Ontario's first-time buyer incentives in 2026 are more generous than they've been in years , between land transfer tax rebates, tax-advantaged savings accounts, and a brand-new federal GST rebate on new construction, eligible buyers can realistically access tens of thousands of dollars in combined savings. Here's every program, in plain language.
1. Ontario Land Transfer Tax Rebate
First-time buyers in Ontario can receive a rebate of up to $4,000 on the provincial land transfer tax, which fully covers the tax on homes priced up to roughly $368,000 and reduces it above that threshold. This applies to both new construction and resale homes. Full details and the application process are on Ontario's official land transfer tax refund page.
2. Toronto Municipal Land Transfer Tax Rebate
If you're buying within the City of Toronto, you pay a *second*, municipal land transfer tax on top of the provincial one , but first-time buyers also get a *second* rebate, worth up to $4,475. Combined with the provincial rebate, that's up to $8,475 in total land transfer tax relief for a first purchase in Toronto specifically.
3. First Home Savings Account (FHSA)
Introduced federally in 2023, the FHSA combines the best features of an RRSP and a TFSA: contributions are tax-deductible (like an RRSP), and withdrawals for a qualifying first home purchase are completely tax-free (like a TFSA), with no repayment required. You can contribute up to $8,000 per year, to a lifetime maximum of $40,000. Full eligibility rules are available directly from the Canada Revenue Agency.
4. RRSP Home Buyers' Plan (HBP)
The HBP lets first-time buyers withdraw up to $60,000 tax-free from an RRSP toward a home purchase ($120,000 combined for a qualifying couple), repayable over 15 years starting the second year after withdrawal. The FHSA and HBP can be used together on the same purchase , that's a combined $100,000 per person, or $200,000 per couple, in tax-advantaged down payment capital.
5. Home Buyers' Amount (Federal Tax Credit)
A non-refundable federal tax credit worth $10,000, claimed on your tax return in the year you purchase, that translates to roughly $1,500 back at tax time. No application needed beyond claiming it on line 31270 of your T1.
6. NEW: First-Time Home Buyers' GST/HST Rebate (2026)
This is the biggest recent change. Following Bill C-4's Royal Assent in March 2026, first-time buyers purchasing an eligible new construction home now qualify for a rebate that eliminates 100% of the federal GST on homes priced at or below $1 million (worth up to $50,000), phasing out on a straight-line basis for homes between $1 million and $1.5 million. Full eligibility criteria, including the four-year prior-ownership lookback rule, are detailed on the Canada Revenue Agency's FTHB GST/HST rebate page. This rebate applies only to new builds and substantially renovated homes , not resale properties.
7. Ontario's Proposed Enhanced HST Rebate
Ontario has proposed a complementary provincial rebate that would eliminate the remaining 8% provincial portion of HST for first-time buyers on new homes up to $1 million. As of this writing that measure has been announced but not yet passed into law , confirm current status before budgeting around it, since combined federal + provincial relief could reach roughly $130,000 on an eligible new home once both are in force.
Putting It Together: A Realistic Example
A first-time buyer purchasing a $700,000 resale condo in Toronto could realistically access: the $4,000 provincial LTT rebate, the $4,475 Toronto municipal rebate, the $1,500 Home Buyers' Amount tax credit, plus whatever they've built up in an FHSA and HBP , easily $10,000+ in direct rebates and credits before even counting the tax-sheltered down payment savings.
Frequently Asked Questions
Do I qualify as a "first-time buyer" if I owned a home years ago?
It depends on the program. Ontario's land transfer tax rebate uses a *lifetime* definition , if you've ever owned property anywhere, you don't qualify. Federal programs (FHSA, HBP, GST rebate) generally use a four-calendar-year lookback instead.
Can I combine the FHSA, HBP, and land transfer tax rebates?
Yes , these programs are independent and can generally all be used together if you meet each program's eligibility rules.
Does the new GST rebate apply to resale homes?
No. It applies only to new construction or substantially renovated homes where GST (or the federal portion of HST) is charged.
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*Want a personalized breakdown of every rebate you qualify for? Contact Hamodi Realty , we'll walk through your specific numbers before you write an offer.*