Short answer
It depends on when your spouse owned the home and whether you occupied it together while married or common-law. Being off title does not automatically preserve the refund.
The closing problem buyers face
One buyer has never owned property, but their spouse previously owned the family home. The purchase budget assumes the full refund without checking the relationship and occupancy history.
What the official rule says
Ontario’s refund rules examine both the purchaser’s ownership history and certain spousal ownership circumstances. A person who owned an eligible home anywhere in the world generally cannot be a first-time purchaser under the program.
What this does not guarantee
FHSA, HBP, insured-mortgage, GST/HST rebate and land-transfer-tax definitions are not interchangeable. A result under one program does not decide another.
A practical Ontario example
Illustration only: A purchaser who never owned a home marries someone who owned the home they then occupied together. The timing of ownership, marriage and occupation can affect the purchaser’s provincial refund.
What to do before the offer becomes firm
Prepare a dated ownership, relationship and residence timeline for the lawyer. Do not fill a cash-to-close gap with new credit until the broker checks how that debt changes qualification.
- Which municipality and property type are involved?
- Who will be on title, and what are their citizenship, residency and ownership histories?
- Is the property resale, new, substantially renovated, rental, mixed-use or held by a business?
- Which taxes, rebates and adjustments has the lawyer confirmed in writing?
- How much verified cash remains after the deposit and every closing cost?
Rajiv’s broker perspective
A lender decides the mortgage amount under its credit, income, property and loan-to-value policies. The province, municipality, CRA and lawyer determine the applicable taxes and legal closing funds. Those are different decisions. I would calculate the full cash-to-close first, preserve a contingency and only then compare A-lender, alternative/B, MIC or private options if the complete borrower and property facts require another financing path. Borrowing a tax shortfall at the last minute can change debt ratios and approval.
Related: First-Time Buyer Rule Hub · Real Estate Centre · Updates & Rules Centre
Could closing costs change the mortgage plan?
Send Rajiv the price, municipality, property type, deposit, title holders and available closing cash. He can pressure-test the funds-to-close and identify the tax or legal questions that should be confirmed before you commit.