First-Time Homebuyer Programs and Rebates You Don’t Want to Miss

Buying your first home in Ontario can feel exciting and overwhelming at the same time. Between saving for a down payment, qualifying for a mortgage, and navigating closing costs, it can seem like there’s a lot to manage. The good news is that there are several programs and rebates designed to make that first purchase a little easier.

Here’s a breakdown of what’s available and how to take advantage of it.

1. First Home Savings Account (FHSA)

The FHSA is one of the best new tools for first-time buyers. It combines the benefits of an RRSP and a TFSA, allowing you to save for a down payment while getting a tax break.

• You can contribute up to $8,000 per year, up to a lifetime limit of $40,000.

• Contributions are tax deductible (like an RRSP).

• Withdrawals for your first home purchase are completely tax free (like a TFSA).

If you’re saving for a home, the FHSA should be the first place your money goes. It’s one of the few times the government truly helps you save faster.

2. Home Buyers’ Plan (HBP)

The Home Buyers’ Plan lets you borrow from your RRSP to help fund your down payment.

• You can withdraw up to $60,000 from your RRSP (or $120,000 for a couple).

• You have 15 years to repay the funds back into your RRSP.

• You must be a first-time buyer or have not owned a home in the past four years.

Many buyers use the HBP alongside the FHSA for maximum savings. It’s a great way to make your own money work harder for your home purchase.

3. 30-Year Amortization for First-Time Buyers

Starting in 2025, eligible first-time buyers purchasing newly built homes can qualify for an insured mortgage with a 30-year amortization period. This is five years longer than the standard 25-year maximum for insured mortgages.

What does that mean for you?

• A longer amortization means smaller monthly payments.

• It can help you qualify for a slightly higher purchase price.

• It’s designed to make new construction more affordable for younger buyers entering the market.

Keep in mind that this option is only available for insured mortgages (where the down payment is less than 20 percent) and applies only to new builds, not resale homes. Still, it’s a welcome change for first-time buyers who need a little more breathing room in their budget.

4. Ontario Land Transfer Tax Rebate

In Ontario, first-time buyers can get up to $4,000 off their provincial land transfer tax. That means if your home costs $368,000 or less, you could pay no provincial land transfer tax at all.

If you’re buying in Toronto, you get an additional city rebate of up to $4,475 on the Toronto Land Transfer Tax. Together, that’s a potential savings of up to $8,475 for first-time buyers purchasing in Toronto.

This rebate is applied at closing, so it directly reduces the amount you need to bring to your lawyer. Every bit helps when you’re balancing all those first-time costs.

5. GST/HST New Housing Rebate

If you’re buying a new construction home or substantially renovating, you may qualify for a partial rebate on the GST or HST you pay. The rules can be a bit detailed, but it’s worth reviewing if you’re buying new or building your own home.

Your builder or lawyer can usually help file this rebate on your behalf, but double-check that it’s being handled — it’s easy money to miss.

The Bottom Line

Being a first-time buyer in Ontario is challenging, but there are real tools to help you get there faster. Between federal savings programs, the new 30-year amortization rule, and Ontario rebates, you might be closer to home ownership than you think.

If you’d like to see which programs you qualify for and how they could impact your numbers, let’s chat. We’ll walk through your options and help you build a clear plan to make your first home a reality.