Four programs actually move money for Ontario first-time buyers. Two reduce what you pay, two supercharge how you save. Here is each one with its published figures — nothing estimated, nothing invented.
Ontario land transfer tax refund: up to $4,000
Ontario refunds up to $4,000 of provincial land transfer tax for qualifying first-time buyers. Because of how the brackets work, that fully eliminates the tax on the first $368,000 of purchase price. To qualify you must be at least 18, never have owned a home or an interest in one anywhere in the world, and your spouse must not have owned one while married to you. The refund is usually claimed by your lawyer at registration, so it simply reduces your closing bill. Missed it at closing? You have 18 months to apply to the Ministry of Finance. The full bracket math is in our land transfer tax guide.
RRSP Home Buyers’ Plan: withdraw up to $60,000
The federal Home Buyers’ Plan lets you pull money out of your RRSPs tax-free to buy or build a qualifying home. The limit is $60,000 per person — raised from $35,000 for withdrawals made after April 15, 2024. A couple who both qualify can withdraw up to $120,000 combined.
The catch is repayment. HBP withdrawals are a loan from your own retirement savings: you must repay them to your RRSP over the program’s repayment period on CRA’s schedule, and any year you skip a payment, that amount is added to your taxable income. Withdrawals must generally be made in the same calendar year, or in January of the following year, and you need a signed agreement to buy or build before you withdraw.
First Home Savings Account: $8,000 a year, $40,000 lifetime
The FHSA is the strongest first-time buyer savings tool the federal government offers, because it combines the best feature of an RRSP with the best feature of a TFSA. Contributions are tax-deductible, up to $8,000 per year and $40,000 lifetime. Qualifying withdrawals — including all investment growth — come out tax-free, with no repayment ever.
Unused annual room carries forward, up to $8,000 of it, but only once the account is open. That is the practical takeaway: open the FHSA early, even with a small deposit, because opening it starts your room accumulating. The account can stay open for up to 15 years or until you turn 71, whichever comes first. And it stacks with the HBP on the same purchase.
GST/HST new housing rebate
If you buy a new-construction home or substantially renovate one, a GST/HST new housing rebate exists to recover part of the tax built into the price. On most builder purchases the rebate is assigned to the builder and already baked into the advertised price — which matters, because the agreement usually requires you to qualify. If you do not (for example, you are not going to occupy the home as a primary residence), the builder can charge the rebate amount back to you on closing. The eligibility rules and amounts are set federally and, for the provincial portion, by Ontario; your lawyer and accountant confirm how they apply to your specific agreement. This is one of several reasons preconstruction agreements deserve legal review — see our preconstruction condo guide.
How the four fit together
A realistic sequence for a KWCG first-time buyer: open an FHSA now and contribute toward the $8,000 annual limit; keep RRSP savings growing in parallel as future HBP fuel; at purchase, withdraw from both, and have your lawyer claim the land transfer tax refund at closing. If the home is a new build, confirm the GST/HST rebate treatment before signing. None of these programs require choosing between them.
Qualify carefully
Each program defines “first-time buyer” its own way, and the definitions do not perfectly overlap — the HBP and FHSA, for instance, look back at recent ownership history, while Ontario’s refund is a lifetime test. Check each program’s rules against your actual history, including a spouse’s, before you count the money.
Buying your first home often starts with knowing what you can afford — and if a family sale funds the plan, what that home is worth. Start at /home-value/. Estimates are ranges. A licensed District agent delivers the real number within 24 hours.