First-Time Home Buyer in Ontario: Programs, Rebates & Tips (2026)
Quick answer
Ontario first-time buyers can use the First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan to build a tax-advantaged down payment, and claim land transfer tax rebates on both the provincial and (in Toronto) municipal tax. The minimum down payment is 5% on the first $500,000, you'll pass a mortgage stress test, and getting pre-approved first is the smartest opening move.
Save with the FHSA and Home Buyers' Plan
The First Home Savings Account (FHSA) lets you contribute up to $8,000/year ($40,000 lifetime), tax-deductible going in and tax-free coming out for a first home. The RRSP Home Buyers' Plan lets you withdraw from your RRSP toward a first home; combined, they're a powerful down-payment engine.
Claim your land transfer tax rebates
First-time buyers can claim a rebate on Ontario's land transfer tax, and an additional rebate on Toronto's municipal land transfer tax if the home is in the City of Toronto — meaningful savings at closing.
Know the down payment and stress test
Minimum down payment is 5% on the first $500,000 and 10% on the portion above (20% to avoid CMHC insurance under $1M). You'll also be stress-tested at a higher qualifying rate, so model payments conservatively.
Step-by-step first move
- Get pre-approved to set your budget
- Budget 1.5–4% for closing costs (net of rebates)
- Use sold data to judge fair pricing
- Include financing and inspection conditions in your offer
Key takeaways
- FHSA + Home Buyers' Plan build a tax-smart down payment.
- Claim provincial (and Toronto) land transfer tax rebates.
- Minimum 5% down; expect a stress test.
- Get pre-approved before you shop.
Frequently asked
What programs help first-time buyers in Ontario?+
The First Home Savings Account (FHSA), the RRSP Home Buyers' Plan, and first-time-buyer land transfer tax rebates (provincial and Toronto).
How much down payment does a first-time buyer need?+
At least 5% on the first $500,000 and 10% on the portion above; 20% avoids CMHC insurance on homes under $1M.
What is the first-time home buyer land transfer tax rebate?+
A rebate reducing Ontario land transfer tax for eligible first-time buyers, plus an additional rebate on Toronto's municipal land transfer tax for homes in the city.