A few years ago, a young couple sat across from me at my kitchen table. They had saved for years.
They had their pre-approval. They were ready. Then I asked one simple question: "Have you claimed your first-time buyer rebates?" They looked at each other. "We thought those were only for people who had never owned anything," one said.
One of them had owned a small condo years before. They assumed the door was closed. It was not.
That conversation saved them real money.
As a CPA and a real estate broker, I see this often. Good, careful people leave money on the table. Not because they are careless, but because the rules are spread across many programs. So let me bring them together for you, in plain words.
Who counts as a first-time buyer?
This is the first surprise. There is no single definition. Each program has its own test.
For many federal programs, the test looks back four years. If you, or your spouse or partner, did not live in a home you owned during that time, you may qualify again. Ontario's land transfer tax refund is stricter. You generally must never have owned a home, or an interest in one, anywhere in the world.
So you could be a first-time buyer for one program and not for another. Check each one on its own, on the official CRA and Ontario sites.
Saving tax-free: the FHSA and the Home Buyers' Plan
The First Home Savings Account, or FHSA, is one of the kindest tools in Canadian tax law. You can contribute up to $8,000 a year, up to $40,000 in your lifetime. Contributions are tax-deductible. When you withdraw the money to buy a qualifying first home, it is tax-free.
The RRSP Home Buyers' Plan lets you borrow from your own RRSP to buy your first home. You repay it over time. Please check the current limit before you plan around it.
Which comes first? In my CPA view, many buyers look at the FHSA first, because it never has to be paid back. Couples can often use both, and each partner may have their own accounts. The key is time. An FHSA works best when it is opened early.
Land transfer tax: in Toronto you pay twice, and save twice
In the City of Toronto, buyers pay land transfer tax to the province and to the city. It can be one of the largest closing costs.
First-time buyers can receive Ontario's refund of up to $4,000, plus Toronto's rebate of up to $4,475.
Together, that is up to $8,475. Your real estate lawyer usually claims both on closing day, so tell your lawyer early that you are a first-time buyer.
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Buying new from a builder? Look at the GST and HST rebates
New homes carry 13% HST in Ontario, made of a federal part and a provincial part. The federal first-time buyer GST rebate can cover up to 100% of the federal GST on new homes up to $1 million, with a smaller rebate up to $1.5 million (Source: Canada Revenue Agency).
Ontario has also announced a first-time buyer rebate on the provincial part. It can cover the full 8%, up to $80,000, on new homes up to $1 million, for agreements signed from March 20, 2025 to December 31, 2030. These rules are detailed, so please check the current rules and review any builder agreement with your lawyer before you sign.
What today's market means for you
In October, GTA home sales were just over 5,600, down 7.9% from last year. New listings were 14,173, down 11.9%. The average price was $1,024,108, down 2.7% (Source: TRREB, via blogTO, November 2026).
At the same time, the Bank of Canada raised its policy rate to 2.5% on October 28. Its next decision is December 9. For buyers, this means two things. Prices have been steady to softer, and borrowing costs matter more than ever. A pre-approval with a rate hold helps you know your number before you fall in love with a home.
My CPA checklist for first-time buyers
1) Confirm which programs you qualify for, one program at a time.
2) If you may buy in the next few years, consider opening an FHSA now.
3) Get a mortgage pre-approval and ask about a rate hold.
4) Tell your lawyer early that you are a first-time buyer.
5) Keep one folder with your documents, account statements and key dates.
6) Check the current limits on the CRA, Ontario and City of Toronto sites before you act.
A first home is a first step in building wealth
A first home is more than a place to live. It is where long-term wealth often begins. Every dollar you keep at the start gives you more room later: for a renovation, for savings, or for your next move.
This week, I also made a short video that walks through each program: "First-Time Home Buyer
Programs in Ontario: Your 2026 Guide" on my YouTube channel, youtube.com/@PatriciaGriecoBroker.
If you would like my free First-Time Buyer Checklist, or a calm, private chat about your plans, I would be glad to help. Simply write to me at [email protected] or call 416-702-3096
With you beyond the transaction,
Patricia Grieco
Real Estate Broker, CPA, MBA
RE/MAX Professionals Inc.
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