First-Time Home Buyer Programs in Ontario (2026 Guide)

First-Time Home Buyers

By Charandeep Deol, Mortgage Agent Level 2 · Updated October 2026 · 7 min read

Key takeaways

The FHSA and Home Buyers' Plan can be combined, which may add up to $100,000 of tax-assisted savings toward a down payment.
Ontario refunds up to $4,000 of land transfer tax to eligible first-time buyers, and you must claim within 18 months.
A federal GST rebate of up to $50,000 now applies to qualifying new homes. Resale homes don't qualify.
Eligibility rules are detailed. Confirm with the CRA, your lawyer or a mortgage professional.

Buying your first home is expensive, but several programs are designed to help. Here is what's available in Ontario as of October 2026. Rules change, so treat this as a starting point and confirm the details for your situation.

1. First Home Savings Account (FHSA)

The FHSA lets eligible first-time buyers save for a home with tax benefits similar to both an RRSP and a TFSA: contributions are tax-deductible, and qualifying withdrawals to buy a first home are tax-free.

Annual limit: $8,000 of new room per year
Lifetime limit: $40,000
Carry-forward: unused room can be carried forward, up to $8,000
Time limit: the account can stay open for up to 15 years

2. Home Buyers' Plan (HBP)

The HBP lets you withdraw up to $60,000 per person from your RRSP to buy or build a qualifying home. You repay it to your RRSP over 15 years. For withdrawals made from 2026 to 2028, the start of repayment is deferred to the fifth year after your first withdrawal.

Using both: the FHSA and HBP can be combined. That could mean up to $100,000 per person in tax-assisted savings toward a down payment, before any other savings. The exact rules on combining them depend on your situation.

3. Ontario Land Transfer Tax refund

Eligible first-time buyers can get a refund of up to $4,000 of Ontario land transfer tax. To qualify you generally must be at least 18, be a Canadian citizen or permanent resident, never have owned a home anywhere in the world, have a spouse who hasn't owned a home while you were married, and move in within nine months. Homes up to $368,000 in value have no tax payable; above that you receive the maximum $4,000 refund. In Toronto there is also a separate municipal land transfer tax with its own first-time buyer refund. Claims must be made within 18 months.

To see how this fits into your total costs, read our guide to closing costs in Ontario.

4. GST rebate for new homes

Federal legislation passed in March 2026 provides a first-time home buyers' GST rebate for qualifying newly built homes. It removes the federal GST on homes priced up to $1 million (a maximum of about $50,000), phased out between $1 million and $1.5 million, with no rebate at $1.5 million or more. It applies to agreements signed on or after March 20, 2025 and before 2031. It doesn't apply to resale homes. Eligibility conditions apply, so check with your builder or an accountant.

5. Longer amortization

Since December 15, 2024, first-time buyers can choose a 30-year amortization on insured mortgages, as can buyers of newly built homes. A longer amortization lowers the regular payment but increases total interest. See our guide on amortization and payment frequency.

What to do next

Open an FHSA early. Room starts accumulating once the account exists.
Ask your lawyer to claim your land transfer tax refund as part of closing.
Get a pre-approval so you know your budget.

Sources and further reading

This article is general information, not personalized mortgage, legal, tax or financial advice. Rules, rates and eligibility change and depend on your circumstances and lender criteria. Confirm details before you make decisions.

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