First-Time Home Buyer Programs in Ontario — What’s Actually Available in 2026
Buying in Ontario
First-Time Home Buyer Programs in Ontario — What's Actually Available in 2026
There's a lot of noise about first-time buyer programs in Ontario, and most of it either oversimplifies or misses the pieces that actually matter. This is the complete picture — every program available in 2026, how they stack together, what the real numbers look like for a London Ontario purchase, and what you need to do right now so you don't leave money on the table at closing.
Eric Cassidy
London Ontario Real Estate Agent, Cassidy & Co.
Why This Matters More Right Now
London Ontario is a buyer's market in 2026. Prices have stabilized — the MLS benchmark sits around $561,600, with the average sold price near $627,000 — and inventory is higher than it's been in several years. For first-time buyers who've been watching from the sidelines, the conditions for entering the market are genuinely better than they've been in a long time.
At the same time, the government support available to first-time buyers in 2026 is the most comprehensive it's ever been. The FHSA has been around since 2023 and many eligible buyers still haven't opened one. A temporary provincial HST rebate on new builds launched April 1, 2026. The Home Buyers' Plan limit was raised to $60,000 in 2024. These programs stack — and when you combine them properly, the financial impact is significant.
The most expensive mistake first-time buyers make: they find out about these programs at the closing table instead of a year before they buy. Some require advance setup — particularly the FHSA — and missing that window costs real money.
The Programs — What Each One Actually Does
Here's every program available to first-time buyers in Ontario in 2026, in plain terms.
Federal — Open immediately
First Home Savings Account (FHSA)
The FHSA is the single most powerful tool available to first-time buyers in Canada right now. You contribute up to $8,000 per year (lifetime max $40,000), deduct every dollar from your taxable income, and withdraw the entire balance — contributions plus all investment growth — completely tax-free when buying your first home. The critical detail: the account must be open for at least one calendar year before you can make a qualifying withdrawal. Open it today — even if you contribute nothing yet. Opening it starts the clock.
Federal — If you have RRSP savings
RRSP Home Buyers' Plan (HBP)
The Home Buyers' Plan lets you withdraw up to $60,000 from your RRSP tax-free to put toward a first home. A couple can access $120,000 combined. HBP withdrawals must be repaid to your RRSP over 15 years. RRSP funds must have been in the account for at least 90 days before withdrawal. Most buyers are best served using the FHSA first — no repayment ever required — and then the HBP as a supplement.
Provincial — Applied at closing
Ontario Land Transfer Tax Rebate
First-time buyers receive a rebate of up to $4,000 on the provincial Land Transfer Tax. For a $600,000 home in London Ontario, the provincial LTT is approximately $8,475 — the rebate reduces that to around $4,475. Applied automatically at closing through your lawyer. You don't file for it later.
Federal — Claimed on your tax return
First-Time Home Buyers' Tax Credit (HBTC)
A non-refundable federal tax credit worth up to $1,500 in tax savings — 15% of a $10,000 claim — for the year you purchase your home. Applies to both new and resale properties. Both spouses can split the claim. Zero advance planning required — just claim it on your tax return for the year of purchase.
Federal — Mortgage structure
30-Year Insured Amortization
Since December 2024, first-time buyers with less than 20% down can access a 30-year amortization on insured mortgages. On a $550,000 mortgage at 5%, the difference versus 25 years is roughly $300/month less. The trade-off: significantly more total interest over the loan's life. Your mortgage broker can model both scenarios.
New — Provincial — New builds only, expires March 31, 2027
Temporary Ontario HST Rebate on New Homes
Effective April 1, 2026 through March 31, 2027, Ontario is temporarily eliminating the full 13% HST on newly built homes valued up to $1 million. For a $750,000 new construction home, that's up to $97,500 in HST savings. Does not apply to resale homes.
For first-time buyers: this stacks on top of the Land Transfer Tax rebate, FHSA, and HBP — making the total 2026 support package for a new build unlike anything previously available.
What the Numbers Look Like in London Ontario
A couple buying a resale home in London Ontario at $650,000 in 2026, both first-time buyers, both with FHSAs open for over a year:
FHSA and HBP figures represent maximum available room. Actual amounts depend on contributions made. Confirm specifics with a mortgage broker and financial advisor.
A couple who has maxed their FHSAs ($40,000 each = $80,000 combined) and each has $25,000 in RRSP savings gets to a 20% down payment on a $650,000 home without pulling from non-registered savings — and their FHSAs grew tax-free the entire time.
The Eligibility Rules That Catch People Off Guard
Most of these programs define "first-time home buyer" as: you have not owned and lived in a home as your principal residence in the current year or any of the four preceding calendar years. If you owned a home five or more years ago and have been renting since, you may qualify again.
The spouse rule trips people up most. For the FHSA and HBP, you're disqualified if your current spouse or common-law partner owned and lived in a home during the lookback period. For the Ontario Land Transfer Tax rebate, both parties on title must qualify as first-time buyers to receive the full rebate.
If you're unsure: ask your mortgage broker to run through eligibility criteria against your situation before you start searching. It takes 20 minutes and can save thousands.
What to Do Right Now — In Order
1. Open an FHSA immediately. You don't need to contribute anything today — just open the account. This starts the one-year clock. Your bank or an online brokerage can open one in 15 minutes.
2. Contribute as much as you can, as early as you can. The $8,000 annual room doesn't roll over indefinitely — unused room carries forward by one year only.
3. Get mortgage pre-approval before you start searching. Well-priced homes in London Ontario's spring market move quickly. A broker can confirm which programs you qualify for. See our overview of how mortgages work in Ontario →
4. Engage a real estate lawyer early. The Land Transfer Tax rebate is claimed at closing through your lawyer, not filed later. Missing this is the most common way buyers leave money behind.
5. Start your search with clarity on your actual buying power. Explore what's available in London Ontario once you know your pre-approval amount and which programs you qualify for.
What First-Time Home Buyer Programs Are Available in Ontario in 2026?
Ontario first-time buyers in 2026 have access to six stackable programs: the FHSA (up to $40,000 per person, tax-free); the RRSP Home Buyers' Plan ($60,000 per person, repayable); the Ontario Land Transfer Tax rebate (up to $4,000); the federal First-Time Home Buyers' Tax Credit ($1,500 in tax savings); a 30-year insured amortization option; and a temporary Ontario HST rebate on new builds up to $1 million, valid until March 31, 2027. A couple using all programs on a new build purchase can access over $200,000 in combined tax-advantaged savings and direct rebates.
For London Ontario buyers, the affordability advantage is real — the benchmark home price here is roughly $100,000 below the national average — which means the same programs go further. Learn how buying works with Cassidy & Co. in London Ontario →
Frequently Asked Questions
What first-time home buyer programs are available in Ontario in 2026?
Ontario first-time buyers in 2026 have access to several stackable programs: the FHSA (up to $40,000 lifetime, tax-free); the RRSP Home Buyers' Plan (up to $60,000 per person); the Ontario Land Transfer Tax rebate (up to $4,000); the First-Time Home Buyers' Tax Credit ($1,500 federal tax savings); a 30-year insured amortization option; and a temporary Ontario HST rebate on new builds up to $1 million, in effect until March 31, 2027.
What is the FHSA and how does it work?
The First Home Savings Account (FHSA) lets first-time buyers contribute up to $8,000 per year (lifetime max $40,000), deduct contributions from taxable income, and withdraw the full balance — including investment growth — completely tax-free when purchasing a qualifying first home. Unlike the Home Buyers' Plan, FHSA withdrawals never need to be repaid. The account must be open for at least one calendar year before a qualifying withdrawal. If you don't end up buying, the balance can be transferred to your RRSP tax-free.
Do I qualify as a first-time home buyer if my spouse has owned a home?
For most programs — including the FHSA and Home Buyers' Plan — you qualify if neither you nor your current spouse or common-law partner owned and lived in a home as your principal residence in the current year or the four preceding calendar years. If your partner owned a home before you became partners, you may still be eligible. The Ontario Land Transfer Tax rebate is stricter: if both names are on title, both parties must qualify to receive the full $4,000 rebate.
How much is the Ontario Land Transfer Tax rebate for first-time buyers?
The Ontario Land Transfer Tax rebate for first-time buyers is up to $4,000. On a $600,000 home in London Ontario, the provincial LTT is approximately $8,475, so the rebate reduces your out-of-pocket cost to around $4,475. This is applied at closing by your real estate lawyer — not claimed later — so make sure your lawyer knows you're a first-time buyer well before closing day.
What is the 30-year amortization for first-time buyers in Canada?
Since December 2024, first-time buyers in Canada can access a 30-year amortization on insured mortgages with less than 20% down. On a $500,000 mortgage at 5%, the payment difference versus 25 years is roughly $250–$300 per month. The trade-off is significantly more interest paid over the life of the loan. Your mortgage broker can model both scenarios side by side.
Is the Ontario HST rebate on new homes available to first-time buyers in London Ontario?
Yes, if you're buying a newly built home. Effective April 1, 2026 through March 31, 2027, Ontario is temporarily eliminating the full 13% HST on eligible new homes valued up to $1 million. This does not apply to resale homes. For first-time buyers purchasing a new build, this stacks on top of the Land Transfer Tax rebate, FHSA, and HBP — making 2026 one of the most financially supported windows to buy new in Ontario's history.
Buying Your First Home in London Ontario?
Make Sure You're Using Every Program You Qualify For
Eric works with first-time buyers across London Ontario and knows exactly how these programs apply to real purchases at real prices here. A 30-minute conversation before you start searching can make a meaningful difference to what you walk away with at closing.
Eric Cassidy
London Ontario Real Estate Agent — Cassidy & Co.
Eric has guided first-time buyers through purchases across every London Ontario neighbourhood — from Hyde Park to Wortley Village to Byron. He's helped clients navigate the FHSA, Home Buyers' Plan, and Land Transfer Tax rebate on real transactions at real prices in this market. Learn more about Eric and the team.
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