Ontario Home Buyer Incentives (2026)

Updated: April 2026

By Françoise Pollard, Realtor®, and Keith Goldson, Broker, Keith & Françoise Real Estate Team, eXp Realty Brokerage. We advise buyers across the GTA and Niagara Region on incentive eligibility and savings strategy. Our goal is making sure clients understand the full picture before they commit to a purchase.

These programs fall into three categories: tax-advantaged savings accounts that help fund a down payment, tax credits and rebates claimed after purchase, and rebates applied at closing. Each works differently. Knowing which ones apply before you start searching changes how you save, how you structure your closing funds, and how much you actually pay to buy.

The buyers who benefit most from Ontario home buyer incentives plan around them before the offer. Those who discover them after closing rarely get to use them fully.

Incentives do not make a bad purchase good. They make a well-planned purchase cheaper.

For the full buying process and how incentives fit into financing strategy, see our complete guide to buying a home in Ontario. For the first-time buyer process from start to finish, see our first-time home buyer guide for Ontario.

NEW: Ontario Enhanced HST Rebate (up to $130,000)

This is the largest housing incentive Ontario has introduced in years. It applies to all eligible buyers of new homes, not just first-time buyers, but the eligibility window is short: agreements must be signed between April 1, 2026 and March 31, 2027.

The Ontario Enhanced HST Rebate was announced in the 2026 Ontario Budget on March 26, 2026. It temporarily removes the full 13% HST on qualifying new homes valued at up to $1 million, with maximum relief of $130,000. The province covers the 8% provincial portion ($80,000), and the federal government has agreed to cover the 5% federal portion ($50,000), subject to passage of federal legislation.

How the rebate works by price

For new homes valued at $1 million or less, the rebate covers the full 13% HST, up to a maximum of $130,000. That maximum $130,000 rebate is maintained for homes valued between $1 million and $1.5 million, even though the HST on those homes exceeds $130,000. For homes valued between $1.5 million and $1.85 million, the rebate phases down linearly. Homes valued above $1.85 million continue to qualify for the existing $24,000 maximum rebate under prior rules.

Home Price	Maximum Rebate
Up to $1 million	Up to $130,000 (full 13% HST)
$1 million to $1.5 million	Up to $130,000 (capped)
$1.5 million to $1.85 million	Phases down from $130,000 to $24,000
Over $1.85 million	$24,000 (existing rebate)

Who is eligible

The Ontario Enhanced HST Rebate is available to all eligible buyers, not just first-time buyers. This is one of the most important features of the program. The home must be acquired for use as the purchaser’s primary place of residence or as a long-term residential rental property. Both owner-occupiers and certain investment buyers may qualify.

The hard timing window

The agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027. This is a hard window. Agreements signed outside it do not qualify for the Enhanced HST Rebate. Construction must begin on or before December 31, 2028 and be substantially completed on or before December 31, 2031. For rental properties, substantial completion must occur on or before December 31, 2029.

Current status: announced but not yet enacted

As of April 2026, the Ontario Enhanced HST Rebate has been announced in the budget but the implementing federal legislation has not yet passed. The provincial 8% portion is on track. The federal 5% portion depends on amendments to the Excise Tax Act, which the federal government has agreed to support. Until both pieces are law, the program is proposed rather than enacted.

Watch this carefully if you are considering a new build purchase. The window opens April 1, 2026. Buyers who sign in the early days of the window are essentially placing a bet on the federal legislation passing. Confirm the rebate’s status with your real estate lawyer and your builder before signing.

Federal First-Time Home Buyers’ GST/HST Rebate (up to $50,000)

This is the federal first-time buyer rebate that runs alongside the Ontario Enhanced HST Rebate. Outside the April 2026 to March 2027 enhanced window, this remains the main federal HST relief for first-time buyers of new homes.

The federal First-Time Home Buyers’ GST/HST Rebate received Royal Assent on March 12, 2026. Eligible first-time buyers of newly constructed or substantially renovated homes can receive a rebate of up to $50,000 of the GST or the federal portion of HST.

How the rebate works

For eligible new homes valued at $1 million or less, the rebate covers 100% of the federal GST paid, up to a maximum of $50,000. For homes between $1 million and $1.5 million, the rebate phases out linearly. A $1.25 million home would receive approximately $25,000. Homes valued at $1.5 million or more do not qualify.

Eligibility requirements

You must be a first-time home buyer under the rebate’s definition: neither you nor your spouse or common-law partner can have lived in a home you owned, either inside or outside Canada, in the current calendar year or in any of the four preceding calendar years. You must purchase a newly constructed or substantially renovated home as your primary residence and be the first occupant after substantial completion. Neither you nor your spouse may have previously claimed this rebate. Your agreement of purchase and sale must be signed on or after March 20, 2025 and before 2031. Construction must begin before 2031 and be substantially completed before 2036.

The four-year look-back catches people off guard

The eligibility definition here differs from Ontario’s land transfer tax rebate. For the federal FTHB GST/HST Rebate, it is a four-year look-back rather than a never-owned rule. A buyer who sold a home in 2022 and has rented since would still not qualify for a purchase in early 2026, because 2022 falls within the four-calendar-year look-back window. This trips up buyers who assume their years of renting reset the clock.

How to claim the rebate

The builder can credit the rebate to you at closing, similar to the existing GST/HST New Housing Rebate. The builder then submits the application to the Canada Revenue Agency. If the builder does not credit the rebate, or if you took possession before the legislation received Royal Assent, you can apply directly to the CRA after closing. There is a two-year time limit from taking ownership or finishing construction to file your claim.

For authoritative guidance, see the CRA’s First-Time Home Buyers’ GST/HST Rebate page.

Which Rebate Applies to You? Both Cannot Stack

If you are a first-time buyer purchasing a new home with an agreement signed between April 1, 2026 and March 31, 2027, you may technically qualify for both the Ontario Enhanced HST Rebate and the Federal First-Time Home Buyers’ GST/HST Rebate. You cannot claim both. You receive the greater of the two, not both stacked. For most first-time buyers in this window, the Enhanced HST Rebate will deliver the larger amount.

Outside that one-year window, first-time buyers who otherwise qualify for the Federal FTHB GST/HST Rebate continue to be eligible. That rebate runs through agreements signed before 2031. The chart below shows the practical decision.

Your Situation	Likely Best Rebate
Any buyer (first-time or not), agreement signed April 1, 2026 to March 31, 2027	Ontario Enhanced HST Rebate (up to $130,000)
First-time buyer, agreement signed before April 1, 2026 (back to March 20, 2025)	Federal FTHB GST/HST Rebate (up to $50,000)
First-time buyer, agreement signed after March 31, 2027 (until 2031)	Federal FTHB GST/HST Rebate (up to $50,000)

First Home Savings Account (FHSA)

The FHSA remains one of the most powerful home buyer incentives available to Ontario buyers. It combines the tax deduction benefit of an RRSP with the tax-free withdrawal benefit of a TFSA. Both benefits apply, but only for qualifying first home purchases.

How it works

You can contribute up to $8,000 per year to a lifetime maximum of $40,000. Contributions reduce your taxable income in the year you make them. When you withdraw to purchase a qualifying first home, the withdrawal is completely tax-free with no repayment requirement. You can carry forward up to $8,000 of unused contribution room from the prior year. Limits are unchanged for 2026.

When to open it

The FHSA is most effective when opened early. Buyers who open one years before purchasing benefit from tax-free compounding growth over the full period. Contribution room starts accumulating from the year the account is opened, not the year you first contribute. Opening it costs nothing and there is no obligation to contribute immediately. Buyers who wait until they are actively searching leave years of tax-free growth on the table.

If you are more than 12 months from buying and have not opened an FHSA yet, open one now. The tax deduction this year plus the compounding growth between now and your purchase adds up to a meaningful difference at closing.

Who should not rely on the FHSA

The FHSA is only useful if you are genuinely a first-time buyer and plan to purchase within 15 years of opening the account. If you do not end up purchasing a qualifying home, withdrawals are not tax-free and the account must eventually be closed or transferred. Buyers who open an FHSA assuming they will qualify, without confirming their first-time buyer status first, sometimes discover a disqualifying ownership in their history only when the lawyer asks the question. Confirm your eligibility before you open the account and start contributing.

The FHSA fits inside a broader financing strategy. For how your savings, down payment, and borrowing power work together, see our guide to mortgage financing in Ontario.

RRSP Home Buyers’ Plan

The Home Buyers’ Plan allows eligible buyers to withdraw up to $60,000 per person from their RRSP toward a qualifying first home purchase. For couples who both qualify, that is $120,000 combined available toward the down payment. The $60,000 limit took effect in 2024, up from the previous $35,000 cap.

Repayment rules

Unlike the FHSA, HBP withdrawals must be repaid to your RRSP over 15 years. If you miss a repayment in any year, CRA adds that amount to your taxable income for that year. Normally, the repayment obligation starts two years after the year of withdrawal.

Temporary extended grace period for recent withdrawals

For HBP withdrawals made between January 1, 2022 and December 31, 2025, the federal government extended the repayment grace period from two years to five years. If you withdrew in that window, your repayment clock starts five years after the year of withdrawal rather than two. This temporary relief was designed to ease pressure on buyers who accessed their RRSPs during the rate shock period.

The 90-day rule

Funds must have been in your RRSP for at least 90 days before you withdraw them under the HBP. Contributing $50,000 to your RRSP in January and withdrawing it in March under the Home Buyers’ Plan does not satisfy the rule. Plan accordingly if you are topping up your RRSP specifically for this purpose.

Using the FHSA and Home Buyers’ Plan Together

Eligible buyers can use both programs for the same purchase. A buyer with $40,000 in an FHSA and $60,000 in eligible RRSP savings can access up to $100,000 toward their down payment. The FHSA withdrawal comes out tax-free with no repayment. The HBP withdrawal must be repaid over 15 years.

This combination is one of the most underused home buyer incentives Ontario has to offer right now. Most buyers know one or the other exists. Far fewer have opened both accounts, contributed to both, and planned to use both strategically for the same purchase. For buyers two to four years from purchasing, the tax deductions on FHSA contributions plus tax-free compounding across both accounts can meaningfully increase the down payment available at closing.

Incentives improve a purchase. They do not replace income, borrowing power, or long-term affordability.

Program	Max per person	Repayment	Tax on withdrawal
FHSA	$40,000 lifetime	None required	Tax-free
Home Buyers’ Plan	$60,000	Over 15 years	Tax-free at withdrawal

Ontario Land Transfer Tax Refund for First-Time Buyers

Ontario offers a land transfer tax refund of up to $4,000 for eligible first-time buyers. On purchases priced below $368,333, this eliminates the provincial land transfer tax entirely. On higher-priced homes, the $4,000 refund applies and the buyer pays the balance. Your lawyer applies the refund at closing, provided eligibility requirements are met.

The eligibility trap most couples miss

Qualifying for the Ontario land transfer tax refund requires that you have never owned a home anywhere in the world. This is different from the four-year look-back that applies to the FHSA, HBP, and the new federal FTHB GST/HST Rebate. Here, it is a lifetime never-owned rule. If your spouse or common-law partner has previously owned a home anywhere in the world, including outside Canada, neither of you qualifies in most cases. This rule catches many buyers off guard, particularly those purchasing with a partner who owned property in another country before coming to Canada. Discover this the week before closing and it is too late to act. It belongs in the planning stage.

Toronto Municipal Land Transfer Tax Rebate

Buyers in Toronto pay a second land transfer tax on top of the provincial amount. Eligible first-time buyers may qualify for a municipal rebate of up to $4,475 on that second tax. Your lawyer applies both the provincial and municipal rebates at closing at the same time.

Combined, a qualifying first-time buyer purchasing in Toronto can receive up to $8,475 in land transfer tax relief between the two programs. On a $700,000 purchase in Toronto, that saving belongs in your closing cost planning from day one. Note that Toronto has published updates to its municipal land transfer tax schedule taking effect April 1, 2026, particularly affecting luxury tiers. Confirm current rates with your lawyer before closing.

Home Buyers’ Amount Tax Credit

The Home Buyers’ Amount is a federal non-refundable tax credit worth $10,000. At the 15% federal tax rate, a $10,000 claim translates to up to $1,500 in federal tax relief. You claim it on your personal income tax return in the year you purchase. Both partners in a couple purchasing together can split the claim as long as the combined total does not exceed $10,000.

This is not a cash payment at closing. It reduces the income tax you owe when you file. Non-refundable means it reduces your tax to zero. It does not generate a refund if the credit exceeds your tax payable for the year. It was doubled in December 2022 and has remained at $10,000 since.

GST/HST New Housing Rebate (Existing Program)

HST does not apply to resale homes in Ontario. It applies to newly built homes and substantially renovated properties. On a new build in Ontario, the combined HST rate is 13%: 5% federal GST plus 8% provincial. On a $700,000 new build, that is $91,000 in HST before any rebate.

The existing GST/HST New Housing Rebate is a separate and older program from the new FTHB GST/HST Rebate discussed above. It is available to any buyer of a new build who will use it as their primary residence, not just first-time buyers. Its federal component applies on homes priced up to $450,000 and phases out above that threshold. Ontario has a separate provincial component with its own rules.

How the three rebate programs relate

Three GST/HST programs now exist for new home buyers in Ontario. The Ontario Enhanced HST Rebate (up to $130,000) is the largest and applies to all eligible buyers, but only for agreements signed between April 1, 2026 and March 31, 2027. The Federal First-Time Home Buyers’ GST/HST Rebate (up to $50,000) applies to first-time buyers throughout the broader window of March 20, 2025 to before 2031. The existing GST/HST New Housing Rebate is the original program that has been in place for decades and continues to apply to buyers who do not qualify for either of the newer rebates. Where eligibility for more than one rebate exists, you receive the greater of the available rebates, not all stacked. Confirm the full rebate calculation with your lawyer and builder before closing, not after.

Programs No Longer Available

CMHC discontinued the Canada First-Time Home Buyer Incentive shared-equity program in March 2024. It no longer accepts applications. Do not include it in your planning. Any resource that still lists it as an available home buyer incentive in Ontario is out of date. When reviewing Ontario home buyer incentives, always confirm the program is currently active before counting on it.

The Eligibility Traps Most Buyers Miss

Most problems with home buyer incentives in Ontario do not come from missing a program. They come from timing and eligibility assumptions that turned out to be wrong. Understanding your eligibility before you start searching lets you structure your savings and closing funds accurately from the start.

Different programs use different definitions of “first-time buyer”

This is the single most common source of confusion. The Ontario land transfer tax refund requires you have never owned a home anywhere in the world. The FHSA, HBP, and new federal FTHB GST/HST Rebate use a four-year look-back rule: neither you nor your spouse can have lived in a home either of you owned in the current calendar year or the four preceding calendar years. A buyer who sold a home in 2022 and rented since may qualify for some programs and not others. Confirm eligibility program by program, not all at once.

The land transfer tax refund and past homeownership

The Ontario land transfer tax refund is the one most often lost to eligibility issues discovered late. A partner who owned a home abroad, a forgotten previous ownership, or a misunderstanding of the eligibility rule: each has cost buyers a refund at the worst possible time. Confirm eligibility with your lawyer at the start of the process, not the week before closing.

The Ontario Enhanced HST Rebate has a hard one-year window

The Ontario Enhanced HST Rebate applies only to agreements signed between April 1, 2026 and March 31, 2027. Sign one day too early or one day too late and you are out. Buyers considering a new build during this window need to make sure their offer timing matches. Builders are aware of this and may structure releases around the window. Confirm signing dates carefully.

The federal FTHB GST/HST Rebate and signed agreements

The federal first-time buyer rebate applies only to agreements signed on or after March 20, 2025. Buyers who signed before that date do not qualify, even if all other conditions are met. Canceling a pre-March 20, 2025 agreement and signing a new one specifically to access the rebate may be disallowed by CRA as a non-bona-fide arrangement. Anti-avoidance provisions are likely to apply to attempts to manipulate signing dates around either the federal or Ontario rebate windows.

FHSA accounts opened too late

Contribution room in an FHSA accumulates from the year the account is opened. Buyers who open one in January of the year they purchase get one year of room. Buyers who opened one three years earlier have accumulated $24,000 in room. The account costs nothing to open and has no contribution obligation. Waiting until you are ready to buy is the most common way buyers leave this incentive underused.

HBP withdrawals before the 90-day holding period

Topping up an RRSP and withdrawing it under the Home Buyers’ Plan within 90 days does not qualify. The funds must have been in the RRSP for at least 90 days before withdrawal. Plan the timing of any RRSP top-up with this rule in mind. This is especially important if you are maximising your HBP withdrawal before a spring purchase.

Returning buyers have access to different programs once they have owned before. See our guide to Ontario home buyer programs for returning buyers: different programs apply and the eligibility rules shift.

When Incentives Should Not Drive Your Decision

Programs and rebates are planning tools. They are not a reason to buy something you are not ready for, at a price that does not work, or on a timeline that does not suit your financial position. There are situations where the programs are largely irrelevant to the decision in front of you.

When the property does not qualify. The Ontario Enhanced HST Rebate and the Federal FTHB GST/HST Rebate only apply to new builds and substantially renovated homes. The existing GST/HST New Housing Rebate has its own property-specific rules. An investment property disqualifies you from several programs entirely, though the Ontario Enhanced HST Rebate does extend to certain residential rental properties. Understand what the property type means for your eligibility before you count any program in your numbers.

When you are not a first-time buyer under the applicable definition. The Ontario Enhanced HST Rebate is open to all eligible buyers, but the Federal FTHB GST/HST Rebate, FHSA, HBP, and Ontario land transfer tax refund all use first-time buyer rules of various kinds. Different programs use different definitions. Some use the four-year look-back. Some use the never-owned rule. Buying with a partner who has owned before compounds the complexity. A program that does not apply to you is not a saving. It is simply not relevant to your purchase.

When the numbers only work because of the incentive. If your purchase is affordable only because you are counting on a $130,000 HST rebate or $4,000 land transfer tax refund to make the closing costs work, the purchase is not as solid as it looks. Incentives should improve a purchase that already works. They should never be the thing that makes it work. That is why understanding your financing before you buy matters more than any incentive calculation.

Knowing when a program does not apply to you is as valuable as knowing when it does.

Before You Plan Around Any Incentive

Most buyers come to us with a list of incentives they have read about online, hoping to confirm they apply. The better approach is to start with your situation and work backwards. Your ownership history over the past four years. Your spouse or common-law partner’s ownership history, including anywhere in the world. The type of property you are considering. When any agreement of purchase and sale was or will be signed. These four inputs determine which programs actually apply to you, in what amounts, and with what documentation.

Eligibility is a question of fact, not optimism. The biggest incentive losses we see are not caused by missing programs. They are caused by buyers who assumed they qualified and structured their closing funds around that assumption, only to discover a disqualifier too late to act. For how incentives fit into the broader process of buying a home in Ontario, eligibility confirmation should happen early, not at the offer stage.

Preparation is what separates buyers who fully use the incentives available to them from those who leave them on the table. Confirming eligibility is work you do once, ideally months before you write an offer.

The buyers who benefit most from incentives are not the ones who know the most programs. They are the ones who confirm which programs actually apply before they buy.

Program rules, eligibility thresholds, and contribution limits can change. This article reflects program details as of April 2026, including the Ontario Enhanced HST Rebate proposed in the 2026 Ontario Budget on March 26, 2026 (subject to passage of federal implementing legislation) and the Federal First-Time Home Buyers’ GST/HST Rebate that received Royal Assent on March 12, 2026. Both programs depend on signing dates, eligibility windows, and property-specific conditions. Confirm current eligibility requirements and limits directly with your real estate lawyer or a qualified financial advisor before making decisions based on any incentive program.