First-time buyers in Ontario have access to a genuinely helpful set of programs, but only if you understand how they stack together. Here's the current landscape as of 2026.
Land Transfer Tax Rebates
Ontario offers a rebate on the provincial land transfer tax for eligible first-time buyers, and the City of Toronto offers a separate rebate against its additional municipal land transfer tax. Both have specific eligibility rules around prior home ownership and citizenship or residency status, so confirm current thresholds with your lawyer before closing.
The First Home Savings Account (FHSA)
The FHSA lets eligible first-time buyers contribute tax-deductible savings toward a down payment, with tax-free withdrawals when used for a qualifying home purchase, one of the most valuable tools introduced for buyers in recent years.
The RRSP Home Buyers' Plan
The Home Buyers' Plan allows eligible buyers to withdraw savings from their RRSP toward a down payment on a tax-deferred basis, to be repaid over time, and it can be used alongside the FHSA for buyers who qualify for both.
- Confirm your specific eligibility for provincial and municipal land transfer tax rebates with your real estate lawyer
- Open an FHSA as early as possible to maximize contribution room before you're ready to buy
- Ask your mortgage professional how FHSA and HBP withdrawals interact with your specific down payment plan
Next step
Numbers can be intimidating, you don't have to run them alone. Contact Hamodi Realty for a personalized affordability breakdown and a referral to trusted local mortgage professionals who know the GTA market inside and out.