First-Time Home Buyer Programs in Ontario (2026 Update): Everything You Need to Know
🏡 Introduction
If you’re buying your first home in 2026, you’re in luck — Ontario and federal programs are making it easier than ever to get into the market.
From tax rebates to down payment incentives, these programs could save you thousands of dollars and boost your buying power.
Let’s break down what’s available, how to qualify, and which options make the most sense for your situation.
1️⃣ The First Home Savings Account (FHSA)
The FHSA combines the benefits of an RRSP and a TFSA, allowing you to save up to $8,000 per year (max $40,000) toward your first home — completely tax-free.
✅ Contributions are tax-deductible.
✅ Withdrawals for a home purchase are tax-free.
✅ You can combine it with the RRSP Home Buyers’ Plan (HBP).
💡 Tip: If you and your partner both open FHSAs, that’s up to $80,000 of combined tax-free savings.
2️⃣ RRSP Home Buyers’ Plan (HBP)
The HBP lets you withdraw up to $60,000 from your RRSP (per buyer) to use as a down payment.
You’ll need to repay it over 15 years — but you don’t pay tax on the withdrawal itself.
Combine it with the FHSA for maximum benefit.
3️⃣ Ontario Land Transfer Tax Refund
As a first-time buyer in Ontario, you can get up to $4,000 back on provincial land transfer tax.
If you’re buying in Toronto, you get an additional $4,475 rebate on the municipal portion.
That’s over $8,400 in savings on your first home purchase in the GTA.
4️⃣ First-Time Home Buyer Incentive (Shared Equity Program)
This federal program provides:
- 5% down payment assistance on resale homes
- 10% on new construction
You repay the incentive when you sell or after 25 years, based on your home’s value.
💬 Pro insight: It’s a good option for buyers who are comfortable sharing appreciation in exchange for lower monthly payments.
5️⃣ CMHC Green Home Rebate
If you buy or build an energy-efficient home, CMHC may refund up to 25% of your mortgage insurance premium.
This program rewards sustainability while lowering long-term costs.
6️⃣ Local Incentives (2026 Updates)
Several Ontario municipalities have their own programs:
- Barrie: First-Time Home Buyer Down Payment Assistance (up to $30,000 interest-free loan).
- Durham Region: Affordable Homeownership Program for moderate-income families.
- London: Forgivable loan program for qualified buyers.
Your broker can help match you to local incentives.
7️⃣ Bonus Tip – Combine and Stack Programs
Many buyers don’t realize you can combine:
- FHSA + HBP + Land Transfer Rebate + CMHC Green
That could mean $20,000–$40,000 in combined value toward your purchase.
Final Word
2026 is a great year for first-time buyers ready to take action. With the right strategy, you can stack programs, lower your costs, and finally step into homeownership with confidence.
📞 Ready to explore your options?
Call (437) 961-0004 or Apply Now.
