First-Time Home Buyer Programs in Ontario (2026): Up to $130,000 in Savings, Explained
If you're buying your first home in Durham Region this year, the government programs on the table in 2026 are the strongest I've seen in my career. Here's every one of them, in plain language, with real numbers for Ajax, Whitby, Oshawa and Clarington buyers.
Most first-time buyers I meet already know about one or two programs. Very few know they can be stacked. When you combine them properly, the difference can be tens of thousands of dollars — sometimes six figures on a new build. 🏡
1. First Home Savings Account (FHSA) — tax-free down payment savings
The FHSA is the single best savings tool a first-time buyer has. You can contribute $8,000 a year, up to $40,000 lifetime. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals for your first home are tax-free (like a TFSA). You never pay it back.
- Unused room carries forward (up to $8,000) to the next year.
- Couples can each open one — that's up to $80,000 combined, plus growth.
- If you don't buy, the money can move into your RRSP without using RRSP room.
My advice: if you're even 12 months away from buying, open your FHSA now. The room only starts building once the account exists.
2. RRSP Home Buyers' Plan (HBP) — up to $60,000 per person
The HBP lets you withdraw up to $60,000 from your RRSP tax-free for your first home ($120,000 for a couple). Unlike the FHSA, it's a loan to yourself — repaid over 15 years.
The key point most people miss: you can use the FHSA and the HBP on the same purchase. That's up to $100,000 per person toward your down payment.
3. First-Time Home Buyers' GST/HST Rebate — up to $50,000 (federal)
This is the big one for new construction. As of March 2026, eligible first-time buyers can recover the full 5% GST (the federal part of the HST) on a newly built home valued up to $1 million — a maximum of $50,000. Between $1 million and $1.5 million, the rebate phases down.
- Applies to new or substantially renovated homes bought from a builder, owner-built homes, and certain co-ops.
- Your purchase agreement must be signed on or after March 20, 2025.
- It's a once-in-a-lifetime rebate, and the home must be your primary residence.
4. Ontario First-Time Home Buyers' HST Rebate — up to $80,000 (provincial)
Ontario now matches the federal program by rebating the 8% provincial portion of the HST for eligible first-time buyers of new homes up to $1 million — up to $80,000. The legislation passed in May 2026, and the CRA began accepting applications in June 2026.
Put the federal and Ontario rebates together and an eligible first-time buyer can be relieved of the full 13% HST — up to about $130,000 on a qualifying new home.
Durham example: on an $850,000 new-build townhome in Whitby or Bowmanville, 13% HST is roughly $110,500. For an eligible first-time buyer, that tax could come back. That's a real down payment's worth of savings. 💰
5. Ontario Land Transfer Tax Refund — up to $4,000
Every Ontario purchase triggers provincial Land Transfer Tax at closing. First-time buyers get a refund of up to $4,000, which fully covers the tax on homes up to about $368,000. It applies to resale and new homes, and your lawyer usually applies it right at closing.
Durham example: on a $700,000 resale home in Oshawa, Ontario LTT is about $10,475. After the first-time buyer refund, you'd pay about $6,475.
Good news for Durham buyers: unlike Toronto, Durham municipalities don't charge a second municipal land transfer tax. (Buying in Toronto? You'd pay the city's tax too, with an extra first-time buyer rebate of up to $4,475.)
6. First-Time Home Buyers' Tax Credit — $1,500
When you file your taxes for the year you buy, you can claim the federal First-Time Home Buyers' Tax Credit, worth up to $1,500. Small, but easy to forget — so don't.
7. 30-year amortization for first-time buyers
First-time buyers can now get a 30-year amortization on an insured mortgage (less than 20% down), instead of the usual 25. A longer amortization lowers your monthly payment, which can help you qualify for the home that actually fits your life. The insured mortgage cap is also $1.5 million, so 5–10% down is possible on more Durham homes than before.
How it all stacks up
| Program | Max benefit | Resale or new? |
|---|---|---|
| FHSA | $40,000 saved tax-free (per person) | Both |
| RRSP Home Buyers' Plan | $60,000 withdrawal (per person) | Both |
| Federal FTHB GST rebate | Up to $50,000 | New only |
| Ontario FTHB HST rebate | Up to $80,000 | New only |
| Ontario LTT refund | Up to $4,000 | Both |
| Federal tax credit | $1,500 | Both |
Who counts as a "first-time buyer"?
The rules differ slightly by program, which is where people get caught. For the FHSA, HBP and the new HST rebates, you generally qualify if you haven't lived in a home you or your spouse owned in the current year or the previous four calendar years. For the Ontario Land Transfer Tax refund, the rule is stricter: you can never have owned a home anywhere in the world. Always confirm your eligibility before you budget around a rebate.
Your first home is property number one
As a former banker, here's how I see it: these programs aren't just about getting a home. Used well, they help you buy with less debt and more equity — which puts you in a stronger position for property number two down the road. That's the plan I build with every first-time buyer I work with.
How we approach this: The Affluentia Way
Every client I work with goes through the same four-stage plan we call The Affluentia Way. Here's how it applies to using these programs:
- Clarity — we map out exactly which programs you qualify for, what each is worth to you, and what you can comfortably afford.
- Positioning — we set you up to win: opening your FHSA early, lining up your mortgage pre-approval, and targeting homes (resale or new build) that unlock the biggest rebates.
- Execution — we find the right home, negotiate it, and work with your lawyer and lender so every rebate and refund is actually claimed at closing.
- Expansion — once you're in, we plan the next step, so your first home truly becomes property number one. 🏡
Join my free First-Time Home Buyer Seminar 📅
I'm walking through all of this — with real Durham numbers and time for your questions — at my First-Time Home Buyer Seminar on Thursday, November 26, 2026 at 5:30 PM at our Oshawa office. It's built for buyers in Clarington, Bowmanville, Oshawa, Whitby and Ajax.
Prefer a one-on-one? Book a free 30-minute call or call me at 647.282.8078. I'll help you figure out exactly which programs you qualify for and what they're worth to you.
Neeraj Khanna, Broker of Record, Affluentia Realty
This article is general information, not tax, legal or financial advice. Program rules and eligibility can change; confirm your situation with your lawyer, accountant or mortgage professional before you buy.