Published 3 August 2026 · Updated 8 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
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Get My Free Estimate →Seven measures, arriving at three different moments. Before closing: the RRSP Home Buyers’ Plan at $60,000 per person and the FHSA at $40,000 — and CRA confirms you can use both on the same home, so $100,000 each. At closing: the Ontario land transfer tax refund ($4,000), the Toronto MLTT rebate ($4,475), and on a new build the federal GST rebate ($50,000) plus Ontario HST relief ($80,000). The following spring: the Home Buyers’ Amount, a $10,000 claim worth about $1,400 at the 2026 rate. The CMHC First-Time Home Buyer Incentive closed in March 2024. And CRA’s four-year first-time buyer test is not the same as Ontario’s never-owned test.
There are seven separate first-time buyer measures operating in Ontario right now, they arrive at three different moments — before closing, at closing, and the following spring — and one of the most widely cited guides in Toronto still tells readers the RRSP limit is $35,000. It has been $60,000 since April 2024. This page is the current stack, with the dates and the fine print.
What the programmes are worth to you
Cash at closing, cash before closing, and tax relief are three different things. This separates them, because adding them into one number is how people end up short on closing day.
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The whole stack
| Measure | Worth | When you get it | Key test |
|---|---|---|---|
| RRSP Home Buyers’ Plan | Up to $60,000 per person, tax-free withdrawal | Before closing | Four-year rolling first-time buyer test. Repay over 15 years. |
| First Home Savings Account | Up to $40,000 lifetime, $8,000 a year | Before closing | Deductible going in, tax-free coming out. Combinable with the Home Buyers’ Plan. |
| Ontario land transfer tax refund | Up to $4,000 | At closing | Never owned a home anywhere in the world. Not re-qualifiable. |
| Toronto MLTT rebate | Up to $4,475 | At closing | Toronto purchases only. Same never-owned test. |
| Federal FTHB GST rebate | Up to $50,000 | At closing, usually credited by the builder | New builds. Agreement on or after 20 March 2025. |
| Ontario new-home HST relief | Up to $80,000 | At closing | New builds. Two programmes, two windows — see the checker. |
| Home Buyers’ Amount | $10,000 claim, roughly $1,400 of tax relief | The following spring | A non-refundable credit. Worth nothing if you owe no tax. |
Not on the list, because it no longer exists. The CMHC First-Time Home Buyer Incentive stopped accepting submissions on 21 March 2024 and granted no approvals after 31 March 2024. It is still being cited in guides published as recently as December 2025.
The four-year test is not the never-owned test
This trips up more people than anything else in the stack, because two governments use the phrase “first-time home buyer” to mean two completely different things.
| CRA — Home Buyers’ Plan, FHSA, GST rebate | Ontario and Toronto — land transfer tax | |
|---|---|---|
| The test | You must not have lived in a home you or your spouse owned as your principal residence in the current calendar year or the previous four calendar years. | You must never have owned a home, or any interest in a home, anywhere in the world, at any time. |
| Can you re-qualify? | Yes. It is a rolling four-year window. | No. Ontario states it plainly: “You cannot re-qualify as a first-time homebuyer.” |
| Does a spouse’s ownership count? | Yes, if you lived in it. | Yes, if they owned it while being your spouse. |
So somebody who sold a house six years ago and has rented since is a first-time buyer to the CRA and is not a first-time buyer to Ontario. They can use the Home Buyers’ Plan and they cannot claim the $4,000 refund. Ontario’s own page flags the difference specifically, which tells you how often it comes up.
The Home Buyers’ Plan, current version
- $60,000 per person. CRA: “You cannot withdraw more than $60,000 in total under the HBP.” A couple who both qualify can take $120,000.
- Repaid over 15 years. A missed annual repayment is added to your income for that year.
- The repayment start has been deferred. For a first withdrawal made between 1 January 2026 and 31 December 2028, repayment starts in the fifth year after the withdrawal, not the second. CRA’s example: a first withdrawal in 2026 means the first repayment year is 2031.
- Your HBP balance must be zero on 1 January if you have used it before.
Two CRA pages disagree with each other on this. The Home Buyers’ Plan hub page carries the extended deferral for 2026 to 2028 withdrawals. The dedicated repayment page still describes only the older 2022 to 2025 window. If you read the repayment page and withdrew in 2026, you will conclude that you must start repaying in 2028. You do not. Cite the hub page.
Separately, the $60,000 figure’s effective date — withdrawals after 16 April 2024 — does not appear on any CRA page at all. It is in Budget 2024.
The FHSA, and the rule almost everyone gets wrong
$8,000 of contribution room a year, $40,000 lifetime, deductible going in and tax-free coming out. Unused room carries forward, but the carry-forward is capped, so the most you can ever put in during a single year is $16,000.
Room does not accumulate until you open the account. It starts in the year you open your first FHSA. It does not build up retroactively from 2023 or from the year you turned 18. Somebody who opens their first FHSA in 2026 has $8,000 of room in 2026, not $32,000. This is the most commonly misreported FHSA rule and it is worth opening an account with a token amount purely to start the clock.
The participation period ends on 31 December of the earliest of: the fifteenth anniversary of opening your first FHSA, the year you turn 71, or the year following your first qualifying withdrawal.
You can use both. CRA: “You can withdraw amounts from your RRSPs under the Home Buyers’ Plan (HBP) and make a qualifying withdrawal from your FHSAs for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal.” That is $100,000 per person before any growth, and $200,000 for a qualifying couple.
The Home Buyers’ Amount, and a number to stop repeating
The claim is $10,000 on line 31270. It is a non-refundable credit, so what it is worth is $10,000 multiplied by the lowest federal personal income tax rate.
That rate is 14 per cent for 2026, down from a blended 14.5 per cent for 2025. So the credit is worth about $1,400, not the $1,500 still quoted across bank and brokerage sites. The $1,500 figure dates from when the lowest rate was 15 per cent. CRA does not publish the dollar value at all — only the $10,000 claim amount — so anyone stating a hard figure is doing the arithmetic themselves, and should say which rate they used.
The first-time buyer requirement does not apply where the purchaser is eligible for the disability tax credit, or where the home is acquired for the benefit of a related person who is, and is more accessible or better suited to that person’s needs.
The two land transfer tax refunds
| Ontario | Toronto | |
|---|---|---|
| Maximum | $4,000 | $4,475 |
| Fully covers a purchase up to | $368,000 | $400,000 |
| Occupy as principal residence within | 9 months | 9 months |
| Apply within | 18 months of registration | 18 months of the conveyance |
| Citizenship | Canadian citizen or permanent resident | Same, with an 18-month grace to become one |
| Fee to claim after closing | — | $221.22 |
Claim both at registration if you can. Toronto charges $221.22 to process a refund afterwards, so a post-closing claim nets $4,253.78 instead of $4,475. Your lawyer handles this, but it is worth asking the question rather than assuming.
Where a non-qualifying parent goes on title alongside a qualifying child, the refund is proportional — a 50/50 split gives the child $2,000 of the Ontario maximum. Where the parent is on title only as a bare trustee at the lender’s insistence and takes no beneficial interest, the full refund can be preserved with evidence of the trust, but the tax is paid at registration and reclaimed afterwards.
Toronto pays twice. Nowhere else in Ontario does.
The calculator above shows this, and it is worth stating why rather than leaving it as a quirk. Under s. 17(1)(a) of the Municipal Act, 2001, the general powers that municipalities operate under do not authorise them to impose taxes. A municipality can levy only what a statute specifically grants it, and no statute grants a land transfer tax. Section 267 of the City of Toronto Act, 2006 gives Toronto alone a general power to impose direct taxes, and that is the basis for the Municipal Land Transfer Tax.
So this is not an accident of policy that Peel or York might copy next year. It is a difference in legislation. There is a separate page working through what that means at the Etobicoke–Mississauga border, which is about as literal a demonstration of it as exists.
First purchase, and want to know what you can actually assemble?
The gap between what these programmes are worth on paper and what lands in your account at closing is large, and it depends on timing more than anything else. Send me your situation and I will map it out before you start looking, not after you have written an offer.
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Frequently asked questions
How much can I take out of my RRSP to buy a home?
$60,000 per person. CRA states you cannot withdraw more than $60,000 in total under the Home Buyers’ Plan. The limit rose from $35,000 for withdrawals made after 16 April 2024, and a great many published guides still quote the old figure. A qualifying couple can take $120,000 between them.
Can I use the Home Buyers’ Plan and an FHSA on the same purchase?
Yes. CRA states plainly that you can withdraw under the Home Buyers’ Plan and make a qualifying FHSA withdrawal for the same qualifying home, as long as you meet the conditions for each at the time of each withdrawal. That is up to $100,000 per person before growth.
When do I have to start repaying the Home Buyers’ Plan?
For a first withdrawal made between 1 January 2026 and 31 December 2028, the 15-year repayment period starts in the fifth year after the withdrawal. CRA’s own example: a first withdrawal in 2026 means the first repayment year is 2031. Note that CRA’s dedicated repayment page has not been updated and still describes only the older 2022 to 2025 relief window.
How much FHSA room do I have if I open my first account this year?
$8,000. Room does not accumulate before you open an account — it starts in the year you open your first FHSA. It does not build up retroactively from 2023 or from the year you turned 18. This is the most commonly misreported FHSA rule, and it is a reason to open one early with a token amount.
Am I still a first-time buyer if I owned a home years ago?
It depends which programme. For CRA purposes — the Home Buyers’ Plan, the FHSA, the GST rebate — the test is a rolling four-year window, so yes, you can re-qualify. For the Ontario and Toronto land transfer tax refunds the test is that you must never have owned a home anywhere in the world at any time, and Ontario states you cannot re-qualify.
Is the CMHC First-Time Home Buyer Incentive still available?
No. Submissions closed on 21 March 2024 and no approvals were granted after 31 March 2024. It is still being listed as available in guides published well after that.
How much is the Home Buyers’ Amount worth?
The claim is $10,000 on line 31270 and it is a non-refundable credit, so it is worth $10,000 multiplied by the lowest federal rate. That rate is 14 per cent for 2026, making the credit worth roughly $1,400. The $1,500 figure still widely quoted dates from when the lowest rate was 15 per cent. CRA publishes the claim amount but not the dollar value.
Do I pay land transfer tax twice everywhere in Ontario?
No, only in the City of Toronto. Section 17(1)(a) of the Municipal Act, 2001 denies municipalities a general power to impose taxes, and no statute grants a land transfer tax. Section 267 of the City of Toronto Act, 2006 gives Toronto alone a general direct-taxation power, which is the basis for its Municipal Land Transfer Tax.
Related reading
- New-home HST relief: the eligibility checker for all four rebates
- Etobicoke or Mississauga: what crossing the border actually costs
- Renting now, buying later: the deposit and financing timeline
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- What is the Home Buyers’ Plan. Canada Revenue Agency. Withdrawal limit $60,000; 15-year repayment; the temporary deferral extended to first withdrawals between 1 January 2026 and 31 December 2028. Accessed 30 August 2026.
- Home Buyers’ Plan — how to participate. Canada Revenue Agency. The four-year rolling first-time buyer test with a 30-day carve-out immediately before the withdrawal. Accessed 30 August 2026.
- Budget 2024, Chapter 1. Department of Finance Canada. States the Home Buyers’ Plan limit rose from $35,000 to $60,000 for first-time buyers after 16 April 2024. The effective date does not appear on any CRA page. Accessed 30 August 2026.
- First Home Savings Account. Canada Revenue Agency. $8,000 annual participation room, $40,000 lifetime limit, 15-year maximum participation period. Accessed 30 August 2026.
- FHSA withdrawals and transfers out. Canada Revenue Agency. Confirms the Home Buyers’ Plan and an FHSA qualifying withdrawal may both be used for the same qualifying home. Accessed 30 August 2026.
- Line 31270 — Home buyers’ amount. Canada Revenue Agency. A $10,000 claim amount for a qualifying home. CRA does not publish the resulting dollar value of the credit. Accessed 30 August 2026.
- T4127 Payroll Deductions Formulas. Canada Revenue Agency. Confirms the lowest federal personal income tax rate is 14 per cent for 2026, down from a blended 14.5 per cent for 2025. Accessed 30 August 2026.
- First-Time Home Buyer Incentive. Canada Mortgage and Housing Corporation. The submission deadline was 21 March 2024 and no approvals were granted after 31 March 2024. The programme is closed. Accessed 30 August 2026.
- Land Transfer Tax refunds for first-time homebuyers. Ontario Ministry of Finance. Maximum refund $4,000 since 1 January 2017; apply within 18 months. Accessed 30 August 2026.
- Municipal Land Transfer Tax rebate opportunities. City of Toronto. First-time purchaser rebate to a maximum of $4,475, claimable within 18 months of the conveyance. Accessed 30 August 2026.
- Calculating land transfer tax. Ontario Ministry of Finance. The bracket table and the published quick calculation formula. Accessed 30 August 2026.
- Municipal Land Transfer Tax rates and fees. City of Toronto. Page headed “Rates as of April 1, 2026”. Accessed 30 August 2026.
- Municipal Act, 2001, S.O. 2001, c. 25. e-Laws. Section 17(1)(a) provides that the general municipal powers in ss. 9, 10 and 11 do not authorise a municipality to impose taxes. Accessed 30 August 2026.
- City of Toronto Act, 2006, S.O. 2006, c. 11, Sched. A. e-Laws. Section 267 gives the City of Toronto alone a general power to impose direct taxes, which is the statutory basis for the Municipal Land Transfer Tax. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 833-330-1925.
On a new build there is one more rebate worth thousands: the first-time buyers GST rebate explained.