First-Time Home Buyer Programs in Ontario: 2026 Guide

Buying your first home in London is a big step, and there is real help available. Several federal and Ontario programs can lower your upfront cost or your monthly payment. Rules change, so treat this as a map and confirm the details on the official pages linked below.

First Home Savings Account (FHSA)

The FHSA lets you save toward a first home in a registered account. Per the CRA, your participation room in the year you open your first FHSA is $8,000. Total contributions are capped at $40,000, and unused room can be carried forward, up to $8,000. Because the carry-forward and cap are calculated year by year, check your own room in CRA My Account before you contribute.

Home Buyers’ Plan (HBP)

The HBP lets you withdraw from your RRSP to buy a home. The withdrawal limit is $60,000. Under the CRA’s HBP page, for first withdrawals made from January 1, 2026 to December 31, 2028, the 15-year repayment period starts in the fifth year after the year of your first withdrawal. In other words, a first withdrawal in 2026 means your first repayment is due in 2031. Check the CRA page for how repayments work.

Ontario land transfer tax refund

Eligible first-time buyers can receive a refund of Ontario land transfer tax of up to $4,000. You must be 18 or older, a citizen or permanent resident, occupy the home within nine months, and never have owned a home anywhere in the world. See our full Ontario land transfer tax guide for the calculation and application window.

Federal first-time buyers’ GST/HST rebate on new homes

If you buy a newly built or substantially renovated home as your first home and primary residence, the federal government’s rebate can return up to 100% of the GST (or federal part of the HST), to a maximum of $50,000. According to the CRA, the rebate is full for homes at or below $1,000,000, phases out between $1,000,000 and $1,500,000, and is nil at $1,500,000 or more. For example, at $1,250,000 the rebate is $25,000. It does not apply to resale homes.

A note on Ontario: the provincial government has announced enhanced HST relief for some new homes, but we are not treating any Ontario first-time-buyer HST rebate as in force. If you are buying new construction, ask your lawyer and builder how HST is being handled in your agreement. Our new home construction page and Tarion warranty guide are good next reads.

30-year amortization

Since December 15, 2024, buyers with an insured mortgage can choose a 30-year amortization if they are first-time buyers or are buying a new build, according to Department of Finance Canada. A longer amortization lowers your monthly payment but increases the interest you pay overall, so ask your lender or broker to show you both numbers. The insured price cap also rose to $1,500,000; see down payments and CMHC insurance.

Putting it together

A realistic first-time plan might use an FHSA and savings for your down payment, the HBP for extra room, the land transfer tax refund at closing, and a longer amortization if the payment needs it. You do not have to use everything, and some programs have conditions that interact, so a mortgage professional and your lawyer should confirm what applies to you.

Where to start

• Decide your budget with a lender or mortgage broker.
• Read about buying a home in London and explore neighbourhoods.
• If you own a home now and want to sell before buying, request a home valuation.
• Have questions? Contact our team.

Common mistakes to avoid

• Assuming programs stack automatically. Each has its own eligibility rules, deadlines and paperwork. Keep a simple checklist and review it with your lawyer and lender.
• Waiting too long to open an FHSA. Because room builds from the year you open the account, opening one early can matter, but check the CRA calculation for your own situation.
• Forgetting timing on the HBP. Withdrawals generally need to be planned ahead of your purchase, so ask your financial institution how long it takes to process one.
• Forgetting that rebates differ for resale and new homes. The federal GST/HST rebate is for newly built or substantially renovated homes, not typical resale purchases.
• Skipping the fine print on occupancy. The land transfer tax refund requires you to move in within nine months, so plan your closing and move-in accordingly.

This is general information, not tax or financial advice.