First-Time Home Buyer Programs in Ontario: A Simple Guide

Last updated October 2026

Buying your first home is a big step. It is also expensive. The good news is that the governments of Canada and Ontario have programs that can help first-time buyers save money, pay less tax, and get into a home sooner.

This guide explains each program in simple words. Think of it as a map. It shows you what help is out there, so you can plan your next steps with confidence.

The programs at a glance

Who counts as a first-time buyer?

You might think a first-time buyer is simply someone who has never bought a home. That is close, but each program has its own rules. There are two main tests:

• The "never owned" test. Ontario's land transfer tax refund asks if you have ever owned a home, anywhere in the world. If your spouse owned a home while you were together, that can count against you too.
• The "four-year" test. Most federal programs use a softer rule. You can usually qualify if you have not lived in a home that you or your spouse owned in this year or the past four years. So someone who owned a home a long time ago might still count.

Because the rules are different, you could qualify for one program and not another. That is one of the first things worth checking before you start shopping.

Programs from the Government of Canada

These programs are available to first-time buyers all across Canada, including here in Ontario.

1. First Home Savings Account (FHSA)

The FHSA is a special savings account just for buying your first home. You can put in up to $8,000 each year, up to $40,000 in total.

Here is why it is helpful. The money you put in can lower the income tax you pay. The money also grows without being taxed. And when you take it out to buy your first home, you do not pay tax on it, and you never have to pay it back. If you are buying with a partner, you can each have one.

One tip: your saving room only starts counting once you open the account. So opening one early, even with a small amount, can help later.

2. Home Buyers' Plan (HBP)

If you have money saved in an RRSP (a retirement savings account), the Home Buyers' Plan lets you borrow from yourself. You can take out up to $60,000 to help buy your first home. A couple buying together can each take out $60,000.

The catch: this is a loan to yourself. You must pay it back into your RRSP over 15 years. If you miss a payment, that amount gets added to your income and taxed. You can use the HBP and the FHSA together for the same home.

3. First-Time Home Buyers' Tax Credit

This one is simple. In the year you buy your first home, you can claim a credit on your income tax return. It can lower your taxes by up to $1,500. It helps cover some of the extra costs of buying, like legal fees.

4. First-Time Home Buyers' GST/HST Rebate (new homes only)

When you buy a brand-new home from a builder, you pay sales tax on it. In Ontario, that tax is called HST, and it is 13%. Part of it (5%) goes to the federal government.

This rebate gives first-time buyers back that federal 5%, up to $50,000. The full rebate is for new homes priced up to $1 million. Between $1 million and $1.5 million, the rebate gets smaller. It applies to purchase agreements signed on or after March 20, 2025. It does not apply to resale homes, because resale homes do not have HST to begin with.

5. Longer mortgage option (30-year amortization)

An amortization is how many years you take to pay off your mortgage. Since December 15, 2024, first-time buyers with an insured mortgage (usually when you put down less than 20%) can choose 30 years instead of 25.

This makes your monthly payment smaller. But be careful: stretching it out means you pay more interest overall. There is also a small extra insurance cost. It is a trade-off worth thinking through with your lender.

6. Higher price limit for insured mortgages

At the same time, the government raised the price limit for insured mortgages from $1 million to $1.5 million. This means you can buy a home up to $1.5 million with less than 20% down. This one is not only for first-time buyers, but many first-time buyers use it.

Programs from the Province of Ontario

7. Land Transfer Tax Refund

When you buy a home in Ontario, you pay a one-time tax called land transfer tax. It is paid on closing day, and it can be several thousand dollars.

First-time buyers can get up to $4,000 of it back. On a home up to about $368,000, that covers the whole tax. On a pricier home, it takes $4,000 off the bill. For example, on a $600,000 home the tax is about $8,475, so a first-time buyer would pay about $4,475. Your real estate lawyer usually claims this for you at closing.

To qualify, you generally must be at least 18, never have owned a home anywhere in the world, and move into the home within nine months. If you buy with someone who is not a first-time buyer, only your share gets the refund.

8. Ontario First-Time Home Buyers' HST Rebate (new homes only)

This works alongside the federal rebate above. Ontario gives first-time buyers back the provincial 8% part of the HST on a new home. On a new home up to $1 million, that can be up to $80,000. It applies to purchase agreements signed on or after March 20, 2025.

Put the federal and Ontario rebates together, and a first-time buyer of a new home could save up to $130,000 in sales tax.

9. Ontario's temporary HST relief on new homes (for everyone)

Ontario has also added a short-term program for new homes. It is not only for first-time buyers, but first-time buyers can use it too. For purchase agreements with a builder signed between April 1, 2026 and March 31, 2027, it can remove most or all of the HST on a new home up to $1 million.

It has two parts: an enhanced rebate on the 8% provincial portion, and a separate Ontario payment (called the Ontario New Home Affordability Payment) that matches the 5% federal portion. For a first-time buyer, the federal rebate is claimed first. You cannot stack these rebates to get more than the tax you actually paid.

These HST rules are new and detailed. Ask your builder and your lawyer exactly how they will be claimed on your purchase.

Local programs in London, Middlesex and Elgin

Some help comes from right here at home. These programs are for renters with moderate incomes, and the money is limited. Once it runs out, it is gone until new funding arrives.

10. London and Middlesex Homeownership Down Payment Assistance Program

Run by the City of London, this program helps renters in London or Middlesex County buy a home there. It gives an interest-free loan of up to 5% of the price, to a maximum of $25,000, for your down payment. If you follow the rules and live in the home for 20 years, the loan is forgiven, which means you do not pay it back.

Some key rules: your household income must be under the limit ($95,000 for a single person, $115,000 for a family), you must currently rent in London or Middlesex, you must qualify for a mortgage, and the home needs a home inspection. You cannot rent out the home or its rooms.

11. St. Thomas–Elgin Affordable Homeownership Program

The City of St. Thomas runs a similar program for renters in St. Thomas and Elgin County. It also offers an interest-free, forgivable loan of up to 5% of the price, to a maximum of $25,000, paid on closing day. You must be a first-time buyer, at least 18, and a legal resident of Canada. The home must be in St. Thomas or Elgin County.

If you sell the home before the loan is forgiven, you may have to pay back part of it, plus a share of any profit. Read the agreement carefully, and talk to your lawyer before you sign.

A program you may hear about that has ended

You may still see older websites talk about the First-Time Home Buyer Incentive, where the government shared in the cost of your home. That program closed to new applications in 2024. If someone mentions it, it is no longer an option.

How I can help

That is a lot of programs, and each one has its own rules, dates and paperwork. Using them well is about timing. When should you open an FHSA? Does a new build or a resale home make more sense for you? Will you qualify for the local down payment help? A small mistake, like signing a purchase agreement on the wrong date, can cost you real money.

This is where I come in. As a licensed real estate broker serving London, Middlesex County and Elgin County, I help first-time buyers understand their options before they start shopping. I will help you:

• Figure out which programs you may qualify for
• Plan your budget, including closing costs that surprise many first-time buyers
• Connect with trusted local mortgage professionals and real estate lawyers
• Understand the trade-offs between city homes and homes in smaller towns or rural areas, where wells, septic systems and commuting matter
• Make your offer with care, and without pressure

I treat buying your first home with the seriousness it deserves. And I'll be honest: I think I'm the best person in the area to help you do it. (I may be a little biased.)

If you are thinking about buying your first home, I would be glad to sit down with you, answer your questions and help you make a plan. There is no cost and no obligation to talk.

Disclaimer

This article is for general information only and was last updated in October 2026. Government programs, amounts, deadlines and eligibility rules change often, and local programs have limited funding that may run out. The information here is not legal, tax, mortgage or financial advice, and it may not apply to your situation. Before you make any decision, please confirm the details directly with the government program, and speak with a qualified real estate lawyer, mortgage professional and tax or financial advisor. Nothing in this article guarantees that you will qualify for any program or receive any amount. [Brokerage Name] is a real estate brokerage registered with the Real Estate Council of Ontario (RECO).

Sources

• Government of Canada: First-time home buyers' GST/HST rebate
• Government of Canada: Ontario Enhanced New Housing Rebate
• Ontario: The Ontario New Home Affordability Payment
• Ontario: Building more homes faster (HST relief)
• City of London: Homeownership Down Payment Assistance Program
• Middlesex County: Home Ownership Assistance Program
• City of St. Thomas: Affordable Home Ownership Program
• Ratehub: Ontario land transfer tax and first-time buyer refund