Key takeaways
- The First-Time Home Buyer Incentive has ended; it stopped approving applications on March 31, 2024.
- An FHSA and the Home Buyers’ Plan can be used for the same purchase: up to $40,000 and $60,000 per person.
- Eligible buyers of new homes may qualify for GST/HST rebates of up to $130,000.
- Rules are detailed and change, so confirm eligibility before you rely on any program.
In this chapter
Government Programs for First-Time BuyersLocal Support NetworksUseful Online Resources and Tools
First-home savings tools
Government Programs for First-Time Buyers
Several programs can help first-time buyers. Each has its own rules, so check the official details before you rely on one.
The First Home Savings Account (FHSA) lets eligible first-time buyers contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are generally tax-deductible, and qualifying withdrawals for a first home are tax-free and don’t need to be repaid. The former First-Time Home Buyer Incentive has ended and no longer accepts applications.
Ontario offers a land transfer tax refund of up to $4,000 for eligible first-time buyers, and the City of Toronto offers a rebate of up to $4,475 on its municipal tax. Your lawyer can usually apply them when your purchase is registered.
The federal Home Buyers’ Plan lets eligible buyers withdraw up to $60,000 from their RRSPs toward a home. Unlike an FHSA withdrawal, this money must be repaid to your RRSP, generally over 15 years. Under the published rules, first withdrawals in 2026 start repayment in the second year after the withdrawal. The federal government has proposed a longer grace period for first withdrawals through 2028, but check the current status before relying on it.
Buying a new home? Eligible first-time buyers may qualify for a federal rebate of up to $50,000 of the GST and an Ontario rebate of up to $80,000 of the provincial HST, on qualifying homes up to $1.5 million, with the full amounts on homes up to $1 million. A temporary Ontario rebate also covers eligible new-home buyers more generally, for agreements signed from April 1, 2026 to March 31, 2027. The home must meet detailed conditions, including its use as your primary residence.
Some municipalities, non-profit housing groups and developers offer affordable ownership programs, often with income limits and resale conditions. The federal home buyers’ amount may also give eligible buyers a tax credit of up to $1,500 when they file their return.
Visual guide · First home
First-time buyer programs at a glance
| Program | Amount | For | Repay? |
|---|---|---|---|
| FHSA | Up to $40,000 in contributions, plus growth | Any qualifying first home | No |
| Home Buyers’ Plan | Up to $60,000 | Withdrawing from RRSPs | Yes, to RRSP |
| Ontario LTT refund | Up to $4,000 | Ontario purchases | No |
| Toronto LTT rebate | Up to $4,475 | City of Toronto purchases | No |
| Home buyers’ amount | Credit up to $1,500 | Tax return | No |
| New-home GST/HST rebates | Up to $130,000 combined | Eligible new homes | No |
Visual guide · First home
FHSA and Home Buyers’ Plan
| FHSA | Home Buyers’ Plan | |
|---|---|---|
| Maximum | $40,000 lifetime | $60,000 withdrawal |
| Source | Your FHSA | Your RRSP |
| Repay? | No | Yes, generally over 15 years |
| Use both? | Yes, if eligible | Yes, if eligible |
Local Support Networks
You don’t have to do this alone. An agent can explain pricing and neighbourhoods, a mortgage broker can compare your financing options, and a lawyer can protect you legally.
Community groups and non-profits sometimes run workshops for buyers, which can be a good way to learn the steps and meet people in the same position.
Buying your first home can be stressful, so lean on family and friends too. After you move in, stay connected, because the same people can help with contractors, renewals and future decisions.
Visual guide · First home
New-home GST/HST rebates for first-time buyers
| Home value | Federal | Ontario |
|---|---|---|
| Up to $1 million | Full GST, up to $50,000 | Full 8%, up to $80,000 |
| $1 million to $1.5 million | Reduced on a sliding scale | Reduced; other rebates may apply |
| $1.5 million or more | No federal first-time rebate | Check the other Ontario rebates |
Who can help
Useful Online Resources and Tools
The Toronto Regional Real Estate Board (TRREB) publishes market reports, and Realtor.ca lets you browse listings. An online estimate isn’t a valuation, so review recent comparable sales with a professional.
Mortgage calculators help you test payments at different rates and prices. Try a higher rate too, so you can see what happens if rates rise.
For programs, go to the source. The Canada Revenue Agency covers the FHSA, Home Buyers’ Plan and GST/HST rebates, and CMHC explains mortgage insurance.
Social media groups and apps can be useful for local tips and new listing alerts, but check anything important against an official source or ask a professional.