Real estate

First-time home buyers in Ontario

Buying your first home comes with tax refunds and savings plans that can save you thousands of dollars, but each one has its own rules and deadlines. Here is what is available, what I look after for you on closing and what to budget for.

Land transfer tax refund

Ontario refunds up to $4,000 of land transfer tax to qualifying first-time buyers of a home. That covers all of the tax on a home priced up to about $368,000. If you are buying in the City of Toronto, the City also rebates up to $4,475 of its municipal land transfer tax.

I claim the Ontario refund for you when I register the transfer, so it comes off the tax on closing rather than being paid back later. If only some of the buyers qualify, the refund is reduced to their share. If the refund was not claimed on closing, you can apply to the Ministry of Finance within 18 months after registration. Estimate your tax with my land transfer tax calculator.

First Home Savings Account (FHSA)

You can contribute up to $8,000 a year to an FHSA, to a lifetime limit of $40,000, and up to $8,000 of unused room carries forward to the next year. Contributions are deductible like RRSP contributions, and a qualifying withdrawal to buy your first home is tax-free. Speak to your bank or financial advisor early so the funds are withdrawn and with me before closing. Read the CRA rules on the FHSA.

RRSP Home Buyers’ Plan

The Home Buyers’ Plan lets you withdraw up to $60,000 from your RRSPs to buy your first home, and a spouse or partner buying with you can withdraw up to $60,000 as well. You repay the withdrawal to your RRSP over 15 years, generally starting in the second year after the year you withdraw it. You can use the Home Buyers’ Plan and an FHSA for the same purchase. Read the CRA rules on the Home Buyers’ Plan.

Buying a new home from a builder

Most builder agreements in Ontario include HST in the price, and you assign your HST rebates to the builder, who credits them to you. Several rebates may apply to a newly built home:

  • Federal first-time home buyers’ GST/HST rebate: removes the 5% federal portion of the HST, up to $50,000, on a new home priced up to $1 million, with a reduced rebate on homes priced between $1 million and $1.5 million. CRA details.

  • Ontario Enhanced New Housing Rebate and Ontario New Home Affordability Payment: for agreements signed between April 1, 2026 and March 31, 2027, these can remove all 13% HST on a new home priced up to $1 million, together with any federal rebate, to a combined maximum of $130,000. Relief is reduced on homes priced up to $1.85 million. They are open to all eligible buyers, not only first-time buyers. Ontario details and CRA details.

Send me the builder’s agreement before you sign, or as soon as you have signed, and I will confirm which rebates apply and how the agreement deals with them. A new condominium also comes with a 10-day cooling-off period, which I explain in my condo buyer’s guide.

What to budget for on closing

Your down payment is only part of the money you need on closing. Plan for:

  • Land transfer tax, less any first-time buyer refund.

  • My legal fees and disbursements, including title insurance and registration costs.

  • Adjustments with the seller for property taxes, utilities or condominium fees the seller has prepaid.

  • The 8% Ontario retail sales tax on your mortgage default insurance premium, if your down payment is less than 20%. The premium is added to your mortgage, but the tax is not, so it is paid from your own funds on closing.

  • A home inspection and, if your lender requires one, an appraisal. These are usually paid before closing.

  • For a new home, any HST, development charges, utility connection fees or other adjustments the builder’s agreement allows.

Before closing, I send you a statement of adjustments with the exact amount you need to provide. See each step from offer to keys. Estimate the total with my closing costs calculator.

Who counts as a first-time buyer?

Each program has its own test, and you can qualify for one and not another:

  • Ontario land transfer tax refund: you must be at least 18, be a Canadian citizen or permanent resident (or become one within 18 months after closing), never have owned a home or an interest in a home anywhere in the world, and move in within nine months after closing. If your spouse owned a home while you were spouses, neither of you qualifies. Ontario rules.

  • FHSA, Home Buyers’ Plan and the federal GST/HST rebate: these use a four-year test. In general, you qualify if you did not live in a home that you, or your current spouse or common-law partner, owned in the current year or the previous four calendar years.

For example, if you owned a home ten years ago, you may be able to use an FHSA and the Home Buyers’ Plan but not claim the land transfer tax refund. Tell me early if you have ever owned a home or an interest in one, anywhere, so there are no surprises on closing.

Useful links

Buying your first home in London or the surrounding area? Get a quote or call (226) 402-0823.

This page is general information about Ontario real estate law and home buyer programs as of September 2026. It is not legal or tax advice. Rebate and savings plan rules change often, so confirm the current rules with the Canada Revenue Agency, the Ontario Ministry of Finance or your tax advisor.