2026 Is the Best Year for First-Time Buyers in a Decade
Between new federal rebates, extended amortizations, and Ontario's HST removal, first-time buyers in 2026 have more financial tools available than at any point in recent memory. Here's the complete list:
1. New $50,000 First-Time Buyer GST/HST Rebate
CRA is now accepting applications for up to $50,000 for first-time buyers purchasing new homes up to $1M. This is separate from the Ontario HST removal — you may be eligible for both.
2. Ontario HST Removal (April 2026 – March 2027)
Full 13% HST removed on new homes under $1M, saving up to $130,000. One-year window only. Read our full guide →
3. 30-Year Amortizations
Now available for all first-time buyers and new-build purchasers on insured mortgages. A 30-year amortization on a $500K mortgage reduces monthly payments by approximately $250/month compared to 25 years.
4. Insured Mortgage Cap Raised to $1.5 Million
Previously $1M — buyers can now put less than 20% down on homes up to $1.5 million, opening up more of the GTA market to first-time buyers.
5. First Home Savings Account (FHSA)
- Contribute up to $8,000/year (lifetime max $40,000)
- Contributions are tax-deductible (like an RRSP)
- Withdrawals for a home purchase are tax-free (like a TFSA)
- Can be combined with the HBP
6. RRSP Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSP tax-free for a home purchase (up from $35,000). Repay over 15 years starting 2 years after withdrawal.
7. Home Buyers' Amount Tax Credit
Claim $10,000 on your tax return for a $1,500 tax reduction.
8. Ontario Land Transfer Tax Refund
First-time buyers get a refund of up to $4,000 on Ontario land transfer tax. In Toronto, you also get a $4,475 Toronto LTT refund.
Total Potential Savings Example
For a $700,000 new construction home in the GTA:
- HST removal: $91,000
- Federal FTHB rebate: up to $50,000
- Ontario LTT refund: $4,000
- Toronto LTT refund: $4,475 (if in Toronto)
- Home Buyers' Amount: $1,500
- Total: up to $151,000 in savings and rebates
This article provides general information. Eligibility varies. Consult a tax professional or mortgage specialist. Sources: CRA, Ontario Budget 2026, Ratehub.ca.