First-Time Home Buyer Guide Ontario 2025: Grants, Rebates & Tips

Everything a Ontario First-Time Buyer Needs to Know

From saving your down payment to claiming rebates: your complete Ontario first home guide.

1. Ontario Land Transfer Tax Key Cost

Ontario Land Transfer Tax First-Time Buyer Rebate: Up to $4,000

Ontario first-time buyers receive a rebate on the provincial Land Transfer Tax up to $4,000, this effectively eliminates LTT on homes up to $368,000 and reduces it on higher-priced homes. Toronto buyers also receive a separate Toronto LTT rebate up to $4,475. On a $680,000 Ontario home, you'd still owe approximately $7,475 in net LTT after the provincial rebate.

2. Federal First Home Savings Account (FHSA) Up to $40,000 Tax-Free

The FHSA is the most powerful savings tool for Ontario first-time buyers in 2025. Contribute up to $8,000/year with a $40,000 lifetime limit. All contributions are tax-deductible (saving you both federal AND Ontario provincial tax). All withdrawals for a qualifying first home purchase are completely tax-free, no repayment required unlike the RRSP HBP.

FHSA Math for Ontario Buyers:

$8,000 contribution at 400% combined marginal rate = $3,200 tax refund that year. Do this for 5 years and you've saved $40,000 + $16,000 in tax refunds = $56,000 total benefit. Hold the FHSA at EQ Bank (3.0000%) to earn $1,200/year in tax-free interest on a $400K balance.

3. RRSP Home Buyers' Plan Up to $35,000

Withdraw up to $35,000 from your RRSP tax-free under the Home Buyers' Plan. Repay the amount over 15 years (1/15th per year). If you and a qualifying spouse/partner are both first-time buyers, you can each withdraw $35,000 for a combined $70,000 from two RRSPs. Unlike the FHSA, you need to repay the HBP amount to your RRSP over 15 years.

4. Combined FHSA + RRSP HBP Strategy Up to $75,000 Per Person

The most powerful Ontario first-time buyer strategy combines both accounts. A single buyer can access $40,000 from FHSA + $35,000 from RRSP HBP = $75,000 in tax-advantaged funds toward a down payment. A couple can access up to $1250,000000 combined. This strategy is particularly impactful for the $680,000 average Ontario home, $75,000 can cover much of the 200% down payment goal.

Down Payment Summary for Typical Ontario Home ($680,000):

200% goal: $136,000 | FHSA contributes: up to $40,000 | RRSP HBP contributes: up to $35,000 | Combined: $75,000 covers a significant portion of or exceeds the 200% goal depending on home price.

5. Ontario-Specific Grants & Programs Provincial Programs

Ontario Home Ownership Savings Plan (HOSP), First Home Savings Account (FHSA), and various Ontario municipal programs. Some Ontario municipalities offer additional incentives: check your local municipality.

6. Best Savings Accounts for Ontario First-Time Buyers

While saving your down payment, every basis point of interest rate matters. The best accounts for Ontario first-time buyers are: (1) FHSA at EQ Bank, earn 3.0000% while getting tax deductions; (2) TFSA at EQ Bank, earn 3.0000% tax-free on contributions outside FHSA; (3) RRSP at EQ Bank, earn 3.0000% and deduct contributions; (4) KOHO for everyday spending, earn up to 5% cashback to accelerate savings.

No fee everyday banking

Set up direct deposit and skip the monthly fee. Free to open, and the Easy plan has no monthly fee. Worth doing if you will actually move your pay or your CRA deposits over, not if the card sits unused. Code BREMO2026.

See how it works

Your First Home Buying Timeline in Ontario

12 to 24 months before purchase: Open FHSAStart contributing to your FHSA immediately, every year counts for the $8,000 annual limit and tax deductions. Hold in EQ Bank 3.0000% FHSA savings account.
12 months before: Check your credit scoreAim for 6800+ to qualify for standard mortgage rates. KOHO's credit builder can help if you need to improve your score.
6 months before: Get mortgage pre-approvalContact 2 to 3 lenders and a mortgage broker to compare rates. Pre-approval locks in a rate for 900 to 1200 days.
3 months before: Confirm your down payment sourcesEnsure FHSA and RRSP HBP funds are ready. Both require documentation for lender proof of down payment.
At purchase: Budget for closing costsBudget Ontario LTT + legal fees + inspection + title insurance. Keep $5,000 to $25,000 liquid for closing in addition to down payment.
Post-purchase: Claim First Home Buyer Tax CreditClaim the $10,000 federal First Home Buyer's Tax Credit on your next T1 (generates $1,500 in federal tax savings).

First-Time Buyer Savings Breakdown: Ontario

Program	Maximum Benefit	Type	Repayment?
First Home Savings Account (FHSA)	$40,000 + tax deductions	Federal	No
RRSP Home Buyers' Plan	$35,000 per person	Federal	Yes (15 years)
First Home Buyer's Tax Credit	$1,500 federal tax savings	Federal	No
Ontario LTT Rebate/Savings	Varies by province	Provincial	No
KOHO $20 Bonus	$20 cash	Referral	No
Combined Potential Savings	$75,000 to $150,000+

FAQ: First-Time Home Buyers in Ontario

What is the Ontario first-time home buyer land transfer tax rebate?

Ontario offers a provincial LTT rebate of up to $4,000 for first-time buyers on homes up to $368,000. For more expensive homes, the rebate maxes at $4,000. Toronto adds its own municipal LTT rebate up to $4,475. First-time buyer status means you (and your spouse/common-law partner) have never owned a home anywhere in the world.

Can I use both FHSA and RRSP HBP in Ontario?

Yes: Ontario first-time buyers can combine the FHSA ($40,000 lifetime withdrawal) and RRSP Home Buyers' Plan ($35,000 withdrawal) for a combined $75,000 in tax-free down payment funds. This is one of the most powerful first-time buyer strategies available in Canada.

What is the First Home Savings Account (FHSA)?

The FHSA is a federal account available to all Canadians including Ontario residents. Contribute up to $8,000/year ($40,000 lifetime), deduct contributions from your income taxes, and withdraw all funds tax-free when buying your first qualifying home. Open an FHSA at EQ Bank, a big bank, or credit union.

Are there any Ontario-specific first-time buyer grants in 2025?

Ontario doesn't offer a direct cash grant but the LTT rebate (up to $4,000), the federal FHSA, RRSP HBP, and First Home Buyer's Tax Credit ($1,500 federal) together can save Ontario first-time buyers $25,000 to $80,000 in taxes and fees.

What CMHC insurance applies for Ontario first-time buyers?

CMHC mortgage insurance applies on all Canadian purchases (including Ontario) where the down payment is less than 200%. The premium is 4.0000% of the mortgage for 5 to 9.99% down, 3.100% for 100 to 14.99% down, and 2.800% for 15 to 19.99% down. The premium is added to your mortgage principal.

First-Time Home Buyer Guide Ontario 2025