Buying your first home in Canada in 2026 looks meaningfully different from even two years ago. Several federal and provincial programs have been expanded, a major new GST exemption is working its way through legislation, and Ontario introduced a significant HST rebate on new builds that took effect this spring. For buyers in the GTA and across Ontario, the combined value of available incentives can now reach well into six figures, but only if you know what’s available, what you qualify for, and how to stack the programs correctly.
This guide breaks down every major program available to first-time buyers right now, with the specifics that matter.
The FHSA: The Most Powerful Savings Tool Most Buyers Underuse
The First Home Savings Account, introduced in April 2023, remains the single best savings vehicle available to first-time buyers, and it’s still underused. The reason it’s so effective is that it combines two tax advantages that normally don’t coexist: contributions are tax-deductible (like an RRSP), and qualifying withdrawals are completely tax-free (like a TFSA).
The contribution rules are worth knowing precisely:
- $8,000 per year is the annual limit, with unused room carried forward to the following year
- $40,000 lifetime per person is the cap
- Couples can each hold an FHSA, bringing the combined lifetime limit to $80,000
- If you never buy a home, the funds can be transferred to your RRSP or RRIF with no tax consequences
The carry-forward rule matters more than most buyers realize. If you opened your FHSA in 2023 and contributed only $2,000 that year, you can contribute up to $14,000 the following year to catch up. To make a qualifying withdrawal, you need a signed agreement to purchase a qualifying home and must intend to occupy it as your principal residence within one year. The account closes at the end of the year you make your first withdrawal, or after 15 years, whichever comes first.
The RRSP Home Buyers’ Plan: Still Worth Using, But Plan the Repayment
The RRSP Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from their RRSP tax-free for a qualifying home purchase. Combined with a partner’s FHSA, that’s potentially $100,000 in tax-advantaged savings available for a down payment from these two programs alone.
What makes the HBP more complicated than the FHSA is the repayment requirement. Withdrawn funds must be paid back to your RRSP over 15 years. If you miss a repayment in any given year, that missed amount gets added to your taxable income, which can create an unexpected tax bill. For buyers who withdrew funds between January 1, 2022 and December 31, 2025, the federal government introduced a three-year grace period, pushing the first required repayment to year five.
The strategic question is whether the RRSP funds you’d withdraw have been in the account for at least 90 days (a hard requirement), and whether the repayment schedule fits within your post-purchase cash flow. This is one of the areas where mortgage assistance for first-time buyers from an experienced broker can prevent a costly planning mistake.
Ontario’s 2026 HST Rebate on New Builds: A Major Development
This is the program most buyers in Ontario haven’t fully absorbed yet. Effective April 1, 2026, Ontario introduced an expanded HST rebate for newly built homes, removing the full 13% HST on eligible properties valued up to $1 million. For homes priced between $1 million and $1.5 million, a partial rebate still applies, with a maximum benefit of $130,000.
The rebate is temporary, running until March 31, 2027, but for buyers purchasing a new build or a substantially renovated home within that window, it’s one of the most significant cost reductions available. At $800,000, the full HST elimination saves a buyer $104,000. That number changes the math for new construction, making it especially important to work with a knowledgeable mortgage broker in Mississauga rather than going directly to a builder’s preferred lender.
The Federal GST Exemption: Watch This Closely
Separately from Ontario’s provincial measure, the federal government has been moving Bill C-4 through Parliament, which would remove the 5% federal GST on newly constructed homes priced up to $1 million for first-time buyers. The bill received Royal Assent on March 12, 2026, eliminating the GST for first-time buyers on new homes up to $1 million. The savings are $50,000.
The distinction between the federal GST measure and Ontario’s HST rebate matters: these are separate programs that may overlap, but the eligibility rules and timelines differ. Many buyers ask for help from a mortgage broker at this stage to understand which rebates can realistically be combined before signing a purchase agreement.
How Stacking These Programs Actually Works in Practice
The real power of first-time home-buyer programs in Canada isn’t in any single measure; it’s in using multiple programs simultaneously, since each addresses a different cost. A first-time buyer purchasing an $800,000 home in Toronto in 2026 could realistically access:
- FHSA savings (individual): $40,000
- RRSP Home Buyers’ Plan withdrawal: $60,000
- Ontario land transfer tax rebate: up to $4,000
- City of Toronto land transfer tax rebate: up to $4,475
- First-Time Home Buyers’ Tax Credit: up to $1,500
- Ontario HST rebate (if purchasing new construction): up to $104,000
That’s a potential combined benefit exceeding $200,000 for the right buyer in the right scenario. Even for resale purchases where the HST rebate doesn’t apply, the other programs together provide over $100,000 in real financial value.
Using a mortgage calculator to model your down payment scenarios before speaking with a broker can help you arrive at that conversation with the right questions already framed.
What First-Time Buyers in 2026 Should Do Right Now
Dove Mortgages works with first-time buyers across Ontario to map out exactly which incentives apply, how to sequence your FHSA and HBP withdrawals, and how to position your file so lenders see the full picture of your financial strength, not just the surface numbers.
The window for some of these programs, particularly Ontario’s expanded HST rebate, is time-limited. Here’s what to prioritize:
If you’re 1–3 years away from buying, open an FHSA immediately if you haven’t. Every year you delay is $8,000 in contribution room, and potential tax savings, you can’t recover. Start building your RRSP contribution room in parallel.
If you’re buying in the next 6–12 months: Confirm your FHSA withdrawal eligibility, review your RRSP balance and the 90-day rule, and clarify whether your target property qualifies for the HST or GST rebate. These details need to be sorted before you’re in an offer situation, not after.
If you’re buying new construction in Ontario, the April 2026 HST rebate is one of the most valuable incentives available right now, and it expires in March 2027. Model the full cost of new versus resale with a professional before deciding.
The combination of first-time homebuyer programs available in 2026 is genuinely more generous than it has been in years, but capturing that value requires planning, timing, and the right guidance.
