Ontario Home Buyer Incentives (2026)
Updated: January 2026
Answer Box
The main Ontario home buyer incentives in 2026 include the First Home Savings Account (FHSA), the RRSP Home Buyers’ Plan (HBP), provincial and Toronto land transfer tax rebates, and the federal Home Buyers’ Amount tax credit. Together, these programs can reduce upfront costs. However, eligibility rules and timing still matter and should be confirmed early.
To understand how these incentives fit into the full buying process, including pre-approval, offer strategy, and closing timelines, start with the First-Time Home Buyer Guide Ontario.
Ontario home buyer incentives at a glance
| Incentive | What it helps with | Potential value |
|---|---|---|
| FHSA | Tax-deductible savings with tax-free withdrawals | Up to $40,000 lifetime |
| RRSP Home Buyers’ Plan | RRSP funds used toward a down payment | Up to $60,000 per buyer |
| Ontario land transfer tax refund | Reduction of provincial land transfer tax | Up to $4,000 |
| Toronto MLTT rebate | Additional rebate for Toronto purchases | Up to $4,475 |
FHSA: the strongest first-time buyer savings tool
The First Home Savings Account (FHSA) helps first-time buyers build a down payment efficiently. For example, buyers can deduct contributions from taxable income while still withdrawing funds tax-free when they purchase a qualifying home.
- Buyers can add up to $8,000 per year
- Total lifetime contributions cap at $40,000
- Withdrawals must meet CRA conditions
Because the CRA sets the rules, you should always review official guidance: CRA FHSA details .
In reality, many buyers combine FHSA savings with other sources. As a result, monthly affordability often becomes the deciding factor rather than down payment size. Therefore, incentives should always be planned alongside pre-approval.
To stay organized during this stage, use the Ontario First-Time Home Buyer Checklist.
RRSP Home Buyers’ Plan: accessing existing savings
The RRSP Home Buyers’ Plan (HBP) allows eligible buyers to withdraw up to $60,000 from their RRSP. Instead of paying tax immediately, buyers repay the amount over time.
- Each eligible buyer may withdraw up to $60,000
- Repayment usually spans up to 15 years
- Unrepaid amounts are added to taxable income
To avoid surprises, review the CRA rules directly: RRSP Home Buyers’ Plan rules .
If you are still confirming your pre-approval or monthly comfort level, read Mortgage Financing Simplified for Ontario Home Buyers.
Ontario land transfer tax refund
Ontario offers a land transfer tax refund of up to $4,000 for eligible first-time buyers. Typically, your lawyer applies this refund at closing.
Because eligibility rules are strict and include spousal ownership considerations, review the province’s criteria here: Ontario land transfer tax refund rules .
Toronto municipal land transfer tax rebate
In addition to the provincial refund, Toronto buyers may qualify for a municipal rebate of up to $4,475.
For current details, refer to the City of Toronto: Toronto MLTT rebate details .
If location flexibility matters to your budget, compare options using GTA vs Niagara Home Search Tips.
Home Buyers’ Amount tax credit
The Home Buyers’ Amount provides a federal non-refundable tax credit. As a result, eligible buyers can reduce the income tax owed in the year of purchase.
Confirm eligibility through the CRA: CRA Home Buyers’ Amount .
Incentives you should not rely on
The shared-equity First-Time Home Buyer Incentive is no longer open to new applicants. Therefore, buyers should not factor it into current purchase planning.
CMHC confirms the current status here: CMHC incentive status .
How incentives affect your offer and closing strategy
- Pre-approval should come first
- FHSA and HBP withdrawals require advance planning
- Lawyers usually apply land transfer tax refunds at closing
- Incentives reduce taxes but do not replace affordability analysis
Common mistakes first-time buyers make with incentives
- Assuming all programs define “first-time buyer” the same way
- Relying on outdated incentives
- Ignoring RRSP repayment obligations
- Failing to confirm eligibility early
Before relying on any incentive, always confirm eligibility with your lender, lawyer, or the official government source.
Frequently Asked Questions
The main incentives include the FHSA, the RRSP Home Buyers’ Plan, the Ontario land transfer tax refund, the Toronto municipal land transfer tax rebate (if applicable), and the federal Home Buyers’ Amount tax credit.
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 $4,000 for eligible first-time buyers. The rebate is typically applied at closing by your lawyer.
Yes. Eligible buyers purchasing within the City of Toronto may qualify for a municipal land transfer tax rebate of up to $4,475, in addition to the Ontario rebate.
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.
Need help applying these incentives?
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