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5 Things First-Time Buyers in Ontario Should Know in 2026

July 2026 · 7 min read

Buying your first home is one of the biggest financial decisions you'll ever make. The good news: Ontario and the federal government offer more programs and incentives than most people realize. Here are five things that could save you tens of thousands of dollars.

1. Stack the FHSA and RRSP Home Buyers' Plan

The First Home Savings Account (FHSA)lets you contribute up to $8,000 per year (lifetime max $40,000) with tax-deductible contributions and tax-free withdrawals for a qualifying home purchase. It's the best of an RRSP and a TFSA combined.

On top of that, the RRSP Home Buyers' Plan (HBP) lets you withdraw up to $60,000 from your RRSP tax-free (as of 2026). Combined, a couple could access up to $200,000 in tax-advantaged savingstoward a down payment. If you haven't opened an FHSA yet, do it now — even if you're a year or two away from buying.

2. Claim the Ontario Land Transfer Tax Rebate

First-time buyers in Ontario are eligible for a land transfer tax rebate of up to $4,000. On a $966,000 home in the GTA, the provincial land transfer tax would be roughly $15,700 - the rebate brings that down to about $11,700. That's real money back in your pocket at closing.

Important: the Ontario rebate requires that you've never owned a home anywhere in the world. This is stricter than the federal programs, which use a four-year lookback. Make sure you qualify before counting on it.

3. Budget for Closing Costs Beyond the Down Payment

This is where most first-time buyers get surprised. Beyond your down payment, budget for:

  • Land transfer tax (after rebate): ~$11,700 on a $966,000 GTA home
  • Legal fees: $1,500–$2,500
  • Home inspection: $400–$600
  • Title insurance: $300–$500
  • Moving costs: $1,000–$3,000
  • Property tax adjustments: varies

A safe rule of thumb: budget 1.5% to 2% of the purchase price for closing costs on top of your down payment.

4. Get Pre-Approved Before You Start Looking

In the current market — where GTA sales are up 10% month-over-month and listings are tightening — sellers don't want to wait around for conditional financing. A pre-approval tells you exactly what you can afford, locks in a rate for 90–120 days, and makes your offer significantly stronger.

Talk to a mortgage broker (not just your bank) — they can shop multiple lenders and often find better rates or terms, especially for first-time buyers with non-traditional income or smaller down payments.

5. Don't Skip the Home Inspection

In competitive markets, some buyers waive inspections to make their offer more attractive. This is risky - especially with older GTA homes where foundation, roof, or knob-and-tube wiring issues can cost $10,000+ to fix.

If you want to be competitive without going in blind, consider a pre-offer inspection. It costs the same ($400-$600) but happens before you submit, so you can make a firm offer with confidence. I can recommend trusted inspectors across the GTA.

The Bottom Line

First-time buyers in Ontario have more tools available in 2026 than ever before — but you need to use them strategically. Stack your FHSA and HBP, claim every rebate, budget properly for closing, get pre-approved early, and protect yourself with an inspection.

Ready to start the conversation? Text me or call (647) 217-4960. I work with first-time buyers across the GTA - no pressure, just a clear plan.