Ontario Buyers · 2026 Guide

First-Time Home Buyer
Benefits You Can Stack
Save $20,000+

Updated April 2026 · Arthur Zhao · 416-277-3836

Launched in 2023, the FHSA is the most powerful tool for first-time buyers because it delivers a triple tax advantage that no other account offers:

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 HBP lets you withdraw up to $60,000 per person from your RRSP tax-free for a first home — a major increase from the old $35,000 limit updated in 2024. For couples, that’s $120,000 combined.

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.

Every buyer in Ontario pays land transfer tax at closing. First-time buyers get two layers of rebate:

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.

The simplest one: claim a $10,000 federal tax credit on your return in the year you buy. At the 15% federal rate, that’s approximately $1,500 in actual tax savings — doubled from the original $750 since 2022.

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.

Buying a newly built home or doing a substantial renovation? You can recover part of the HST paid. Homes under $450,000 qualify for the full federal portion (~$6,300). The Ontario portion adds up to ~$24,000 for eligible properties.

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 First Home Buyer Incentive (FHBI) Was Cancelled — March 2024

First-Time Buyer Stacking Sequence

Real Numbers: Couple Buying a $750K Toronto Home

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