rented for a period before buying again. Always confirm your specific status with your broker, lawyer, and a tax professional for your specific situation.

What is the single most important thing a first-time buyer can do to set themselves up for success? ▾

Start earlier than you think you need to. The buyers who navigate this process with the least stress and the best outcomes are almost always the ones who started preparing 6 to 18 months before they actually purchased. They opened their FHSA and started contributing. They checked their credit early enough to fix any issues. They connected with a broker long before they were ready to apply so they understood exactly what their purchasing power would be. They saved deliberately with a target number in mind. They were not surprised by any step of the process because they had learned it in advance. The homebuying process itself is not overly complicated — but it requires preparation, documentation, and patience. The time you invest in preparing before you start searching almost always pays back in reduced stress, better rates, and a smoother transaction from offer to closing. You have now done that preparation by completing this series. The next step is yours to take.

Bonus · Your First Year as a Canadian Homeowner

Congratulations — Now Here Is How to Protect Your Investment

Getting the keys is the beginning — not the end. Here are the most important financial and practical habits to build in your first year of Canadian homeownership.

🔒

Change Your Locks Immediately

You do not know who has copies of the existing keys — previous owners, contractors, real estate agents, neighbours. Change all exterior locks on possession day. It is inexpensive and provides immediate peace of mind.

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Build a Home Reserve Fund

Set aside 1 to 2% of your home's value annually for maintenance and unexpected repairs. A $600,000 home needs a $6,000 to $12,000 reserve. Roofs, furnaces, and water heaters do not give notice — having reserves means emergencies do not become financial crises.

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Set Up Your Mortgage Payments

Choose your payment frequency wisely. Accelerated bi-weekly payments — equivalent to one extra monthly payment per year — can shave years off your amortization and save significant interest over your mortgage term.

📋

Update All Your Addresses

Canada Post, CRA, your employer, your bank, provincial driver's licence, vehicle registration, health card, passport if renewal is upcoming, subscription services, and any government benefit programs all need your new address updated promptly.

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Plan for Mortgage Renewal

Your mortgage term — typically 5 years — will come up for renewal. Start planning 4 to 6 months before renewal. Rates may have changed significantly. Contact your broker well before renewal to explore your options — you are not obligated to renew with the same lender.

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File Your Taxes — Claim HBTC

On your federal tax return for the year your home purchase closes, claim the First-Time Home Buyers' Tax Credit at line 31270 — a $10,000 claim resulting in a $1,500 tax savings. Do not forget to claim it. Set a reminder before April 30th of the following year.

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Stay Connected with Your Broker After ClosingYour mortgage broker is not just useful for buying a home. We are also your advisor at renewal, when you want to refinance, when you are considering leveraging your equity, or if you ever purchase a second property. Building that relationship over time — and working with a broker who knows your financial history — consistently produces better outcomes at every stage of your homeownership journey.

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Series Complete · All 6 Modules · Canadian Edition · 2026

You Are Ready to Buy
Your First Canadian Home

Six modules. Every step of the Canadian homebuying process. Every program, rebate, and advantage available to you as a first-time buyer. You started this series with questions — you finish it with a complete roadmap.

✅ Module 1 — Readiness & Credit

✅ Module 2 — Money Plan

✅ Module 3 — Preapproval

✅ Module 4 — Finding & Offering

✅ Module 5 — Offer to Keys

✅ Module 6 — Costs & Rebates

📞 Book Your Free Consultation with Shanna

Shanna Davis · Total Mortgage Initiative Inc. dba Bayfield Total Mortgage
Over a Decade of Canadian Mortgage Expertise · Your Advocate from Application to Keys