Ontario First-Time Buyer Programs in 2026: The FHSA, the Home Buyers' Plan, and the Land Transfer Tax Rebate

For many first-time buyers in Richmond Hill and across York Region, the down payment is only part of the challenge. Closing costs, land transfer tax, legal fees, and inspections add up fast. But several government-backed programs can reduce that burden dramatically — if you know about them before you start house hunting. Here are the three programs I walk first-time buyers through most often.

1. The First Home Savings Account (FHSA)

The FHSA, available since April 2023, is purpose-built for first-time buyers, and it combines the best features of an RRSP and a TFSA. You can contribute up to $8,000 per year, to a lifetime maximum of $40,000. Contributions are tax-deductible, growth inside the account is tax-free, and qualifying withdrawals used to buy your first home come out completely tax-free — with nothing to repay.

A few rules matter. To open an FHSA you must be a Canadian resident aged 18 or older who qualifies as a first-time buyer. Critically, contribution room only starts accumulating in the year you open the account — it is not retroactive to when you turned 18. Unused room of up to $8,000 can be carried forward one year. If you never buy, the balance can be transferred to your RRSP without penalty. If you and your partner each open an FHSA, that is up to $80,000 of tax-advantaged savings between you.

My practical advice: open one as soon as you can, even if you plan to buy two or three years from now. Every year the account sits open is another $8,000 of room you lock in.

2. The Home Buyers' Plan (HBP)

If you already have savings in an RRSP, the Home Buyers' Plan lets you withdraw up to $60,000 per person tax-free toward your first home. A couple buying together can access up to $120,000 combined. Unlike the FHSA, the HBP is not free money — you repay it to your RRSP over 15 years, with repayments beginning in the fifth year after the withdrawal.

Two cautions worth knowing. Contributions made to your RRSP within 90 days before an HBP withdrawal generally cannot be deducted, so last-minute RRSP stuffing right before closing may not give you the tax break you expect. And because the withdrawal reduces your retirement investments during the repayment period, it deserves a conversation with your financial advisor, not just your realtor.

The good news: the FHSA and the HBP are separate programs, and you can use them together. Between a maxed FHSA ($40,000) and an HBP withdrawal ($60,000), one person can assemble up to $100,000 of tax-advantaged down payment. Time the sequence of withdrawals carefully, because the order affects your taxes and your repayment schedule.

3. Ontario's Land Transfer Tax Rebate

Land transfer tax is one of the largest closing costs buyers face in Ontario, and it must be paid in cash at closing — it cannot be added to your mortgage. Eligible first-time buyers can claim a refund of up to $4,000. For homes priced at $368,000 or below, the rebate can wipe out the provincial tax entirely; on higher-priced homes, the $4,000 applies as a direct discount. Your lawyer typically claims it at closing, so the savings are immediate.

Eligibility is strict: you must be 18 or older, occupy the home as your principal residence within nine months, and never have owned an eligible home anywhere in the world. Note that this program's definition of "first-time" does not reset the way some federal programs' four-year look-back rules do.

One point of local relevance: the City of Toronto charges its own municipal land transfer tax, but Richmond Hill, Markham, Vaughan, Aurora, and Newmarket do not — here in York Region you pay the provincial tax only.

Putting It All Together

These programs reward early planning. Open your FHSA now, keep your RRSP contributions timely if you intend to use the HBP, confirm your land transfer tax rebate with your lawyer before closing, and get pre-approved before you start looking. In a competitive market, knowing exactly how much you can put down — and what programs back it — can be the difference between winning an offer and watching it slip away.

Thinking about buying your first home in Richmond Hill or York Region? Contact the M2Team at Right At Home Realty for a no-obligation consultation — we'll review your budget, your timeline, and how these programs fit your plan.

Sources for program details: CRA First Home Savings Account rules (September 2026); Ontario Ministry of Finance land transfer tax refund rules; federal Home Buyers' Plan guidelines. Program rules can change — confirm current eligibility with your financial advisor and lawyer before relying on them.