What first-time home buyer programs are there in Ontario?

In Ontario, first-time buyers can use four main programs. The First Home Savings Account (FHSA) and the RRSP Home Buyers' Plan help you save the down payment. Land transfer tax refunds cut your closing costs, and a 30-year amortization on insured mortgages lowers your monthly payment.

Saving the down payment with the FHSA and Home Buyers' Plan

The FHSA lets you contribute up to $8,000 a year, to a lifetime limit of $40,000. Contributions are tax-deductible, like an RRSP, and qualifying withdrawals to buy a first home are tax-free, like a TFSA. If you do not use your full $8,000 in a year, up to $8,000 of unused room carries forward to the next year (source: Canada Revenue Agency, checked October 2026).

The FHSA has its own eligibility rules and time limits. An accountant or the CRA's pages can confirm how those rules apply to you.

The RRSP Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP to buy a qualifying home, without paying tax on the withdrawal. You repay the withdrawal to your RRSP over 15 years. For first withdrawals made between January 1, 2026 and December 31, 2028, repayments start in the fifth year after the year of withdrawal (source: Canada Revenue Agency, checked October 2026).

The trade-off is that money taken out of your RRSP stops growing there until you put it back. Missed repayments are added to your taxable income. Many couples use both the FHSA and the HBP.

Land transfer tax refunds

Ontario refunds up to $4,000 of its land transfer tax to first-time homebuyers. You must be at least 18, live in the home within nine months of buying, and apply within 18 months (source: ontario.ca). In Toronto, a separate municipal rebate of up to $4,475 applies to the city's own land transfer tax.

Your real-estate lawyer usually claims the refund when the purchase is registered, so you may never pay that part at all.

A 30-year amortization on insured mortgages

The amortization is the total time it takes to pay off your mortgage. Since December 15, 2024, first-time buyers can choose a 30-year amortization on an insured mortgage, one with less than 20% down, instead of the usual 25 years.

A longer amortization lowers your monthly payment and can help you qualify. The longer amortization also means you pay interest for five more years, so the total cost is higher. You can always make extra payments later, within your mortgage's prepayment privileges.

How the four programs fit together

Here is one way the four programs combine. A first-time buyer couple might each save for the down payment in an FHSA and top up those savings with HBP withdrawals. The land transfer tax refund reduces the cash they need at closing, and a 30-year amortization keeps the payment manageable.

The mortgage itself still comes from a bank, credit union or monoline lender, subject to lender approval.

What to do next

If you are planning your first purchase, use our call-me-back form and we will help you put these programs together. You can also estimate your land transfer tax and refund.