First-Time Home Buyers in Ontario: A Practical Starting Guide

A first-time buyer should start by separating three questions: what they can comfortably afford, what minimum down payment and mortgage rules apply, and which first-time-buyer programs they may actually qualify for. Program definitions are not identical, so eligibility for one benefit does not automatically mean eligibility for another.

Key Takeaways

Several federal and Ontario programs exist for first-time buyers — but each has its own eligibility rules.
The FHSA and Home Buyers' Plan (HBP) are savings/withdrawal mechanisms, not automatic grants.
Ontario's first-time buyer land transfer tax refund is worth up to $4,000.
Ontario's temporary enhanced new-housing rebate (ENHR) is a separate program — it is not limited to first-time buyers.

Start with budget, pre-approval and closing costs

Before exploring specific programs, it helps to have a general sense of what you can afford, whether you're likely to qualify for financing, and what closing costs to expect on top of the purchase price. Our closing costs guide covers the categories of expense worth planning for.

Down payment, briefly

Minimum down payment requirements scale with the purchase price — see our full down payment guide for the exact breakdown and a worked example.

First Home Savings Account (FHSA)

FHSA

A registered savings account designed to help first-time buyers save for a home. Contributions are generally tax-deductible, and qualifying withdrawals toward a first home can be tax-free, subject to CRA rules.

Initial participation room in the year your first FHSA is opened: $8,000
Lifetime FHSA contribution limit: $40,000
Unused participation room may carry forward, subject to CRA rules

Home Buyers' Plan (HBP)

HBP

A federal program that lets eligible buyers withdraw from their RRSP toward a first home, then repay it over time.

Current maximum HBP withdrawal: $60,000 per eligible participant
The repayment period generally does not exceed 15 years

Important

Bill C-30 received Royal Assent in June 2026. It extends the temporary HBP repayment grace period from two years to five years for participants making a first HBP withdrawal between January 1, 2026 and December 31, 2028. Exact repayment start dates depend on your own withdrawal — confirm your specific schedule directly with the CRA.

Ontario land transfer tax refund

Eligible first-time purchasers in Ontario may receive a refund of up to $4,000 on Ontario land transfer tax. Ontario applies its own eligibility rules for this refund — qualifying for the FHSA or HBP does not automatically mean you qualify here. See our Ontario land transfer tax guide for the full picture.

Home buyers' amount

CRA's currently published 2025 tax-year page permits an eligible claim of up to $10,000 as the home buyers' amount. This figure reflects the latest published CRA tax-year page as reviewed on August 10, 2026 — the current tax-year CRA page should be checked again whenever this article is next updated.

Federal first-time home buyers' GST/HST rebate

For qualifying new or substantially renovated homes, this federal rebate — with applications open in 2026 — can provide up to $50,000: full relief of the GST/federal HST component for qualifying home values up to $1 million, with partial relief between $1 million and $1.5 million. This rebate does not apply to ordinary resale home purchases.

Ontario first-time home buyers' HST rebate

Separately, Ontario's first-time home buyers' rebate can provide up to $80,000 of the provincial part of HST to qualifying first-time buyers. The CRA notes that this Ontario rebate follows the same eligibility conditions as the federal first-time buyers' GST/HST rebate above.

Important

Don't confuse this with Ontario's temporary enhanced new-housing rebate (ENHR). The ENHR is a separate, temporary program — and it is not limited to first-time buyers. It generally applies to qualifying homes purchased from a builder under agreements entered into from April 1, 2026 through March 31, 2027, and can recover up to $80,000 of the provincial HST component: the full 8% provincial-part rebate for homes up to $1 million, a flat $80,000 from $1 million to $1.5 million, and a partial enhanced rebate between $1.5 million and $1.85 million. Ontario's existing new-housing rebate remains available at a flat $24,000 for homes at $1.85 million and above, subject to rules. See the CRA's Ontario ENHR page for full details — the Ontario first-time buyers' rebate and the ENHR are not the same program.

Programs change

Government programs, thresholds and rules are updated over time. This page reflects a review as of August 10, 2026 — always confirm current details on the linked government pages before making a decision.