A savings account with generally deductible contributions and tax-free qualifying withdrawals. These are your savings, not a rebate.
Eligibility and how to claim →
Your plan is bigger than a mortgage.
Learn · Plan · Buy with confidenceFirst-Time Home Buyer Incentives in Ontario
Ontario first-time home buyer rebates, Toronto tax relief and savings programs—explained separately so you can plan your cash with confidence.
By Richard Lam · RE/MAX Crossroads Realty Inc., Brokerage
Government guidance checked October 18, 2026.
Quick answer: Eligible Toronto buyers may receive up to $8,475 in combined land transfer tax relief. FHSA savings, HBP withdrawals, income-tax credits and new-home HST rebates have different rules and timing.
Compare eligibility and how to claim · See the $600,000 example
Use eligible RRSP funds with a repayment obligation. This is a withdrawal program, not a government grant.
Eligibility and how to claim →A refund of Ontario land transfer tax for eligible buyers of new or resale homes.
Eligibility and how to claim →Separate municipal land transfer tax relief for eligible purchases within the City of Toronto.
Eligibility and how to claim →Federal relief can reach $50,000; Ontario provincial relief can reach $80,000. Caps are not automatic payments, and overlapping rebates cannot simply be added.
Eligibility and how to claim →A non-refundable federal tax credit—not a $10,000 refund. At the ordinary 2026 credit rate, the basic tax reduction is up to $1,400.
Eligibility and how to claim →Eligibility and amounts depend on the buyer, property and transaction. Confirm details with the appropriate legal, tax and mortgage professionals.
KNOW WHAT EACH PROGRAM DOES
Rebates, tax credits and savings are different.
A land transfer tax refund can reduce closing costs if claimed at registration. A non-refundable tax credit reduces income tax on your return. An FHSA helps you save, while the HBP gives you access to your RRSP money with repayment rules. Qualifying for one does not establish eligibility for another.
First Home Savings Account (FHSA)
What it is: A registered savings account. Contributions are generally deductible; qualifying home withdrawals, including growth, are tax-free and do not need repayment.
Amount: Participation room begins when you open your first FHSA: $8,000 in the opening year, with a $40,000 lifetime limit for contributions and RRSP transfers. Up to $8,000 of unused room can carry forward. A deduction's tax saving depends on your circumstances; $8,000 of room is not $8,000 of tax relief. RRSP-to-FHSA transfers do not create a second deduction.
Who may qualify: To open one, generally a Canadian resident aged 18 or older and no more than 71 at year-end who meets the opening first-time-buyer test. In the opening year and previous four calendar years, you must not have lived in a principal residence owned by you or your current spouse/common-law partner.
How to use it: Open with an issuer, track your room and claim eligible contributions on your return. Give the issuer Form RC725 for a qualifying withdrawal. You need a written agreement to buy/build a Canadian home, acquisition/completion before October 1 of the following year, and intended principal-residence occupancy within one year. Normally you cannot have acquired it more than 30 days before withdrawing, and must remain a Canadian resident from withdrawal through acquisition. The withdrawal first-time-buyer test differs from the opening test; see the partner section below.
Official guidance: Opening eligibility ↗ · Room and limits ↗ · Qualifying withdrawals ↗
Home Buyers’ Plan (HBP): use RRSP funds
What it is and amount: An eligible withdrawal of up to $60,000 per person from your own RRSPs, without withholding tax within the limit. Two eligible buyers can each participate, but must have the funds and qualify separately. You can combine HBP and qualifying FHSA withdrawals for the same home.
Who may qualify: Generally, Canadian residents meeting the HBP first-time-buyer test, with a written purchase/building agreement and intended principal-residence occupancy within one year. The test generally looks at whether you lived in a home owned by you or your current spouse/common-law partner in the withdrawal year before withdrawal (excluding the immediately preceding 30 days) or the previous four calendar years. Disability and relationship-breakdown exceptions have additional rules. Purchase, residency and prior HBP-balance conditions also apply.
How to apply: Give your RRSP issuer Form T1036 for each withdrawal. Contributions made in the preceding 89 days can have deduction restrictions.
Repayment: Normally repay over 15 years. CRA's current guidance extends the delayed start to first withdrawals in 2026–2028: a first withdrawal in 2026 starts repayment in 2031. Repayment amounts are not a new RRSP deduction; a required amount not repaid generally becomes taxable income.
Official guidance: HBP and current repayment relief ↗ · Eligibility ↗ · Forms and withdrawal rules ↗
Ontario first-time home buyer land transfer tax refund
What it is and amount: A refund of provincial land transfer tax, up to $4,000, for an eligible new or resale home. The refund cannot exceed the applicable tax.
Who may qualify: Buyers aged 18+ who have never owned a home or an interest in one anywhere in the world. A spouse must not have owned a home while you were spouses. You must occupy the home as your principal residence within nine months and meet citizenship/permanent-residency requirements. Unlike a four-year test, waiting after previous ownership does not make you eligible again. Joint ownership can reduce the refund.
How to claim: Your lawyer can generally claim it during registration. Otherwise apply to Ontario's Ministry of Finance within 18 months of registration/disposition. A buyer becoming a citizen or permanent resident after closing must meet the applicable 18-month requirements.
Official guidance: Ontario eligibility and application ↗ · Refund process and deadlines ↗
Toronto municipal land transfer tax rebate
What it is and amount: Up to $4,475 against Toronto's municipal land transfer tax, separate from Ontario's refund. It applies within the City of Toronto, not throughout the GTA.
Who may qualify: Generally, an eligible residential purchaser aged 18+, never previously a homeowner anywhere, whose spouse did not own while they were spouses. Principal-residence occupancy is required within nine months. Citizenship/permanent-residency and joint-purchaser rules apply. New and resale homes may qualify; commercial, industrial and multi-residential properties are excluded under the City's guidance.
How to claim: Arrange the rebate with your lawyer at registration. If paid first, apply to the City with supporting documents within 18 months; a processing fee applies to a post-registration refund. Keep occupancy and citizenship/residency evidence.
Official guidance: City of Toronto rebate requirements and forms ↗
Federal Home Buyers’ Amount: a tax credit claimed later
What it is: A non-refundable federal income-tax credit. The maximum claim amount is $10,000 per qualifying home, shared among eligible claimants—not $10,000 each.
Financial benefit: At the ordinary 2026 credit rate of 14%, a $10,000 claim produces up to $1,400 of federal tax reduction, limited by tax payable. A temporary top-up credit can affect some tax returns. This is not a guaranteed cash refund and should not be counted as money available at closing.
Who may qualify: Generally, you or your spouse/common-law partner acquired a qualifying Canadian home, you did not live in another home owned by either of you in the acquisition year or previous four years, and you intend principal-residence occupancy within one year. Certain disability-related purchases have exceptions.
How to claim: Claim on line 31270 of the return for the acquisition year and retain supporting records. Only eligible people can share the claim. CRA's current line-31270 page describes the 2025 return; use the applicable 2026 return instructions when filing.
Official guidance: CRA eligibility and line 31270 ↗ · Finance Canada: 2026 rate, amount and top-up ↗
First-time buyer GST/HST rebates: eligible new homes
Property distinction: Ordinary resale-home purchases generally do not have GST/HST on the sale price. New or substantially renovated homes can have different tax treatment. These rebates do not reduce the price of every home a first-time buyer purchases.
Federal first-time home buyers’ GST/HST rebate
Amount: Up to 100% of the GST/federal HST portion for qualifying new homes valued at $1 million or less, capped at $50,000. Relief tapers between $1 million and $1.5 million; none is available at $1.5 million or more.
Who may qualify: Generally, a Canadian citizen/permanent resident aged 18+, buying for their primary residence, who meets the acquisition-year plus previous-four-calendar-years ownership-and-occupancy test. Prior receipt by you or your spouse/common-law partner matters. For a house-and-land builder purchase, the agreement must be dated March 20, 2025 or later and before 2031; construction must begin before 2031, be substantially completed before 2036, and ownership transfer before 2036. First occupancy and other conditions apply; owner-built and leased-land situations have separate details.
How to apply: A builder may credit the rebate, or you may apply through CRA. For a house-and-land builder purchase where the builder does not credit it, the normal deadline is two years after ownership transfer. Use the correct new-housing application and Ontario schedule where applicable; confirm how the contract treats the rebate.
Official guidance: Federal amounts ↗ · Eligibility and dates ↗ · Builder-purchase applications ↗
Ontario HST relief and overlapping programs
CRA also lists an Ontario first-time home buyers’ rebate of up to $80,000 of provincial HST, following the federal first-time-buyer eligibility conditions. The existing Ontario new housing rebate and temporary Ontario enhanced new housing rebate (ENHR) are separate programs; first-time status is not required for every new-housing rebate.
The ENHR generally covers builder agreements from April 1, 2026 to March 31, 2027, or owner-built construction beginning in that period, with further deadlines. For a house-and-land builder purchase, construction must begin by December 31, 2028 and be substantially completed by December 31, 2031. Qualifying owner-built work must be substantially completed by December 31, 2029. Principal-residence, first-occupancy and assignment restrictions also apply. Together with the existing Ontario rebate, it can cover the full 8% provincial tax up to $80,000 for homes up to $1 million, provides $80,000 above $1 million through $1.5 million, then tapers below $1.85 million. At $1.85 million or more, only the existing Ontario rebate of up to $24,000 may remain.
Avoid double-counting: Federal first-time relief tops up any applicable existing federal new-housing rebate. Ontario provincial rebates overlap: their combined amount cannot exceed the lesser of $80,000 and provincial HST payable. The Ontario new home affordability payment can also interact with federal relief; it is not another automatic amount to add. Have the builder, lawyer and tax professional confirm the actual tax, assigned rebates, price basis and remaining cash required.
Official guidance: Ontario first-time rebate ↗ · CRA new-housing guide ↗ · ENHR amounts and interactions ↗ · ENHR eligibility ↗ · ENHR applications ↗
PUT THE TIMING INTO CONTEXT
Example: an eligible buyer purchases a $600,000 resale home in Toronto
Assume a $600,000 taxable consideration, full eligibility for both land transfer tax programs, principal-residence use, and the full eligible ownership interest. No non-resident speculation taxes are assumed. This is an illustration, not a closing quote.
| Land transfer tax | Before relief | Eligible relief | Remaining tax |
|---|---|---|---|
| Ontario | $8,475 | −$4,000 | $4,475 |
| Toronto | $8,475 | −$4,475 | $4,000 |
| Total | $16,950 | −$8,475 | $8,475 |
At closing: $8,475 of tax relief if both claims are properly applied at registration. If tax is paid first, a later refund does not reduce cash needed that day. Down payment, legal costs and other adjustments remain separate.
On a later tax return: If also eligible for the full Home Buyers’ Amount with sufficient federal tax payable, the ordinary 2026 calculation is $10,000 × 14% = $1,400 of tax reduction. It is not included in the closing-tax calculation above.
Your existing savings: For illustration, an eligible buyer could use $16,000 already saved in an FHSA plus a $20,000 eligible HBP withdrawal toward purchase funds. These are $36,000 of their own funds—not $36,000 of new rebates. The HBP portion has repayment obligations. Any contribution-related tax savings depend on the buyer's circumstances and are not assumed here.
GST/HST: No new-home rebate is counted for this ordinary resale example. A new-build comparison needs its own tax-inclusive/exclusive price and contract analysis.
Rate references: Ontario LTT rates ↗ · Toronto MLTT rates ↗
Read the full $600,000 Toronto cash-needed guide · Estimate your closing costs
BUYING TOGETHER
What If My Partner Isn’t a First-Time Home Buyer?
One partner having previously owned a home does not produce the same result for every incentive. Your relationship, when the home was owned, whether you lived there and how you will share ownership can matter. Check each program’s definition of spouse or common-law partner; the definitions are not interchangeable.
| Program | How a Partner’s Previous Homeownership May Affect You | Learn More |
|---|---|---|
| Ontario First-Time Home Buyers’ Land Transfer Tax Refund | Not spouses? The qualifying buyer’s refund generally follows the ownership interest they acquire. For spouses, owning any home while you were spouses can disqualify the otherwise first-time buyer. If prior ownership ended before you became spouses, the qualifying buyer may include both interests, subject to citizenship/residency and other requirements. Maximum refund: $4,000. | Ontario Ministry of Finance |
| Toronto Municipal Land Transfer Tax First-Time Home Buyer Rebate | Toronto has its own rules and a $4,475 maximum rebate. For non-spouses, the qualifying purchaser’s interest determines their share of the rebate. A spouse’s ownership while you were spouses can disqualify you. Toronto’s rules allow certain interests acquired by a spouse whose ownership ended before the spousal relationship to count. Confirm the City’s requirements separately. | City of Toronto Toronto Municipal Code §760-60 |
| First Home Savings Account (FHSA) | Opening an FHSA: you must not have lived in a principal residence owned by you or your current spouse/common-law partner in the opening year or previous four calendar years. Qualifying withdrawal: the first-time buyer test considers a home you owned and lived in during the withdrawal year before withdrawal (excluding the immediately preceding 30 days) or previous four calendar years. A spouse’s ownership alone does not prevent a qualifying withdrawal from an FHSA you validly opened. Other conditions still apply. | CRA: opening an FHSA CRA: qualifying withdrawals |
| Home Buyers’ Plan (HBP) | The HBP has its own test. Generally, you must not have lived in a principal residence owned by you or your current spouse/common-law partner in the withdrawal year before withdrawal (excluding the immediately preceding 30 days) or previous four calendar years. A partner’s past ownership alone is not the same as living in their home. Each person withdrawing from an RRSP must qualify; specific exceptions and repayment rules apply. | CRA: HBP eligibility |
| First-Time Home Buyers’ GST/HST Rebate | For an eligible new or substantially renovated home, at least one purchaser must qualify and use the home as their primary residence. The first-time test considers whether you lived in a home owned by you or your spouse/common-law partner in the relevant calendar year or previous four calendar years. Previous receipt of this rebate by either spouse/common-law partner also matters. A mixed purchase is not automatically a half rebate; price, dates, occupancy and other conditions determine eligibility. The existing GST/HST new housing rebate has separate rules and does not require first-time status. | CRA: who can apply CRA: multiple buyers and new housing rebates |
| Home Buyers’ Tax Credit / Home Buyers’ Amount | Generally, you must not have lived in another home owned by you or your spouse/common-law partner in the acquisition year or previous four years. A partner’s previous ownership therefore matters if you lived in that home during the period. Certain disability-related purchases have exceptions. This is a tax-return benefit, not a land transfer tax refund. | CRA: Home Buyers’ Amount |
Buying with someone who has owned a home before doesn’t necessarily mean you lose every first-time buyer benefit. Each program has its own definition and eligibility rules, so check each incentive separately.
There is no blanket “50% of the incentives” rule. Eligibility depends on your circumstances. Confirm with the government authority and, where appropriate, your real estate lawyer, mortgage professional or tax professional before relying on a benefit.
Explore the Rent vs. Own Calculator’s one- and two-buyer land transfer tax estimates.
Partner eligibility information reviewed September 30, 2026.
COMMON QUESTIONS
First-time home buyer rebate FAQs
What is the Ontario first-time home buyer rebate?
The term often means the Ontario land transfer tax refund of up to $4,000. Toronto has a separate municipal rebate of up to $4,475. New-home GST/HST rebates are different programs with their own property, price and date rules.
Is the Home Buyers’ Amount a $10,000 refund?
No. $10,000 is the maximum claim amount per qualifying home. At the ordinary 2026 credit rate of 14%, the basic federal tax reduction is up to $1,400, subject to tax payable. A temporary top-up credit may affect some returns.
Can I use the FHSA and Home Buyers’ Plan together?
Yes, if you meet each program’s conditions at withdrawal. FHSA qualifying withdrawals do not require repayment; HBP withdrawals do. Neither is an extra government grant.
Does my partner’s previous ownership disqualify me?
Not automatically for every program. Land transfer tax, FHSA, HBP and income-tax rules use different tests. Review the partner section on this page and check each program separately.
Do first-time buyer rebates apply to resale homes?
Ontario and Toronto land transfer tax relief may apply to an eligible resale purchase. New-home GST/HST rebates generally do not apply to an ordinary resale home.
Are first-time buyer rebates automatic?
No. Confirm eligibility, application steps and deadlines. Some amounts can be credited at registration or by a builder; others require a later application or tax-return claim.
Which benefits can I count toward closing costs?
Count only verified funds available by closing and rebates actually credited then. A later income-tax benefit is not closing cash. Do not add the same rebate twice when it is already reflected in a builder’s price or closing statement.
Government guidance checked October 18, 2026. Program-specific official references appear beside each explanation. Eligibility, deadlines and tax treatment must be confirmed for your transaction.
LEARN WITH US
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