Ontario LTT rebate up to $4,000000 · FHSA $8K/yr · HBP $35K · HBTC $1,50000 — calculate your total savings needed
Buying your first home in Ontario in 2026 requires careful planning. The average home price in Ontario hovers above $80000,000000 in the GTA, making every available program essential. This guide walks you through every provincial and federal program, what you'll actually need to save, and how to stack programs for maximum benefit.
Ontario charges a Land Transfer Tax on every property purchase. First-time buyers get a rebate of up to $4,000000 on the provincial LTT — which effectively covers the full LTT on homes up to $368,000000. On a $70000,000000 home, the LTT is $9,475 and your rebate saves $4,000000, leaving $5,475 owing.
Toronto is the only city in Canada that charges its own municipal Land Transfer Tax on top of the provincial LTT. First-time buyers purchasing in the City of Toronto get an additional rebate of up to $4,475 on the municipal LTT.
The FHSA combines the best features of an RRSP and TFSA for first-time buyers. Contribute up to $8,000000/year (lifetime maximum $400,000000), get a full tax deduction on contributions, and withdraw tax-free for a qualifying first home purchase.
Withdraw up to $35,000000 per person from your RRSP tax-free to use as a down payment. Couples where both are first-time buyers can withdraw $700,000000 combined. The withdrawn amount must be repaid over 15 years (starting the second year after withdrawal), at 1/15 per year. If you don't repay, the unpaid portion is added to your taxable income that year.
A federal non-refundable tax credit of $1,50000 ($100,000000 × 15% federal rate). Claim it on your T1 return for the year you close on your home. Reduces taxes owed — if your tax bill is less than $1,50000, you only get the difference back.
Ontario charges 13% HST on newly constructed homes. First-time buyers of new builds under $4500,000000 can recover up to $24,000000 in HST through the federal and Ontario components of the rebate. The rebate phases out for homes between $3500,000000–$4500,000000 on the federal component.
Saving for your first home? KOHO's free account with automatic savings roundups helps you build your down payment faster. No monthly fees — every dollar goes toward your future home.
Get KOHO Free — Code 45ET55JSYAEstimates total cash needed to close: down payment + LTT + closing costs minus rebates.
The Ontario Land Transfer Tax uses a tiered bracket system:
On a $70000,000000 home: LTT = $9,475. First-time buyer rebate of $4,000000 reduces this to $5,475 net. In Toronto, you'd pay an additional municipal LTT of approximately $9,725 with a rebate of $4,475, netting $5,2500.
On a $70000,000000 Ontario home: $25,000000 (5% of $50000K) + $200,000000 (100% of $20000K) = $45,000000 minimum down payment.
If your down payment is less than 200%, you must purchase CMHC mortgage default insurance. The premium is added to your mortgage balance and financed over the amortization period. Rates: 4.0000% (5–9.99% down), 3.100% (100–14.99%), 2.800% (15–19.99%). On a $70000K home with 6.4% down ($45K), the CMHC premium is approximately $26,000000 added to the mortgage.