As a first-time buyer in Etobicoke you can stack four separate programs. The FHSA lets you contribute up to $8,000 a year to a $40,000 lifetime maximum, with contributions deductible and qualifying withdrawals tax-free. The Home Buyers’ Plan lets you withdraw up to $60,000 from an RRSP, repayable over 15 years. You can claim both land transfer tax rebates — provincial and City of Toronto — because Etobicoke is in Toronto and pays both taxes. And on a new build there is the GST/HST rebate, now sitting alongside Ontario’s expanded relief of up to $130,000. On down payment: for an owner-occupied home under $1 million the minimum is 5% on the first $500,000 and 10% on the portion above — not 20%, which is the myth that keeps qualified buyers renting.
- The down payment rules — and the 20% myth
- The FHSA — the best account available to you
- The Home Buyers’ Plan — up to $60,000 from your RRSP
- Both land transfer tax rebates — because Etobicoke is Toronto
- Buying new: the GST/HST rebate and Ontario’s expanded relief
- First-time buyer programs at a glance
- Frequently asked questions
The single most expensive misunderstanding I encounter is a first-time buyer who has spent two extra years saving toward a 20% down payment they never needed — while the units they were saving for moved out of reach.
The programs available to you are genuinely substantial and they stack. Most buyers use one or two and never learn about the rest. Etobicoke is a particularly good place to be a first-time buyer right now: prices are soft, most condo inventory sits well under the $1 million threshold where the rules tighten, and there is real negotiating room.
Here is everything that applies, in one place, with the numbers.
This is not tax or mortgage advice. Eligibility rules are detailed and change. Use this to know what to ask a mortgage professional and an accountant.
The down payment rules — and the 20% myth
Start here, because this is where people self-eliminate unnecessarily.
Owner-occupied under $1 million
Minimum 5% on the first $500,000 and 10% on the portion between $500,000 and $1 million.
On a $700,000 condo that is $25,000 + $20,000 = $45,000. Not $140,000.
Where 20% genuinely is required
At $1 million or above — no exceptions, and mortgage default insurance is not available. This is a hard line and it is why the market just under $1 million behaves so differently from the market just above it.
Investment and rental properties — 20% minimum regardless of price.
The cost of putting down less
Below 20% you require mortgage default insurance (CMHC, Sagen or Canada Guaranty). The premium is added to your mortgage rather than paid upfront. It is a real cost and should be modelled — but it is not a prohibition, and for most first-time buyers entering the market sooner outweighs it.
Why this matters in Etobicoke specifically
A large share of Etobicoke condo inventory sits comfortably below $1 million, which means the lower down payment rules apply to most of what you would realistically look at — including much of Mimico, The Queensway corridor and the Kipling and Islington station buildings.
What to actually do: Talk to a mortgage professional before deciding what you can afford, not after. Many buyers qualify for far more than they assume.
The FHSA — the best account available to you
The First Home Savings Account is the strongest tool a first-time buyer has, because it does something no other registered account does: you get the deduction going in and the withdrawal comes out tax-free.
The mechanics
Contribute up to $8,000 per year to a $40,000 lifetime maximum. Contributions are deductible against income like an RRSP. Qualifying withdrawals to buy a first home are tax-free like a TFSA.
Unused annual room carries forward, subject to limits, so opening one early has value even if you cannot fund it immediately.
The practical point most people miss
Open the account even if you cannot contribute much yet. Opening it starts your contribution room accumulating. Waiting until you are ready to buy wastes years of room you cannot get back.
Combining it
You can use the FHSA alongside the Home Buyers’ Plan. Together they represent a substantial down payment for a couple where both partners qualify.
What to confirm
Eligibility criteria, what counts as a qualifying withdrawal, the account closure timeline, and what happens if you do not end up buying. Ask your financial institution and confirm current rules with the Canada Revenue Agency — these accounts are relatively new and the details matter.
What to actually do: Open an FHSA now, even with a small contribution, so your room starts accumulating. It is the only account offering both a deduction going in and a tax-free withdrawal.
The Home Buyers’ Plan — up to $60,000 from your RRSP
The Home Buyers’ Plan lets a first-time buyer withdraw up to $60,000 from an RRSP toward a home purchase, without the withdrawal being taxed as income at the time.
The scale of it
It is per person. For a couple where both qualify, that is up to $120,000 — and stacked with two FHSAs, the combined down payment capacity is substantial.
The repayment obligation
This is a loan from yourself, not a grant. Repayment is over 15 years, and if you miss an annual repayment the shortfall is added to your taxable income for that year. Budget for it as an ongoing commitment alongside your mortgage.
The 90-day trap
Funds generally must have been in the RRSP for at least 90 days before withdrawal to qualify. Buyers who contribute a lump sum and try to withdraw it immediately for a purchase get caught by this constantly. If you are planning to use the HBP, get the money in early.
What to confirm
Current withdrawal limits, the definition of first-time buyer for this purpose (it is not always what people assume — a prior owner can sometimes requalify after a period of not owning), repayment start timing, and the interaction with FHSA withdrawals. Confirm with an accountant.
What to actually do: Get funds into the RRSP at least 90 days before you need them, and treat the withdrawal as a 15-year repayment obligation, not free money.
Both land transfer tax rebates — because Etobicoke is Toronto
Etobicoke amalgamated into the City of Toronto in 1998. That means you pay two land transfer taxes on a purchase — the provincial Ontario Land Transfer Tax and the City of Toronto Municipal Land Transfer Tax.
Buyers who assume Etobicoke escapes the municipal tax under-budget their closing costs significantly, and they find out at closing, which is the worst possible moment.
The good news
Both taxes have first-time buyer rebates, and you can claim both. They are separate programmes with their own eligibility rules and maximum amounts. Together they materially reduce your cash requirement at closing.
What to confirm with your lawyer
Current maximum rebate amounts for each, the eligibility criteria (including how they treat a spouse who has previously owned), and whether the rebate is applied at registration or claimed afterward — this affects how much cash you need on closing day itself.
One 2026 change worth knowing
Toronto introduced graduated Municipal Land Transfer Tax rates on high-value residential properties, effective April 1, 2026, applying above $3 million. That is above the first-time buyer range in almost all cases, but worth knowing exists.
Budget the rest too
Legal fees, title insurance, home inspection, status certificate on a condo, moving costs, and adjustments for prepaid property tax and maintenance fees. These add up and they are due on closing.
What to actually do: Budget both land transfer taxes, then claim both rebates. Confirm with your lawyer whether each is applied at registration or claimed after, because it changes your closing-day cash.
Buying new: the GST/HST rebate and Ontario’s expanded relief
If you buy a new build or pre-construction unit, a further layer applies — and it is currently the largest single incentive in Ontario new-home buying.
Ontario’s expanded relief
Ontario announced a full HST rebate on new homes up to $1 million, with a maximum of $130,000 — up to $50,000 on the 5% federal portion and up to $80,000 on the 8% provincial portion. The maximum remains available between $1 million and $1.5 million, then declines to $24,000 by $1.85 million.
The main programme requires the purchase agreement signed between April 1, 2026 and March 31, 2027, with construction timeline conditions. Separately, a first-time buyer entering an agreement with a builder between March 20, 2025 and December 31, 2030 may access both the federal and provincial rebates — a much longer window, which is why first-time buyers should establish their eligibility category early.
The trap
Builder pricing is frequently quoted net of an assumed rebate. If you do not qualify for the rebate the price assumed, your actual cash requirement at closing is higher than the agreement suggests. Rebate eligibility generally turns on occupying the home as a primary residence — a buyer intending to rent is in a different position entirely.
Verify in writing, with an accountant, before you sign. This is the most expensive avoidable error in new-home buying.
And budget occupancy fees
On pre-construction you will pay the builder monthly between move-in and registration, and none of it reduces your mortgage. Budget twelve months of it separately from your closing costs.
What to actually do: On a new build, confirm your rebate position with an accountant before signing and check whether the quoted price assumed a rebate you may not qualify for.
First-time buyer programs at a glance
| Program | What you get | Key condition |
|---|---|---|
| FHSA | $8,000/yr to $40,000 lifetime; deductible in, tax-free out | Open it early — room accrues from opening |
| Home Buyers’ Plan | Up to $60,000 per person from RRSP | Funds in RRSP 90 days; 15-year repayment |
| Ontario LTT rebate | Provincial land transfer tax rebate | First-time buyer criteria |
| Toronto MLTT rebate | Separate municipal rebate — claim both | Etobicoke is in Toronto; both taxes apply |
| GST/HST new housing rebate | Up to $130,000 on qualifying new builds | Primary residence; agreement date windows |
| Minimum down payment | 5% first $500K, 10% to $1M | 20% only at $1M+ and on rentals |
- GST rebate for first-time buyers on Etobicoke condos
- Ontario’s HST rebate on new homes 2026: up to $130,000
- Land transfer tax calculator
- Mortgage calculator
- Closing costs on an Etobicoke condo
- Top 5 myths about buying a home in Etobicoke
- Top 5 condos to buy in Etobicoke
- Interim occupancy fees explained
First time buying? Let’s find out what you can actually afford.
I will run your real numbers — minimum down payment for the price range you are looking at, both land transfer taxes with the rebates applied, closing costs and monthly carrying cost. Most first-time buyers are surprised, usually in the good direction.
Talk to JatinFree home valuationNet proceeds calculatorConfidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
Do I need 20% down to buy in Etobicoke?
No, not for an owner-occupied home under $1 million. The minimum is 5% on the first $500,000 and 10% on the portion between $500,000 and $1 million — so on a $700,000 condo, $45,000 rather than $140,000. A 20% minimum applies only at $1 million and above, where mortgage default insurance is not available, and on investment or rental properties. Below 20% down you need mortgage default insurance, whose premium is added to the mortgage. Most Etobicoke condo inventory sits below the $1 million threshold.
What is the FHSA and how much can I contribute?
The First Home Savings Account allows up to $8,000 per year to a $40,000 lifetime maximum. Contributions are tax-deductible like an RRSP and qualifying withdrawals to buy a first home are tax-free like a TFSA — it is the only account offering both. Unused annual room carries forward subject to limits. Open the account as early as possible even if you cannot contribute much, because contribution room starts accumulating from opening and waiting wastes years you cannot recover. It can be used alongside the Home Buyers’ Plan.
How much can I withdraw under the Home Buyers’ Plan?
Up to $60,000 per person from an RRSP, so up to $120,000 for a couple where both qualify. It is a loan from yourself, repayable over 15 years, and a missed annual repayment is added to your taxable income for that year. Critically, funds generally must have been in the RRSP for at least 90 days before withdrawal to qualify — buyers who contribute a lump sum and try to withdraw immediately get caught by this regularly, so plan the timing well ahead.
Can I claim both land transfer tax rebates in Etobicoke?
Yes. Etobicoke amalgamated into the City of Toronto in 1998, so you pay both the provincial Ontario Land Transfer Tax and the City of Toronto Municipal Land Transfer Tax — and both have separate first-time buyer rebates with their own eligibility rules and maximums. Buyers who assume Etobicoke is outside Toronto routinely under-budget their closing costs. Confirm current rebate amounts with your lawyer, and ask whether each is applied at registration or claimed afterward, since that changes how much cash you need on closing day.
What first-time buyer help is available on a new build in Ontario?
Ontario announced a full HST rebate on new homes up to $1 million with a maximum of $130,000 — up to $50,000 federal and $80,000 provincial. The maximum remains available between $1 million and $1.5 million, then declines to $24,000 by $1.85 million. The main programme requires the agreement signed between April 1, 2026 and March 31, 2027 with construction timeline conditions, while first-time buyers entering an agreement with a builder between March 20, 2025 and December 31, 2030 may access both federal and provincial rebates. Be aware builder pricing is often quoted net of an assumed rebate you may not qualify for — verify with an accountant before signing.
Can I use the FHSA and the Home Buyers’ Plan together?
Yes, they can be used together, and for a couple where both partners qualify the combined capacity is substantial — up to $40,000 each in FHSA contributions plus up to $60,000 each under the Home Buyers’ Plan. The key differences are that FHSA withdrawals are tax-free and never repaid, while Home Buyers’ Plan withdrawals must be repaid to your RRSP over 15 years. Confirm the interaction and current limits with an accountant, as the rules are detailed and the FHSA is a relatively new account.
First-time home buyers in Etobicoke, Toronto can combine several programs. The minimum down payment for an owner-occupied home under $1 million is 5% on the first $500,000 and 10% on the portion between $500,000 and $1 million; 20% is required only at $1 million and above, where mortgage default insurance is unavailable, and on investment properties. The First Home Savings Account permits contributions of $8,000 per year to a $40,000 lifetime maximum, with contributions tax-deductible and qualifying withdrawals tax-free. The Home Buyers’ Plan permits withdrawal of up to $60,000 per person from an RRSP, repayable over 15 years, with funds generally required to have been in the account 90 days before withdrawal. Because Etobicoke amalgamated into the City of Toronto in 1998, buyers pay both the provincial Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax, and separate first-time buyer rebates exist for each and can both be claimed. On new builds, Ontario’s expanded HST relief provides up to $130,000 — $50,000 federal and $80,000 provincial — on homes up to $1 million, with the maximum maintained to $1.5 million and declining to $24,000 by $1.85 million; first-time buyers signing with a builder between March 20, 2025 and December 31, 2030 may access both federal and provincial rebates. Builder pricing is frequently quoted net of an assumed rebate, and eligibility generally depends on occupying the home as a primary residence.
Sources and further reading
Government of Canada — minimum down payment rules, mortgage default insurance requirements, First Home Savings Account and Home Buyers’ Plan parameters · Canada Revenue Agency GST/HST new housing rebate rules · Government of Ontario 2026 Budget HST relief for new home buyers · Province of Ontario Land Transfer Tax and first-time purchaser refund · City of Toronto Municipal Land Transfer Tax and first-time purchaser rebate, and graduated MLTT rates for high-value residential properties effective April 1, 2026. Program limits, eligibility criteria and rebate amounts change — confirm current rules with the CRA, the Province, the City and a qualified professional.
Looking at Etobicoke more broadly? Start with my Etobicoke community guide — the neighbourhoods, what each pocket is like, and where they sit relative to one another.
General information prepared August 2026. This is NOT tax, mortgage, legal or financial advice. Contribution limits, withdrawal rules, repayment obligations, first-time buyer definitions, land transfer tax rebate amounts, GST/HST rebate eligibility and minimum down payment requirements are set by government, are detailed and fact-specific, and change — confirm your individual position with a mortgage professional, an accountant and a real estate lawyer before relying on anything here or committing funds. Claiming a rebate you are not entitled to can result in repayment obligations and penalties. Jatin Dua is a Realtor with RE/MAX Quantum Realty and is not a mortgage broker, accountant, lawyer or financial advisor.