If you're buying your first home in the GTA, eight programs can cut what you pay: the FHSA, the RRSP Home Buyers' Plan, the federal Home Buyers' Amount, Ontario's land transfer tax refund, Toronto's municipal land transfer tax rebate, and three rebates or payments on the HST for new homes. Each one defines "first-time buyer" a little differently. Below is what each is worth, who qualifies and where to confirm it.

This guide replaces our older "First Time Home Buyer's Guide in GTA". That post used a down payment rule that has since changed, so the corrected rules are below. For the full step-by-step plan, start at our first-time buyer hub.

Which first-time buyer programs can you use in Ontario?

Program	Who runs it	What it's worth	New or resale	Key condition
First Home Savings Account (FHSA)	Federal (CRA)	Save up to $40,000, tax-deductible in, tax-free out	Both	No home lived in and owned in the current year or previous 4 years
RRSP Home Buyers' Plan (HBP)	Federal (CRA)	Borrow up to $60,000 from your RRSP, repay over 15 years	Both	Written agreement to buy before you withdraw
Home Buyers' Amount (tax credit)	Federal (CRA)	Claim up to $10,000 (about $1,400 off federal tax for a 2026 purchase)	Both	First-time buyer, home in Canada
Ontario land transfer tax refund	Ontario	Up to $4,000	Both	Never owned a home anywhere in the world; citizen or PR
Toronto MLTT rebate	City of Toronto	Up to $4,475	Both	Toronto purchases only; citizen or PR
First-Time Home Buyers' GST/HST rebate	Federal (CRA)	Up to $50,000 of the GST	New only	Price under $1.5 million; citizen or PR
Ontario Enhanced New Housing Rebate	Ontario, run by CRA	Up to $80,000 of the provincial HST	New only	Agreement signed April 1, 2026 to March 31, 2027
Ontario New Home Affordability Payment (ONHAP)	Ontario	Up to $50,000 (matches the 5% federal part, less any federal rebate)	New only	Eligible for the Enhanced New Housing Rebate

Last checked: October 2026. Amounts and rules come from the official pages linked in each section below.

Start with the FHSA

The First Home Savings Account works like an RRSP on the way in and a TFSA on the way out. Contributions are deductible, and a qualifying withdrawal to buy your first home is not taxable and never has to be repaid.

The limits, from CRA's contribution page:

$8,000 of room in the year you open your first FHSA.
Unused room carries forward, but only up to $8,000 into the next year.
$40,000 lifetime.

To open one, you must be a resident of Canada, at least 18, and 71 or younger at the end of that year. You also can't have lived in a home that you (or your spouse or common-law partner) owned, in the current year or the previous four calendar years.

The account must close by December 31 of the year after your first qualifying withdrawal, the year of its 15th anniversary, or the year you turn 71, whichever comes first.

Room only starts building in the year you open your first FHSA. If you think you'll buy in the next few years, opening one now, even with a small deposit, starts the clock.

RRSP Home Buyers' Plan, up to $60,000 each

The Home Buyers' Plan lets you take up to $60,000 out of your RRSP tax-free to buy a first home. A couple buying together can each use it. It's a loan to yourself: you repay it into your RRSP over 15 years.

CRA currently defers the start of repayment to the fifth year after your first withdrawal for withdrawals made from January 1, 2022 to December 31, 2028. A first withdrawal in 2026 means repayments start in 2031.

The main conditions:

You need a written agreement to buy or build the home before you withdraw. A mortgage pre-approval doesn't count.
You must buy by October 1 of the year after your first withdrawal and plan to live there within one year.
RRSP contributions made in the 89 days before the withdrawal may not be deductible.

You can use the FHSA and the HBP for the same home, as long as you meet the conditions of each.

The Home Buyers' Amount (first-time buyer tax credit)

On your tax return for the year you buy, you can claim the Home Buyers' Amount of up to $10,000. It's a non-refundable credit, so it only reduces tax you owe. Two eligible buyers can split it, but the combined claim can't go over $10,000.

The credit is worked out at the lowest federal tax rate, which is 14% for 2026. A full $10,000 claim on a 2026 purchase is worth up to $1,400 off your federal tax.

Ontario and Toronto land transfer tax refunds

Every buyer in Ontario pays provincial land transfer tax (LTT) on closing. Buyers in the City of Toronto pay a second, municipal tax on top. First-time buyers get money back on both.

Ontario: a refund of up to $4,000. In practice, that means no provincial tax on the first $368,000 of the price. You must be at least 18, a Canadian citizen or permanent resident, never have owned a home anywhere in the world, and live in the home within nine months. If your spouse owned a home while married to you, neither of you qualifies. You can claim it through your lawyer at registration, or apply within 18 months after.
Toronto: a rebate of up to $4,475 on the municipal tax, which covers the tax on the first $400,000. Conditions are similar, including citizenship or permanent residence and moving in within nine months.

Buying with someone who isn't a first-time buyer? The Ontario refund is reduced in proportion to their share. For rates and three worked examples, see our land transfer tax guide.

GST/HST rebates on new homes

If you're buying a brand-new home or a pre-construction condo from a builder, two newer programs matter.

Federal First-Time Home Buyers' GST/HST rebate (in force). It returns up to 100% of the 5% GST, to a maximum of $50,000, on new homes priced at $1 million or less. It shrinks between $1 million and $1.5 million and is zero at $1.5 million or more. You must be at least 18, a Canadian citizen or permanent resident, and the first person to live in the home. For builder purchases, the agreement must be signed on or after March 20, 2025 and before 2031.

Ontario Enhanced New Housing Rebate (in force, time-limited). Ontario now rebates the 8% provincial part of the HST up to $80,000 on new homes bought as a primary residence. It applies to agreements with a builder signed from April 1, 2026 to March 31, 2027. It isn't limited to first-time buyers. The rebate covers the full 8% up to $1 million (capped at $80,000), a flat $80,000 from $1 million to $1.5 million, and a partial amount below $1.85 million.

Two more pieces are listed in CRA Notice 346. Ontario's first-time home buyers' rebate on the 8% provincial HST can be claimed instead of the Enhanced New Housing Rebate or together with it, but all rebates on the provincial part combined are capped at $80,000. For buyers who qualify for the enhanced rebate, the Province also pays the Ontario New Home Affordability Payment (ONHAP) of up to $50,000. It matches up to the full 5% federal part and is reduced by any federal GST rebate you receive. Ask your lawyer and builder which combination applies to you. Resale homes don't carry HST, so none of these apply to them.

Minimum down payment rules (corrected for 2026)

Our older guide said you needed 20% down on any home over $1 million. That changed on December 15, 2024, when the price cap for insured mortgages rose from $1 million to $1.5 million. The current rules, from the Financial Consumer Agency of Canada:

Purchase price	Minimum down payment
$500,000 or less	5%
$500,000 to $1.5 million	5% of the first $500,000, plus 10% of the rest
$1.5 million or more	20%

Last checked: October 2026.

With less than 20% down you'll need mortgage default insurance. CMHC's premium runs from 0.60% to 4.00% of the loan, depending on your down payment. The premium is added to your mortgage, but in Ontario the provincial sales tax on it can't be. You pay that tax in cash at closing. Our closing costs checklist shows the math.

30-year amortization for first-time buyers

Since December 15, 2024, first-time buyers can get a 30-year amortization on an insured mortgage, up from 25. The same applies to anyone buying a new build. A longer amortization lowers the monthly payment, but you pay more interest over the life of the loan. The federal definition of first-time buyer here follows the HBP: you haven't lived in a home you or your current partner owned in the last four years.

A worked example: two first-time buyers in Toronto

Priya and Sam (a made-up couple) buy an $800,000 resale condo in Toronto. Both are first-time buyers and permanent residents.

Minimum down payment: 5% of $500,000 ($25,000) plus 10% of $300,000 ($30,000) = $55,000. Savings in two FHSAs, plus HBP withdrawals if needed, can cover it.
Land transfer tax: $12,475 Ontario plus $12,475 Toronto = $24,950. After the $4,000 and $4,475 rebates they pay $16,475.
Default insurance: the loan is $745,000, about 93% of the price, so the CMHC premium is 4.00%, or $29,800, added to the mortgage. The 8% Ontario retail sales tax on it, $2,384, is due in cash at closing.
Tax credit: they split the $10,000 Home Buyers' Amount, worth up to $1,400 off their combined federal tax.

Basics that still apply before you shop

A few points from our old guide still hold:

Lenders look at your income, debts, credit history and job stability. Get a pre-approval before you look. It sets your price range, though it doesn't guarantee final approval.
Budget for closing costs of 1.5% to 4% of the price, on top of the down payment.
Don't take on new debt between your offer and closing. Your lender can re-check your credit before funding.
Keep savings after closing. A first home always needs something in the first year.

Book a free Gameplan Session

Stacking these programs comes down to timing: when you open the FHSA, when you sign, when you withdraw. In a Gameplan Session we map your savings, your rebates and your price range onto a 90-day plan, in English, Hindi or Punjabi. Book a free Gameplan Session to get yours.

This is general information, not financial, tax or legal advice. Confirm your situation with your lender, lawyer and accountant before you act.