First-Time Home Buyer Programs in Ontario

First-time home buyer programs Ontario searches usually come from buyers trying to understand what help is actually available and what still needs to be budgeted for. In 2026, buyers can look at tools like the FHSA, the Home Buyers’ Plan, land transfer tax relief, and the federal GST/HST rebate on qualifying new homes. The tricky part is that not every program stacks the same way, and eligibility matters. That means first-time buyers in Niagara need a clear plan before they start writing offers or comparing new construction and resale options.

The First Home Savings Account (FHSA)

The FHSA lets first-time buyers contribute up to $8,000 per year, to a lifetime maximum of $40,000. Contributions are tax-deductible, like an RRSP, which means an $8,000 contribution can generate a meaningful refund at tax time depending on your income bracket. Growth inside the account is tax-sheltered, and qualifying withdrawals toward a first home are completely tax-free, with no repayment required. That last point is what sets it apart from the Home Buyers’ Plan below.

Unused contribution room carries forward one year, and the account needs to be open for at least one calendar year before certain withdrawal rules apply, so opening an FHSA early, even with a small first deposit, is worth doing well before you’re ready to buy.

The RRSP Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows first-time buyers to withdraw up to $60,000 from an existing RRSP, tax-free, toward a first home purchase — this limit was raised from $35,000 in the 2024 federal budget. Unlike the FHSA, HBP withdrawals must be repaid to your RRSP over 15 years, or the unrepaid portion gets added to your taxable income. For a two-person household where both partners qualify, that’s a combined $120,000 available between the two accounts.

Because the FHSA doesn’t require repayment and the HBP does, many buyers use their FHSA first and treat the HBP as the next layer of down payment funding once the FHSA is maxed out.

Ontario’s land transfer tax rebate

Ontario provides a rebate of up to $4,000 on the provincial land transfer tax for first-time buyers, which covers the full tax owed on homes priced at roughly $368,000 or less, with a partial rebate above that threshold. This rebate is applied by your real estate lawyer at closing, so it reduces your closing costs directly rather than arriving later as a refund.

The GST/HST rebate on new homes

The federal First-Time Home Buyers’ GST/HST Rebate received Royal Assent in March 2026 and now eliminates the GST, or federal portion of the HST, on qualifying new homes valued up to $1 million, with a reduced rebate phasing out on homes between $1 million and $1.5 million. This applies specifically to new-construction and substantially renovated homes purchased from a builder, not resale homes, which is an important distinction for Niagara buyers weighing new build against resale.

Why this matters in Niagara

Niagara’s market gives first-time buyers a range of options, from more affordable communities like Welland and Thorold to areas where buying takes more planning. That makes it even more important to understand whether your budget works better for a resale home, condo, or new build. The right program can help you get started sooner, but the right local strategy matters just as much. Budgeting for closing itself is its own piece of the puzzle too — see our closing costs guide. Once you know what you qualify for, the next step is figuring out what you can actually afford month to month (how-much-house-can-you-afford-niagara-falls-2026), and our Buy With Us page explains how we support first-time buyers through the whole process.

Step by step process

1. Confirm whether you qualify for first-time buyer programs — most require you not to have owned a home anywhere in the world in the past four years.
2. Review your down payment, closing costs, and monthly payment target using the FHSA and HBP together where it makes sense.
3. Compare new build and resale options in Niagara, since the GST/HST rebate only applies to new construction.
4. Check how each program affects your total budget and closing costs, not just your down payment.
5. Choose a neighbourhood that fits your plan, not just your search filters.

FAQs

What first-time buyer programs matter most in Ontario?
The FHSA, RRSP Home Buyers’ Plan, Ontario land transfer tax rebate, and the First-Time Home Buyers’ GST/HST Rebate are the main tools most buyers stack together.

Should I buy new or resale as a first-time buyer?
It depends on your budget, timing, and whether the GST/HST rebate on new construction, or the warranty benefits that come with a new build, make that option stronger for your situation.

Do I have to repay my FHSA withdrawal?
No. Unlike the Home Buyers’ Plan, FHSA withdrawals for a qualifying first home are completely tax-free and never need to be repaid.

Can I use both the FHSA and the Home Buyers’ Plan on the same home?
Yes. Many buyers use both, generally drawing down the FHSA first since it doesn’t require repayment, then using the HBP to cover any remaining gap.

Do I need to apply for the land transfer tax rebate myself?
No, your real estate lawyer applies it on your behalf at closing, which reduces your closing costs directly rather than arriving as a refund later.

Who’s the best person to help me with this?
Emily Barry and The Barry Team can help you map out which programs actually apply to your situation before you start house hunting.

Ready to put these programs to work? Download our Buying Guide or book a Buyer’s Meeting to go through your specific numbers.

Author

The Barry Team guides first-time buyers with clear local advice so the numbers make sense before the search begins.

Book a call with The Barry Team today to find a Niagara investment property that fits both your goals and the local rules. Reach out at 905-357-8067 or email admin@thebarryteam.ca.

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