There is real money available to first-time buyers in Ontario — up to $8,475 in land transfer tax rebates alone in Toronto, before you count the tax-advantaged accounts. Most buyers claim some of it and miss the rest.
This is the biggest immediate cash saving, and it exists because Ontario buyers pay land transfer tax twice if they buy inside the City of Toronto: once to the province, once to the city.
| Rebate | Maximum | Who gets it |
|---|---|---|
| Ontario land transfer tax rebate | $4,000 | First-time buyers anywhere in Ontario |
| Toronto municipal rebate | $4,475 | First-time buyers inside Toronto city limits |
| Combined maximum | $8,475 | First-time buyers purchasing in Toronto |
To qualify you must be 18 or older, a Canadian citizen or permanent resident, move in within nine months, and never have owned a home anywhere in the world. If your spouse owned a home while you were together, you are generally disqualified.
Your real estate lawyer normally claims the rebate directly at registration, so it comes off what you owe on closing rather than arriving as a cheque months later. If it is missed, you have 18 months to apply to the Ministry of Finance for a refund.
The FHSA is the most efficient savings vehicle available to first-time buyers in Canada, because it combines the best feature of both registered accounts: contributions are tax-deductible like an RRSP, and withdrawals toward a qualifying home are completely tax-free like a TFSA.
If you have not opened one, the single most useful thing you can do this week is open it — even with a token deposit. Contribution room only starts accumulating once the account exists.
You can withdraw up to $60,000 from your RRSP tax-free toward a first home. A couple who both qualify can combine for $120,000. Repayment is spread over 15 years, and it stacks with an FHSA — which is how many Toronto buyers get from a ten percent down payment to twenty.
First-time buyers and buyers of newly built homes can take a 30-year amortization on an insured mortgage instead of the standard 25. It lowers your monthly payment and can raise what you qualify for. The tradeoff is real: you pay meaningfully more interest across the life of the loan. Worth modelling both ways rather than defaulting to the longer term.
Toggle amortization in the calculator and watch both the payment and the qualifying income move.
A federal First-Time Home Buyers' GST/HST rebate received Royal Assent in March 2026, offering eligible buyers of newly constructed homes up to $50,000 back. The eligibility rules are specific and tied to the purchase of a new or substantially renovated home, so if pre-construction is on your radar it is worth confirming details with your lawyer or the builder early — before you sign anything.
The insured mortgage cap sits at $1.5 million for first-time buyers and new construction, up from the older $1 million limit. In practice this matters less in the condo segment where most first purchases happen, but it widens the field if you are looking at freehold or larger units.
The land transfer tax rebates are direct cash off your closing costs. The FHSA and Home Buyers' Plan are not free money, but they change how fast you can assemble a down payment and how much tax you pay getting there.
In my experience it is the FHSA — usually because people assume they need a large amount to open one, or they already have a TFSA and think it is redundant. It is not. If buying is anywhere on your horizon in the next few years, opening an FHSA is the highest-return five minutes of paperwork available to you.
Up to $8,475 combined — $4,000 from the Ontario land transfer tax rebate and $4,475 from the Toronto municipal land transfer tax rebate. Outside Toronto, only the $4,000 provincial rebate applies.
You must be 18 or older, a Canadian citizen or permanent resident, occupy the home as your principal residence within nine months, and never have owned a home or an interest in one anywhere in the world. If your spouse owned a home while you were spouses, you generally do not qualify.
A First Home Savings Account combines RRSP and TFSA advantages: contributions are tax-deductible and qualifying withdrawals toward a first home are tax-free. For a first home specifically it is generally more efficient than a TFSA, and the two can be used together.
Yes. You can withdraw up to $60,000 from an RRSP under the Home Buyers' Plan and also use FHSA funds for the same purchase. Combining them is a common way buyers reach a twenty percent down payment and avoid mortgage insurance.
The federal shared-equity First-Time Home Buyer Incentive is no longer accepting new applications. The programs currently available to first-time buyers are the land transfer tax rebates, the FHSA, the Home Buyers' Plan, 30-year insured amortization, and the new GST/HST rebate on eligible new builds.
This page is general information for Ontario buyers, not legal, tax, mortgage, or financial advice, and it is not a guarantee of approval, pricing, or availability. Figures are estimates current as of July 2026 and change frequently. Confirm your own numbers with a licensed mortgage professional and a real estate lawyer before making an offer. Brendan Stewart is a Sales Representative registered with RECO (Lic. 6004758) with Keller Williams Referred Urban Realty, Brokerage.
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