First-Time Home Buyer Incentives in Ontario: What's Available in 2026

Buying your first home in Ontario — especially in the GTA — is one of the biggest financial decisions you'll ever make. The good news is that there are several programs designed to help first-time buyers get into the market with less upfront cost and more savings.

Here's a clear breakdown of what's available in 2026 and how each program works.

The First Home Savings Account is one of the most powerful tools available to first-time buyers in Canada. Introduced in 2023, it combines the best features of an RRSP and a TFSA specifically for home buying.

How it works:

• Contribute up to $8,000 per year, with a lifetime maximum of $40,000
• Contributions are tax-deductible (like an RRSP)
• Withdrawals for a qualifying home purchase are tax-free (like a TFSA)
• Unused contribution room carries forward to the following year

Who qualifies: Canadian residents who are first-time buyers (meaning you haven't owned a home in the current year or the previous four calendar years) and are at least 18 years old.

The bottom line: If you're planning to buy in the next few years, opening an FHSA now — even with a small contribution — starts your clock and builds your room. The tax advantages are significant.

The Home Buyers' Plan allows first-time buyers to withdraw up to $60,000 from their RRSP (as of 2024) to put toward a home purchase — tax-free, as long as you repay it over 15 years.

Key details:

• Both partners in a couple can each withdraw up to $60,000, for a combined total of $120,000
• Funds must have been in your RRSP for at least 90 days before withdrawal
• Repayment begins two years after the year of withdrawal
• If you don't repay the annual minimum, it's added to your taxable income that year

Tip: The HBP and FHSA can be used together, giving buyers access to a substantial pool of savings for a down payment.

In Ontario, buyers pay a provincial land transfer tax on every home purchase. First-time buyers are eligible for a rebate of up to $4,000 on this tax.

How it works:

• The rebate applies to the provincial land transfer tax only
• It covers the full tax on homes up to approximately $368,000
• For higher-priced homes, the rebate is capped at $4,000

Toronto buyers: If you're buying within the City of Toronto, you also pay a municipal land transfer tax. First-time buyers can receive an additional rebate of up to $4,475 on the municipal tax — for a combined maximum rebate of over $8,000.

The federal Home Buyers' Tax Credit provides a non-refundable tax credit of up to $1,500 for first-time buyers who purchase a qualifying home.

How it works:

• Claim $10,000 on your federal tax return in the year you buy
• The 15% credit rate results in up to $1,500 in tax savings
• Both partners can split the claim, as long as the combined total doesn't exceed $10,000

It's not a huge amount, but it's money back in your pocket with no application required — just a line on your tax return.

If you're buying a newly built home or substantially renovated property, you may be eligible for a partial rebate of the GST/HST paid on the purchase.

Key details:

• Available on new builds, substantially renovated homes, and owner-built homes
• The rebate amount depends on the purchase price
• For homes priced under $450,000, the maximum federal rebate is $6,300
• Ontario also offers a provincial portion of the rebate

This rebate is particularly relevant for buyers purchasing pre-construction condos or new builds in the GTA.

Let's say you're a first-time buyer purchasing a $750,000 home in Mississauga with your partner:

• FHSA withdrawals: Up to $80,000 combined (tax-free)
• Home Buyers' Plan: Up to $120,000 combined from RRSPs
• Ontario LTT Rebate: Up to $4,000
• Federal HBTC: Up to $1,500 in tax savings

That's a meaningful amount of support — but navigating all of it requires planning. The earlier you start, the more you can take advantage of.

In our experience working with first-time buyers across the GTA, a few things catch people off guard:

Closing costs are real. Beyond your down payment, budget for land transfer taxes (minus rebates), legal fees ($1,500–$2,500), home inspection ($400–$600), title insurance, and moving costs. These can add up to 1.5–4% of the purchase price.

Pre-approval is not a guarantee. A mortgage pre-approval tells you the maximum you can borrow — not what you should spend. Factor in your full cost of living, not just the mortgage payment.

The market moves fast. In competitive GTA neighbourhoods, having your financing in order and being ready to act quickly can be the difference between getting the home you want and missing it.

Jennifer and Stephen have guided many first-time buyers through their first purchase in the GTA — from understanding the incentives to finding the right home and negotiating a strong deal.

If you're ready to start the conversation, get in touch with us. We'll help you understand exactly what you qualify for and what your path to homeownership looks like.