If you’re a first-time home buyer in Toronto, you’ve probably been asking yourself: “Is now really a good time to buy?” Between interest rates, prices, and new government programs, the market can feel overwhelming. In this article, Farid Yari, a Toronto Real Estate Advisor, breaks down the latest data and incentives to help you make a confident, informed decision.

The Good News: Programs and Perks for First-Time Buyers

1. GST Rebate on New Builds

The federal government offers a GST relief for newly built homes under $1 million, and a partial rebate up to $1.5 million. That can save you tens of thousands — an important advantage if you’re buying pre-construction in the GTA.

2. Land Transfer Tax Rebates

Ontario provides up to $4,000 in rebates, and the City of Toronto adds another $4,475. Together, that’s nearly $8,500 in savings just for being a first-time buyer.

3. First Home Savings Account (FHSA)

You can contribute $8,000 per year (to a $40,000 lifetime limit) and grow your money tax-free. When you use it for a down payment, withdrawals are also tax-free — a smart move recommended by Farid Yari for young professionals planning ahead.

4. Extended Mortgage Options

Some lenders now allow insured mortgages up to $1.5 million and 30-year amortizations on new builds, reducing monthly payments and increasing affordability.

5. Federal & Local Tax Credits

• Home Buyers’ Plan – Withdraw from your RRSP tax-free.
• First-Time Home Buyers’ Tax Credit – Up to $1,500.
• Municipal Grants – Some GTA cities offer down-payment assistance.

6. Less Competition in the Market

Compared with the pandemic boom, there’s less bidding pressure. Condos currently offer more inventory and negotiation room — something Farid Yari Real Estate clients are taking advantage of this season.

The Challenges to Keep in Mind

• High Prices: Toronto’s market remains expensive, even with rebates.
• Higher Interest Rates: Monthly payments are steeper than in past years.
• Rate Fluctuation Risk: Variable loans may renew at higher costs.
• Up-Front Costs: Legal fees, inspections, insurance — budget 3-4 % of price.

Should You Buy Now or Wait?

The answer depends on your personal readiness. If you have a steady income, healthy savings, and long-term plans in Toronto, buying now could be wise. Prices are stabilizing, and incentives favor early movers. If you need more time to build your down payment, that’s fine — just remember, when rates drop, competition usually rises.

Final Thoughts from Farid Yari

For first-time home buyers in Toronto, this period offers both opportunities and challenges. The key is clarity — knowing your numbers and options. At Farid Yari Real Estate, my goal is to help you navigate each step calmly and confidently so you can move from uncertainty to ownership.

Ready to explore your first home in Toronto or the GTA? Let’s talk.