First-Time Home Buyer Guide Ontario (2026): Programs, Costs & Steps
Quick answer: First-time buyers in Ontario can combine several programs in 2026: save up to $40,000 tax-free in a First Home Savings Account (FHSA), withdraw up to $60,000 from your RRSP under the Home Buyers’ Plan, get up to $4,000 back on Ontario land transfer tax, claim a $1,500 federal tax credit, take a 30-year insured mortgage, and — on a newly built home — recover up to $50,000 of GST. Here’s how each one works and the steps to buy your first home.
2026 First-Time Buyer Programs at a Glance
| Program | Maximum benefit | Key details |
|---|---|---|
| First Home Savings Account (FHSA) | $40,000 per person ($80,000 per couple) | $8,000 a year; contributions are tax-deductible and withdrawals for your first home are tax-free. No repayment. |
| RRSP Home Buyers’ Plan (HBP) | $60,000 per person | Tax-free withdrawal from your RRSP; repay over 15 years. Can be combined with the FHSA. |
| Ontario land transfer tax refund | Up to $4,000 | Covers the full tax on homes up to about $368,000; above that you pay the balance. |
| Toronto municipal land transfer tax refund | Up to $4,475 | Only if you buy within the City of Toronto. |
| First-Time Home Buyers’ Tax Credit | $1,500 | 15% of $10,000, claimed on your tax return for the year you buy. |
| First-time buyer GST rebate (new homes) | Up to $50,000 | Full federal GST back on new homes up to $1 million, phased out between $1 million and $1.5 million. Law since March 2026. |
| 30-year amortization | Lower monthly payments | Available to first-time buyers on insured mortgages (less than 20% down); insured purchase price cap is $1.5 million. |
How Much Do You Need for a Down Payment?
In Canada the minimum down payment is 5% of the first $500,000 of the price plus 10% of the portion between $500,000 and $1.5 million. With less than 20% down you’ll pay mortgage default insurance, which is added to your mortgage.
Example: on a $650,000 townhouse in Barrie, the minimum down payment is $25,000 (5% of $500,000) + $15,000 (10% of $150,000) = $40,000. A couple who each use their FHSA could have that saved — tax-free — in under three years.
Don’t Forget Closing Costs
Budget roughly 1.5%–4% of the price for closing costs on top of your down payment:
- Ontario land transfer tax. On a $650,000 home it’s $9,475. As a first-time buyer you get $4,000 back, so you pay $5,475. On an $800,000 home: $12,475 minus $4,000 = $8,475.
- Legal fees and title insurance — your real estate lawyer will quote these up front.
- Home inspection — strongly recommended on resale homes.
- Adjustments — property tax or utilities the seller has prepaid.
- Moving costs and a cushion for small repairs.
Who Counts as a First-Time Buyer?
The rules differ slightly by program. For the Ontario land transfer tax refund, you generally can’t have owned a home anywhere in the world, and your spouse can’t have owned a home while being your spouse. For the FHSA and HBP, you generally qualify if you haven’t lived in a home you or your spouse owned in the current year or the previous four calendar years. Check with your lawyer or accountant before you count on a program.
Step-by-Step: Buying Your First Home in Ontario
- Open your FHSA early. Contribution room only starts building once the account is open.
- Check your credit and pay down high-interest debt.
- Get pre-approved. Lenders test you at the higher of 5.25% or your rate plus 2%, so your pre-approval shows what you can really afford.
- Pick your areas and must-haves. Commute, schools, parking, a basement suite for rental income — decide what matters most.
- Work with a local REALTOR®. In most purchases, the buyer’s agent commission is paid out of the seller’s proceeds — we’ll explain exactly how it works in your buyer representation agreement.
- Make an offer with conditions — usually financing and home inspection. In today’s balanced Barrie market, buyers can often keep these in.
- Firm up, hire a lawyer, arrange insurance and book your movers.
- Closing day: your lawyer registers the sale, applies your land transfer tax refund, and you get the keys.
Why Barrie Is Popular With First-Time Buyers
Barrie offers far more home for the money than the GTA. In September 2026, Barrie townhouses averaged about $548,000 and condos about $414,000, while detached homes in Brampton averaged close to $1 million. See our Barrie market update for the latest numbers, or our guide to moving from the GTA to Barrie.
Get Help With Your First Home
We’ve helped many first-time buyers in Barrie, Simcoe County and the GTA — from the first budget conversation to the day you get the keys. See how we help buyers, call +1 705 500 5333, or book a free buyer consultation.
Sources
- Ratehub – First-Time Home Buyer Programs in Canada (2026)
- Ratehub – Ontario Land Transfer Tax Rates
- Kelly Santini LLP – New GST/HST Rebate for First-Time Home Buyers
- Ratehub – 30-year amortizations for first-time buyers
Program details as of October 5, 2026. Rules and amounts can change — confirm with your lawyer, lender or accountant. This article is general information, not legal, tax or financial advice.