Sandeep Pawar
Broker
Home / Buy / First-time home buyer
First-time home buyer guide: Ontario 2026
Every program you can use to buy your first home, what each is worth, who qualifies, and the order to use them in. Checked against CRA, Ontario and City of Toronto sources.
The short answer: Ontario first-time buyers can save $8,000 a year, to $40,000, in a First Home Savings Account. They can also withdraw up to $60,000 from an RRSP under the Home Buyers’ Plan. At closing, eligible buyers get up to $4,000 back on Ontario land transfer tax, plus up to $4,475 in Toronto. Insured 30-year amortizations are available. On a new home up to $1 million, federal and Ontario rebates can remove the full 13% HST, up to $130,000.
Every program, in one table
| Program | What you get | Limits | Who qualifies |
|---|---|---|---|
| First Home Savings Account (FHSA) | Tax-deductible contributions and tax-free qualifying withdrawals. | $8,000 a year, $40,000 lifetime. Unused room carries forward up to $8,000. | Resident of Canada, 18 or older (19 in some provinces), 71 or younger, first-time buyer under CRA’s four-year test. |
| RRSP Home Buyers’ Plan (HBP) | Borrow from your RRSP tax-free for a first home. | Up to $60,000. For first withdrawals from 2026 to 2028, repayments start in the fifth year after the withdrawal. | CRA’s first-time buyer rules. Repay over 15 years. |
| Ontario land transfer tax refund | Refund of provincial land transfer tax. | Up to $4,000. | 18 or older, Canadian citizen or permanent resident, never owned a home anywhere, and you move in within nine months. |
| Toronto land transfer tax rebate | Rebate of Toronto’s municipal land transfer tax. | Up to $4,475. | Buying in the City of Toronto, first-time buyer rules apply. |
| Federal first-time buyer GST rebate (new homes) | Rebate of the 5% GST on a new or substantially renovated home. | Up to $50,000 on homes up to $1 million, phased out to nothing at $1.5 million. | Agreement with the builder signed from 20 March 2025 and before 2031. 18 or older, citizen or permanent resident, four-year test, first to live in the home. |
| Ontario first-time buyer HST rebate (new homes) | Removes the full 8% provincial part of the HST. | On new homes up to $1 million. | Agreements from 20 March 2025 to 31 December 2030. Claimed with the federal rebate through CRA. |
| 30-year amortization | A lower monthly payment on an insured mortgage. | From 15 December 2024. | First-time buyers, and all buyers of new builds. |
Each program has its own definition of “first-time buyer”. Qualifying for one does not mean you qualify for all of them.
Your minimum down payment
The minimum is 5% of the first $500,000, plus 10% of the part between $500,000 and $1.5 million. At $1.5 million or more, you need 20%. Lenders can ask for more.
| Purchase price | Minimum down payment | As a share of price |
|---|---|---|
| $500,000 | $25,000 | 5.0% |
| $700,000 | $45,000 | 6.4% |
| $900,000 | $65,000 | 7.2% |
| $1,100,000 | $85,000 | 7.7% |
| $1,500,000 | $300,000 | 20.0% |
With less than 20% down you pay mortgage loan insurance, usually added to the mortgage. Ontario charges 8% sales tax on the premium, payable in cash at closing. Then budget for closing costs, including land transfer tax.
Buying a brand-new home: HST relief
New homes carry 13% HST in Ontario. First-time buyers can now get most or all of it back on homes up to $1 million.
- Federal first-time buyer GST rebate: up to 100% of the 5% GST, to a maximum of $50,000, on homes up to $1 million. It phases out between $1 million and $1.5 million; a $1.25 million home gets 50%, or $25,000. The builder agreement must be signed from 20 March 2025 and before 2031, with construction starting before 2031.
- Ontario first-time buyer rebate: removes the full 8% provincial part of the HST on new homes up to $1 million. It covers agreements from 20 March 2025 to 31 December 2030. CRA says it can be claimed at the same time as the federal rebate.
- Temporary relief for all eligible buyers: Ontario’s Enhanced New Housing Rebate and New Home Affordability Payment cover builder agreements signed from 1 April 2026 to 31 March 2027. Together they can bring total relief up to $130,000 for eligible buyers, first-time or not.
- The cap: if you qualify for more than one Ontario rebate, the total for the 8% provincial part is capped. It cannot exceed $80,000, or the provincial HST actually payable if that is less.
These rebates have detailed conditions on construction dates, who lives in the home, and assignments. Have a real estate lawyer review the builder agreement before you sign. See my pre-construction guide.
Who counts as a first-time buyer?
| Program | The test |
|---|---|
| FHSA | You did not live in a home you owned or jointly owned as your principal residence this year or in the previous four calendar years. The same applies to your spouse or common-law partner. |
| Federal new-home GST rebate | The same four-year test for you and your spouse. You must also be 18 or older, a citizen or permanent resident, and never have received this rebate. |
| Ontario land transfer tax refund | You have never owned a home, or an interest in one, anywhere in the world. Your spouse cannot have owned one while married to you. |
| Home Buyers’ Plan | CRA’s own first-time buyer conditions. Check them on CRA’s HBP pages before you withdraw. |
Open an FHSA as early as possible
Room only starts building once the account is open. Even a small first deposit starts the clock.
What happens
You open an FHSA at your bank or brokerage and contribute what you can, up to $8,000 a year.
What you do
Open it now even if you are years from buying. Consider moving RRSP savings in if it suits your tax plan.
Documents and people
ID and SIN for the financial institution.
Watch for
Over-contributing. CRA charges a tax on excess amounts. Track your room on CRA My Account.
How I help
I help you map the FHSA, HBP and savings against a target purchase date, then you confirm the tax side with your accountant.
Set your budget and get pre-approved
Decide what you can carry each month, then let a lender tell you what they will lend.
What happens
A lender or mortgage agent checks your credit, income and debts and issues a pre-approval with a rate hold.
What you do
Compare at least two lenders. Ask about 30-year amortization and what it does to your total interest.
Documents and people
Pay stubs, employment letter, notices of assessment, FHSA and RRSP statements, proof of down payment.
Watch for
Budgeting only for the mortgage. Add property tax, utilities, condo fees and maintenance.
How I help
I introduce you to a mortgage agent with access to the major banks and lenders, and I check your budget against real sale prices.
Choose your representation
In Ontario a brokerage needs a written agreement before it can act for you as a client.
What happens
Your agent gives you RECO’s Information Guide, then you agree the scope, term, services and fee in writing.
What you do
Read every clause. Ask for a shorter first term if you prefer.
Documents and people
Buyer representation agreement, RECO Information Guide.
Watch for
Agreements with long terms or holdover periods you did not discuss.
How I help
I explain every clause before you sign. The agreement, clause by clause.
Not sure which programs you qualify for?
Book a 30-minute callSearch, then offer from evidence
First-time buyers often pay too much on their first offer night. Price from comparable sales.
What happens
You save searches, tour the best matches and compare each with recent sales. Start a search.
What you do
Decide your walk-away price before you write an offer. Keep a financing condition until your lender approves the home.
Documents and people
Pre-approval, deposit funds ready within 24 hours.
Watch for
Bidding wars that push you past value. How to compete without overpaying.
How I help
I negotiate price, deposit, conditions and dates together. How offers work.
Check the home before you go firm
A first home should not come with a surprise roof or a special assessment.
What happens
You inspect the home, your lender approves it, and your lawyer reviews any condo status certificate.
What you do
Attend the inspection. Get quotes for anything significant before the condition deadline.
Documents and people
Inspection report, lender approval, status certificate for condos.
Watch for
Waiving conditions to win without doing the checks first.
How I help
I go through the inspection findings with you and renegotiate if something material turns up. Due diligence guide.
Close, and claim what you are owed
The refunds only arrive if someone claims them. Make sure your lawyer knows you are a first-time buyer.
What happens
Your lawyer registers the transfer, pays land transfer tax, and claims the first-time buyer refunds where eligible.
What you do
Tell your lawyer you are a first-time buyer. Arrange FHSA and HBP withdrawals early so funds arrive in time.
Documents and people
FHSA withdrawal form, HBP withdrawal form, ID, insurance binder.
Watch for
Late FHSA or HBP withdrawals. Financial institutions need time to process them.
How I help
I coordinate the lawyer and lender so nothing is missed. Closing day checklist.
How I help first-time buyers
- A budget built from your pre-approval and the real monthly cost, not just the mortgage payment
- A shortlist of neighbourhoods that fit your commute, schools and price
- Offer strategy as an Accredited Buyer’s Representative (ABR) and Real Estate Negotiation Expert (RENE)
- A lawyer, mortgage agent and home inspector, coordinated for you
- Explanations in English, Hindi, Punjabi, Urdu, Kannada or Telugu
New to Canada as well? Read buying as a newcomer. Or see the whole process in buying a home, step by step.
What my buyers have saved
These are recent Brampton homes I helped buyers purchase, including first-time buyers. Each links to the full story.
| Home | Asking | Bought for | Saved |
|---|---|---|---|
| Detached home, Abelard Avenue, Fletcher’s West | $899,000 (original) | $789,000 | $110,000 |
| Detached home, Mozart Crescent, Brampton South | $900,000 | $820,000 | $80,000 |
| Detached home, Hamlet Court, Central Park | $649,000 | $582,500 | $66,500 |
| Detached home, Lockburn Crescent, Fletcher’s Meadow | $894,888 | $865,000 | $29,888 |
| Semi-detached home, Lawndale Crescent, Westgate | $789,000 | $765,000 | $27,000 incl. $3,000 seller credit |
| Semi-detached home, Merton Road, Brampton North | $799,999 | $778,000 | $21,999 |
| Semi-detached home, Fallingdale Crescent, Southgate | $659,900 | $643,000 | $16,900 |
| Semi-detached backsplit, Dalraith Crescent, Southgate | $868,000 | $852,000 | $16,000 |
Questions first-time buyers ask
How much do I need for a down payment in Ontario?
At least 5% of the first $500,000, plus 10% of the portion between $500,000 and $1.5 million. Homes of $1.5 million or more need 20% down. With less than 20% down your mortgage must be insured, and the premium is usually added to the mortgage.
What is the first-time buyer land transfer tax refund in Ontario?
Eligible first-time buyers can get up to $4,000 back on Ontario’s land transfer tax. In Toronto, add up to $4,475 off the municipal tax. Your lawyer usually claims it at registration; otherwise you have 18 months to apply.
Can I use my FHSA and the RRSP Home Buyers’ Plan together?
Yes. CRA allows a qualifying FHSA withdrawal and an HBP withdrawal for the same qualifying home. You must meet the conditions of each at the time of each withdrawal.
How much can I put into an FHSA?
Up to $8,000 a year, to a lifetime limit of $40,000. Unused room carries forward, but only up to $8,000, and only after you have opened the account. So open one early, even with a small amount.
How much HST can a first-time buyer save on a new home in Ontario?
On a new home up to $1 million, an eligible first-time buyer can get back the full 5% federal GST, up to $50,000. Ontario rebates the 8% provincial part, up to $80,000. That is up to $130,000 on a $1 million home. Conditions on dates, construction and occupancy apply.
Who counts as a first-time buyer?
It depends on the program. For the FHSA and the federal new-home GST rebate, there is a four-year test. You must not have lived in a home you or your spouse owned this year or in the previous four. Ontario’s land transfer tax refund is stricter: you can never have owned a home anywhere.
Can first-time buyers get a 30-year mortgage?
Yes. Since 15 December 2024, 30-year amortizations are available on insured mortgages for all first-time buyers and for all buyers of new builds. A longer amortization lowers the payment but increases total interest.
Does the FHSA close after I buy?
Your FHSA participation period ends on 31 December of the year after your first qualifying withdrawal. It ends sooner if the account’s 15th anniversary or your 71st birthday comes first. Plan any remaining money with your financial institution.
Sources
- CRA: First Home Savings Account
- CRA: opening your FHSA (eligibility)
- CRA: FHSA definitions (lifetime limit, carryforward, participation period)
- CRA: Home Buyers’ Plan
- CRA: first-time home buyers’ GST/HST rebate, who can apply
- CRA: what the first-time home buyers’ rebate is
- Ontario.ca: HST relief for new homes (updated 22 July 2026)
- Ontario.ca: Ontario New Home Affordability Payment (updated 17 September 2026)
- Ontario.ca: land transfer tax refunds for first-time homebuyers
- City of Toronto: municipal land transfer tax
- Financial Consumer Agency of Canada: down payment
- Department of Finance Canada: 30-year amortizations and the $1.5 million insured cap
- CMHC: mortgage loan insurance premiums
Your first home, with every dollar you are owed
Tell me your savings, income and timeline. I will show you what you can buy, which programs apply and what I would do first.