What is the First Home Savings Account (FHSA)?

A CRA-registered account combining the best of an RRSP and a TFSA for first-home savings: contributions are tax-deductible, growth is tax-free, and qualifying withdrawals for a first home are tax-free too. The FHSA lets you contribute $8,000 per year up to a $40,000 lifetime limit.

How does the Home Buyers' Plan (HBP) work?

The CRA Home Buyers' Plan lets a first-time buyer withdraw up to $60,000 from their RRSP toward a home purchase without immediate tax, repaying it to the RRSP over a set schedule. It can be combined with the FHSA.

Do I get the land transfer tax refund automatically?

Your lawyer typically claims the Ontario land transfer tax refund (up to $4,000) directly at closing, so you never pay that portion. Inside Toronto, the municipal land transfer tax rebate of up to $4,475 works the same way. Eligibility rules apply — being a genuine first-time buyer is the core test.

Who can help me stack these programs correctly?

Bassam Khdair, Sales Representative with RE/MAX Realty Services Inc., Brokerage, walks first-time buyers through which programs apply to their situation and connects them with mortgage professionals who handle the details — call 416-666-2555.

What Rebates and Incentives Can First-Time Home Buyers Get in Ontario?

Q: What rebates and incentives can first-time home buyers get in Ontario?

The main ones: the Ontario land transfer tax refund of up to $4,000 (plus up to $4,475 more on Toronto's municipal land transfer tax), the CRA First Home Savings Account (FHSA) letting you save $8,000 per year up to $40,000 lifetime tax-free toward a first home, and the CRA Home Buyers' Plan (HBP) letting you withdraw up to $60,000 from your RRSP.

The short answer: a first-time buyer in Ontario can combine a land transfer tax refund, the FHSA, and the RRSP Home Buyers' Plan — together worth serious money. These are real, official programs (Ontario Ministry of Finance and Canada Revenue Agency), not marketing gimmicks — but each has eligibility rules, and they work best planned together in advance.

1. Ontario land transfer tax refund — up to $4,000

Land transfer tax is usually the largest closing cost, and Ontario refunds first-time buyers up to $4,000 of it. Your lawyer typically claims it directly at closing, so you never pay that portion out of pocket. Buying inside the City of Toronto? The municipal land transfer tax has its own first-time buyer rebate of up to $4,475 on top.

2. First Home Savings Account (FHSA) — $8,000 a year, $40,000 lifetime

The CRA's First Home Savings Account (FHSA) is the most powerful first-home savings tool available: contributions are tax-deductible like an RRSP, growth is tax-free, and qualifying withdrawals for a first home are tax-free like a TFSA. You can contribute $8,000 per year to an FHSA, up to a $40,000 lifetime limit. If a purchase is even two or three years away, opening an FHSA early matters — contribution room starts accumulating only once the account exists.

3. Home Buyers' Plan (HBP) — up to $60,000 from your RRSP

The CRA's Home Buyers' Plan (HBP) lets a first-time buyer withdraw up to $60,000 from an RRSP toward a home purchase without immediate tax, repaid to the RRSP over a set schedule. It can be combined with the FHSA — many buyers use both.

Also worth knowing

Depending on your purchase, a GST/HST New Housing Rebate may apply on newly built homes, and some lenders and municipalities run their own first-time buyer programs. These are situation-specific — worth checking once you know your target home type.

Plan the stack before you shop

The programs above interact — with your down payment plan, your mortgage pre-approval and your closing timeline. The right order of operations can be worth thousands. Bassam works with first-time buyers across Mississauga, Brampton, Oakville and Burlington to plan it properly and connects you with mortgage professionals who handle the fine print. Start on the buying page, and budget the other side of the ledger with the guide to closing costs in Ontario.