First-Time Home Buyer in Ontario: Every Rebate, and the Deadlines On Them
Most guides tell you what a house costs. This one is about the money you get back — and the fact that the largest rebate available to an Ontario buyer right now has a hard closing date of March 31, 2027.
Updated November 2026 · 11 min read · Sources: CRA Memorandum 19-3-10, CRA Notice 346, Department of Finance Canada, CMHC
The three dates that decide what you get
March 31, 2027 — last day to sign an agreement of purchase and sale that qualifies for Ontario's enhanced new housing rebate, worth up to $80,000. Signed on April 1, 2027 instead and that money is gone.
March 20, 2025 — the federal first-time buyers' GST/HST rebate only applies to agreements signed on or after this date. An agreement signed in 2023 that closes next year does not qualify, whatever your circumstances.
December 15, 2024 — from this date the insured mortgage cap rose to $1,500,000 and 30-year amortizations became available to all first-time buyers, not just those buying new builds.
The big one: up to $130,000 of HST back on a new build
Ontario charges 13% HST on a new home — 5% federal, 8% provincial. On a $1 million new build that is $130,000. Two separate rebates currently exist, one federal and one provincial, and together they can return all of it.
This applies only to new or substantially renovated homes — bought from a builder, built for you, or owner-built, plus co-op shares. A resale house carries no HST on the purchase price, so none of this section applies to one.
| Rebate | Covers | Maximum | Window |
|---|---|---|---|
| Federal FTHB GST/HST rebate | 100% of the 5% federal part | $50,000 | Agreement signed on or after Mar 20, 2025 and before 2031 |
| Ontario enhanced new housing rebate | 100% of the 8% provincial part | $80,000 | Agreement signed Apr 1, 2026 to March 31, 2027 |
| Ontario new home affordability payment | The 5% federal part — for buyers who are NOT first-time | $50,000 | Follows the ENHR window |
| Ordinary GST/HST new housing rebate | 36% of the federal part | $6,300 | Phases out $350,000 to $450,000 |
You cannot stack all three. This is where other write-ups go wrong by adding the maximums together. Ontario's affordability payment is explicitly reduced by any federal rebate you receive. So a first-time buyer claiming the full federal $50,000 receives nothing from it. The payment exists to cover the federal 5% for people who are not first-time buyers. Either route lands in the same place — the 5% covered once, the 8% covered by the provincial rebate.
Above $1 million, the two rebates behave differently, and the difference is large. The federal rebate phases down from $1 million and disappears entirely at $1.5 million. The Ontario rebate becomes a flat $80,000 between $1 million and $1.5 million, then partial up to $1,850,000, above which only the ordinary $24,000 Ontario rebate remains. A $1.4 million new build therefore gets no federal rebate but still gets the full $80,000 provincially.
Two conditions catch people. You must be the first person to occupy the home — buying an assignment from someone who already moved in disqualifies you. And the federal rebate requires you to be a Canadian citizen or permanent resident, which the Ontario rebate does not. A newcomer on a work permit can qualify for Ontario's rebate and not the federal one; our newcomer money guide covers the wider picture there. Where several buyers all qualify federally, only one of you may claim it, so decide before filing.
Land transfer tax, and the rebate that covers the first $4,000
Every Ontario purchase pays provincial land transfer tax on closing. Buy inside the City of Toronto and you pay a second municipal tax of roughly the same size — the single biggest regional difference in Canadian closing costs. First-time buyers get up to $4,000 back provincially and up to $4,475 more in Toronto.
| Purchase price | Provincial LTT | After rebate | In Toronto, after both |
|---|---|---|---|
| $500,000 | $6,475 | $2,475 | $4,475 |
| $700,000 | $10,475 | $6,475 | $12,475 |
| $900,000 | $14,475 | $10,475 | $20,475 |
| $1,000,000 | $16,475 | $12,475 | $24,475 |
The $4,000 rebate fully covers the tax on a home up to about $368,333 — which in today's Ontario market means it is a partial offset for almost everyone. To qualify you must be at least 18, never have owned a home anywhere in the world, and occupy it as your principal residence within nine months. Work out your own figure with the land transfer tax calculator, and see the full cash-at-closing picture in the Ontario closing costs guide.
The down payment is tiered — and there is a cliff at $1,500,000
"Five percent down" is not the rule. The minimum is 5% on the first $500,000, 10% on the portion from $500,000 to $1,500,000, and 20% above $1,500,000, where mortgage default insurance stops being available at all.
| Price | Minimum down | Effective % |
|---|---|---|
| $500,000 | $25,000 | 5.00% |
| $700,000 | $45,000 | 6.43% |
| $1,000,000 | $75,000 | 7.50% |
| $1,499,000 | $124,900 | 8.33% |
| $1,501,000 | $300,200 | 20.00% |
Look at the last two rows. Two thousand dollars of purchase price adds $175,300 to the cash you must produce. If you are negotiating anywhere near that line, the price matters far more to your deposit than to your mortgage. Model it with the home affordability calculator.
Since December 2024 first-time buyers can also take a 30-year amortization on an insured mortgage — originally new builds only, now any home. It lowers the monthly payment and therefore helps you qualify, at the cost of materially more total interest. Treat it as a qualifying tool, not a free upgrade.
Where the down payment comes from: $100,000 per person
Two registered accounts exist for this, and they stack. An FHSA takes $8,000 a year to a $40,000 lifetime limit. The RRSP Home Buyers' Plan lets you withdraw $60,000. That is $100,000 per person — $200,000 for a couple who each hold both.
If you can only fund one, fund the FHSA. Contributions are deductible like an RRSP, withdrawals for a qualifying home are tax-free like a TFSA, and nothing is repayable. Home Buyers' Plan money must be repaid over 15 years, and missed repayments become taxable income. Compare them in the FHSA calculator and the FHSA guide.
Two timing traps. Open the FHSA now, even with $100 in it — the annual room only starts accruing once the account exists, so an unopened FHSA is room you are losing every year. And HBP funds must generally sit in the RRSP at least 90 days before withdrawal, so a February contribution cannot fund a March closing. Note also that the FHSA's first-time test counts a home you owned abroad in the current or four preceding calendar years.
Mortgage insurance: what putting 5% down actually costs
Below 20% down, default insurance is mandatory. The premium is a percentage of the loan, set by loan-to-value, and it is normally added to the mortgage — so you pay interest on it for the whole amortization.
| Loan-to-value | Premium on the loan |
|---|---|
| Up to 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
| 90.01% to 95%, non-traditional down payment | 4.50% |
A $700,000 purchase with the $45,000 minimum leaves a $655,000 loan at about 93.6% loan-to-value — the 4.00% band — so roughly $26,200 of premium. Putting down enough to reach 90% loan-to-value drops the rate to 3.10% and saves most of that.
The detail that catches Ontario buyers: Ontario charges provincial sales tax on the premium, and that tax cannot be added to the loan. It is cash, due at closing, on top of everything else. Quebec and Saskatchewan do the same; most provinces do not. Worth knowing too that CMHC offers up to a 25% premium refund on an energy-efficient home — rarely mentioned and worth asking about.
The stress test decides what you can buy
You must qualify at the greater of your contract rate plus 2%, or 5.25% — the OSFI floor. Offered 4.5%, you are assessed at 6.5%. Offered 2.8%, you are assessed at 5.25%, because 4.8% is below the floor. This, not the rate you are quoted, sets your maximum price.
On top of that, lenders apply debt-service ratios: housing costs within 32% of gross income, and all debt within 44%. Paying off a car loan before you apply often raises your approval more than another $10,000 of down payment does. Test both with the stress test calculator, and read the stress test guide for the strategies that actually move it.
The tax credit nearly every article gets wrong
The first-time home buyers' tax credit is claimed as $10,000 on line 31270 of your return. Almost every article says it is worth $1,500. It is not, any more. The credit equals the claim multiplied by the lowest federal tax rate, and that rate was cut from 15% to 14% — so for 2026 it is worth $1,400.
It is non-refundable: it reduces tax you owe and pays nothing if you owe none, which matters if you bought in a low-income year. You can split it between joint buyers up to the one cap per home. And you do not have to be a first-time buyer at all if you qualify for the disability tax credit, or are buying to house a related person who does — a provision worth real money and almost never mentioned.
The order to do things in
1. Open an FHSA today. Room accrues only once the account exists. This is the cheapest decision on the list.
2. Get the stress-test number before you look at listings. Browsing above your qualifying price wastes months.
3. Clear consumer debt before applying. It moves the debt-service ratios more than extra savings does.
4. Decide resale or new build with the rebates in front of you. On a new build the HST relief can exceed the entire down payment. On a resale it is worth nothing at all.
5. If a new build, check the agreement date against the windows. March 31, 2027 for Ontario's rebate, on or after March 20, 2025 for the federal one.
6. Budget the cash separately from the down payment. Land transfer tax, legal fees, title insurance, the property tax adjustment and PST on the insurance premium are all cash at closing.
7. Keep the 90-day HBP rule in view if RRSP money is part of your plan.
8. Claim the credit at tax time. Line 31270, and the land transfer tax rebate through your lawyer at closing.
Mistakes that cost Ontario first-time buyers real money
Signing a new-build agreement after March 31, 2027. Up to $80,000, lost to a date.
Adding the rebate maximums together. Ontario's affordability payment is net of any federal rebate — you cannot collect both.
Assuming 5% down. A $700,000 home needs $45,000, not $35,000.
Negotiating just over $1,500,000. The minimum deposit roughly doubles across that line.
Not opening an FHSA because you have nothing to put in it. Unopened means no room accruing.
Contributing to an RRSP in February for a spring closing. The 90-day rule blocks the withdrawal.
Forgetting the premium's provincial sales tax. It cannot be financed — it is cash at closing.
Buying an assignment and expecting the HST rebate. You must be the first occupant.
Both spouses claiming the federal rebate. Only one of you may.
First-Time Buyer Ontario — Frequently Asked Questions
On a $1 million new home, the whole 13% — $130,000. $50,000 federal plus $80,000 Ontario. Never on a resale home.
March 31, 2027 — the agreement must be signed between April 1, 2026 and that date. The federal rebate runs to 2031.
No — it is for any eligible individual buying a primary residence. Only the federal rebate requires first-time status.
5% to $500,000, 10% from there to $1,500,000, 20% above. A $700,000 home needs $45,000.
Yes — $40,000 plus $60,000 is $100,000 per person. Fund the FHSA first; nothing is repayable.
$1,400 in 2026 — not the $1,500 still widely quoted. $10,000 claimed at the 14% lowest federal rate, and non-refundable.
Up to $4,000 provincially, plus $4,475 in Toronto. On $700,000 outside Toronto you pay $6,475 after the rebate.