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First-Time Buyer Incentives, Explained

First-time buyers in Ontario can access several real programs: RRSP withdrawals up to $60,000 tax-free, a First Home Savings Account, a $1,500 federal tax credit, and a Land Transfer Tax rebate worth up to $8,475.

Being a first-time buyer in Ontario unlocks real, meaningful programs, not just a discount here and there. Here's what's actually on the table.

There's also a Land Transfer Tax rebate specifically for first-time buyers, worth up to $8,475 combined. That's covered in full in the Land Transfer Tax guide →

RRSP Home Buyers' Plan

You can withdraw up to $60,000 tax-free from your RRSP per buyer, up to $120,000 combined for a couple, to put toward your down payment. Repayment starts in year two and is spread over 15 years. You're eligible as long as you haven't owned a home in the past 4 years.

First Home Savings Account (FHSA)

A relatively new account combining the best of an RRSP and TFSA: contribute up to $8,000/year (lifetime max $40,000), get a tax deduction on contributions, and withdraw completely tax-free when buying your first home.

First-Time Buyers' Tax Credit

A non-refundable federal credit worth up to $1,500, reducing what you owe in taxes the year you buy. Applies if neither buyer owned a home in the past 4 years.

Program Max value
RRSP Home Buyers' Plan$60,000 per buyer
First Home Savings Account$40,000 lifetime
First-Time Buyers' Tax Credit$1,500
Land Transfer Tax rebate$8,475 combined

Figures current as of 2026 - programs and limits change. Confirm specifics with your mortgage advisor before relying on these numbers. Want to run your own numbers? Try the Numbers calculators, or download the PDF version from Resources.

The information and calculators on this site are estimates for general informational purposes only and do not constitute financial, legal, or tax advice. Figures are based on publicly available rates current as of 2026 and may not reflect your specific circumstances. Always confirm exact numbers with a licensed mortgage professional, real estate lawyer, or accountant before making a purchase decision.