Tag Archive for: First Time buyer tips

The Land Transfer Tax Rebate Nobody Tells First-Time Buyers About

Here’s a gap that catches a lot of first-time buyers off guard, especially if they’ve done some general research online: land transfer tax rebates exist — but not everywhere, and not the same way. Where you’re buying determines whether you get real money back at closing, or nothing at all.

The rebate that actually exists — and where

Ontario has a genuine Land Transfer Tax Rebate for first-time home buyers, worth up to $4,000. For a typical first-time purchase, that can wipe out the land transfer tax owing almost entirely on homes up to roughly $368,000, and meaningfully reduce it above that. It’s a real credit applied directly at closing — not a tax deduction you claim later.

A lot of the “land transfer tax rebate” content online is written for an Ontario or national audience. If you’re buying in Nova Scotia, most of it simply doesn’t apply to you.

What Nova Scotia buyers actually get

Nova Scotia has no equivalent provincial first-time buyer rebate on its deed transfer tax. The deed transfer tax itself is set municipally — in Halifax Regional Municipality, it’s 1.5% of the purchase price, paid in full regardless of whether it’s your first home or your fifth. There’s no rebate program that offsets it for first-time buyers the way Ontario’s does.

Comparison graphic showing Ontario First-Time Buyer Rebate up to $4,000 next to Nova Scotia No Rebate Available, full 1.5 percent deed transfer tax owing

Why this matters for your closing budget

If you’ve read general advice suggesting you’ll get some of your land transfer tax back as a first-time buyer, and you’re purchasing in Nova Scotia, that assumption can leave a real gap in your closing cost budget. On a $500,000 Halifax purchase, that’s $7,500 in deed transfer tax with nothing coming back — money that needs to be accounted for up front, not assumed away.

What to do instead of assuming

Don’t rely on generic online guidance for a cost this specific to location. Before you budget for closing day, confirm the actual deed transfer tax rate for your specific municipality, and whether any rebate genuinely applies to your province — not just the province the article you read was written for.

Know your real closing costs before you budget. Call 902-465-5533 — I answer.

Know your real closing costs before you budget. Patrick Sawler, Principal Broker, Craigburn Capital, craigburn.com. NS Brokerage 2025-3000179, Broker 2025-3000180, ON M23006699

Free Money. Seriously.


The RRSP Home Buyers’ Plan lets you pull up to $35,000 from your RRSP — tax-free — to use as a down payment. Most first-time buyers have no idea it exists. Here’s how it works.

Let me tell you about a conversation I have at least once a week.

Someone comes to me convinced they can’t buy yet. They don’t have enough for a down payment. They’ve been saving, but the target keeps moving. And then I ask one question:

“Do you have an RRSP?”

They say yes.

“How much is in it?”

And suddenly — we’re having a very different conversation.

What Is the Home Buyers’ Plan?

The Home Buyers’ Plan (HBP) is a federal program that lets first-time buyers withdraw money from their RRSP and use it toward a down payment — completely tax-free at the time of withdrawal.

The same RRSP that would normally trigger a tax bill if you touched it early? For this specific purpose, the government waves you through.

Here are the numbers that matter:

— $35,000 maximum per person
— $70,000 maximum per couple
— 15 years to pay it back (1/15th per year)
— Funds must be in the RRSP for at least 90 days before withdrawal

For many buyers in Nova Scotia and Atlantic Canada, that’s the difference between still renting and actually owning.

The Rules in Plain English

You must be a first-time buyer — meaning you haven’t owned a home you lived in during the last four calendar years.

The funds must have been in your RRSP for at least 90 days before you withdraw them.

You need a signed Agreement of Purchase and Sale, or you must be building a qualifying home.

You have up to two years after the year of withdrawal before repayments begin, then 15 years to pay it back.

If you miss a repayment in any given year, that portion gets added to your taxable income. The incentive to repay is built right in.

A Real Example

Jamie and Alex are buying their first home together in Halifax. Jamie has $28,000 in their RRSP. Alex has $22,000.

Using the HBP, they withdraw $50,000 combined — tax-free — toward their down payment. On a $450,000 purchase, that gets them above 11% down, which significantly reduces their CMHC insurance premium.

Starting the second year after withdrawal, each repays roughly $1,867 annually back into their RRSPs — about $155 per month each. A manageable rhythm that rebuilds their retirement savings while they’re building equity in their home.

The Myths That Keep People From Using It

“I’ll get killed on taxes.” — There’s no tax on the withdrawal at the time you take it. The tax only applies later if you don’t repay, and even then, only on the missed annual amount.

“I just opened my RRSP — I can use it right away.” — The funds must sit in the RRSP for at least 90 days first. Timing matters, so plan ahead.

“I bought a house eight years ago — I don’t qualify.” — The definition looks back only four calendar years. If you haven’t owned a principal residence in that window, you may qualify again.

“My RRSP only has $8,000 — it’s not worth it.” — $8,000 is real money toward a down payment. Every dollar reduces what you borrow and what you pay in mortgage insurance. Don’t leave it on the table.

The Part Nobody Mentions

There’s a strategy that some buyers use when they know they’re purchasing within the next year. Since RRSP contributions generate a tax refund — and that refund can also go toward a down payment — some buyers accelerate contributions in the months before purchase to maximize both their HBP withdrawal and their tax refund.

It’s not a secret. It’s just the kind of thing nobody explains unless you ask the right questions.

Is the HBP Right for You?

Honestly — it depends. If you’re close to retirement, pulling from your RRSP might not be the move. If your RRSP is modest but your timeline is tight, it might be exactly the bridge you need. If you’re buying with a partner who also has RRSP savings, the math gets even more interesting.

These aren’t questions with a universal answer. They’re questions worth working through with someone who’ll give you a real answer — not just a rate quote.

That’s what I’m here for.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2025-3000179) Broker (2025-3000180), Ontario(M23006699).

p.s.s.s You can download my new mortgage app here

Patrick Sawler is a mortgage broker and owner of Craigburn Capital, licensed in Nova Scotia and Ontario, with private financing available in New Brunswick and PEI. He answers his phone.

Ready to have a real conversation? Call 902-612-2688 or start your application here