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Every First-Time Home Buyer Program in Ontario for 2026 (And How to Stack Them)

By PropertySearchGPT Research9 min read
Every First-Time Home Buyer Program in Ontario for 2026 (And How to Stack Them)

A first-time buyer in Ontario in 2026 can stack at least six programs: the FHSA, the RRSP Home Buyers' Plan, the Home Buyers' Tax Credit, the Ontario Land Transfer Tax rebate, the Toronto municipal rebate, and the new federal GST rebate on new homes. Used together, a couple can move over $100,000 of tax-advantaged money toward a down payment and recover more than $8,000 in closing costs, with new-build buyers saving far more. The catch is that almost all of these are claimed at closing or require accounts opened well in advance, so the savings go to buyers who plan ahead. Here is every program, what it is worth, and how to combine them.

The programs at a glance

There are two kinds of help available. Savings and withdrawal programs let you build and access a down payment tax-efficiently. Rebates and credits put money back at or after closing. The biggest mistakes happen when buyers do not know a program exists, or open an account too late to use it.

The six core programs for 2026:

  • First Home Savings Account (FHSA): up to $8,000 a year, $40,000 lifetime, tax-deductible going in and tax-free coming out.
  • RRSP Home Buyers' Plan (HBP): withdraw up to $60,000 per person from your RRSP, repaid over time.
  • Home Buyers' Tax Credit (HBTC): a federal credit worth about $1,500.
  • Ontario Land Transfer Tax rebate: up to $4,000 back on provincial LTT.
  • Toronto Municipal Land Transfer Tax rebate: up to $4,475 back, on top of the provincial rebate, for Toronto purchases.
  • Federal GST rebate on new homes: new for 2026, can eliminate GST on a qualifying new home up to $1 million, worth up to roughly $50,000.

One program that no longer exists: the federal First-Time Home Buyer Incentive, a shared-equity program, was discontinued on March 31, 2024. If you see it recommended in an older guide, ignore it.

FHSA: the most powerful savings tool

The First Home Savings Account combines the best of an RRSP and a TFSA, which is why it is the cornerstone of a 2026 first-time buyer plan. Contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home are completely tax-free like a TFSA, with nothing to pay back.

The mechanics:

  • Contribute up to $8,000 a year, to a lifetime maximum of $40,000.
  • Unused room carries forward once the account is open, so opening it early matters even if you cannot contribute much yet.
  • A couple who each open and fund an FHSA can reach $80,000 of combined down payment money, all of it tax-deducted on the way in.

The practical tip that saves people: open the FHSA as early as possible, even with a small or zero initial deposit. Contribution room only starts banking once the account exists, and you need an open, qualifying account to withdraw later. Treat the opening date as the thing to lock in now.

RRSP Home Buyers' Plan: $60,000 per person

The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP, per buyer, to put toward a first home, without immediate tax. You repay it to your RRSP over time, on a set schedule.

What to know:

  • The limit is $60,000 per person, so a couple can access $120,000 between two RRSPs.
  • Funds generally need to have been in the RRSP for at least 90 days before you withdraw them, so last-minute contributions do not qualify.
  • It stacks with the FHSA. You can use both for the same purchase, which is how a couple reaches well over $100,000 in combined down payment funds.

Because the HBP is a loan from your future self, weigh the repayment commitment against the FHSA, which never has to be paid back. Many buyers fill the FHSA first, then use the HBP for the rest.

Home Buyers' Tax Credit: about $1,500 back

The Home Buyers' Tax Credit is a $10,000 non-refundable federal credit claimed on your tax return for the year you buy. At the lowest federal rate, it works out to roughly $1,500 in actual tax savings.

It is simple and easy to miss:

  • It applies to homes purchased anywhere in Canada, not just Ontario.
  • You claim it on your tax return, not at closing, so set a reminder for tax season.
  • It helps offset closing costs like legal fees and land transfer tax.

Ontario and Toronto land transfer tax rebates: up to $8,475

Land transfer tax is the largest single closing cost for most Ontario buyers and the most common source of sticker shock. First-time buyers get meaningful relief.

The two rebates:

  • Ontario Land Transfer Tax rebate: up to $4,000, which fully covers the provincial LTT on homes valued up to roughly $368,000 and reduces it on more expensive homes.
  • Toronto Municipal Land Transfer Tax rebate: an additional up to $4,475 for purchases within the City of Toronto, which charges its own municipal LTT on top of the provincial one.

Combined, a first-time buyer purchasing in Toronto can recover up to $8,475. Your real estate lawyer normally applies these automatically at closing on the Statement of Adjustments, but missing a rebate at closing is one of the most expensive and most common first-time buyer mistakes, so confirm with your lawyer that both are being claimed. Ontario's rebate uses a strict first-time definition, so read the eligibility rules below carefully.

The new federal GST rebate on new homes

The biggest 2026 change is a new federal GST rebate for first-time buyers of newly built homes, which received Royal Assent in March 2026. For a qualifying new home up to $1 million, it can eliminate the GST entirely, worth up to roughly $50,000. Ontario's spring 2026 budget added a temporary HST relief layer on new homes as well, so the combined federal and provincial sales-tax savings on qualifying new construction can be substantial.

This only applies to new construction, owner-built homes, or co-op housing shares, not resale homes. If you were already considering a new build, this single program can outweigh everything else on this list, so it is worth modelling carefully and confirming current eligibility before you commit to a closing date.

Who counts as a first-time buyer

Eligibility is where buyers trip up, because the definition is not identical across programs. For most federal and provincial programs, including the FHSA, HBP, HBTC, and the Ontario LTT rebate, you are generally a first-time buyer if you have not owned a home that you lived in, or that a spouse or common-law partner owned and you lived in, during the current year or the previous four calendar years. The home must become your principal residence, generally within one year.

Two important nuances:

  • The Ontario Land Transfer Tax rebate applies a stricter standard in practice, often described as never having owned a home anywhere in the world, and it can only be claimed once in your lifetime.
  • Spousal ownership counts. If your partner owned a qualifying home you lived in within the window, it can disqualify you, even if the next purchase is in your name alone.

Because these rules carry real money, confirm your status with the CRA, the Ontario Ministry of Finance, or a real estate lawyer before you rely on a rebate.

How to stack them: a 2026 game plan

Used in the right order, the programs compound. A realistic plan for a couple buying their first home:

  1. Open both FHSAs today, even with small deposits, to start banking contribution room and to lock in the opening date.
  2. Fund the FHSAs toward the $40,000 each maximum, taking the tax deduction each year.
  3. Build or top up RRSPs at least 90 days before you plan to withdraw, so the Home Buyers' Plan funds qualify.
  4. At purchase, withdraw from FHSA and RRSP for the down payment: up to $80,000 from two FHSAs plus up to $120,000 from two HBPs in theory, though most buyers use a portion of each.
  5. At closing, claim the land transfer tax rebates through your lawyer, up to $4,000 provincially and up to $4,475 in Toronto.
  6. If buying new construction, claim the GST rebate and Ontario HST relief, potentially the largest saving of all.
  7. At tax time, claim the Home Buyers' Tax Credit for roughly $1,500 back.

The theme is timing. The FHSA needs to be open in advance, HBP funds need 90 days of seasoning, and rebates must be actively claimed. Buyers who start the paperwork early capture the full benefit; buyers who decide to buy next month leave money on the table.

Once you know your down payment power, the next step is finding homes that fit. Use the AI Property Chat to filter Ontario listings to your budget and target neighbourhoods, and the Home Evaluation tool to sanity-check whether a home you like is priced fairly before you make an offer.

Common questions

How much can a first-time buyer save in Ontario in 2026?

A couple can move over $100,000 of tax-advantaged money toward a down payment by combining two FHSAs (up to $80,000) and two RRSP Home Buyers' Plans (up to $120,000 in theory), and can recover up to $8,475 in land transfer tax in Toronto plus roughly $1,500 from the Home Buyers' Tax Credit. Buyers of qualifying new homes can also eliminate GST worth up to about $50,000.

Can I use the FHSA and the RRSP Home Buyers' Plan together?

Yes. The two programs stack and can be used for the same home purchase. Many buyers fill the FHSA first, because qualifying withdrawals are tax-free and never repaid, then draw on the Home Buyers' Plan for the rest, up to $60,000 per person, repaid to the RRSP over time.

Do I get the land transfer tax rebate automatically?

Usually your real estate lawyer applies the Ontario rebate, up to $4,000, and the Toronto municipal rebate, up to $4,475, at closing on your Statement of Adjustments. It is not fully automatic, though. Missing it is a common and costly mistake, so confirm with your lawyer that both rebates you qualify for are being claimed before closing.

Is the federal First-Time Home Buyer Incentive still available?

No. The federal First-Time Home Buyer Incentive, the shared-equity program, was discontinued on March 31, 2024. It is no longer an option for 2026 buyers, despite still appearing in many older guides. The current programs are the FHSA, HBP, HBTC, the land transfer tax rebates, and the new GST rebate on new homes.

Program amounts and eligibility current as of June 2026 and subject to change. This article is general information, not tax, legal, or financial advice. Confirm details with the CRA, the Ontario Ministry of Finance, or a qualified professional before making decisions.