First-time buyers in Ontario can combine several programs: the FHSA, the RRSP Home Buyers’ Plan, a federal tax credit, land transfer tax refunds and, on new builds only, major GST and HST relief. Used together, they can put tens of thousands of dollars back in your pocket. Here’s how each one works as of September 2026.
Key takeaways
- The FHSA lets you save up to $40,000 tax-free, with $8,000 of room per year.
- The RRSP Home Buyers’ Plan lets each buyer withdraw up to $60,000.
- Land transfer tax refunds are worth up to $4,000 in Ontario, plus up to $4,475 in Toronto.
- The large GST and HST rebates apply only to new homes, not resale bungalows.
First Home Savings Account (FHSA)
The FHSA is the most powerful savings tool for first-time buyers. You can contribute $8,000 a year, up to $40,000 over your lifetime.
- Contributions are tax-deductible, like an RRSP.
- Qualifying withdrawals for a home are tax-free, like a TFSA.
- You can carry forward up to $8,000 of unused room, so you could contribute up to $16,000 in one year.
A couple can each open one, which means up to $80,000 in combined tax-advantaged savings. Our guide to saving for a down payment in Toronto shows how to build an FHSA plan.
RRSP Home Buyers’ Plan (HBP)
The Home Buyers’ Plan lets you borrow from your own RRSP to buy your first home. Each buyer can withdraw up to $60,000, or $120,000 for a couple.
It’s a loan to yourself, so you have to pay it back over 15 years. For withdrawals made from 2022 through 2025, repayments were deferred to start after five years. For other withdrawals, repayment starts after two years. You can use the FHSA and HBP together for the same purchase.
First-Time Home Buyers’ Tax Credit
This federal credit is based on a $10,000 amount and is worth up to $1,500 on your tax return. You claim it in the year you buy. It’s small, but it’s easy to miss, so remind your accountant.
Land transfer tax refunds
Ontario charges land transfer tax on every purchase. First-time buyers can get some or all of it back:
- Ontario refund: up to $4,000, which covers the full tax on homes up to about $368,000.
- Toronto MLTT rebate: up to $4,475 for eligible buyers inside the City of Toronto.
On a typical bungalow, these refunds won’t erase the tax, but they cut it meaningfully. See our breakdown of Ontario land transfer tax for worked examples.
GST and HST relief on new homes
If you’re buying a newly built bungalow, two rebates can be stacked. Neither applies to resale homes.
Federal First-Time Home Buyers’ GST rebate
First-time buyers get full GST relief, up to $50,000, on new homes up to $1,000,000. The relief phases out between $1 million and $1.5 million. It applies to agreements signed on or after May 27, 2025, with construction starting before 2031.
Ontario HST relief
Ontario offers first-time buyers the full 8% provincial portion back on new homes up to $1 million. A broader rebate announced in 2026 provides up to $130,000 in total HST relief on new homes for agreements signed April 1, 2026 to March 31, 2027. That covers the full 13% up to $1 million, a flat $130,000 reduction from $1 million to $1.5 million, and smaller amounts up to $1.85 million.
Bungalow tip: New bungalows are rare in the GTA, but some builders in Simcoe, Durham and Niagara still offer them. If you’re weighing new against resale, factor in these rebates. Read our guide to pre-construction bungalows in the GTA.
How the incentives stack: a summary
| Program | Max benefit | Resale homes? | New homes? |
|---|---|---|---|
| FHSA | $40,000 saved tax-free per person | Yes | Yes |
| RRSP Home Buyers’ Plan | $60,000 withdrawal per person | Yes | Yes |
| Federal tax credit | Up to $1,500 | Yes | Yes |
| Ontario LTT refund | Up to $4,000 | Yes | Yes |
| Toronto MLTT rebate | Up to $4,475 | Yes (Toronto only) | Yes (Toronto only) |
| Federal FTHB GST rebate | Up to $50,000 | No | Yes |
| Ontario HST relief | Up to $130,000 (2026–27 window) | No | Yes |
First-time buyers also get access to a 30-year amortization on insured mortgages, which lowers monthly payments.
Mistakes first-time buyers make with incentives
- Opening the FHSA too late. Room only starts building once the account is open, so open one as soon as you’re thinking about buying.
- Forgetting the HBP repayments. Missed repayments are added to your taxable income for that year.
- Counting new-home rebates on a resale. The GST and HST relief won’t apply to a resale bungalow, however new it looks.
- Assuming the builder handles everything. Ask in writing how rebates are credited on your agreement, and have your lawyer review it.
Frequently asked questions
Who counts as a first-time home buyer in Ontario?
Definitions vary by program. Some require that you’ve never owned a home, while others look back only a few years. Check each program’s rules and confirm with your lawyer or accountant.
Can I use the FHSA and RRSP Home Buyers’ Plan together?
Yes. You can withdraw from both for the same qualifying purchase, which can significantly boost your down payment.
Do the HST rebates apply to resale bungalows?
No. The federal GST rebate and Ontario HST relief apply only to newly built homes. Resale buyers still benefit from the FHSA, HBP, tax credit and land transfer refunds.
The bottom line
Most first-time buyers leave money on the table simply by not knowing these programs exist. Open an FHSA early, plan your HBP withdrawal and budget for land transfer tax after refunds.
Tax rules have fine print, so speak with an accountant and a real estate lawyer before you rely on any rebate. Then start browsing bungalows for sale under $1 million to see what your budget can buy.
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