First-Time Buyer Rebates and Programs in Ontario

First-time buyers in Ontario can stack an Ontario land transfer tax refund worth up to $4,000, a Toronto rebate worth up to $4,475, a First Home Savings Account that shelters up to $40,000, and a Home Buyers' Plan withdrawal of up to $60,000 from an RRSP, all on the same purchase.

Buying a first home in Ontario comes with more government help than most people realize, and the pieces stack. Here is what is actually on the table right now, what each one is worth, and who qualifies.

How much is the Ontario land transfer tax refund for a first-time buyer?

First-time buyers in Ontario can get a refund of up to $4,000 off the provincial land transfer tax, which in practice means no provincial land transfer tax at all on the first $368,000 of a home's value, according to the Ontario Ministry of Finance. To qualify you must be at least 18, and you, along with your spouse if you have one, must never have owned a home or an interest in one anywhere in the world, at any time. If your agreement was signed after November 14, 2016, you also need to be a Canadian citizen or permanent resident, or get that status within 18 months of registration. You have to move in as your principal residence within nine months of closing, and the refund applies to both new and resale homes. Claim it at registration, or apply within 18 months afterward if you missed it.

How much is Toronto's municipal land transfer tax rebate?

On top of the provincial refund, first-time buyers closing in Toronto can get a separate municipal rebate of up to $4,475, according to the City of Toronto. The eligibility rules mirror the provincial ones: at least 18 years old, never owned a home or an interest in one anywhere in the world, the same rule applying to a spouse, Canadian citizen or permanent resident within 18 months of the transfer, and occupancy as your principal residence within nine months. Apply to the city's Revenue Services office within 18 months of closing, with proof of citizenship or residency status and proof you moved in. A processing fee applies. Combined with the provincial refund, that is up to $8,475 off closing costs on a first home bought in the city. For the full breakdown of what Toronto's land transfer tax actually costs before any rebate, see our guide to Toronto land transfer tax, or run the numbers on our land transfer tax calculator.

What is a First Home Savings Account, and how much can it shelter?

A First Home Savings Account, or FHSA, lets a first-time buyer contribute up to $8,000 a year, to a $40,000 lifetime maximum, according to the Canada Revenue Agency. Contributions are tax deductible like an RRSP contribution, unused room carries forward, and money withdrawn for a qualifying home purchase, including any growth inside the account, comes out completely tax free. To open one you need to be a Canadian resident, at least 18, and you must not have lived in a home that you or your spouse or common-law partner owned in the current calendar year or the four calendar years before that. That four-year test is more forgiving than the never-owned-anywhere-ever rule that applies to the land transfer tax refunds above, so someone who owned a home a decade ago and has been renting since could still qualify for an FHSA even if they no longer qualify for the land transfer tax refunds.

What is the Home Buyers' Plan, and how much can I pull from my RRSP?

The Home Buyers' Plan, or HBP, lets a first-time buyer withdraw up to $60,000 from their RRSP, tax free, to put toward a home, according to the CRA. The limit applies per person, so a couple who each qualify can pull up to $120,000 combined. The first-time buyer test is the same four-year rule as the FHSA: you cannot have lived in a home that you or your spouse owned as a principal residence in the current year or the four years before it. The money has to go back into your RRSP over 15 years. For anyone withdrawing now, repayment starts in the second calendar year after the year of the withdrawal, which is the standard rule. A temporary extension that pushed the start of repayment to the fifth year only applied to withdrawals made between January 1, 2022, and December 31, 2025, and that window has closed.

Can I use the FHSA and the Home Buyers' Plan on the same home?

Yes. The enacted federal rules specifically permit a buyer to use both the FHSA and the Home Buyers' Plan for the same qualifying home purchase, according to the Department of Finance Canada. That means a first-time buyer in Toronto could realistically combine a $40,000 FHSA, a $60,000 Home Buyers' Plan withdrawal, and the combined $8,475 in provincial and municipal land transfer tax refunds on one purchase, without paying tax on any of it until the RRSP portion comes due for repayment.

How much could a first-time buyer in Toronto actually save by combining all of this?

Take a couple buying a first home together in Toronto, both qualifying as first-time buyers under every program above. Between them they could contribute up to $80,000 into FHSAs and withdraw up to $120,000 through the Home Buyers' Plan, on top of the full $4,000 provincial refund and the full $4,475 municipal rebate on the purchase itself, worth up to $8,475 off the land transfer tax bill for the home. None of those figures depend on the price of the home, only on whether the household qualifies as first-time buyers under the rules above, so the same math holds whether they are buying a condo or a house.

Is the federal First-Time Home Buyer Incentive still available?

No. The First-Time Home Buyer Incentive, the federal program that offered a shared-equity loan toward a down payment, stopped accepting applications on March 21, 2024, and no new approvals have been granted since March 31, 2024, according to CMHC. If it comes up in an older article or a lender's marketing, it no longer exists for new buyers.

Every figure above comes from the government body that sets it, not from a lender's summary or a blog post, because these are the numbers a first-time buyer will actually act on when they sit down with their lawyer and their lender to plan a purchase.