First‑Time Home Buyer Programs in Ontario (2026)
by Lorne Andrews

Buying your first home in Ontario can be daunting — from saving for a down payment to understanding which incentives you qualify for. This page summarizes the major federal, provincial and private programs available to first‑time buyers in Ontario as of January 2026. It is intended for educational purposes and does not replace personalized advice from a licensed mortgage professional.

Federal Savings and Withdrawal Programs

First Home Savings Account (FHSA)

An FHSA is a tax‑advantaged account designed to help Canadians save for their first home. Key points:

• Annual/lifetime limits: You can contribute up to $8,000 per year and carry forward unused room. The lifetime maximum is $40,000.

• Tax benefits: Contributions are tax‑deductible, reducing your taxable income, and investment growth and qualifying withdrawals are tax‑free.

• Time limit: You have 15 years from opening the account (or until December 31 of the year you turn 71) to use the funds for a qualifying home.

• Eligibility: You must be a Canadian resident, at least 18 years old, and a first‑time home buyer, meaning you have not owned a home you lived in during the current or previous four calendar years.

• Occupancy requirement: You must intend to occupy the home as your principal residence within one year of purchase.

Learn more about the FHSA.

Home Buyers’ Plan (HBP)

The HBP lets you borrow from your Registered Retirement Savings Plan (RRSP) for a down payment.

• Withdrawal limit: Each eligible buyer can withdraw up to $60,000 from their RRSP to buy or build a qualifying home.

• Repayment: The withdrawn amount must be repaid within 15 years by making annual RRSP contributions; otherwise, the amount will be included as income.

• Combination with FHSA: You can use both the FHSA and HBP for the same home, provided you meet the conditions for each.

• Eligibility: You (and your spouse or common‑law partner) must be first‑time buyers and must intend to occupy the home.

Learn more about the HBP.

Tax Credits and Rebates

Home Buyers’ Amount (Formerly First‑Time Home Buyers’ Tax Credit)

• Credit amount: For the 2025 tax year (filed in 2026), eligible buyers can claim up to $10,000 on line 31270 of their tax return, providing a non‑refundable credit up to $1,500 (15 % of $10,000).

• Eligibility: You and your spouse or partner must not have owned a home in the year of purchase or any of the previous four years.

• Splitting the credit: If you purchase jointly with another eligible buyer, you can split the credit, but the combined claim cannot exceed $10,000.

Learn more about the Home Buyers’ Amount.

Land Transfer Tax Refund – Province of Ontario

• Maximum refund: First‑time buyers of an eligible home in Ontario can receive a refund of up to $4,000 on provincial land transfer tax.

• How it works: No land transfer tax is payable on the first $368,000 of the purchase price; homes above this amount still receive the maximum $4,000 refund.

• Eligibility: You must be at least 18 years old, occupy the home as your principal residence within nine months, and never have owned a home anywhere in the world. Your spouse must also be a first‑time buyer to qualify.

• Citizenship requirement: Purchasers must be Canadian citizens or permanent residents; those who become citizens or permanent residents within 18 months of closing may still qualify.

Apply for the Ontario refund.

Municipal Land Transfer Tax (MLTT) Rebate – City of Toronto

Buyers purchasing within Toronto pay both provincial and municipal land transfer taxes. The city offers an additional rebate:

• Maximum rebate: Up to $4,475 toward the municipal land transfer tax.

• Eligibility: Similar to the provincial refund: you must be 18 or older, intend to occupy the home, and have never owned a home anywhere in the world. The buyer and their spouse must be Canadian citizens or permanent residents.

• Application: The rebate can be claimed at the time of registration or within 18 months after closing.

More on the MLTT rebate.

Proposed GST/HST Rebate for First‑Time Home Buyers (Bill C‑4)

In May 2025 the federal government proposed a First‑Time Home Buyers’ GST/HST rebate. If enacted, the rebate would:

• Eliminate the 5 % federal portion of HST (GST) on new homes up to $1 million.

• Provide a partial rebate on homes priced between $1 million and $1.5 million.

• Offer a maximum rebate of $50,000 per home.

Applications cannot be submitted until the legislation receives Royal Assent; details may change.

GST/HST New Housing Rebate (Existing Program)

This program rebates part of the GST/HST paid on a new or substantially renovated home. Key points:

• Maximum federal rebate: Up to $6,300 (36 % of the federal GST paid) for homes priced $350,000 or less; the rebate phases out and is not available for homes over $450,000.

• Occupancy: The buyer or an immediate family member must occupy the home as their principal residence.

• Not limited to first‑time buyers, but often used by them.

Learn more about the GST/HST New Housing Rebate.

CMHC Green Home Program

Through the CMHC Green Home program, buyers who purchase or build an energy‑efficient home may receive a premium refund of up to 25 % on CMHC mortgage insurance. Sagen and Canada Guarantee offer similar programs. To qualify, the home must meet specified energy‑efficiency standards, and the mortgage must be insured by an eligible insurer.

Learn more about CMHC Green Home.

Private Shared‑Equity Program

Ourboro Co‑Ownership Down Payment Program

For buyers who can afford mortgage payments but lack a full down payment, Ourboro offers a shared‑equity solution:

• Down payment contribution: Ourboro contributes 5–15 % of the home’s purchase price, up to $250,000, to help buyers reach a 20 % down payment.

• No interest or monthly payments: The contribution is not a loan; instead, Ourboro purchases a share in the future value of your home.

• Ownership share: The percentage of the down payment you and Ourboro contribute determines each party’s equity. For example, if you contribute 40 % and Ourboro contributes 60 %, you own 40 % of the home’s appreciated equity.

• Co‑ownership term: You can co‑own the home for up to 30 years and may sell or buy out Ourboro’s share at any time. The model is designed for those planning to sell within about ten years.

• Sale proceeds: When the home is sold, your mortgage principal payments are repaid to you first, then any remaining proceeds are split according to the ownership shares. If the property has declined in value, Ourboro accepts its share of the loss.

• Eligibility: You must purchase in the Greater Toronto Area or another Ourboro investment region, qualify for a mortgage, and have some savings.

Learn more about Down Payment Assistance Co-ownership program.

Summary Table

Additional Resources and Next Steps

• Budget and affordability tools: Use mortgage calculators, affordability calculators and debt‑service calculators to determine how much you can afford. The Canada Mortgage and Housing Corporation (CMHC) offers free calculators and buying guides .

• Professional advice: Program eligibility and benefits vary based on personal circumstances and may change over time. Speak with a licensed mortgage professional at Optimal Finance / Dominion Lending Centres Expert Financial to discuss how these programs can fit into your home‑buying strategy.

Disclaimer: This resource is for informational purposes only. While we strive to provide accurate and up‑to‑date information, program details can change. Consult official sources and qualified professionals before making financial decisions.

Ready to Start Your Home Journey?

Whether you’re just beginning to explore home ownership or ready to take the next step, working with the right mortgage professional can make all the difference. At Optimal Finance / Dominion Lending Centres Expert Financial, we help first‑time buyers in Ontario navigate programs like the FHSA, HBP, tax credits, rebates and shared‑equity options like Ourboro. We’ll assess your finances, explain your options in plain language and create a personalized plan to get you into your first home sooner.

• Schedule a free consultation: Reach out today to discuss your goals and get a customized roadmap to homeownership. We can help you determine which programs you qualify for and how they work together.

• Stay informed: Markets and incentives change quickly. By connecting with us, you’ll receive timely updates on program enhancements and new opportunities that could save you money.

Let’s build your path to homeownership together. Contact usto book a consultation or call us at 416 276 6445 or

Let's connect by phone or zoom at a time that works for both of us. Click the appointment link https://calendly.com/lorneandrews/meeting

We look forward to helping you make your first home a reality.

Lorne Andrews
Mortgage Broker | Principal Broker
Dominion Lending Centres Expert Financial
Lic# 12129