What rebates are available for first-time home buyers in Ontario?

First-time buyers in Ontario can receive up to $4,000 Land Transfer Tax rebate (provincial), $4,475 Toronto Land Transfer Tax rebate (if buying in Toronto), $10,000 from the federal First-Time Home Buyers' Tax Credit, and access to FHSA and Home Buyers' Plan for down payment savings.

Do first-time buyers in Toronto pay land transfer tax?

Toronto charges a municipal land transfer tax in addition to the provincial tax. First-time buyers can receive rebates on both: up to $4,000 provincial and up to $4,475 Toronto. Combined, this eliminates LTT on homes up to about $400,000.

How much do I need for a down payment in Ontario?

Minimum 5% down payment for homes under $500,000. For homes $500,000-$1,000,000, it's 5% of the first $500K and 10% of the remainder. Homes over $1,000,000 require 20% minimum (no CMHC insurance available).

First-Time Home Buyer Guide Ontario: Programs, Rebates, and Tips (2026)

First-Time Home Buyer Benefits in Ontario

Benefit	Maximum Value	Automatic
Ontario Land Transfer Tax Rebate	$4,000	Claim at closing
Toronto Land Transfer Tax Rebate	$4,475	Claim at closing
Federal First-Time Home Buyers’ Tax Credit	$1,500 (tax credit on $10,000)	Claim on tax return
FHSA	Tax-deductible savings + tax-free growth	Open account yourself
Home Buyers’ Plan (HBP)	$60,000 RRSP withdrawal/person	Withdraw before closing

Ontario Land Transfer Tax Rates

Purchase Price Portion	Tax Rate
First $55,000	0.5%
$55,000 - $250,000	1.0%
$250,000 - $400,000	1.5%
$400,000 - $2,000,000	2.0%
Over $2,000,000	2.5%

First-Time Buyer Rebate

Toronto Land Transfer Tax

Purchase Price	Rate
First $55,000	0.5%
$55,000 - $250,000	1.0%
$250,000 - $400,000	1.5%
$400,000 - $2,000,000	2.0%
Over $2,000,000	2.5%

Toronto first-time buyer rebate: Up to $4,475

LTT Examples

Purchase Price	Provincial LTT	Toronto LTT	Rebates	Net LTT
$500,000	$6,475	$6,475	$8,475	$4,475
$700,000	$10,475	$10,475	$8,475	$12,475
$1,000,000	$16,475	$16,475	$8,475	$24,475

Down Payment Requirements

Home Price	Minimum Down Payment	Amount Needed
Under $500,000	5%	$25,000 on $500K
$500,000 - $1,000,000	5% + 10% above $500K	$75,000 on $1M
Over $1,000,000	20%	$200,000 on $1M

First Home Savings Account (FHSA)

Feature	Details
Annual contribution limit	$8,000
Lifetime limit	$40,000
Tax treatment	Deductible (like RRSP), tax-free growth
Withdrawal	Tax-free for first home
Time limit	15 years or until used

Home Buyers’ Plan (HBP)

Feature	Details
Maximum withdrawal	$60,000 per person ($120,000 couple)
Repayment period	15 years
Annual repayment	1/15 of withdrawal amount

FHSA + HBP Combined Example

Source	Amount
FHSA (maxed over 5 years)	$40,000
HBP (RRSP withdrawal)	$60,000
Down payment from registered accounts	$100,000

Step-by-Step Home Buying Process

Step	Timeline	Action
1	6-12 months before	Get mortgage pre-approval
2	6-12 months before	Open FHSA, contribute to RRSP
3	3-6 months before	Research neighbourhoods, calculate budget
4	When ready	Find a real estate agent
5	House hunting	View properties, make offers
6	Offer accepted	Home inspection, final financing
7	30-90 days	Closing preparation
8	Closing day	Sign documents, get keys

Closing Costs to Budget For

Cost	Typical Amount
Land transfer tax	$4,000 - $40,000+ (see calculator above)
Legal fees	$1,500 - $2,500
Title insurance	$300 - $500
Home inspection	$400 - $600
Appraisal (if required)	$300 - $500
Moving costs	$500 - $2,000
Property tax adjustment	Varies (pro-rated)
Total closing costs	$7,000 - $50,000

Eligibility for Ontario First-Time Buyer Rebate

Requirement	Details
Age	Must be 18+
Residency	Canadian citizen or permanent resident
Previous ownership	Never owned a home anywhere in the world
Occupancy	Must occupy as principal residence within 9 months
Spouse rule	Spouse must also qualify (never owned a home)