Benefits You Can Stack
Save $20,000+
One of the most common things I see as a broker: first-time buyers leaving thousands of dollars on the table because they didn’t know which programs applied to them — or didn’t stack them properly. Canada and Ontario offer five active programs right now. Used together, a couple buying in Toronto can realistically save well over $20,000. Here’s the full breakdown, updated for 2026.
Contributions are tax-deductible (like an RRSP — reduces your taxable income today)
Growth is tax-free (like a TFSA — interest, dividends, capital gains all sheltered)
Withdrawals for a qualifying home purchase are completely tax-free
Contribution room: $8,000/year up to a $40,000 lifetime max. Each buyer can open their own account — couples get $80,000 combined. Open one as early as possible; unused room carries forward one year.
The catch: you must repay the amount to your RRSP over 15 years starting the second year after withdrawal. If you miss a year’s repayment, that portion gets added to your taxable income. Plan ahead — but if you have RRSP savings, this is free short-term capital you’d be foolish to ignore.
Ontario provincial rebate: up to $4,000 — applies to all Ontario properties
Toronto municipal rebate: an additional $4,475 — applies only within Toronto city limits
Toronto first-time buyers can receive up to $8,475 total. These rebates are applied automatically at closing by your real estate lawyer — you don’t file a separate claim.
For couples: you can split the claim between partners however works best for your tax situation. Enter it on Line 31270 of your T1. Easy.
Many builders price pre-con units net of HST and handle the rebate assignment within the contract. Always confirm how this is structured before signing — it affects your actual out-of-pocket cost significantly.
The federal shared-equity program that covered 5–10% of your purchase price in exchange for a stake in your home is gone. Applications closed permanently in March 2024. If you’re still seeing this mentioned in articles or videos, the information is outdated. Remove it from your planning entirely.
FHSA tax savings (33% bracket × $8K × 2 people): ~$5,280
HBP: interest-free use of RRSP savings: up to $120,000
Ontario LTT rebate: up to $4,000
Toronto municipal LTT rebate: up to $4,475
HBTC federal credit: approx. $1,500
Total direct cash benefit: $15,000+ in cash savings, plus the FHSA tax deduction upside. Combined benefit easily clears $20,000.
FHSA
Home Buyers Plan
Land Transfer Tax
Ontario Real Estate
2026