Ontario Home Buyer Incentives (2026)
Updated: February 2026
Written by the Keith and Françoise Real Estate Team, Ontario Realtors®, advising buyers across the Greater Toronto Area and Niagara Region.
Key takeaway
Ontario home buyer incentives can reduce upfront costs and improve cash flow, but eligibility depends on buyer status, ownership history, and how the purchase is structured. This page explains the incentives that are actually used in Ontario transactions, with a primary focus on first-time buyers and notes where certain programs may still apply in limited situations.
How home buyer incentives work in Ontario
Home buyer incentives in Ontario generally fall into three categories:
- Tax-advantaged savings programs that help fund a down payment
- Tax credits claimed after purchase that may reduce income tax payable
- Rebates and refunds applied at closing or through tax filings
This page supports our broader buyer education hub. For the full buying process, see Buying a Home in Ontario.
First Home Savings Account (FHSA)
The First Home Savings Account (FHSA) is available to eligible first-time buyers and combines features of an RRSP and a TFSA. Contributions may be tax-deductible, and qualifying withdrawals used to purchase a first home can be tax-free.
The FHSA is most effective when used as part of a longer-term plan. Buyers who open an FHSA shortly before purchasing may still benefit, but it does not replace the need for mortgage readiness.
Official CRA guidance is available here: Canada Revenue Agency – First Home Savings Account.
RRSP Home Buyers’ Plan (HBP)
The Home Buyers’ Plan (HBP) allows eligible buyers to withdraw funds from their RRSPs to buy or build a qualifying home, with repayment required over time. The HBP is commonly used alongside other savings strategies but carries repayment obligations that affect long-term planning.
The CRA confirms the current maximum total withdrawal limit under the HBP is $60,000.
Program details and repayment rules can be found here: CRA – Home Buyers’ Plan.
Home Buyers’ Amount (federal tax credit)
The Home Buyers’ Amount is a federal non-refundable tax credit available to eligible buyers. It does not provide cash at closing. Instead, it may reduce income tax payable in the year the home is purchased.
This credit is often misunderstood and should be treated as a tax consideration rather than a funding source.
CRA reference: CRA – Home Buyers’ Amount.
Ontario land transfer tax refund for first-time buyers
Ontario offers a land transfer tax refund for eligible first-time homebuyers. Eligibility depends on ownership history and how the purchase is structured, particularly when buying with another person who has previously owned property.
The refund is typically applied at closing by the buyer’s lawyer, provided eligibility requirements are met.
Ontario government details are available here: Ontario.ca – Land Transfer Tax Refunds.
Toronto municipal land transfer tax rebate
Buyers purchasing within the City of Toronto may also qualify for a municipal land transfer tax rebate if they meet first-time buyer eligibility criteria. This rebate is separate from the provincial refund and can significantly affect total closing costs.
Official City of Toronto information: City of Toronto – MLTT Rebate.
GST/HST new housing rebates
Buyers purchasing a newly built or substantially renovated home may qualify for a GST/HST new housing rebate, depending on how the property is used and how the purchase is structured. Ontario also includes an Ontario-specific component within certain rebate calculations.
CRA overview: CRA – GST/HST New Housing Rebate.
Programs buyers often ask about that are no longer available
The First-Time Home Buyer Incentive offered through CMHC is no longer accepting new applications. Buyers should not rely on this program when planning a purchase.
CMHC confirmation: CMHC – First-Time Home Buyer Incentive.
How incentives affect offers and closing
Most incentives do not change contractual obligations in an Ontario purchase. Deposits, closing funds, and financing conditions must still be met on time. Incentives are best viewed as planning tools rather than substitutes for financing.
For how incentives intersect with financing, see Mortgage Financing Simplified for Ontario Homebuyers. For offer structure and conditions, see Offer Conditions in Ontario.
How incentive planning plays out in real purchases
What buyers often underestimate
Incentive issues rarely come from missing a program. They come from timing, eligibility assumptions, and misunderstanding how incentives interact with financing and closing deadlines. This is especially common when buyers learn about rebates or FHSA rules after an offer has already been accepted.
The incentives outlined here reflect those most commonly encountered in Ontario transactions and are intended to support informed planning before an offer is written. For the broader buying framework, refer back to Buying a Home in Ontario.
Frequently Asked Questions
The most common incentives include the First Home Savings Account (FHSA), the RRSP Home Buyers’ Plan (HBP), the federal Home Buyers’ Amount tax credit, the Ontario land transfer tax refund for eligible first-time buyers, and the Toronto municipal land transfer tax rebate where applicable.
Yes. Eligible buyers can use both programs for the same purchase as long as they meet the rules for each at the time of contribution and withdrawal.
Ontario offers a land transfer tax refund of up to a maximum amount for eligible first-time buyers. The rebate is typically applied at closing by your lawyer, subject to eligibility and purchase structure.
Yes. Eligible buyers purchasing within the City of Toronto may qualify for a municipal land transfer tax rebate, in addition to the Ontario rebate. The amount depends on the purchase price and eligibility.
The Home Buyers’ Amount is a federal non-refundable tax credit that can reduce the income tax owed in the year you purchase a qualifying home.
No. The shared-equity First-Time Home Buyer Incentive is no longer open to new applicants and should not be relied on for planning a purchase.
GET CLARITY ON INCENTIVES BEFORE YOU PLAN YOUR DOWN PAYMENT
Incentives help most when they’re confirmed early. We help buyers across the GTA and Niagara Region verify eligibility, understand timing, and avoid relying on programs that don’t apply to their situation.
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