Buying your first home in Ontario is one of the most important financial decisions you'll ever make. The good news is that 2026 includes some of the strongest incentives for first-time homebuyers. These include large HST rebates and tax-free savings methods, and eligible buyers could receive up to $130,000 in savings through a mix of government programs. This guide explains all of this in simple terms.
The rebates will both be available at closing. When you buy a condo, townhome, or single-family home in Toronto, you can get almost $8,475 in total land transfer savings in addition to your HST rebate.
The 2026 Federal GST/HST Rebate: Up to $50,000 Back
On March 12, 2026, the federal government's new rebate officially became law. It removes the full 5% federal GST/HST on new homes priced up to $1 million for qualifying first-time buyers, saving you up to $50,000. You can review the official GST/HST new housing rebate details and eligibility requirements on the Canada Revenue Agency (CRA) website. This major first-home-buyer incentive applies whether you're a Canadian-born buyer, a newcomer to Canada, or someone buying with gifted family funds.Ontario Provincial HST Rebate: Up to $80,000 in Savings
Ontario has introduced its own rebate to match the federal action, eliminating the 8 percent provincial portion of the HST on new homes worth up to one million dollars for first-time home buyers. This results in provincial savings of up to $80,000. Together, eligible buyers could receive up to $130,000 in HST relief through both the federal and provincial rebates. As a result, these programs are among the most important Ontario first-home buyer benefits available to qualifying purchasers.The CRA made the updated RC7190-ON GST190 Ontario Rebate Schedule available on June 9, 2026, and your builder or tax professional will use this form to handle your claim at closing.Ontario Budget 2026: Expanded HST Relief for More Buyers
In addition to its first-time buyer schemes, Ontario's Budget 2026 included a wider HST relief program open to all buyers. As long as you enter into an agreement to buy and sell between April 1, 2026, and March 31, 2027, and the property is to be used as your primary residence or as a long-term rental, you may be eligible even if you have not owned a home before.The rebate is limited to $130,000 in the case of homes costing $1 million and decreases gradually as the price of the home goes up to $1.85 million; for first-time buyers who are purchasing a property for less than $1 million the dedicated first-time buyer rebates are usually more valuable, but this general scheme does act as a solid safety net when the prices are higher.Land Transfer Tax Rebates: Important Incentives for First-Time Homebuyers in Ontario
On top of the HST savings, first-time buyers in Ontario can claim two land transfer tax rebates:| Rebate | Maximum Amount |
| Ontario Land Transfer Tax Rebate | $4,000 |
| Toronto Municipal Land Transfer Tax Rebate | $4,475 |
Federal Savings Tools: FHSA, HBP, and Home Buyers' Amount
Three federal tools help you build your down payment and reduce your tax bill:First Home Savings Account (FHSA)You can deposit money into this account tax-free and withdraw it tax-free when you buy your first home. It is one of the smartest ways to save as part of your current Ontario first home buyer benefits package. RRSP Home Buyers' Plan (HBP)Withdraw money from your RRSP to use for your down payment, using the revised 2026 limits and a 15-year repayment period. This is a recommended choice for single buyers stretching their affordability in Hamilton or Ottawa, and for young couples serving in Brampton or Milton.Home Buyers' AmountA non-refundable federal tax credit will return up to $1,500 when you file your taxes, adding a small but meaningful boost to your total savings when you're buying your first home.What Takes Place When You Stack Everything?
Here's a real-life example: suppose you are purchasing a newly built home in Vaughan or Markham that costs $850,000. The combined federal and provincial HST rebates could give eligible buyers substantial savings, potentially more than $100,000 depending on the purchase price, eligibility criteria, and relevant rebate limits. Add the $4,000 Ontario land transfer rebate, FHSA withdrawals, and the Home Buyers' Amount, and your total savings will be substantial.Residents in Mississauga, Oakville, Brampton, and the wider Greater Toronto Area have access to the same programs; the only exception is Toronto, which also offers the municipal land transfer rebate. Should you be looking at quick move-in homes in any of those areas, it's advisable to consult a local expert before you decide to proceed since timing and eligibility are important.Key Eligibility Rules and Deadlines to Know
Before applying for any incentives for first-time homebuyers, buyers should review eligibility requirements carefully. Most rebates cover new homes costing up to $1 million, with the amount decreasing gradually as the price rises to $1.85 million. The following are examples of things that may disqualify you:- You or your partner owned a home in the past four years
- The property won't be your primary residence
- You miss the purchase agreement deadline (March 31, 2027, for the Budget 2026 HST relief)