Seven programs genuinely exist for Ontario first-time buyers in 2026: the FHSA ($40,000 lifetime), the Home Buyers’ Plan ($60,000 RRSP withdrawal), the new GST rebate on new builds, land transfer tax relief at both the provincial and Toronto level, the $10,000 Home Buyers’ Amount, and 30-year insured amortizations. The shared-equity Incentive is dead.
Which first-time buyer programs actually exist in 2026?
There are seven real ones — and one famous program that no longer exists but still clogs up search results. A lot of what is written about first-time buyer help in Ontario is outdated, so here is the current list, each verified against the government source linked in the Sources section:
| Program | What you get | Key limit | Status in 2026 |
|---|---|---|---|
| First Home Savings Account (FHSA) | Tax-deductible contributions, tax-free withdrawal for a first home | $8,000/year, $40,000 lifetime | Active |
| Home Buyers’ Plan (HBP) | Borrow from your own RRSP tax-free | $60,000, repaid over 15 years | Active |
| FTHB GST rebate (new builds) | 100% of GST back, up to $50,000 | Homes up to $1M, phasing out to $1.5M | Active — applications open |
| Ontario LTT refund | Up to $4,000 of provincial land transfer tax | No provincial LTT on first $368,000 | Active |
| Toronto MLTT rebate | Up to $4,475 of Toronto’s municipal tax | Fully used around $400,000 (computed) | Active |
| Home Buyers’ Amount | $10,000 non-refundable tax credit | Worth $1,500 at the 15% federal rate | Active |
| 30-year insured amortization | Longer amortization, lower monthly payment | First-time buyers and new builds | Active since Dec 15, 2024 |
| First-Time Home Buyer Incentive | Shared-equity loan from CMHC | — | Discontinued (deadline Mar 21, 2024) |
How does the First Home Savings Account (FHSA) work?
The FHSA lets you contribute up to $8,000 per year, to a lifetime maximum of $40,000 — contributions are tax-deductible like an RRSP, and qualifying withdrawals for a first home come out tax-free like a TFSA. According to the CRA, unused participation room carries forward, but only up to a maximum of $8,000, so the most room you can ever have in a single year is $16,000.
The practical play I see work best: open the account early even if you can only deposit a little, because opening it starts the room accumulating. A couple can each have their own FHSA, doubling every limit above.
How does the Home Buyers’ Plan (HBP) work?
The HBP lets you withdraw up to $60,000 from your RRSP tax-free to buy or build a qualifying first home, then repay it to your RRSP over 15 years. The limit was raised to $60,000 by Budget 2024, per the Department of Finance — older articles still say $35,000. According to the CRA, withdrawals made between January 1, 2022 and December 31, 2025 also get a temporary grace period of up to five years before repayments begin, instead of the usual two.
You can stack the HBP with the FHSA — a buyer who has maxed both could bring $100,000 of registered money to a down payment, and a couple twice that. Miss a year’s HBP repayment, though, and that amount is added to your taxable income for the year.
What is the new GST rebate for first-time buyers?
It is a rebate of 100% of the GST on a new or substantially renovated home, up to $50,000 — and it is in force now, with applications open. According to the CRA, the full rebate applies to homes priced up to $1 million, phasing down to zero at $1.5 million, for purchase agreements entered into after May 26, 2025 and before 2031. Ontario adds a matching rebate of up to $80,000 of the provincial portion of the HST.
What land transfer tax relief do first-time buyers get?
Ontario refunds up to $4,000 of provincial land transfer tax — enough that, per ontario.ca, eligible buyers pay no provincial LTT on the first $368,000 of the price — and Toronto rebates up to $4,475 of its municipal tax on top. The Toronto maximum is fully used at a price of roughly $400,000, though that crossover is computed from the rate table rather than stated by toronto.ca. Combined, a Toronto first-time buyer keeps up to $8,475.
Eligibility at both levels: 18 or older, never owned a home or an interest in one anywhere in the world, spouse never owned while your spouse, and citizen or permanent resident. Toronto adds a requirement to occupy the home as your principal residence within nine months. Full worked examples are in the Toronto land transfer tax guide.
What is the Home Buyers’ Amount worth?
It is a $10,000 non-refundable credit claimed on line 31270 of your tax return the year you buy — and because the federal credit rate is 15%, the arithmetic puts about $1,500 in your pocket. It is not a cheque at closing; it reduces your tax bill the following spring. Small, but it takes five minutes to claim and most buyers qualify.
What happened to the First-Time Home Buyer Incentive?
It is gone. CMHC discontinued the shared-equity First-Time Home Buyer Incentive, with a final deadline for new submissions of March 21, 2024. It no longer accepts applications, yet it still appears in countless “first-time buyer programs” articles ranking in search results today.
The takeaway
The real 2026 stack for an Ontario first-time buyer: FHSA ($40,000 lifetime) + HBP ($60,000) for the down payment, up to $8,475 of land transfer tax relief in Toronto, up to $50,000 of GST back on a new build, $1,500 from the Home Buyers’ Amount, and a 30-year insured amortization to ease the payment. Ignore anything you read about the shared-equity Incentive — it closed in March 2024.
How I help
When I sit down with first-time buyers, we go through this list line by line against their actual situation — what they can genuinely claim, what the timing rules allow, and what it changes about the price range we should be shopping. It regularly moves a buyer’s real budget by more than they expected. Bring your numbers and I’ll bring the checklist.
First home? Find out what you actually qualify for.
Tell me your rough savings, income and target area, and I’ll map every program on this page to your situation — what applies, what doesn’t, and what it means for your budget. No pitch, no obligation.
connect@jatindua.com · 437-987-1925 · Book a free consultation
Confidential. Reviewed personally and answered within 24 hours. I never share, sell or distribute your information.
Frequently asked questions
How much can a first-time buyer withdraw from an RRSP in 2026?
Up to $60,000 under the Home Buyers’ Plan, repayable over 15 years. Budget 2024 raised the limit from $35,000, and withdrawals made between January 1, 2022 and December 31, 2025 get up to five years before repayment starts instead of the usual two.
Can I use both the FHSA and the Home Buyers’ Plan together?
Yes, on the same purchase. A buyer who has maxed the FHSA ($40,000 lifetime) and the HBP ($60,000) could put $100,000 of registered funds toward a first home — and a couple can each use both, doubling those figures.
Is the First-Time Home Buyer Incentive still available?
No. CMHC discontinued the shared-equity First-Time Home Buyer Incentive — the deadline for new submissions was March 21, 2024. Articles still listing it are out of date. The December 2024 reforms (a $1.5 million insured cap and 30-year insured amortizations for first-time buyers) are what exist instead.
Do first-time buyers pay GST or HST on a new home in Ontario?
Much less than before. For agreements signed after May 26, 2025 and before 2031, the CRA’s first-time home buyer GST rebate returns 100% of the GST (up to $50,000) on new or substantially renovated homes up to $1 million, phasing to zero at $1.5 million, and Ontario adds a matching rebate of up to $80,000 of the provincial HST portion. Resale homes are not affected.
Sources
- CRA — Contributing to your FHSA. The $8,000 annual limit, $40,000 lifetime limit and $8,000 maximum carry-forward. Accessed 13 August 2026.
- CRA — The Home Buyers’ Plan. The $60,000 withdrawal limit, 15-year repayment and the temporary five-year repayment grace for 2022–2025 withdrawals. Accessed 13 August 2026.
- Department of Finance Canada — Budget 2024 housing measures. The HBP increase to $60,000. Accessed 13 August 2026.
- CRA — First-time home buyers’ GST/HST rebate. The 100% GST rebate up to $50,000, the $1M–$1.5M phase-out, the agreement-date window and Ontario’s matching rebate. Accessed 13 August 2026.
- Government of Ontario — LTT refunds for first-time homebuyers. The $4,000 maximum refund and $368,000 threshold. Accessed 13 August 2026.
- City of Toronto — MLTT rebate opportunities. The $4,475 maximum rebate, eligibility and the nine-month occupancy rule. Accessed 13 August 2026.
- CRA — Line 31270, Home Buyers’ Amount. The $10,000 non-refundable credit. Accessed 13 August 2026.
- CMHC — First-Time Home Buyer Incentive. Confirmation the program is discontinued, with a March 21, 2024 submission deadline. Accessed 13 August 2026.
- Department of Finance Canada — mortgage reform announcement. The $1.5 million insured cap and 30-year insured amortizations effective 15 December 2024. Accessed 13 August 2026.
Related reading
- How much is the minimum down payment in Ontario? (2026 rules)
- Land transfer tax in Toronto: 2026 rates, rebates and worked examples
- The mortgage stress test in 2026: how qualifying actually works
- Etobicoke community guide
- Humber Bay Shores condo buildings guide
About the author — Jatin Dua, Etobicoke real estate agent
I am Jatin Dua, a licensed Realtor with RE/MAX Quantum Realty in Etobicoke, Toronto, working with buyers, sellers and investors across the GTA. I write these guides myself and verify every figure against the primary government source before publishing — the same sources are linked above so you can check them too.
Reach me at connect@jatindua.com or 437-987-1925.