First-Time Home Buyer Incentives in Ontario for 2027: Every Program in One Place

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Every first-time buyer incentive in Ontario for 2027, with dollar values, who qualifies, when the money arrives and the deadlines to watch.

This guide is for first-time buyers in Toronto and across Ontario who plan to buy in 2027 and want every incentive on one page. You will get each program’s dollar value, who qualifies, when the money arrives, and the 2027 dates that matter, all checked against official pages as of November 2026.

What first-time home buyer incentives are available in Ontario in 2027?

Nine federal, Ontario and Toronto measures apply to first-time buyers heading into 2027. Some put money in your hands before closing, some reduce your bill at closing, and one arrives the following spring with your tax refund.

Source: Canada Revenue Agency (FHSA, Home Buyers’ Plan, FTHB rebate, Notice 346, line 31270), Ontario Ministry of Finance, City of Toronto and Department of Finance Canada, as of November 2026.

The two rebates on new homes cannot both pay out the same provincial tax. CRA’s Notice 346 says that if you qualify for both the Ontario first-time buyer rebate and the enhanced rebate, you can claim either or both, but the total provincial rebate is capped at the lesser of $80,000 and the provincial tax you actually paid.

What changes for first-time buyers in 2027?

Less than you might think. The federal budget tabled in early November 2026 did not create a new first-time buyer program. Its housing chapter refers to the existing GST relief on new homes and the FHSA, and adds funding for CRA to keep running the FHSA. The dates to watch are these:

• 31 March 2027: last day to sign an agreement with a builder and qualify for Ontario’s enhanced new housing rebate, according to CRA Notice 346. First-time buyers can still use the Ontario first-time buyer rebate after that.
• All of 2027: a first Home Buyers’ Plan withdrawal made from 1 January 2026 to 31 December 2028 gets a longer grace period. If you first withdraw in 2027, repayments start in 2032.
• 1 February 2027: new mortgage insurance rules for building or buying newly built three- and four-unit homes take effect, according to a Department of Finance backgrounder of 5 November 2026. They matter to buyers looking at small multiplexes, not to most condo buyers.
• Before 2031: agreements must be signed by then for the federal First-Time Home Buyers’ GST/HST rebate.

The FHSA’s $8,000 yearly limit and $40,000 lifetime limit are fixed dollar amounts, not indexed to inflation, and the budget proposed no change to them, so they stay the same in 2027.

Who counts as a first-time home buyer in Ontario?

It depends on which program you are using. The federal programs and the province use different tests.

• CRA test (FHSA, Home Buyers’ Plan, GST/HST rebate, Home Buyers’ Amount): you did not live in a home that you or your spouse owned in the current year or the previous four calendar years. Someone who sold a condo in 2021 and has rented since can qualify again in 2027.
• Ontario and Toronto land transfer tax test: you have never owned a home or an interest in a home anywhere in the world, and your spouse did not own one while you were together. Ontario’s page is clear that you cannot qualify again.

So a past owner may get the FHSA and the Home Buyers’ Plan but not the land transfer tax refund. The CRA rebate on new homes adds one more rule: neither you nor your spouse can have received it before. For a full walk-through of the provincial refund, see my guide to the Ontario land transfer tax refund for first-time buyers.

How much can the FHSA and Home Buyers’ Plan add to your down payment?

Up to $100,000 per person, before investment growth. CRA confirms you can make a Home Buyers’ Plan withdrawal and a qualifying FHSA withdrawal for the same home, as long as you meet the conditions for each at the time. A couple who both qualify can bring up to $200,000.

In GTA terms, $100,000 is more than the minimum down payment on any home under $1.25 million. That is 5% of the first $500,000 plus 10% of the next $750,000. My comparison of FHSA vs the Home Buyers’ Plan explains which to fund first.

How much do the land transfer tax refunds save in Toronto vs the rest of the GTA?

Buyers inside the City of Toronto pay two land transfer taxes, so they get two refunds. Everywhere else in the GTA, only the Ontario tax and refund apply.

Source: my calculations using Ontario land transfer tax rates and the first-time buyer refund (ontario.ca) and City of Toronto MLTT rates from 1 April 2026 and the $4,475 rebate (toronto.ca), as of November 2026.

Both refunds require you to move in within nine months and to apply within 18 months. Toronto charges a $221.22 fee if you claim the rebate after the deed is registered, so ask your lawyer to claim it on closing day.

How do the GST and HST rebates work on a new home in 2027?

On a newly built home, the 13% HST has two parts: a 5% federal part and an 8% Ontario part. For an eligible first-time buyer, both can be removed on homes up to $1 million.

• Federal part: CRA’s First-Time Home Buyers’ rebate gives back 100% of the 5% on new homes up to $1 million, phased out in a straight line to zero at $1.5 million. The maximum is $50,000.
• Ontario part: the Ontario first-time buyer rebate covers up to $80,000 of the 8% and follows the federal conditions. For agreements signed from 1 April 2026 to 31 March 2027, Notice 346 also gives any eligible buyer the full 8% up to $1 million, a flat $80,000 from $1 million to $1.5 million, and a partial rebate up to $1.85 million.

As a simple example, on a new condo priced at $900,000 before tax, the federal part is $45,000 and the Ontario part is $72,000. An eligible first-time buyer could have both rebated, for $117,000 in total. The deal must also meet the other conditions: you must be 18 or older, a citizen or permanent resident, and the first person to live in the home. My guide to the First-Time Home Buyers’ GST rebate covers the fine print.

What is the Home Buyers’ Amount worth?

You can claim $10,000 on line 31270 of your tax return for the year you buy, according to CRA. It is a non-refundable credit, so it does not come back to you as a cheque. Instead, it lowers the federal tax you owe by $10,000 multiplied by the lowest federal tax rate. If you owe little or no federal tax, it is worth less, or nothing.

Spouses can split the claim only if both qualify, and together they cannot claim more than $10,000. The home must be in Canada and registered in your name or your spouse’s name. Federal tax rates for 2027 are published by CRA before tax season, so the exact value is known when you file in spring 2028.

Which mortgage rules help first-time buyers?

Two rules from December 2024 still apply. First-time buyers can take a 30-year amortization on an insured mortgage, which lowers the monthly payment. And insured mortgages are available on homes priced below $1.5 million, so you can buy with less than 20% down up to that price. The minimum is 5% of the first $500,000 and 10% of the rest. See my guide to the minimum down payment in Ontario for every price point.

How should you stack these programs in 2027?

Think of it in three stages:

1. Before you buy: fill your FHSA first, because it is deductible going in and you never repay it. Then use the Home Buyers’ Plan if you still need more.
2. At closing: have your lawyer claim the land transfer tax refunds and, on a new home, confirm the GST and HST rebates in the statement of adjustments.
3. The next spring: claim the Home Buyers’ Amount, and designate your first Home Buyers’ Plan repayment when it comes due.

If you are buying in the city, my first-time home buyer guide for Toronto adds prices and closing costs by area. For the 2026 version of this list, with more detail on each test, see every first-time buyer programme in Ontario for 2026.

What to do next

1. Check which first-time buyer test you pass: CRA’s four-year test, Ontario’s never-owned test, or both.
2. Open an FHSA before 31 December 2026 so you have room carried into 2027.
3. If you want a new home, decide before 31 March 2027 whether the enhanced Ontario rebate matters to you.
4. Ask a lawyer to confirm every rebate in writing before you sign with a builder.
5. Book a call with me to add up what you can bring to closing.

Frequently asked questions

Sources

• CRA: First-time home buyers’ GST/HST rebate, who can apply
• CRA Notice 346: Ontario enhanced new housing rebate (August 2026)
• CRA: What is the Home Buyers’ Plan
• CRA: Participating in your FHSAs (contribution room)
• Ontario: Land transfer tax refunds for first-time homebuyers
• Budget 2026, Chapter 3: A more affordable life
• CRA: Line 31270, Home buyers’ amount
• Department of Finance Canada: Mortgage insurance rule changes to support missing middle housing (5 November 2026)

Related reading

• Biggest Condo Developers in Toronto: Track Records Buyers Should Check
• Is It a Good Idea to Buy a Condo in Toronto in 2027?
• Buying a House in Ontario on a Work Permit (2027): What the Foreign Buyer Ban Allows
• Can You Buy a House With No Down Payment in Ontario?