Ontario First-Time Buyer Programs and Mortgage Tools
Most first-time buyers in the GTA end up using more than one measure at once: a savings account with a tax benefit, a land transfer tax rebate, and sometimes a mortgage structure that makes the down payment work. This page separates the government and tax programs from the mortgage flexibility tools, so you know which ones have rules you must qualify for and which ones are simply how a lender can structure your file.
Reviewed August 2026. Program figures change; confirm your own eligibility with CRA, Ontario, your municipality, and your lawyer or accountant before relying on any number here.
Federal savings and tax programs
First Home Savings Account (FHSA)
The FHSA allows up to $8,000 in annual contribution room and $40,000 in lifetime contributions. Contributions are generally deductible and a qualifying withdrawal to buy a qualifying first home is tax-free. Spouses or partners who each meet the eligibility conditions can each open and contribute to their own account, which is why couples often plan the two accounts together rather than one large one.
There are conditions on who counts as a first-time buyer, when the account must be opened, and how long it can stay open. Confirm the current rules before you count the money. Canada Revenue Agency: FHSA
Home Buyers’ Plan (HBP)
The HBP lets an eligible person withdraw up to $60,000 from an RRSP to buy or build a qualifying home, repayable over time under CRA’s repayment schedule. Two eligible buyers purchasing together can each make their own withdrawal.
Timing matters more than most buyers expect. Recent RRSP contributions are subject to deductibility rules tied to an 89-day period before withdrawal, so a last-minute contribution intended to be withdrawn right away can affect your deduction. This is not simply “money must sit for 90 days”; confirm your contribution and withdrawal timing with CRA or your accountant. CRA: Home Buyers' Plan
Home Buyers’ Amount
A non-refundable federal tax credit claimed on your return for the year you buy. The claim is up to $10,000, worth up to roughly $1,500 in federal tax relief. If more than one person claims for the same home, the combined claim cannot exceed the annual maximum, so couples split it rather than each claiming the full amount. CRA: Home Buyers' Amount
Land transfer tax rebates in Ontario and Toronto
Ontario charges land transfer tax on residential purchases, and the City of Toronto charges a separate municipal land transfer tax on top for properties inside city limits. Eligible first-time buyers can claim a refund of up to $4,000 of the Ontario tax, and up to $4,475 of the Toronto municipal tax where the purchase is in Toronto and the buyer qualifies.
Both rebates have eligibility conditions covering age, residency or citizenship status, whether you have owned a home anywhere before, and in some cases a spouse’s ownership history. The refund is usually applied by your lawyer at closing, but it can also be claimed afterwards within the allowed window.
Ontario Ministry of Finance: first-time homebuyer refund
City of Toronto: municipal land transfer tax
To see how these change your cash at closing, run the numbers in the closing cost calculator.
30-year insured amortization
A 30-year amortization on an insured mortgage is available to first-time home buyers and to purchasers of newly built homes. It lowers the monthly payment and raises total interest paid over the life of the loan. It is not automatic: insurance rules, price limits, down payment minimums, and lender qualification still apply, and your lender confirms whether your specific file is eligible. You can compare the payment difference in the mortgage calculator.
New-home relief: treat this one carefully
For new construction there are currently two separate strands of relief. Ontario has a temporary enhanced measure that applies to qualifying agreements of purchase and sale entered into between April 1, 2026 and March 31, 2027, which in applicable cases can provide combined Ontario relief of up to $130,000. Separately, eligible first-time buyers may access federal new-home GST/HST relief.
These measures interact. They are not two amounts you add together to get a total saving, and the treatment depends on the agreement date, the builder’s pricing structure, whether the rebate is assigned to the builder, and your own eligibility. Confirm the actual dollar treatment for your transaction with your lawyer, accountant, the builder, CRA, and Ontario before you rely on it in a budget.
CRA: GST/HST new housing rebates
If you are shopping pre-construction, the new construction section covers how these purchases differ from resale.
Mortgage tools are not government programs
The items below are ways a lender can structure a mortgage. They have no application form with the government and no rebate attached. They are worth understanding because they often solve the problem people assume a program will solve.
- •Gifted down payment. An immediate family member gifts funds, documented with a gift letter and proof the money is not a loan.
- •Co-signer or guarantor. Another person supports qualification. The obligations, credit impact, and title implications differ between the two roles.
- •Shared equity arrangements. A third party takes a share of the property value in exchange for contributing funds. Availability and terms vary by provider.
- •Purchase Plus Improvements. Renovation costs are financed into the mortgage based on quotes, with funds released after the work is verified.
Where to go next
- Buyer money and closing cost guide : the three numbers to confirm before you tour.
- First-Time Buyer Roadmap : the sequence from pre-approval to closing day.
- Mississauga closing costs guide : a worked local breakdown of closing day costs.
Ontario First-Time Buyer Programs + Mortgage Tools
This page explains the programs. A deeper working copy of the program stack, built to be filled in with your accountant, lawyer, or mortgage professional.
What is inside the download
- FHSA, Home Buyers' Plan, and first-time home buyers' tax credit summary in one place
- Ontario and Toronto land transfer tax rebate lines for first-time buyers
- New-build and new-home rebate notes, including what has to be confirmed with the builder
- Mortgage flexibility tools: gifted down payment, co-signer or guarantor, longer amortization, and Purchase Plus Improvements
- Program stacking worked example plus a blank worksheet for your own situation
- Confirmation checklist of what to verify with CRA, Ontario, the City of Toronto, your lawyer, and your builder
Ontario First-Time Buyer Programs + Mortgage Tools
A deeper working copy of the program stack, built to be filled in with your accountant, lawyer, or mortgage professional.
- FHSA, Home Buyers' Plan, and first-time home buyers' tax credit summary in one place
- Ontario and Toronto land transfer tax rebate lines for first-time buyers
- New-build and new-home rebate notes, including what has to be confirmed with the builder
- Mortgage flexibility tools: gifted down payment, co-signer or guarantor, longer amortization, and Purchase Plus Improvements
- Program stacking worked example plus a blank worksheet for your own situation
- Confirmation checklist of what to verify with CRA, Ontario, the City of Toronto, your lawyer, and your builder
Not sure which of these actually apply to your purchase? Rida can map them to your situation and flag what needs confirming with your accountant or lawyer.
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