First-Time Home Buyer Incentives in Toronto: A Complete 2026 Guide

Buying your first home in Toronto is a major milestone — and also a significant financial undertaking. Fortunately, several government programs exist specifically to help first-time buyers get into the market. Here's what's available in 2026.

Land Transfer Tax Rebates

Toronto is unique in charging both a provincial and a municipal land transfer tax. First-time buyers can receive rebates on both, which can add up to substantial savings at closing. Make sure your lawyer applies for both rebates — they aren't automatic.

The First Home Savings Account (FHSA)

This registered account lets first-time buyers contribute funds that grow tax-free and can be withdrawn tax-free when used toward a home purchase. Combined with RRSP contribution room, it's one of the most effective savings tools available.

RRSP Home Buyers' Plan

Buyers can still withdraw funds from their RRSP to put toward a down payment, provided the funds are repaid over time. This remains a popular way to boost a down payment without taking on new debt.

Down Payment Minimums

Understanding how minimum down payments scale with purchase price is essential for budgeting — the percentage required increases as the home price rises past certain thresholds.

Working With the Right Team

A first-time purchase moves faster and smoother with a buyer's agent, mortgage broker, and real estate lawyer who communicate well together. Their fees are often built into the transaction and can save you from costly mistakes.

Common First-Time Buyer Mistakes to Avoid

• Skipping pre-approval before house hunting
• Underestimating closing costs beyond the down payment
• Waiving conditions to compete, without understanding the risk
• Not budgeting for moving and immediate repair costs

Final Thoughts

The incentives available to first-time buyers in Toronto can meaningfully reduce the cost of entry — but only if you know how to use them together strategically.

Ready to explore your first-time buyer options? Let's map out a plan that fits your budget and timeline.