In This Article Ontario First-Time Home Buyer Benefits Overview Ontario Land Transfer Tax Rebate Eligibility Requirements How the Rebate Works Toronto Municipal Land Transfer Tax Rebate Federal First-Time Home Buyer Incentive Program Details Repayment Terms Ontario Eligibility Limits RRSP Home Buyers' Plan (HBP) Withdrawal Rules Repayment Schedule First Home Savings Account (FHSA) Contribution Limits Strategic Use for Ontario Buyers GST/HST New Housing Rebate Federal Portion Ontario Portion First-Time Home Buyer Tax Credit Eligible Expenses Frequently Asked Questions What's Next Authoritative Sources Which 2026 Programs Can Be Stacked Questions Borrowers Ask About This Topic Can retained earnings in my corporation help me qualify? What if my tax returns show less income than my business actually earns? How many years of self-employed income do lenders want? Do business write-offs reduce mortgage qualification? Related Guides and Calculators Table of Contents First-time buyers in Ontario have access to some of Canada's most generous homeownership incentives. Combining provincial and federal programs can save you tens of thousands of dollars on your first home purchase—if you know how to stack them strategically. Ontario First-Time Home Buyer Benefits Overview Ontario offers generous first-time buyer incentives that combine with federal benefits to help new buyers enter the market. As property prices in Toronto, Ottawa, and Hamilton continue challenging affordability, these programs become increasingly valuable. Understanding and maximizing these programs requires knowing eligibility requirements, application processes, and how different benefits work together. Ontario Land Transfer Tax Rebate The Ontario Land Transfer Tax Rebate offers up to $4,000 in savings on provincial land transfer tax—one of the most significant benefits for first-time buyers. Eligibility Requirements You must be 18 years or older, a Canadian citizen or permanent resident, and never have owned a home anywhere in the world. Your spouse cannot have owned a home while being your spouse. How the Rebate Works The rebate covers the full land transfer tax on homes up to $368,000. For more expensive properties, you receive the maximum $4,000 rebate and pay LTT on the amount above this threshold. Toronto Municipal Land Transfer Tax Rebate Toronto buyers receive an additional municipal LTT rebate of up to $4,475, bringing total potential savings to $8,475 for first-time buyers in the city. Federal First-Time Home Buyer Incentive The federal government's shared equity program helps reduce monthly mortgage payments by providing 5-10% of the purchase price as a shared equity mortgage. Program Details For existing homes, the government contributes 5% of the purchase price. For new construction, the contribution is 5-10%. This reduces your mortgage amount and monthly payments without requiring immediate repayment. Repayment Terms You repay the incentive when you sell the home or after 25 years, whichever comes first. The repayment amount is based on the home's fair market value at repayment time. Ontario Eligibility Limits In Toronto, Vancouver, and Victoria, the household income limit is $150,000 and the property price cannot exceed 4.5 times your income. Other Ontario areas have a $120,000 income limit with properties up to 4 times income. RRSP Home Buyers' Plan (HBP) The Home Buyers' Plan allows first-time buyers to withdraw up to $35,000 from RRSPs tax-free for a down payment. Couples can each withdraw $35,000 for a combined $70,000. Withdrawal Rules RRSP funds must have been on deposit for at least 90 days before withdrawal. You must have a written agreement to buy or build a qualifying home and intend to occupy it as your principal residence within one year. Repayment Schedule Repayment begins the second year after withdrawal, spread over 15 years. If you don't repay the minimum annual amount, it's added to your taxable income for that year. First Home Savings Account (FHSA) The FHSA combines the best features of RRSPs and TFSAs for first-time home buyers. Contributions are tax-deductible, and withdrawals for a qualifying home purchase are tax-free. Contribution Limits You can contribute up to $8,000 annually with a lifetime maximum of $40,000. Unused contribution room carries forward, and you can transfer unused amounts from RRSPs. Strategic Use for Ontario Buyers Given Ontario's high property prices, maximizing FHSA contributions while also using the HBP can significantly boost your down payment. A couple could potentially accumulate $150,000 tax-advantaged ($70,000 HBP + $80,000 FHSA combined). GST/HST New Housing Rebate Buying new construction in Ontario? You may qualify for a GST/HST rebate worth thousands of dollars. Federal Portion For homes under $350,000, you receive a rebate of 36% of the GST paid (maximum $6,300). The rebate phases out between $350,000 and $450,000. Ontario Portion Ontario offers an additional rebate of 75% of the provincial portion of HST, up to a maximum of $24,000. Unlike the federal portion, there's no phase-out based on purchase price. First-Time Home Buyer Tax Credit The federal First-Time Home Buyers' Tax Credit provides up to $1,500 in tax relief ($10,000 non-refundable tax credit at 15% tax rate). Eligible Expenses The credit helps offset closing costs like legal fees, title insurance, and inspections. It's claimed on your tax return for the year you purchase the home. What's Next First-time Ontario buyers should strategically combine multiple programs for maximum savings. Start by verifying your eligibility for each program, then work with a mortgage professional who understands all available incentives. Getting pre-approved early gives you time to optimize your FHSA contributions and RRSP withdrawals before your purchase. Authoritative Sources The rules and figures on this page come from the following Canadian authorities: Canada Mortgage and Housing Corporation Canada Revenue Agency Which 2026 Programs Can Be Stacked Ontario first-time buyers can legally combine all of the following in the same purchase (CAD): Program 2026 maximum Stacks with others? FHSA (per person) $40,000 lifetime contribution Yes RRSP Home Buyers' Plan (per person) $60,000 Yes — FHSA and HBP can both be used on one purchase Ontario land transfer tax rebate $4,000 Yes Toronto municipal LTT rebate $4,475 Yes, inside Toronto only First-Time Home Buyers' Tax Credit $1,500 credit Yes A first-time buying couple can therefore bring up to $200,000 of registered money to the table and still claim the rebates. The FHSA + HBP stack is the single most under-used combination in Canada. Questions Borrowers Ask About This Topic Can retained earnings in my corporation help me qualify? Some lenders can consider corporate financial statements, retained earnings, and business cash flow when the company is established and the documents support sustainable income. The approach varies by lender and is not the same as simply adding retained earnings to personal income. What if my tax returns show less income than my business actually earns? A stated-income or alternative lender may use bank statements, contracts, invoices, financial statements, and business history to assess cash flow. These programs can carry higher rates or fees, so the total cost should be compared with an A-lender application. How many years of self-employed income do lenders want? Two years of tax returns and Notices of Assessment are common for traditional qualification. Some programs accept a shorter operating history when the borrower has relevant industry experience and strong supporting documents. Do business write-offs reduce mortgage qualification? They can, because traditional lenders start with taxable income. Certain documented non-cash or one-time expenses may be added back, while alternative programs can assess business cash flow differently. Related Guides and Calculators Mortgages In Canada — Full mortgages guide — 8 related topics. Down Payment Requirements Canada — Part of our buying a home coverage. Closing Costs Canada — Part of our buying a home coverage. Cmhc Mortgage Insurance — Part of our buying a home coverage. How Much Mortgage Can I Afford — Part of our buying a home coverage. Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Can retained earnings in my corporation help me qualify? Some lenders can consider corporate financial statements, retained earnings, and business cash flow when the company is established and the documents support sustainable income. The approach varies by lender and is not the same as simply adding retained earnings to personal income. What if my tax returns show less income than my business actually earns? A stated-income or alternative lender may use bank statements, contracts, invoices, financial statements, and business history to assess cash flow. These programs can carry higher rates or fees, so the total cost should be compared with an A-lender application. How many years of self-employed income do lenders want? Two years of tax returns and Notices of Assessment are common for traditional qualification. Some programs accept a shorter operating history when the borrower has relevant industry experience and strong supporting documents. Do business write-offs reduce mortgage qualification? They can, because traditional lenders start with taxable income. Certain documented non-cash or one-time expenses may be added back, while alternative programs can assess business cash flow differently.
