Buying your first home in Ontario can be expensive, but government programs and tax incentives can significantly reduce your upfront costs and ongoing expenses. In 2026, first‑time home buyers have access to a range of federal and provincial benefits — from land transfer tax refunds to tax credits and new GST/HST rebates on new homes — designed to make homeownership more achievable. This guide breaks down the key incentives available and how they work.

In short: First‑time buyers in Ontario in 2026 may benefit from Ontario land transfer tax rebates, Toronto municipal rebates (if applicable), federal savings accounts, tax credits, and new proposed GST/HST rebates on new homes — offering thousands of dollars in potential savings. See sources

Table of Contents

• Ontario Land Transfer Tax Rebates
• Federal Programs & Tax Credits
• GST/HST Rebate for New Homes
• Tips to Maximize Incentives
• FAQs
• Sources

Ontario Land Transfer Tax Rebates

One of the most valuable provincial incentives for first‑time home buyers in Ontario is the Land Transfer Tax (LTT) rebate. Eligible buyers can receive a refund of up to $4,000 off the provincial land transfer tax when purchasing their first home. [1]

If you’re buying within the City of Toronto, you may also qualify for a Toronto municipal land transfer tax rebate of up to $4,475, on top of the provincial rebate — which can amount to up to $8,475 in total tax relief on eligible transactions. [1]

Federal Programs & Tax Credits

In addition to provincial rebates, federal programs help make your first purchase more affordable:

• First Home Savings Account (FHSA): A tax‑advantaged savings account that allows you to contribute up to $8,000 annually (lifetime max $40,000) toward your first home. Contributions are tax‑deductible and withdrawals for a qualifying home purchase are tax‑free. [2]
• Home Buyers’ Plan (HBP): Allows you to withdraw up to $60,000 from your RRSP (up to $120,000 for couples) tax‑free to fund your first home purchase. The amount must generally be repaid over 15 years. [2]
• First‑Time Home Buyers’ Tax Credit (HBTC): A non‑refundable tax credit that can reduce your federal taxes by up to $1,500. [3]

GST/HST Rebate for New Homes

New federal legislation introduced a GST/HST rebate for first‑time home buyers that can reduce or eliminate the federal portion of the tax on new homes valued up to $1 million and partially for homes valued between $1 million and $1.5 million. Under this program, eligible buyers may recover up to 100% of the federal GST portion, potentially saving up to about $50,000. [4]

Tips to Maximize Your Incentives in 2026

✔ Combination savings — You can usually use FHSA + HBP + LTT rebates together for maximum benefit. [2]

✔ Plan early — Open and fund your FHSA well before you intend to buy to grow tax‑free savings. [2]

✔ Work with a mortgage professional — Many incentives have nuanced eligibility rules, so expert guidance can help you qualify.

✔ Consider newly constructed homes — Federal GST/HST rebates apply here and can save you more if construction and purchase timing align. [4]

FAQs: First‑Time Home Buyer Incentives in Ontario

• Who qualifies as a first‑time home buyer?
  Generally, you have never owned a home or interest in a home in any country, and you must occupy the home as your principal residence. [1]
• Can I combine federal and provincial incentives?
  Yes. FHSA, HBP, tax credits, and land transfer tax rebates can typically be used together if you meet eligibility criteria. [2]
• Does the GST/HST rebate apply to resale homes?
  No — the GST/HST rebate applies to new homes or substantially renovated homes where GST or the federal portion of HST is charged. [4]

Sources:

1. RateHub: Ontario First‑Time Home Buyer Rebates & Tax Incentives
2. First‑Time Home Buyer Programs (FHSA, HBP, Tax Credits)
3. Canada Government: Home Buyers’ Amount & FHSA Details
4. Federal GST/HST Rebate for First‑Time Buyers

Sanjeevan

CTMO

Sanjeevan Premkumar is the Chief Technology & Marketing Officer at Bridge, specializing in digital strategy and real estate market research. He combines technical insight with a deep understanding of the property sector.

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