Which First-Time Buyer Incentives Are Available in Ontario?

Ontario first-time buyers in 2026 may be able to use an FHSA, the RRSP Home Buyers’ Plan, the federal Home Buyers’ Amount, Ontario’s land transfer tax refund, and GST/HST rebates for eligible new homes. The former federal First-Time Home Buyer Incentive is not available for new applications. Related reading: Toronto first time buyer incentives.

This guide is current to October 26, 2026. Program limits are not guaranteed benefits, and eligibility depends on your ownership history, occupancy, purchase type, price, timing, and account rules.

Program Status at a Glance

These programs affect your finances differently. An FHSA is a dedicated savings vehicle, the Home Buyers’ Plan provides access to RRSP funds under its own rules, the Home Buyers’ Amount reduces federal tax payable, and land transfer tax or GST/HST measures reduce specific purchase costs.

The former federal 5% or 10% shared-equity First-Time Home Buyer Incentive was discontinued, with new applications no longer approved after March 31, 2024. Canada’s housing program update records the change.

Do You Qualify as a First-Time Buyer?

First-time-buyer status is only the starting point. Each program has separate rules for age, prior ownership, occupancy, account history, purchase type, price, income, and timing.

• Ownership history: Ontario’s refund generally requires the buyer to be at least 18 and not to have owned a home or interest in one anywhere in the world. A spouse’s ownership while you were spouses can also matter.
• Occupancy: Many benefits are designed for a home you will occupy, not an investment property.
• Property type: Resale homes, resale condos, new condos, and pre-construction purchases can trigger different tax questions.
• Price: New-home rebates have thresholds and phase-outs. Price alone does not establish eligibility.
• Timing: Agreement, closing, withdrawal, and occupancy dates can affect eligibility.
• Account rules: FHSA and HBP access depends on available room, account status, qualifying conditions, and documentation.

One program’s definition does not automatically qualify you for every other benefit. Ontario also has locally administered shared-equity assistance for qualifying low- to moderate-income renter households. Review Ontario’s shared-equity information if that description fits your household.

FHSA, Home Buyers’ Plan, and Home Buyers’ Amount

The FHSA and HBP are savings-access tools. The Home Buyers’ Amount is a tax credit. They should not be compared as though each provides the same kind of cash.

FHSA

An FHSA is designed for eligible savers working toward a first home. The lifetime savings limit is up to $40,000, subject to available room and account rules. Before treating the balance as available closing money, verify the account conditions and withdrawal requirements that apply to your purchase.

Home Buyers’ Plan

The HBP may allow an eligible buyer to withdraw up to $60,000 from an RRSP for a first home. It is not a permanent gift. Review the current HBP conditions, documentation requirements, and repayment rules before deciding how much of your RRSP to use.

Home Buyers’ Amount

The Home Buyers’ Amount is a non-refundable federal credit. It can reduce federal tax payable, but it does not create a refund when you have no tax payable. It should not be counted as closing-day cash.

Do not assume that access to one savings or tax measure establishes eligibility for another. Compare the applicable rules, timing, account records, and purchase conditions before including any amount in your budget.

New Build, Resale, Condo, or Ottawa

New construction creates the largest GST/HST questions because federal and Ontario measures apply to eligible new homes. A resale property is generally assessed through savings accounts, tax credits, and land transfer tax rules instead.

A condo can be either new or resale. A newer building is not automatically a new home for rebate purposes. For pre-construction purchases, review the agreement, price, occupancy terms, and who is responsible for applying or crediting each rebate.

The federal rebate may provide 100% of the GST or federal HST portion on an eligible new home valued up to $1 million, with a reduced rebate between $1 million and $1.5 million. Ontario separately removed the full 8% provincial HST portion for qualifying first-time buyers of eligible new homes up to $1 million under its stated measure, generally for qualifying agreements from March 20, 2025 to December 31, 2030. Review the federal GST/HST rebate rules and Ontario’s new-home HST information for the transaction.

Ottawa buyers should not assume a separate municipal first-time-buyer incentive. Ontario’s refund may apply to an eligible Ottawa purchase, but any municipal program requires separate confirmation.

Build the Full Purchase Budget

No income requirement can be calculated from a $300,000 purchase price alone. A lender’s pre-approval and your own complete cost worksheet are more useful than a purchase price viewed in isolation. Incentives do not guarantee approval.

Test payment, rate, amortization, taxes, and condo costs together using a mortgage payment planning approach. A first-time buyer planning checklist can organize financing, evaluation, offer, and closing tasks.

Two Hypothetical Purchase Scenarios

These examples are illustrative. They do not calculate eligibility, tax position, mortgage approval, or final closing costs.

Ottawa resale home

Assume a buyer purchases an eligible $300,000 Ottawa resale home with $25,000 in ordinary savings and $20,000 in an FHSA. The buyer could investigate the account rules, the HBP, and Ontario’s land transfer tax refund. The Home Buyers’ Amount may reduce federal tax payable later, but it is not closing-day cash.

Eligible Ontario new build

Assume an eligible first-time buyer signs for an $800,000 qualifying new home. The buyer would investigate federal GST/HST relief and Ontario’s new-home HST measure. Agreement date, value, builder documents, occupancy, and rebate conditions must be confirmed before relying on a projected amount.

How Incentives Appear on Your Tax Return

These measures do not all appear in the same way. A credit, rebate, refund, and savings-account transaction have different rules and timing.

• Non-refundable credit: The Home Buyers’ Amount reduces federal tax payable, not necessarily producing a refund.
• GST/HST rebate: Federal or provincial relief may return or credit eligible tax on a qualifying new home.
• Land transfer tax refund: Ontario relief may return eligible provincial tax when the buyer meets the program rules.
• Savings-account or RRSP transaction: FHSA and HBP activity has its own account, withdrawal, documentation, and tax rules. Review the current requirements before filing or budgeting.

The CRA’s Home Buyers’ Amount guidance confirms that the credit reduces tax payable rather than guaranteeing a payment.

What to Confirm Before Moving Money or Making an Offer

1. Record every property you have owned or held an interest in, including outside Canada.
2. Review your spouse or partner’s ownership history and relevant dates because spouse ownership can affect Ontario land transfer tax refund eligibility.
3. Confirm whether the property is resale, new, pre-construction, or a resale condo.
4. Record FHSA room, balance, withdrawal amount, and required documents.
5. Review RRSP balances and the current HBP requirements.
6. Ask the lender how each down-payment source must be documented.
7. Ask the lawyer about land transfer tax, title insurance, adjustments, and refunds.
8. For a new build, obtain the agreement, tax breakdown, occupancy terms, and rebate explanation.
9. Reserve cash for legal fees, inspection, appraisal, insurance, adjustments, moving, and repairs.
10. Ask a tax professional about credits, deductions, rebates, and account transactions where needed.

A first-time buyer may also need transaction guidance to understand how an incentive affects an offer, financing conditions, and closing steps. Sagar Shah Real Estate can support property evaluation and transaction guidance, while lenders, lawyers, and tax professionals address their respective questions. Learn how an Ottawa first-time buyer may fit that process.

Frequently Asked Questions

Can I use the FHSA and Home Buyers’ Plan together?

Do not treat access to one program as automatic permission to use another. Review the current conditions for both programs, including account records, qualifying purchase requirements, timing, and documentation, before including both amounts in your plan.

Does a spouse’s previous ownership affect eligibility?

It can. Ontario’s land transfer tax rules examine a spouse’s ownership while you were spouses, so review the relevant ownership history and dates against the refund rules.

Does buying a home change my tax return?

It can involve a federal Home Buyers’ Amount claim, GST/HST or land transfer tax procedures, and account transactions with their own rules. The Home Buyers’ Amount reduces federal tax payable rather than guaranteeing a payment.

Are incentives different for resale and new-build condos?

Yes. A resale condo is generally assessed through savings, credits, and land transfer tax. A new-build condo may also raise GST/HST rebate questions, subject to price, agreement, occupancy, and other conditions.

Is the First-Time Home Buyer Incentive available in 2026?

No. The former federal 5% or 10% shared-equity incentive is not available for new applications and should not appear in a 2026 purchase plan.

How much income do I need for a $300,000 home?

There is no single threshold. Start with a lender’s pre-approval, then test the down payment, estimated housing costs, debts, and available cash against your own budget. Incentives do not guarantee approval.

Plan the Next Step With the Right Numbers

For an Ottawa purchase, bring your ownership history, property type, target price, account details, timeline, and closing-cost worksheet to the professionals reviewing your file. Sagar Shah Real Estate can provide residential buying guidance from pre-approval through closing, while your lender, lawyer, and tax professional confirm each incentive’s financial and legal treatment.