First-Time Home Buyers in Ontario
Buying your first home? Depending on what and where you buy, you could qualify for tax-free savings programs, land transfer tax rebates, tax credits and, on qualifying new homes, up to $130,000 in combined federal and Ontario HST relief alone.
Not every program is a cash rebate. Some reduce tax at closing, some provide tax deductions or credits, and some let you use registered savings toward the purchase. Eligibility rules can also differ from one program to another.
FHSA contributions are generally tax-deductible. Investments can grow tax-free and a qualifying withdrawal for a first home is tax-free.
An eligible buyer can withdraw up to $60,000 from an RRSP under the HBP. The amount generally has to be repaid to the RRSP over up to 15 years.
Eligible first-time buyers can receive a refund of up to $4,000 of Ontario land transfer tax. The refund applies to qualifying resale and newly constructed homes.
Toronto charges its own municipal land transfer tax. Eligible first-time buyers purchasing within the City of Toronto may receive an additional rebate of up to $4,475.
The federal Home Buyers' Amount is a non-refundable tax credit. A $10,000 claim has historically translated to a maximum federal tax reduction of $1,500.
A fully funded FHSA can hold up to $40,000 of contributions, while the HBP allows an eligible RRSP withdrawal of up to $60,000. Investment growth can make the FHSA withdrawal larger than the contribution total.
Use this quick screening tool for a general idea. It does not determine legal or tax eligibility.
New and substantially renovated homes have a separate set of rebates. These can be much larger than the incentives available on an ordinary resale purchase.
Eligible first-time buyers can recover up to 100% of the federal 5% portion of HST on a qualifying new home valued at up to $1 million. The maximum rebate phases out between $1 million and $1.5 million and is unavailable at $1.5 million or above.
Ontario provides eligible first-time buyers with a rebate of up to $80,000 of the 8% provincial portion of HST on qualifying new, built or substantially renovated first homes.
The temporary Ontario ENHR can provide 100% of the 8% provincial HST portion on eligible new homes up to $1 million, with different relief above that amount. For builder purchases, it generally applies to agreements entered into from April 1, 2026 through March 31, 2027.
Eligible recipients of the Ontario ENHR may also qualify for ONHAP, which provides relief equivalent to up to the 5% federal HST portion. It is reduced by federal rebates the buyer is entitled to receive, so these programs are not simply added together.
The incentives most commonly relevant are the FHSA, HBP, Ontario land transfer tax refund, Toronto MLTT rebate if applicable, and the federal Home Buyers' Amount.
You may have access to the same savings and land-transfer-tax programs plus substantial GST/HST rebates. Builder APS wording, whether HST is included in the price, rebate assignment and closing adjustments all matter.
If you are planning your first purchase, these guides cover other decisions and costs that come up before and after an offer is accepted.
I can help you understand the buying process, estimate your closing costs and rebates, and structure your search around what you can realistically afford.
Information is current to August 2026 and is provided for general informational purposes only. Tax, rebate and eligibility rules can change and may depend on facts not captured here. Confirm eligibility and amounts with the applicable government authority, lawyer, accountant or other qualified professional before relying on an incentive in a purchase decision.