In 2026, Canadian first-time home buyers may qualify for six federal and provincial programs to lower costs. This includes federal GST exemptions, tax-free FHSA savings, RRSP down payment loans (HBP), tax credits, and province-specific land transfer rebates.
First-time home buyers in Canada may qualify for thousands of dollars in rebates, tax credits, and savings programs in 2026. From the FHSA and Home Buyers’ Plan to GST rebates and Ontario land transfer tax refunds, these incentives can significantly reduce your upfront costs.
Understanding what you qualify for can make a big difference. Fortunately, you can combine federal incentives with provincial or territorial savings.
Our guide walks you through the programs available, so you can keep more money in your pocket and turn homeownership into reality.
What Is the First-Time Home Buyer GST Rebate?
How the GST/HST Rebate Works
The First-Time Home Buyers’ GST Rebate is a federal program administered by the CRA that can eliminate the 5% federal GST on qualifying new homes valued up to $1 million.
Who Qualifies for the GST Rebate?
To qualify, you must:
- Be an adult Canadian citizen or permanent resident.
- Be a first-time buyer using the home as your primary residence.
- Have signed your agreement of purchase and sale on or after March 20, 2025, and before 2031.
- Be the first person to occupy the home.
How Much Can Buyers Save?
| Home Price | GST Rebate |
| $700,000 | ~$35,000 |
| $900,000 | ~$45,000 |
| $1,000,000 | ~$50,000 (maximum) |
| $1,250,000 | Partial rebate |
| $1,500,000+ | No rebate |
Here’s a step-by-step breakdown of the whole process.
Understanding the Existing GST/HST New Housing Rebate
Difference Between the Federal GST Rebate Programs
Existing GST New Housing Rebate: Partial GST recovery capped at ~$6,300. It’s available to all eligible buyers.
New First-Time Home Buyers GST Rebate: Can eliminate the 5% GST for homes under $1M, saving up to $50,000.
Eligible Property Types
- New homes bought from a builder.
- Pre-construction condos and townhouses.
- Owner-built homes where construction began on or after March 20, 2025.
- Homes purchased on leased land.
- Shares of a co-operative housing corporation.
Ontario First-Time Home Buyer Rebate Programs
Ontario Land Transfer Tax (LTT) Rebate Explained
For homes under $368,000, you may be eligible for a refund of all or part of the LTT. For homes above $368,000, you can receive a $4,000 rebate and must pay any remaining balance.
The LTT rebate is administered by the Ontario Ministry of Finance.
Ontario First-Time Buyer Eligibility for LTT
- Canadian citizen or permanent resident aged 18 or older.
- Never owned a home or an interest in a home anywhere in the world at any time.
- Spouses or common-law partners must also meet this condition (unless they sold their home before becoming your spouse).
- Must occupy the home as a primary residence within 9 months of closing.
Ontario’s 2026 HST Rebate
This HST rebate provides up to 100% of the provincial HST portion on qualifying new homes. It will apply to agreements signed between April 1, 2026, and March 31, 2027.
| Home Price | Maximum Rebate |
| Up to $1,000,000 | Up to 100% of provincial HST. |
| $1,000,000 – $1,500,000 | Up to $130,000 rebate. |
| $1,500,000 – $1,850,000 | Declining from $130,000 down to $24,000. |
| Over $1,850,000 | $24,000 baseline. |
Ontario First-Time Buyer Eligibility for HST
For a primary residence purchase, you qualify if:
- Builder build starts construction by December 31, 2028 and deal signed between April 1, 2026, and March 31, 2027 and construction is mostly complete by December 31, 2031.
- For owner-built homes, construction starts between April 1, 2026 and March 31, 2027 and is substantially completed on or before December 31, 2029.
For a rental property purchase, you qualify if:
- If construction started on or before March 31, 2026, then deal has to be signed between April 1, 2026, and March 31, 2027 and construction should be substantially completed by December 31, 2029.
- If construction starts on or after April 1, 2026 (and before March 31, 2027), then it has to be mostly complete by December 31, 2029.
Land Transfer Tax Rebates for First-Time Home Buyers Across Canadian Provinces
Provinces Offering Rebates or Exemptions
| Province / City | Maximum Rebate |
| Ontario | $4,000 |
| City of Toronto | $4,475 (municipal, stacks with Ontario’s) |
| British Columbia | $8,000 (exemption) |
| Prince Edward Island | $2,000 (exemption) |
| Alberta | No LTT for anyone |
| Saskatchewan | No LTT for anyone |
| Manitoba, Quebec, Nova Scotia, New Brunswick, Newfoundland and Labrador | No rebate |
How Rebates Differ by Province
BC offers a large exemption amount that phases out after. The PEI housing market has lower prices and a lower rebate. Alberta and Saskatchewan charge zero LTT. In Toronto, you can combine the Ontario and Toronto rebates.
First Home Savings Account (FHSA) Explained
What Is the FHSA?
The FHSA is a CRA savings plan that helps first-time buyers save money tax-free. Contributions are tax-deductible, and qualifying withdrawals are tax-free. .
Eligibility: Canadian citizen or permanent resident aged 18 to 71, who hasn’t owned a principal residence in the past four calendar years.
FHSA Contribution Limits
- Annual limit: $8,000
- Lifetime limit: $40,000 ($80,000 per couple)
- Carry-forward: Up to $8,000
Unused funds transfer to your RRSP or RRIF with no tax penalty. For a full breakdown, check out our FHSA guide.
| Buying your first home in Ontario? We can help you estimate which rebates and incentives you may qualify for before you make an offer. |
FHSA vs RRSP Home Buyers’ Plan
| Feature | FHSA | Home Buyers’ Plan (HBP) |
| Tax deduction on contributions | Yes | Yes (when contributed) |
| Tax-free withdrawal | Yes (when withdrawn for home) | Yes |
| Repayment required | No | Yes, over 15 years |
| Maximum | $40,000 lifetime | $60,000 withdrawal |
| Account type | Dedicated savings account | Existing RRSP |
The FHSA is the better option if you’re saving for a home, because you won’t have to pay it back. The HBP is better for people who already have RRSP savings built up and want to put those toward a purchase.
Other First-Time Home Buyer Incentives in Canada
Home Buyers’ Plan (HBP)
The Home Buyers’ Plan is an active CRA-administered program that allows you to withdraw up to $60,000 from your RRSP tax-free. You repay it over 15 years.
Eligibility: Canadian (or tax) resident who hasn’t lived in a home they owned during the past 4 calendar years. Requires a signed purchase agreement and a commitment to move in within one year.
First-Time Home Buyer Tax Credit (HBTC)
The HBTC is an active federal tax credit, claimed through your CRA tax return that’s worth up to $1,500. It reduces tax payable so if you owe $0 in taxes, you won’t receive money as a refund.
Eligibility: Same as HBP.
Provincial Incentives
Nova Scotia introduced an active four-year pilot program, which reduces the minimum down payment to 2% for homes in Halifax under $570,000 ($500,000 in other areas) for qualifying buyers.
Quebec offers a new, active, refundable welcome tax rebate of up to $5,875 for eligible first-time buyers plus an existing credit of $1,400. of up to $5,875 for eligible first-time buyers plus an existing credit of $1,400.
Newfoundland and Labrador offers a grant that covers 50% of legal closing costs (max $1,500) plus a repayable loan up to 5% of the price for qualifying buyers.
Eligibility Requirements for First-Time Buyer Rebates
Who Is Considered a First-Time Buyer?
You (and your spouse or common-law partner) must not have lived in a home that either of you owned in the past four calendar years. The LTT rebate also requires that you have never owned a home anywhere in the world, ever.
Common Eligibility Rules
- Citizenship or permanent residency status is required. The HBP accepts tax residents with a valid SIN.
- 18 or older.
- Most programs require you to move in within 9 to 12 months of closing.
Mistakes That Can Affect Eligibility
- Not using your home as a primary residence will disqualify you for most programs.
- Incorrect paperwork or wrong timing.
- Overlooking a spouse’s ownership history.
How to Apply for First-Time Home Buyer Rebates
Documents Required
You’ll need your signed agreement of purchase and sale, government ID, SIN, proof of legal status, Form GST190, and an Ontario LTT Refund Affidavit.
Application Process
- Ontario LTT Rebate: Applied electronically when the title transfer is registered.
- Federal GST Rebate: The builder credits this at closing using Form GST190. Or you apply to the CRA directly within two years.
- HBTC: Claimed on your personal tax return on Line 31270.
- FHSA and HBP: Processed through your financial institution before or at closing.
When Buyers Receive the Rebate
- Before closing: FHSA and HBP.
- At closing: Ontario LTT and builder-applied GST.
- After closing: Self-applied GST rebates and the HBTC.
Tips to Maximize First-Time Home Buyer Savings
- Open your FHSA now since the contribution starts accumulating immediately.
- Use every program you qualify for.
- Use a mortgage calculator to get a rough sense of your numbers.
- Figure out your closing costs before you make an offer.
- Talk to a specialized broker.
Ourhome buyer guide covers tips in more detail.
We help buyers across Brampton and the GTA every day. Our team can help you get the max benefit out of every rebate you qualify for.
Sources
- Government of Canada: First-Time Home Buyers’ GST Rebate
- Government of Ontario: Land transfer tax refunds first time homebuyers
- Government of Ontario: HST rebate
- Government of Canada: FHSA is a CRA savings plan
- Government of Canada: Home Buyers' Plan
- Government of Canada: Home buyers' amount (line 31270)
Disclaimer: Incentive programs and eligibility requirements are subject to change. Buyers should confirm details with the CRA, their mortgage broker, and a real estate lawyer before purchasing.
