Toronto Mortgages - Government Programs

CMHC Purchase Plus Improvements (Click on title for details)

Canada Mortgage and Housing Corporation (CMHC) insured mortgage loans are available to cover the purchase price of a home as well as an amount to pay for immediate major renovations or other improvements that the purchaser may wish to make to the property. This option eliminates the need to obtain secondary financing after the purchase to pay for improvements. The homebuyer obtains a single first mortgage, makes a single mortgage payment, and benefits from first mortgage interest rates.

RRSP Home Buyers' Plan (Click on title for details)

The Home Buyers' Plan (HBP) is a program under which you can, generally, withdraw up to $20,000 from your retirement savings plan (RRSPs) to buy or build a qualifying home. Withdrawals that meet all applicable HBP conditions do not have to be included in your income, and your RRSP issuer will not withhold tax on these amounts. However, before you can withdraw funds you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home.

If you buy the qualifying home together with your spouse or other individuals, each of you can withdraw up to $20,000. You cannot withdraw an amount from your RRSP under the HBP if you or your spouse owned the home more than 30 days before the date of your withdrawal.

Five Per Cent Down Payment Program (Click on title for details)

With as little as five per cent down payment, from personal or other sources (see below for eligible other sources), all home buyers have access to mortgage insurance enabling then to enter the housing market, as long as they can manage the costs of home ownership.

GST New Housing Rebate Program (Click on title for details)

You may be eligible to claim a rebate for a part of the GST you pay on the purchase price or cost of building your home if:

• you buy a new or substantially renovated home (including the land or if you lease the land) from a builder;
• you buy a new mobile home (including a modular home) or a floating home from a builder or vendor;
• you buy a share of capital stock of a co-operative housing corporation;
• you construct or substantially renovate your own home, or carry out a major addition (or hire another person to do so); or
• your home is destroyed in a fire and is subsequently rebuilt.

Residential Rehabilitation Assistance Program (Click on title for details)

The Residential Rehabilitation Assistance Program (RRAP) is a federal government program that provides financial assistance to renovate or repair housing that needs to be brought up to basic health and safety standards, or to convert non-residential properties to affordable housing. Deferred maintenance, cosmetic replacements, improvements for resale, and works carried out before a RRAP loan is approved are not eligible.

RRAP provides funding under the following categories: homeowner, rental, rooming house, residential conversions, and for persons with disabilities. Each category has distinct eligibility criteria (See below). In most cases, to be eligible, homeowner or tenant incomes must be below the Core Need Income Threshold (CNIT), a limit set by the Canada Mortgage and Housing Corporation (CMHC) based on household size and area. Also, rents must be at or below the Median Market Rent (MMR) established by CMHC for the area.
RRAP is coordinated by the CMHC. The City of Toronto administers RRAP in Toronto on behalf of CMHC.