Buying your first home in Ontario comes with far more help than most people realize. The trouble is that the help is scattered: federal savings accounts, a provincial refund, city-run programs, and mortgage rules that changed only recently. This guide gathers all of it in one place, explains who actually qualifies for what, and lays out the order to tackle it in.
If you are months away from making an offer, or just starting to wonder whether this is even possible, this is the page to start on. I have kept it honest, including the parts that are not as generous as the headlines suggest and the one big program that is announced but not yet final.
It sounds like a simple question. It is not, and getting it wrong can cost you thousands. Almost every program on this page uses the words "first-time buyer," but they do not all define it the same way.
The federal programs, which are the FHSA, the Home Buyers' Plan, the Home Buyers' Tax Credit, and the new GST rebate, generally use a four-year rule. In plain terms, you can qualify if neither you nor your spouse or common-law partner has owned a home you lived in during the current year or the four calendar years before it. So if you owned a home well in the past, you may have become eligible again.
Ontario's Land Transfer Tax refund is stricter. It asks whether you have ever owned a home anywhere in the world, and whether your spouse has owned one at any point while being your spouse. There is also a trap for couples: if you are buying together, both of you usually need to qualify to receive the full amount.
"First-time buyer" does not mean the same thing in every program. Confirming which definition applies to you is the first real step, and it is one I am happy to walk through with you.
Two accounts do the heavy lifting here, and the good news is that you are allowed to use both for the same home.
This is the account built specifically for a first home, and for most people it is the best place to put the first dollar. Your contributions lower your taxable income the way an RRSP does, and qualifying withdrawals for your first home come out completely tax-free, including any growth, the way a TFSA does.
You can contribute up to $8,000 each year, to a lifetime limit of $40,000. Unused room carries forward one year, so the most you can ever put in during a single year is $16,000. A couple who both qualify can each open one, for up to $80,000 between you.
The Home Buyers' Plan lets you borrow from your own RRSP, tax-free, to fund your down payment, then pay yourself back over time. A couple who both qualify can withdraw up to $120,000 between them.
You repay into your RRSP over 15 years, beginning the second year after you withdraw. There is also a recent break worth knowing about: for a first withdrawal made between January 1, 2026 and December 31, 2028, the start of repayments is pushed back, giving newer buyers more breathing room. One thing to plan around: the money has to have been in your RRSP for at least 90 days before you can withdraw it this way.
If you can only fund one to start, the usual advice is to fill the FHSA first, because of the deduction, the tax-free growth, and the fact that you never have to pay it back. The Home Buyers' Plan is then a strong second layer when you need more.
Ontario charges a land transfer tax when you buy, but first-time buyers get a refund of up to $4,000. That fully covers the provincial tax on a home priced up to roughly $368,000, so many first-time buyers pay little or none of it. Your lawyer normally applies it at closing, so you do not have to chase it. It works on both new and resale homes, and it can be claimed only once.
If you are buying inside the City of Toronto, there is a second, municipal land transfer tax, and a separate first-time buyer rebate of up to $4,475 on top of the provincial one. Toronto adjusted its municipal rates in 2026, so if you are buying in the city, please confirm the current figures with me before you budget.
This is a federal credit you claim on your income tax return for the year you buy. It is worth about $1,500 in real tax savings. There is no separate application, but it is easy to forget at tax time, which means leaving money on the table. Put it on your list for the spring after you move in.
This one is new. As of March 2026, eligible first-time buyers of a newly built home can have the federal GST removed entirely on homes priced up to $1 million, which is worth up to $50,000. Between $1 million and $1.5 million the rebate shrinks gradually, and above $1.5 million it does not apply. It is for new construction only, not resale.
There is an important caveat. Ontario has announced a matching rebate on its provincial portion, which would push the combined savings much higher, but that provincial piece is not yet final. The federal rebate is law. The Ontario layer is not, so please do not count on it until it is confirmed. I explain the full picture in my guide to the Ontario HST rebate.
Beyond saving and tax breaks, some communities offer direct help with the down payment. These programs vary a great deal from one place to another, so the most useful thing I can tell you is to ask which ones apply where you are buying.
In the City of London and Middlesex County, the Homeownership Down Payment Assistance Program offers renters an interest-free, forgivable loan of up to 5 percent of the purchase price, to a maximum of $25,000, which is forgiven over 20 years if you keep living in the home. It comes with income, asset, and price limits, and funding is first-come, first-served, so timing matters. Closer to home for me, the Region of Waterloo runs its own forgivable-loan program for eligible first-time buyers on homes up to $600,000.
Other municipalities across Ontario run similar programs with their own rules. Since I work with buyers right across the province, finding out whether one applies to you is part of what I do. It is worth asking before you assume you are on your own.
These are not programs you apply for. They are recent changes to the rules, and they quietly changed what a first-time buyer can afford. This is the part I live in every day, so let me give you the honest version.
The insured mortgage cap is now $1.5 million. Until late 2024, any home priced at $1 million or more required a full 20 percent down payment. Now first-time buyers, and anyone buying new construction, can purchase up to just under $1.5 million with less than 20 percent down. The cut-off is sharp, though: at exactly $1.5 million, that option disappears and 20 percent is required again.
You can now choose a 30-year amortization. First-time buyers and buyers of newly built homes can stretch the mortgage to 30 years instead of the usual 25. This lowers your monthly payment and can help you qualify. Here is the honest trade-off, because it matters: a longer amortization costs you more in interest over the life of the loan. It is a useful tool, not free money, and whether it is right for you depends on your situation.
The minimum down payment has not changed. It is 5 percent on the first $500,000 of the price, and 10 percent on the portion above that. Below 20 percent down, you will also pay mortgage default insurance, which is added to your mortgage. And every buyer still has to pass the stress test, which means qualifying at a rate higher than the one you are offered. That last one surprises people, so it is worth building into your budget early.
One quick note, because clients still ask: the old First-Time Home Buyer Incentive, where the government took a share of your home in exchange for a larger down payment, was discontinued in 2024. If you remember hearing about it, it is no longer available.
It is a lot, I know. Here is the order I would suggest, and it doubles as a simple plan you can follow:
Every one of these programs has fine print, and the right combination depends on you. Bring me your situation, and I will walk you through exactly what you qualify for.
Your story matters. Your mortgage should honour it.
Book a complimentary, no-pressure consultation and let's look at your situation together.
Book your complimentary consultationPrefer to reach out directly? 226-270-7272 · tiphereth@heartandsoulmortgages.ca