Buying your first home in Canada in 2026? You have access to more government programs and incentives than ever before. Here's a comprehensive guide to every program that can help reduce your costs.
1. First Home Savings Account (FHSA)
Save up to $8,000/year (lifetime max $40,000) in a tax-deductible, tax-free growth account. Withdrawals for a qualifying home purchase are completely tax-free with no repayment required.
2. Home Buyers' Plan (HBP)
Withdraw up to $60,000 from your RRSP for a down payment. The withdrawal is tax-free but must be repaid over 15 years. If your first withdrawal was between January 2022 and December 2025, you get a three-year grace period before repayment begins.
3. 30-Year Insured Mortgage Amortization
First-time buyers purchasing new builds or any home under $1.5 million can now access 30-year mortgage amortizations. This reduces monthly payments significantly compared to the traditional 25-year amortization.
4. GST/HST New Housing Rebate
When buying a new-construction home, you may qualify for a rebate of a portion of the GST or federal part of the HST. The enhanced rebate for first-time buyers can save thousands on qualifying purchases.
5. Ontario Land Transfer Tax Rebate
First-time buyers in Ontario receive a rebate of up to $4,000 on the provincial land transfer tax. This fully covers the LTT on homes up to $368,000 and partially offsets it on more expensive purchases.
6. Toronto Municipal Land Transfer Tax Rebate
If buying in Toronto, first-time buyers also receive a rebate of up to $4,475 on the Toronto municipal land transfer tax. Combined with the Ontario rebate, that's up to $8,475 in savings.
7. First-Time Home Buyers' Tax Credit (HBTC)
A non-refundable federal tax credit of $10,000 (providing up to $1,500 in tax relief) for qualifying first-time buyers.
8. Higher Insured Mortgage Cap ($1.5M)
The insured mortgage cap has been raised from $1M to $1.5 million, meaning you can buy a home up to $1.5M with less than 20% down payment.
Maximizing Your Benefits
The key is to stack these programs. A couple buying their first home could potentially access $200,000+ in combined FHSA and HBP funds, plus save $8,475 in land transfer tax rebates, all while benefiting from 30-year amortization to keep monthly payments manageable.
Calculate your land transfer tax or estimate your mortgage payments to start planning.