First-Time Home Buyer Guide: Ontario 2026
Everything you can claim, in one place
First-time buyers in Ontario have more help available in 2026 than at any time in the past decade: tax-free savings accounts, RRSP withdrawals, land transfer tax refunds, 30-year amortizations, and major HST relief on new homes. Most buyers miss at least one. Here’s the full list.
Saving for the down payment
- First Home Savings Account (FHSA): contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible and qualifying withdrawals are tax-free.
- Home Buyers’ Plan (HBP): withdraw up to $60,000 from your RRSP to buy your first home, and repay it over time. You can use the FHSA and the HBP for the same purchase.
- Minimum down payment: 5% on the first $500,000 and 10% on the portion from $500,000 to $1.5 million, for insured mortgages. Homes at $1.5 million or more need 20% down.
At closing
- Ontario land transfer tax refund: up to $4,000 for first-time buyers, which covers the full provincial tax on a home up to $368,000.
- 30-year amortization: available to all first-time buyers since December 15, 2024, which lowers the monthly payment.
- Budget for closing costs: legal fees, title insurance, the home inspection, adjustments and moving. A realistic figure is 1.5% to 4% of the price, depending on the land transfer tax.
Buying a brand-new home
1Federal first-time buyer GST rebate.
Up to the full 5% GST (a maximum of $50,000) on a newly built home up to $1 million, phased out between $1 million and $1.5 million, for agreements signed from March 20, 2025 and before 2031.
2Ontario Enhanced New Housing Rebate.
Up to $80,000 of the 8% provincial HST on new homes bought as a primary residence, for agreements signed between April 1, 2026 and March 31, 2027. Combined with the federal rebate, an eligible first-time buyer could save up to $130,000 on a new home up to $1 million.
The rules have detailed conditions about construction dates, assignments and who lives in the home. Have a real estate lawyer review your builder agreement before you sign. I do a free agreement review too.
How I help first-time buyers
- A budget built from your pre-approval and real carrying costs, not just the mortgage payment
- A shortlist of neighbourhoods that fit your commute, schools and price
- Offer strategy from an ABR (Accredited Buyer’s Representative) and RENE (Real Estate Negotiation Expert)
- A lawyer, mortgage agent and home inspector coordinated for you
- Explanations in English, Hindi, Punjabi, Urdu, Kannada or Telugu
Questions people ask
How much do I need for a down payment in Ontario?
For an insured mortgage, 5% of the first $500,000 and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more require at least 20% down.
What is the first-time home buyer land transfer tax refund in Ontario?
Eligible first-time buyers can get a refund of up to $4,000 of Ontario land transfer tax. The refund must be claimed within 18 months of registration if it is not claimed at closing.
Can I use my FHSA and RRSP together?
Yes. You can withdraw from your First Home Savings Account and use the Home Buyers’ Plan ($60,000 limit) for the same qualifying home purchase.
How much HST can a first-time buyer save on a new home in Ontario?
Up to $130,000 on an eligible new home priced up to $1 million: up to $50,000 from the federal GST rebate and up to $80,000 from the Ontario Enhanced New Housing Rebate, subject to the agreement dates and conditions.
Selling, buying, or just thinking about it?
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Sandeep Pawar, Broker · RE/MAX Gold Realty Inc., Brokerage · 2720 North Park Drive, Suite 201, Brampton, ON L6S 0E9 · All offices