Last updated: April 14, 2026. Reviewed by the Deeded real estate closing team.
TL;DR: How much can a first-time buyer actually save with Rebates?
Stack the federal, provincial, and municipal programs together and a first-time buyer in Ontario can put over $100,000 of tax-advantaged money and direct rebates toward their first home in 2026. A couple buying a new build in Toronto can push that past $200,000 once the temporary HST rebate is in play. Here's the quick version.
The catch: most of these programs have to be claimed at closing by your lawyer, or before closing by you. Miss the window and you're not getting the money back. This guide walks through each one, how they stack, and the eligibility traps that trip up real buyers.
If you're trying to time the market on top of all this, our take on whether 2026 is the best year for housing affordability in a decade is worth reading alongside this guide.
Who actually counts as a "first-time home buyer" in Ontario?
The CRA definition is the one that matters, and most programs borrow from it. You qualify if all three of these are true:
- You're 18 or older and a resident of Canada on the day you buy.
- Neither you nor your spouse or common-law partner has owned a home you lived in as your principal residence in the current calendar year or any of the four calendar years before it.
- You plan to move into the home as your principal residence within one year of closing.
The trap everyone hits: if you're buying with a partner, both of you have to qualify to get the full Ontario and Toronto land transfer tax rebates. If your partner owned a home you two lived in together at any point, you lose the rebate. Period. A lot of couples only find this out the week of closing, which is a rough time to find out.
1. The 2026 game-changer: the new home HST rebate
In March 2026, the federal and Ontario governments pulled off the biggest first-time buyer incentive in Canadian history: a temporary elimination of the full 13% HST on newly built homes up to $1 million for first-time buyers. It applies to agreements of purchase and sale signed before March 31, 2027.
We broke down the full mechanics in a separate post: Ontario and Ottawa Are Eliminating Up to $130,000 in HST on New Homes, Here's Who Qualifies. If you want the deeper dive on the legislation itself, see what Bill C-4 means for Canadian home buyers.
What it's actually worth
On a $900,000 new construction condo or freehold, the HST alone is roughly $117,000. A qualifying first-time buyer pays zero HST on the first $1M of purchase price under this rebate, with a partial rebate that scales down between $1M and $1.5M.
Who qualifies
- You meet the CRA first-time buyer definition above.
- The home is newly built or substantially renovated. Resale homes don't count.
- Your agreement of purchase and sale is signed inside the eligibility window.
- You occupy the home as your principal residence.
If you were already planning to buy new construction in 2026, the math on timing your closing has changed overnight. This is the single biggest lever on this list.
2. First Home Savings Account (FHSA)
The FHSA is a registered account introduced in April 2023 that combines the best features of an RRSP and a TFSA. Contributions are tax-deductible like an RRSP. Withdrawals for a first home are tax-free like a TFSA. You never have to pay it back.
If you and a partner each max out your FHSAs over five years, that's $80,000 of down payment money you already got a tax deduction on. Hard to beat.
One practical tip: open an FHSA even if you can't contribute $8,000 right now. The contribution room starts banking the moment the account is open, and you need an active account to make a qualifying withdrawal later.
3. RRSP Home Buyers' Plan (HBP)
The HBP lets you pull up to $60,000 out of your RRSP tax-free for a first home. A couple can withdraw $120,000 combined.
FeatureDetailMaximum withdrawal per person$60,000Repayment period15 years, starting the second year after withdrawalMinimum time funds must sit in RRSP90 daysMissed repaymentsAdded to your taxable income that year
Can you use the FHSA and HBP on the same house?
Yes. As of the 2023 federal changes, both programs work on the same purchase. That's up to $100,000 per person or $200,000 per couple of tax-advantaged down payment money. It's the most powerful combination available to Canadian first-time buyers, full stop.
4. Ontario Land Transfer Tax refund
Every home purchase in Ontario triggers provincial land transfer tax, calculated on a sliding scale. First-time buyers get a refund of up to $4,000, which fully covers the LTT on any home priced up to $368,000.
Above $368,000, you pay LTT on the portion over that threshold. Example: on a $700,000 home in Mississauga, provincial LTT is roughly $10,475. After the rebate, you pay about $6,475. Your real estate lawyer applies the refund directly on the Statement of Adjustments at closing. You don't claim it later on a tax return.
5. Toronto municipal Land Transfer Tax rebate
If you're buying inside the City of Toronto, you pay a second land transfer tax on top of the provincial one. First-time buyers get a separate municipal rebate of up to $4,475. Combined with the provincial refund, a Toronto first-time buyer can recover up to $8,475 in land transfer taxes.
For context on where the Toronto market sits right now, see our GTA condo price comparison from February 2022 to February 2026.
Toronto LTT math on a $900,000 home
TaxBefore rebateAfter first-time buyer rebateOntario LTT~$14,475~$10,475Toronto MLTT~$14,475~$10,000Total~$28,950~$20,475
You'll still pay a lot more in Toronto than anywhere else in Ontario. The rebate helps. It does not erase the double LTT problem.
6. First-Time Home Buyers' Tax Credit (HBTC)
The HBTC is a federal non-refundable tax credit. The 2022 doubling lifted it to $10,000, which turns into $1,500 of real tax savings at the 15% federal rate. You claim it on line 31270 of your T1 return in the year you bought the home. No application, no pre-approval, just one line on your tax return.
One thing every first-time buyer underestimates: closing costs
These incentives knock down your purchase price and fuel your down payment. They don't cover closing costs, which run 1.5 to 4 percent of the purchase price. On a $900,000 home, budget $13,500 to $36,000 on top of your down payment for:
- Legal fees and disbursements
- Title insurance
- Land transfer tax (net of rebates)
- Home inspection and status certificate for condos
- Adjustments for property taxes, utilities, and condo fees
- PST on CMHC insurance, if applicable
At Deeded, every closing starts with an upfront, itemized quote of all your closing costs. You see the full number before you sign anything. No surprises the week of closing.
Frequently asked questions
Can I use the FHSA and the Home Buyers' Plan on the same house?
Yes. Since 2023 you can stack them on the same qualifying purchase, up to $100,000 per person or $200,000 per couple.
Do I have to pay back FHSA withdrawals?
No. Qualifying FHSA withdrawals for a first home are tax-free and don't require repayment. That's the main difference between the FHSA and the HBP.
My partner owned a home before we met. Can I still claim the Ontario Land Transfer Tax rebate?
Only partially. You can claim the rebate on your portion of ownership (usually 50%), which caps your refund around $2,000 instead of $4,000.
Does the 2026 HST rebate apply to resale homes?
No. The rebate is for newly built or substantially renovated homes purchased before March 31, 2027. Resale homes don't qualify. Full breakdown of who qualifies is in our HST rebate guide.
How long do I have to live in the home to count as a first-time buyer?
You have to move in within one year of closing and live there as your principal residence. Buying purely as an investment doesn't qualify.
Can I open an FHSA if I already own a home?
No. You have to be a first-time buyer the day you open the account. You can open one while you're actively shopping, as long as you haven't owned in the current or past four calendar years.
What if I buy with a parent to help with financing?
Co-signing the mortgage is fine and doesn't disqualify you. Putting a non-qualifying co-owner (like a parent who already owns a home) on title can reduce or wipe out some rebates. Before you finalize structure, read our breakdown of the risks of co-signing a mortgage in Canada and talk to a real estate lawyer.
Getting the details right is where most buyers lose money
Almost every program on this list is claimed at closing through your real estate lawyer, not later through the CRA. Missing a land transfer tax rebate at closing is one of the most common and most expensive first-time buyer mistakes. A good closing lawyer walks you through each rebate you qualify for, confirms your eligibility, and applies the credits directly on your Statement of Adjustments.
Get a transparent closing quote for your first home →
This guide is for informational purposes only and is not tax, legal, or financial advice. Program amounts and eligibility can change. Confirm with the CRA, the Ontario Ministry of Finance, or a qualified professional before making decisions. Last reviewed April 14, 2026.
Related reading on the Deeded blog
- Ontario and Ottawa Are Eliminating Up to $130,000 in HST on New Homes, Here's Who Qualifies
- First-Time Buyer GST Rebate: What Bill C-4 Means for Canadian Home Buyers
- The Risks of Co-Signing a Mortgage in Canada
- Is 2026 the Best Year for Housing Affordability in Canada in a Decade?
- GTA Condo Prices: February 2022 vs. February 2026
- How Did the Canadian Real Estate Market Do in February 2026?
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