If this is your first home, the federal and Ontario governments offer several programs that can lower what you pay or let you use savings tax-free. Here is what each one does, in plain language, with the official source for every number. Figures checked October 3, 2026.
1. First Home Savings Account (FHSA)
- You can contribute $8,000 a year, up to a $40,000 lifetime limit.
- Unused room can be carried forward to the next year, up to a maximum of $8,000.
- Contributions are generally tax-deductible, and a qualifying withdrawal to buy your first home is tax-free.
- To open one you must be a resident of Canada, at least 18, and a first-time home buyer: you did not live in a home that you or your spouse or common-law partner owned in the current year or the previous four calendar years.
2. RRSP Home Buyers’ Plan (HBP)
- You can withdraw up to $60,000 from your RRSPs to buy or build a qualifying home.
- You pay it back to your RRSP over 15 years.
- For a first withdrawal made between January 1, 2026 and December 31, 2028, repayments start in the fifth year after the withdrawal instead of the second. For example, a first withdrawal in 2026 means the first repayment year is 2031.
- You can use the HBP and an FHSA qualifying withdrawal for the same home, as long as you meet the conditions of each.
3. Ontario land transfer tax refund
- First-time buyers can get a refund of Ontario land transfer tax of up to $4,000.
- Main conditions: at least 18; never owned a home, or an interest in one, anywhere in the world; a Canadian citizen or permanent resident; and you move in as your principal residence within nine months.
- If your spouse owned a home while you were married, no refund is available to either of you.
- The refund is usually claimed by your lawyer when the deed is registered. Otherwise you can apply within 18 months.
Buying in the City of Toronto? Toronto charges its own municipal land transfer tax too, and offers first-time buyers a separate rebate of up to $4,475. None of the other cities on this site charges a municipal land transfer tax.
4. Buying a brand-new home? Two GST/HST rebates
- Federal First-Time Home Buyers’ GST/HST rebate: up to $50,000 on a newly built home valued at $1 million or less, reduced between $1 million and $1.5 million. It applies to agreements with a builder signed on or after March 20, 2025 and before 2031.
- Ontario Enhanced New Housing Rebate: up to $80,000 of the provincial part of the HST on a new home bought as a primary residence, for agreements signed between April 1, 2026 and March 31, 2027. It is not limited to first-time buyers, and it shrinks for homes above $1.5 million.
- Neither applies to a resale home.
5. 30-year amortization for first-time buyers
Since December 15, 2024, first-time buyers (and anyone buying a newly built home) with an insured mortgage, meaning less than 20% down, can choose a 30-year amortization instead of 25. Insured mortgages are available on homes under $1.5 million. A licensed mortgage professional can tell you what you qualify for.
How I help first-time buyers
- A free first call: your budget, savings, timeline and which programs may apply.
- Referrals to licensed mortgage professionals for a pre-approval (you choose who to work with).
- A search plan for the areas that fit your budget, plus showings.
- Offers with the right conditions (financing, inspection) and every clause explained.
- Coordination with your lawyer so the refunds you qualify for are claimed at closing.
Frequently asked questions
Can I use the FHSA and the Home Buyers’ Plan together?
Yes. The CRA allows an HBP withdrawal and an FHSA qualifying withdrawal for the same home, as long as you meet the conditions of each at the time of each withdrawal.
How much is the Ontario land transfer tax refund for first-time buyers?
Up to $4,000 (checked October 3, 2026 on ontario.ca). You must meet all the conditions, including never having owned a home anywhere in the world.
Do newcomers qualify for the land transfer tax refund?
Only Canadian citizens and permanent residents qualify for the Ontario refund. Other conditions apply. Check the official page or ask your lawyer.
Does every city charge a municipal land transfer tax?
No. In Ontario, the City of Toronto charges its own municipal land transfer tax. Kitchener, Waterloo, Cambridge, Mississauga, Oakville, Milton, Brampton and Hamilton do not.
Sources (official pages, checked October 3, 2026)
- CRA – First Home Savings Account (FHSA)
- CRA – Participating in your FHSAs ($8,000/yr, $40,000 lifetime, carry-forward)
- CRA – Opening your FHSA (eligibility)
- CRA – Withdrawals from your FHSAs (tax-free qualifying withdrawal; FHSA + HBP on the same home)
- CRA – The Home Buyers’ Plan ($60,000 limit; repayment deferral for 2026-2028 withdrawals)
- Ontario – Land transfer tax refunds for first-time homebuyers (max $4,000)
- Ontario – Land transfer tax (Toronto has its own municipal tax)
- City of Toronto – MLTT rebate opportunities (max $4,475)
- CRA – First-time home buyers’ GST/HST rebate (new homes, up to $50,000)
- CRA Notice 346 – Ontario Enhanced New Housing Rebate (up to $80,000)
- Department of Finance Canada – mortgage reforms (30-year amortization, $1.5M insured cap)
Programs and limits change, often at budget time. Confirm the current rules on the official page before you rely on them.
Talk to me in English or Arabic: call or text (647) 465-3710, message me on WhatsApp, or email Mohieddinrealtor@gmail.com.
General information only – not financial, legal or mortgage advice. Please consult a licensed professional about your own situation.