What rebates are available for first-time home buyers in Ontario?

First-time buyers in Ontario can receive up to $4,000 Land Transfer Tax rebate (provincial), $4,475 Toronto Land Transfer Tax rebate (if buying in Toronto), $10,000 from the federal First-Time Home Buyers'' Tax Credit, and access to FHSA and Home Buyers'' Plan for down payment savings.

Do first-time buyers in Toronto pay land transfer tax?

Toronto charges a municipal land transfer tax in addition to the provincial tax. First-time buyers can receive rebates on both: up to $4,000 provincial and up to $4,475 Toronto. Combined, this eliminates LTT on homes up to about $400,000.

How much do I need for a down payment in Ontario?

Minimum 5% down payment for homes under $500,000. For homes $500,000-$1,000,000, it''s 5% of the first $500K and 10% of the remainder. Homes over $1,000,000 require 20% minimum (no CMHC insurance available).

First-Time Home Buyer Guide Ontario: Programs, Rebates, and Tips (2026)

Ontario first-time home buyers have access to some of the most generous programs in Canada, but most people don’t take full advantage of them. Between the provincial and Toronto land transfer tax rebates (up to $8,475 combined), the FHSA, and the Home Buyers’ Plan, a couple can access over $100,000 in tax-advantaged down payment funds and save thousands in closing costs. The key is planning ahead — the FHSA needs to be open for at least a year before withdrawal, and HBP funds must be in your RRSP for 90+ days. Start early and you’ll enter the market with significantly more purchasing power.

First-Time Home Buyer Benefits in Ontario

Benefit	Maximum Value	Automatic
Ontario Land Transfer Tax Rebate	$4,000	Claim at closing
Toronto Land Transfer Tax Rebate	$4,475	Claim at closing
Federal First-Time Home Buyers’ Tax Credit	$1,500 (tax credit on $10,000)	Claim on tax return
FHSA	Tax-deductible savings + tax-free growth	Open account yourself
Home Buyers’ Plan (HBP)	$60,000 RRSP withdrawal/person	Withdraw before closing

Ontario Land Transfer Tax Rates

Land transfer tax is the largest closing cost for Ontario buyers and the most common source of sticker shock. On a $700,000 purchase in Toronto, combined provincial and municipal LTT totals $20,950 — and the first-time buyer rebates only cover $8,475 of that. Budget for LTT as a hard closing cost separate from your down payment. First-time buyers purchasing below roughly $400,000 can have LTT fully eliminated by the rebates, but at current Toronto prices, most buyers will still owe a significant amount.

Purchase Price Portion	Tax Rate
First $55,000	0.5%
$55,000 - $250,000	1.0%
$250,000 - $400,000	1.5%
$400,000 - $2,000,000	2.0%
Over $2,000,000	2.5%

First-Time Buyer Rebate

Toronto Land Transfer Tax

Purchase Price	Rate
First $55,000	0.5%
$55,000 - $250,000	1.0%
$250,000 - $400,000	1.5%
$400,000 - $2,000,000	2.0%
Over $2,000,000	2.5%

Toronto first-time buyer rebate: Up to $4,475

LTT Examples

Purchase Price	Provincial LTT	Toronto LTT	Rebates	Net LTT
$500,000	$6,475	$6,475	$8,475	$4,475
$700,000	$10,475	$10,475	$8,475	$12,475
$1,000,000	$16,475	$16,475	$8,475	$24,475

Down Payment Requirements

Home Price	Minimum Down Payment	Amount Needed
Under $500,000	5%	$25,000 on $500K
$500,000 - $1,000,000	5% + 10% above $500K	$75,000 on $1M
Over $1,000,000	20%	$200,000 on $1M

First Home Savings Account (FHSA)

Feature	Details
Annual contribution limit	$8,000
Lifetime limit	$40,000
Tax treatment	Deductible (like RRSP), tax-free growth
Withdrawal	Tax-free for first home
Time limit	15 years or until used

Home Buyers’ Plan (HBP)

Feature	Details
Maximum withdrawal	$60,000 per person ($120,000 couple)
Repayment period	15 years
Annual repayment	1/15 of withdrawal amount

FHSA + HBP Combined Example

Source	Amount
FHSA (maxed over 5 years)	$40,000
HBP (RRSP withdrawal)	$60,000
Down payment from registered accounts	$100,000

Step-by-Step Home Buying Process

Step	Timeline	Action
1	6-12 months before	Get mortgage pre-approval
2	6-12 months before	Open FHSA, contribute to RRSP
3	3-6 months before	Research neighbourhoods, calculate budget
4	When ready	Find a real estate agent
5	House hunting	View properties, make offers
6	Offer accepted	Home inspection, final financing
7	30-90 days	Closing preparation
8	Closing day	Sign documents, get keys

Closing Costs to Budget For

Cost	Typical Amount
Land transfer tax	$4,000 - $40,000+ (see calculator above)
Legal fees	$1,500 - $2,500
Title insurance	$300 - $500
Home inspection	$400 - $600
Appraisal (if required)	$300 - $500
Moving costs	$500 - $2,000
Property tax adjustment	Varies (pro-rated)
Total closing costs	$7,000 - $50,000

Eligibility for Ontario First-Time Buyer Rebate

Requirement	Details
Age	Must be 18+
Residency	Canadian citizen or permanent resident
Previous ownership	Never owned a home anywhere in the world
Occupancy	Must occupy as principal residence within 9 months
Spouse rule	Spouse must also qualify (never owned a home)

The Bottom Line

Open an FHSA as early as possible, maximize RRSP contributions for the Home Buyers’ Plan, budget for land transfer tax beyond the rebate amount, and get pre-approved before you start house hunting. Ontario’s first-time buyer programs are generous, but they require advance planning to fully leverage.