Can I Qualify as a First-Time Buyer if My Partner Already Owns a Home?
Buying your first home is exciting, but it can get confusing when one partner has already owned property. It’s a question I hear often from couples across York Region, in places like Stouffville, Markham, Newmarket, and Aurora: “If my partner owns a home, can I still qualify as a first-time buyer?”
The short answer? It depends on which program or rebate you’re applying for. Let’s break it down clearly.
Understanding the Definition of a First-Time Buyer
In Ontario, “first-time buyer” doesn’t always mean you’ve never owned property in your life, it means you haven’t owned or had an ownership interest in a home anywhere in the world within a certain timeframe.
If you’ve never owned, you’re good. But if your partner currently owns or has owned property, the rules change depending on whether you’re applying for rebates, incentives, or financing.
1. The Land Transfer Tax Rebate
This is the big one for most first-time buyers in the GTA and York Region.
Ontario Rebate: Up to $4,000 off the provincial Land Transfer Tax.
Toronto Rebate (if buying in the city): Up to $4,475 off the municipal Land Transfer Tax.
Here’s the catch: both buyers must qualify as first-time purchasers to receive the full rebate.
If your partner has previously owned a home, you can still receive a partial rebate proportional to your share of ownership.
Example:
You buy 50/50 with your partner.
You qualify as a first-time buyer; your partner doesn’t.
You’ll receive half the rebate amount (about $2,000 provincially).
If the home is purchased solely in your name, you may receive the full rebate, as long as you qualify independently.
2. The RRSP Home Buyers’ Plan (HBP) Updated Limit
The Home Buyers’ Plan (HBP) lets each eligible buyer withdraw up to $60,000 from their RRSP tax-free to use toward a down payment, that’s up from $35,000 prior to 2024.
You’re considered a “first-time buyer” for HBP purposes if you haven’t owned and lived in a home as your principal residence during the past four years.
So if your partner owned a property more than four years ago (and hasn’t lived there recently), they may still qualify too.
If you both qualify, you could access up to $120,000 combined from your RRSPs, a huge boost in a market like York Region.
3. First Home Savings Account (FHSA)
The FHSA allows you to save up to $40,000 tax-free toward your first home. You can contribute up to $8,000 per year, and any unused room carries forward.
Even if your partner owns property, you can still open an FHSA in your own name as long as you personally haven’t owned a home you lived in during the current or past four years.
FHSA funds can also be combined with the RRSP Home Buyers’ Plan for maximum flexibility.
4. Mortgage Qualification
When applying for a mortgage together, lenders focus on combined income, credit, and debt levels, not just first-time buyer status.
If your partner already owns property, their existing mortgage, taxes, or debts could affect what you qualify for.
That’s why it’s important to have your mortgage broker run both scenarios, buying solo vs jointly so you can see the financial impact before making a decision.
5. Legal Ownership Options
This is where the right Realtor and lawyer make a big difference. You have options:
Buy the home in your name only if you qualify on your own.
Buy jointly and claim a partial rebate.
List your partner as a guarantor (not co-owner) to preserve your full first-time buyer status.
Your lawyer can walk you through the implications for title, taxes, and long-term ownership planning.
Final Thoughts
If your partner has owned before, don’t worry you can still take advantage of most first-time buyer incentives with the right setup.
The key is knowing which programs apply to you and planning ownership strategically.
Whether you’re buying your first condo in Markham or your first detached home in Stouffville, having a Realtor who understands these nuances can save you thousands and a lot of stress.
Kathleen Miller
Realtor®, RE/MAX Prime Properties
Helping first-time buyers across York Region navigate their first purchase with confidence.
📞 647-500-3528 🌐 kathleenmillerrealestate.ca