Ontario first-time homebuyers have access to some of the strongest government support in Canada. Between the federal First Home Savings Account, RRSP Home Buyers Plan, and Ontario-specific tax rebates, qualifying buyers can accumulate $100,000 or more in tax-advantaged savings before they even make an offer.
Ontario First-Time Buyer Programs at a Glance
| Program | Max Benefit | Type | Level |
|---|---|---|---|
| First Home Savings Account (FHSA) | $40,000 tax-free | Tax-Advantaged Savings | Federal |
| Home Buyers Plan (HBP) | $60,000 from RRSP | RRSP Withdrawal | Federal |
| Home Buyers Tax Credit (HBTC) | $1,500 tax credit | Federal Tax Credit | Federal |
| Ontario Land Transfer Tax Rebate | Up to $4,000 | Provincial Rebate | Provincial |
| GST/HST New Home Rebate | Up to $30,000+ | HST Rebate | Federal + Provincial |
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1. First Home Savings Account (FHSA)
The FHSA is the most powerful new homebuyer savings tool in Canada. Launched in 2023, it combines the best features of an RRSP and a TFSA specifically for first-time buyers.
First Home Savings Account $8,000/yr — $40,000 lifetime
- Contribute up to $8,000 per year, up to $40,000 lifetime
- Contributions are tax-deductible (like an RRSP)
- Withdrawals for a qualifying home purchase are completely tax-free (like a TFSA)
- Unused contribution room carries forward one year
- Must be a Canadian resident aged 18-71 and a first-time buyer
- Account must be open for at least one calendar year before withdrawing to buy
- If you do not use it to buy a home, transfer to your RRSP tax-free with no impact on RRSP room
2. Home Buyers Plan (HBP)
The Home Buyers Plan lets first-time buyers withdraw from their RRSP to fund a home purchase — tax-free at the time of withdrawal, with a 15-year repayment window.
RRSP Home Buyers Plan Up to $60,000 per person
- Withdraw up to $60,000 from your RRSP tax-free for a qualifying home purchase
- Couples can each withdraw $60,000 — up to $120,000 combined
- RRSP funds must have been in the account for at least 90 days before withdrawal
- Repay over 15 years starting the 2nd year after withdrawal (1/15th per year)
- If you miss a repayment, that year’s amount is added to your taxable income
- Can be stacked with the FHSA for maximum combined savings
3. Home Buyers Tax Credit (HBTC)
A straightforward federal tax credit worth up to $1,500 for first-time buyers who purchase a qualifying home.
Home Buyers Tax Credit Up to $1,500
- Claim $10,000 on line 31270 of your federal tax return
- Worth up to $1,500 at the 15% federal tax rate
- Applies to the tax year the home was purchased
- Both spouses/common-law partners can split the claim (combined max $10,000)
- Qualifying home: new or existing, must be your principal residence
4. Ontario Land Transfer Tax Rebate
When you buy a home in Ontario, you pay provincial Land Transfer Tax. First-time buyers get a rebate of up to $4,000 — which fully eliminates LTT on homes up to approximately $368,000.
| Purchase Price | Ontario LTT Owed | First-Time Buyer Rebate | You Pay |
|---|---|---|---|
| $400,000 | $4,475 | $4,000 | $475 |
| $600,000 | $8,475 | $4,000 | $4,475 |
| $800,000 | $12,475 | $4,000 | $8,475 |
5. GST/HST New Home Rebate
If you are buying a newly built home or doing a substantial renovation in Ontario, you may qualify for a partial rebate of the HST paid on the purchase price.
GST/HST New Home Rebate Up to $30,000+
- Rebate of 36% of the 5% federal GST portion for homes under $350,000 (phases out to $450,000)
- Ontario provincial HST rebate: 75% of the 8% provincial portion up to $24,000 (no price cap)
- Applies to new construction, substantial renovations, and owner-built homes
- Must be your primary residence
- Apply within 2 years of closing
- Builder may apply the rebate at closing — confirm with your builder or lawyer
Stacking Ontario Programs
Combine your FHSA ($40,000) and RRSP Home Buyers Plan ($60,000) for up to $100,000 per person in tax-advantaged savings. A couple can stack up to $200,000 combined toward a down payment.
Add the $1,500 Home Buyers Tax Credit on top of your savings programs. Simple to claim — just one line on your tax return the year you buy.
FHSA + HBP + HBTC + Ontario LTT Rebate + HST New Home Rebate. If you are buying new construction in Ontario, all five programs can apply simultaneously — potentially $130,000 or more in combined benefit.
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Frequently Asked Questions
Your Next Steps
The one-year minimum holding period means the sooner you open it, the sooner you can use it. Most major banks and credit unions in Ontario offer FHSAs.
You need funds to have been in your RRSP for at least 90 days. If your balance is low, start contributing now to build it up before you need it.
A broker can help you model out how the FHSA, HBP, and rebates affect your total purchasing power and down payment timeline.
This ensures they apply the Ontario LTT rebate on closing day. Easy to miss if you do not mention it upfront.
The year you buy, enter $10,000 on line 31270 of your federal return for a $1,500 credit. It takes about 30 seconds and is easy to forget.
Editorial Disclosure: This page may contain affiliate links. Program details, contribution limits, and eligibility rules change — always verify current terms with the Canada Revenue Agency (CRA), your financial institution, or a licensed mortgage professional. This is not financial or tax advice.
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