First-time home buyer programs in Ontario (2026)

Last reviewed Oct 2026 · OntarioHomeMath

Ontario first-time buyers can stack several federal and provincial programs. Here is what each one does in 2026, who qualifies, and how they fit together.

FHSA + HBP planner → First-time buyer rebate checker → New home HST rebate calculator →

"First-time buyer" doesn’t mean the same thing in every program. The FHSA and Home Buyers’ Plan use a four-year test (you can qualify again if you haven’t lived in a home you or your spouse owned in recent years). Ontario’s and Toronto’s land transfer tax refunds require that you have never owned a home anywhere. Check each program separately.

1. First Home Savings Account (FHSA)

The FHSA combines the best parts of an RRSP and a TFSA: contributions are tax-deductible, and qualifying withdrawals to buy a first home are tax-free.

Who can open one: a Canadian resident aged 18 or older (and under 72) who is a first-time home buyer, meaning you didn’t live in a home owned by you or your spouse or common-law partner at any time in the current year or the previous four calendar years.
Limits: $8,000 of contribution room per year, $40,000 lifetime. Up to $8,000 of unused room carries forward, so a year you skip can be made up the next year (maximum $16,000 in one year).
Room starts when you open the account, not when you turn 18. Opening one early, even with a small deposit, starts the clock.
Time limit: the account must be closed by the end of the 15th year after you opened it or the year you turn 71, whichever is first. Unused money can be moved to an RRSP without using RRSP room.
Couples: each partner can have their own FHSA, so a couple can put up to $80,000 toward one home.

To make a tax-free qualifying withdrawal you need a written agreement to buy or build a qualifying home in Canada, and you must intend to live in it within a year.

2. RRSP Home Buyers’ Plan (HBP)

The HBP lets you withdraw up to $60,000 from your RRSPs tax-free to buy or build a qualifying home ($120,000 for a couple). Unlike the FHSA, this is a loan to yourself: you must repay it to your RRSP over up to 15 years, or the unpaid annual amount is added to your income.

You must be a first-time home buyer under the same four-year test as the FHSA (with exceptions, such as after a marriage breakdown).
Contributions must be in the RRSP for at least 90 days before you withdraw them under the HBP, or they may not be deductible.
You generally must buy or build the home before October 1 of the year after the withdrawal.
You can use the HBP and an FHSA qualifying withdrawal for the same home.

Repayment relief extended to first withdrawals through Dec 31, 2028

Normally, repayments start in the second year after your first withdrawal. Temporary relief pushes the start to the fifth year after the year of your first withdrawal. It applied to first withdrawals from January 1, 2022 to December 31, 2025, and has been extended to first withdrawals made from January 1, 2026 to December 31, 2028. So if your first HBP withdrawal is in 2026, your first required repayment is for 2031; a 2028 first withdrawal starts repayment in 2033. You still have 15 years to repay, and the minimum each year is 1/15 of the amount withdrawn.

The FHSA + HBP planner shows how much the two can contribute together and when repayments begin.

3. Land transfer tax refunds

Ontario: refund of up to $4,000 of provincial LTT. Buyers paying $368,000 or less pay no provincial LTT.
City of Toronto: rebate of up to $4,475 of Municipal LTT, covering the full tax up to $400,000.

Both require that you are 18+, have never owned a home anywhere in the world, and move in within nine months. Ontario also requires citizenship or permanent residency (or getting it within 18 months of closing). Your lawyer usually claims both on registration. Full details are in our land transfer tax guide; check yourself with the rebate checker.

4. GST/HST rebates on new homes

If you buy a newly built or substantially renovated home, several rebates can cut the 13% HST:

Federal first-time home buyers’ (FTHB) GST/HST rebate: up to 100% of the 5% federal part, maximum $50,000, for homes valued at or under $1 million. The rebate phases down between $1 million and $1.5 million and is zero at $1.5 million. Your agreement with the builder must be signed on or after March 20, 2025 and before 2031, construction must begin before 2031 and be substantially complete before 2036, and you must be the first person to live in it as your primary residence.
Ontario’s matching first-time buyer relief: Ontario provides a rebate of the full 8% provincial part of the HST (up to $80,000) for first-time buyers who qualify for the federal FTHB rebate, phasing down above $1 million.
Standard rebates: the federal GST/HST new housing rebate (up to $6,300, for homes under $450,000) and the Ontario new housing rebate (up to $24,000, available at any price for a primary residence).
Temporary enhanced Ontario relief (all buyers): for agreements signed April 1, 2026 to March 31, 2027, Ontario’s enhanced new housing rebate and the Ontario New Home Affordability Payment can together remove the full 13% HST (up to $130,000) on qualifying homes up to $1 million, with reduced relief up to $1.85 million. First-time status is not required for this measure.

Most builders credit these rebates in the price and file the claim for you; read the HST clause in your agreement carefully. Estimate yours with the new home HST rebate calculator.

5. Home buyers’ amount (tax credit)

In the year you buy, you can claim the federal home buyers’ amount of $10,000 on line 31270 of your return, worth up to $1,500 in federal tax. The four-year first-time test applies here too.

6. 30-year insured amortizations

Since December 15, 2024, first-time buyers (and anyone buying a newly built home) can get a 30-year amortization on an insured mortgage, which lowers the monthly payment. The premium is 0.20 percentage points higher than for 25 years. See how much house can I afford?

Putting it together

A couple buying their first home in Toronto could, in principle, use two FHSAs ($80,000), two HBP withdrawals (up to $120,000), $8,475 in land transfer tax refunds, and the home buyers’ amount. If the home is new, HST relief can be worth far more. Each program has its own conditions and deadlines, so confirm with your lawyer, financial institution or the CRA before you count on the money.

Official sources

Last reviewed Oct 2026. General information only, not legal, tax or financial advice. Rules change; confirm with the official sources above and your lawyer or lender.

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