Anna Xayavong, Broker · eXp Realty, Brokerage
First-time buyer guidance · Toronto & Markham
Buying together when only one person is a first-time buyer
Buying with a partner, parent or another family member can make home ownership possible, but it can also change which rebates and savings programs apply.
If only one person has bought a home before, do not assume that the whole purchase is treated as a first-time purchase—or that the first-time buyer loses every benefit. The result depends on the program, your relationship, who will be on title and each person’s ownership history.
Planning information reviewed October 2026 · Amounts in Canadian dollars
Does one first-time buyer make the whole purchase first-time?
Not automatically. “First-time buyer” is not one universal status. Ontario and Toronto land transfer tax rebates, the First Home Savings Account, the Home Buyers’ Plan and other tax programs each have their own rules.
A qualifying buyer may still receive a benefit, but the amount can be limited by the buyer’s ownership interest. A spouse or common-law partner’s previous ownership can also change the result. Have your lawyer and tax professional review your facts before you rely on a rebate or plan your closing funds.
Ontario and Toronto land transfer tax rebates
Ontario has a provincial land transfer tax. A property in the City of Toronto is also subject to Toronto municipal land transfer tax. The first-time buyer programs are separate, so your lawyer should calculate both when you buy in Toronto.
Eligible first-time buyers may qualify for an Ontario refund of up to $4,000 and, for a Toronto purchase, a municipal rebate of up to $4,475. These are maximums, not automatic amounts. Eligibility can depend on age, citizenship or permanent-resident status, principal-residence plans, previous ownership and your spouse’s history.
| Purchase arrangement | What to ask before budgeting |
|---|---|
| One first-time buyer and a non-spouse co-purchaser | The rebate may be limited to the qualifying buyer’s ownership interest. With equal 50/50 interests, a simple illustration is up to 50% of the applicable maximum: up to $2,000 provincially and up to $2,237.50 for Toronto’s municipal rebate, if all other conditions are met. |
| Married or common-law buyers | Do not rely on the 50/50 illustration. The current spouse or common-law partner’s previous ownership can affect eligibility, and the timing of the ownership and relationship can matter. |
| Buying in Toronto | Budget for both Ontario and Toronto land transfer tax. Ask your lawyer to confirm whether either first-time buyer benefit applies and whether the amount is reduced. |
| Buying in Markham | There is no Toronto municipal land transfer tax, but Ontario land transfer tax and its first-time buyer rules still need to be reviewed. |
The 50/50 figures are an illustration of proportional ownership, not a quote. The amount depends on the tax payable, the ownership structure and your eligibility. Ask your real estate lawyer to calculate the result for your agreement.
Official information: Ontario first-time homebuyer refund and Toronto first-time homebuyer rebate.
FHSA, HBP and other first-time buyer programs
Land transfer tax rebates are only one part of the decision. Savings and tax programs have separate eligibility tests, and the answer may differ for each buyer.
First Home Savings Account
An FHSA belongs to an individual. An eligible person may use their own account toward a qualifying first home, subject to contribution, withdrawal and timing rules. The test for opening an FHSA and the test for making a qualifying withdrawal are not identical. A spouse or common-law partner’s home ownership can matter.
Review the CRA’s FHSA guidanceHome Buyers’ Plan
An eligible person may withdraw up to $60,000 from their RRSP under the Home Buyers’ Plan, subject to the program conditions and repayment requirements. The first-time buyer test considers whether you or your current spouse or common-law partner lived in a home owned or jointly owned during the current year or the preceding four calendar years.
Review the CRA’s Home Buyers’ Plan guidanceOther credits and new-home programs
Federal homebuyer credits and new-build GST/HST programs have their own conditions. A new-build purchase can involve different tax treatment, deposit timing and closing adjustments. Do not apply a resale-home assumption to a builder purchase without professional advice.
One person’s eligibility for an FHSA or HBP does not automatically create the same eligibility for the other buyer. Confirm the current rules directly with the CRA, your financial institution and your tax professional.
Who are you buying with?
The relationship between the buyers affects the questions you need to ask. “Partner” can mean a spouse, common-law partner, family member or friend, and those situations are not treated the same way for every program.
| Buying with | Important questions |
|---|---|
| Spouse or common-law partner | How does the partner’s previous ownership affect each rebate or savings program? What will be the ownership and financing structure? |
| Parent or family member | Will the family member be on title, on the mortgage, or only acting as a guarantor? What ownership share and contribution will each person have? |
| Friend or non-spouse partner | How will you divide the down payment, monthly costs, repairs, decisions and proceeds if one person wants to sell? |
| Co-signer or guarantor | Does the lender require this person to be on title, or can they support the mortgage without becoming an owner? Ask about liability before signing. |
Title, ownership and contributions
Your title arrangement affects more than a potential rebate. Before you make an offer, discuss the structure with a real estate lawyer and make sure it works with the lender’s requirements.
- Who will be registered on title?
- What ownership percentage will each person have?
- Who is providing the down payment and deposit?
- How will you share mortgage payments, property taxes, insurance, utilities, repairs and condo fees?
- Who can make decisions about refinancing, renovations or selling?
- What happens if one person wants to move out, sell or buy out the other?
- What happens if a buyer dies, separates or experiences financial difficulty?
If you are buying with a friend or family member, ask whether a co-ownership agreement is appropriate. Do not choose a title percentage only to pursue a rebate. The legal, tax, financing and relationship consequences may be more significant than the rebate.
How the second buyer may affect financing
The lender will review the applicants’ income, debts, credit history, down payment and the property. Adding another buyer can strengthen an application, but it can also add debts, affect borrowing capacity or create liability for someone who is helping.
Ask a mortgage professional to compare the application with and without the second person. A preapproval can help guide your search, but it is not final approval for a specific property.
Plan for the full cash requirement. Keep enough money for the deposit, closing costs, moving and a reserve if a rebate is reduced, delayed or unavailable.
Questions to answer before you make an offer
- Identify each buyer’s relationship status and whether any buyer has a current spouse or common-law partner.
- Write down any previous home ownership, including partial ownership, where the home was located and when it was sold.
- Ask your lawyer to review eligibility for Ontario and, if applicable, Toronto land transfer tax rebates.
- Ask each person’s lender or financial institution about FHSA and HBP timing, documentation and available funds.
- Decide who will be on title, who will be on the mortgage and how ownership shares will be recorded.
- Put contributions, expenses, decision-making and exit plans in writing where appropriate.
- Budget as though the maximum rebate will not be available until your lawyer confirms it.
Plan your next step with Anna
Anna Xayavong is a real estate broker with eXp Realty, helping first-time home buyers and homeowners upsizing in Toronto and Markham. Born and raised in Toronto and now a Markham resident, she combines local neighbourhood knowledge with over 18 years of real estate experience.
She helps buyers organize their questions, compare options and understand the decisions involved before they start looking seriously at homes.
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General planning information only. Rebate eligibility, tax treatment, title structure, financing and legal rights depend on your circumstances. Confirm current rules with your lender, tax professional and real estate lawyer before relying on this information.