Government Incentive

Learn what government incentives are in Canadian real estate, how they support buyers, and what programs are available for cost savings and home ownership.

Government Incentive

May 22, 2025


What is a Government Incentive?

A government incentive is a program, rebate, or financial support offered by a federal, provincial, or municipal government to assist homebuyers, builders, or investors.

Why Government Incentives Matter in Real Estate

In Canadian real estate, government incentives help reduce the cost of homeownership, support first-time buyers, and promote energy efficiency or regional development.

Examples include:

Eligibility criteria vary by program and may include income thresholds, residency status, property type, and principal residence use. These incentives are often time-limited or budget-restricted.

Understanding government incentives helps buyers access financial support, plan budgets, and take advantage of cost-saving programs during a real estate transaction.

Example of a Government Incentive in Action

A first-time buyer uses the federal incentive program to reduce their mortgage payments and receives a $4,000 provincial land transfer tax rebate.

Key Takeaways

  • Reduces homeownership or renovation costs.
  • Offered by all levels of government.
  • Varies by region and buyer profile.
  • Requires meeting eligibility rules.
  • Must be applied for proactively.

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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