First-time home buyers in Ontario: every program for 2026

First-time buyers in Ontario have five main tools in 2026: a refund of up to $4,000 on provincial land transfer tax, the First Home Savings Account (FHSA) with up to $40,000 of tax-deductible savings, the RRSP Home Buyers' Plan with up to $60,000 per person, 30-year amortizations on insured mortgages, and, on newly built homes only, federal and Ontario GST/HST rebates. In Orillia and the surrounding townships there is no municipal land transfer tax, so the provincial refund goes further than it does in Toronto.

On the other side of the ledger, you need at least 5% down, mortgage insurance if you put down less than 20%, and you must pass the stress test. Here is each piece, what it is worth, and where to confirm it.

The programs at a glance

Program	What it is worth	Who runs it	Key condition
Land transfer tax refund	Up to $4,000	Province of Ontario	Never owned a home anywhere
First Home Savings Account	$8,000 a year, $40,000 lifetime	CRA (via your bank)	First-time buyer rule at opening
RRSP Home Buyers' Plan	Up to $60,000 per person	CRA	Repay over 15 years
First-time home buyers' GST/HST rebate	Up to $50,000 (federal portion)	CRA	New homes only, up to $1.5M
Ontario first-time buyer HST rebate	Up to $80,000 (provincial portion)	Ontario, through the CRA	New homes only, up to $1M
30-year amortization	Lower payments	Federal mortgage insurance rules	Insured mortgage, owner-occupied

How does the Ontario land transfer tax refund work?

Every buyer in Ontario pays provincial land transfer tax when the purchase closes. First-time buyers can get up to $4,000 of it refunded. Based on the provincial rates, $4,000 covers the full tax on a home priced up to about $368,000. Above that, you pay the difference.

To qualify, according to the Ontario Ministry of Finance, you must:

• be at least 18 years old,
• be a Canadian citizen or permanent resident,
• never have owned a home, or an interest in one, anywhere in the world,
• if you have a spouse, they cannot have owned a home while married to you, and
• occupy the home as your principal residence within nine months of the transfer.

Most buyers claim the refund on closing day through their lawyer, who files the transfer electronically. If you miss it, you have 18 months after registration to apply to the Ministry of Finance.

Run your own numbers in the land transfer tax calculator, and see the full brackets in closing costs in Ontario.

No Toronto tax here

The City of Toronto charges its own municipal land transfer tax on top of the provincial one. It does not apply in Orillia, Severn, Oro-Medonte, Ramara, Barrie or Gravenhurst. If you are comparing a Toronto condo to an Orillia house, that difference alone can add thousands of dollars to the Toronto purchase.

What is the First Home Savings Account (FHSA)?

The FHSA is a registered account for first-time buyers. You can contribute up to $8,000 a year, including the year you open your first FHSA, to a lifetime maximum of $40,000. Unused room carries forward, but only up to $8,000 into the next year, and carry-forward room only starts building once you open an account. Contributions are tax-deductible, and qualifying withdrawals to buy a first home are tax-free.

You count as a first-time buyer for the FHSA if, when you open the account, you did not live in a home that you owned or co-owned as your principal residence in the current calendar year or the previous four. The same test applies to a home owned by your spouse or common-law partner. You must also be 71 or younger on December 31 of the year you open it. An FHSA can stay open until the end of the year of the 15th anniversary of opening your first one, or the year you turn 71, whichever comes first.

The practical lesson: open an FHSA as early as you can, even with a small deposit, so your room starts building.

How does the RRSP Home Buyers' Plan work?

The Home Buyers' Plan (HBP) lets you withdraw money from your RRSPs to buy or build a qualifying home without paying tax on the withdrawal. The limit is $60,000 per person for withdrawals made after April 16, 2024. Two first-time buyers purchasing together can each withdraw up to their own limit from their own RRSPs.

You repay the HBP over 15 years. According to the CRA, for a first withdrawal made between January 1, 2026 and December 31, 2028, the start of the repayment period is deferred to the fifth year after the year of the withdrawal. So a first withdrawal in 2026 means your first repayment year is 2031. Any required repayment you miss is added to your income for that year.

You can use the FHSA and the HBP together for the same purchase if you meet the conditions for each. Your bank or the CRA can confirm the timing rules for your accounts.

Are there GST/HST rebates for first-time buyers on new homes?

Yes, for newly built homes bought from a builder. These do not apply to resale homes, which is most of what sells in Orillia and lake country.

The federal first-time home buyers' rebate

The federal First-Time Home Buyers' (FTHB) GST/HST rebate is worth up to $50,000, the 5% federal portion of the tax. Homes valued at $1 million or less get the full amount. Between $1 million and $1.5 million it phases out on a straight line, so a $1.25 million home gets half, $25,000. Homes at $1.5 million or more get nothing. The CRA says it is now accepting applications.

You generally must be at least 18, a Canadian citizen or permanent resident, and not have lived in a home that you or your spouse or common-law partner owned in the current year or the previous four. The home must be your primary residence. The measure was first announced on May 27, 2025, and the CRA's current guidance applies it to agreements signed on or after March 20, 2025 and before 2031. Because the dates and conditions are detailed, confirm your eligibility with the CRA or your builder before you sign.

Ontario's rebate of the provincial portion

Ontario has removed the full 8% provincial portion of HST for first-time buyers of qualifying new homes valued up to $1 million, mirroring the federal rebate. According to the Ontario government, it applies to agreements entered into between March 20, 2025 and December 31, 2030, with construction starting by the end of 2030 and substantially complete by the end of 2035. The total 8% rebate cannot exceed $80,000 or the provincial HST actually payable, whichever is less. Applications go through the CRA.

Many builders credit these rebates on the purchase price, so read your agreement of purchase and sale carefully and have your lawyer confirm who claims what.

How much down payment do I need?

The Financial Consumer Agency of Canada sets out the minimum down payment:

Purchase price	Minimum down payment
$500,000 or less	5% of the price
$500,000 to $1.5 million	5% of the first $500,000, plus 10% of the portion above $500,000
$1.5 million or more	20% of the price

For example, a $600,000 home needs at least $25,000 (5% of $500,000) plus $10,000 (10% of $100,000), for $35,000.

Mortgage loan insurance

If your down payment is less than 20%, you will need mortgage loan insurance, from CMHC or a private insurer. Since December 15, 2024, insured mortgages are available on homes priced up to $1.5 million (the cap was $1 million before that). Lenders may also require insurance with 20% down if you are self-employed or have a thin credit history.

The premium is a percentage of your mortgage, based on how much you borrow relative to the price. CMHC's current rates:

Loan-to-value	Premium on the total loan
Up to 65%	0.60%
65.01% to 75%	1.70%
75.01% to 80%	2.40%
80.01% to 85%	2.80%
85.01% to 90%	3.10%
90.01% to 95%	4.00%
90.01% to 95%, non-traditional down payment	4.50%

You can add the premium to your mortgage. But in Ontario, provincial sales tax applies to the premium, and that tax cannot be added to the mortgage. You pay it in cash on closing, usually through your lawyer. Ontario's retail sales tax rate on insurance premiums is 8%. As an example, a $475,000 mortgage at 95% loan-to-value carries a 4.00% premium of $19,000, and 8% tax on that premium is $1,520 due on closing. Your lender will confirm the exact figures, including any surcharge for a longer amortization.

30-year amortizations

Since December 15, 2024, 30-year amortizations are available to all first-time buyers and to all buyers of new builds on insured mortgages. The property must be owner-occupied and meet the other insurance rules. A longer amortization lowers your monthly payment but means you pay more interest over the life of the mortgage.

What is the mortgage stress test?

To qualify, your lender must test whether you could afford your payments at a higher rate: the greater of 5.25% or your contract rate plus 2%. The federal government sets this rule for insured mortgages, and the Office of the Superintendent of Financial Institutions (OSFI) sets it for uninsured mortgages from federally regulated lenders. OSFI reviews the rate at least once a year, in December, so check the current figure before you shop.

The stress test is why pre-approval matters. It tells you what you can actually borrow, so you shop in the right price band.

What should first-time buyers know about rural and lake-country homes?

A starter home in Orillia may be on municipal water and sewer. A few minutes out of town, it is often on a septic system and a private well. Lenders and insurers ask about both, and so should you. Build these conditions into your offer: a home inspection, a septic inspection, and water quality and quantity testing. See the rural property checklist, septic inspections and wells and water testing. Insurers also ask about woodstoves and oil tanks; see insurance, woodstoves and oil tanks.

A first-time buyer's order of operations

If your first budget feels tight, widen the search before you lower your standards: look at condo townhouses as well as freehold, and at older homes in established neighbourhoods as well as newer ones. With an older home, set aside money for the things an inspection often turns up, such as wiring, the roof, the water service line and windows, so the purchase price is not the whole story. The Orillia neighbourhoods guide shows where each type of home tends to be.

How Jordan can help

Jordan works with first-time buyers in Orillia and the surrounding townships, from the first conversation about budget to closing day. He can help you understand which homes in your price band are on municipal services versus septic and well, which conditions to include, and how to estimate your closing costs before you write an offer. Call 705-345-0797.