If you’re a first-time buyer in Canada right now, it can feel like the ground keeps shifting under you. Prices are high, rules keep changing, and every time you search for information you get a different answer about what help actually exists.
If you’re considering a purchase in the next 12 to 18 months, this is for you.
In this article, I’m going to walk through 8 money tools and rules that matter in 2026, explain what each one does in plain language, and point out where it usually helps first-time buyers and where it doesn’t. The point is for you to see what’s actually on the table, use what fits, and ignore the rest, so your money is working as hard as it can.
This is general information based on the rules we have right now. It’s not tax, legal, or mortgage advice. For decisions with your name on them, you’ll still be making final calls with your mortgage professional, your accountant, and your real estate lawyer. My role is to help you ask better questions and see your options clearly, so you can walk into your first purchase with your eyes wide open.
#1 – First Home Savings Account (FHSA)
Let’s start with the First Home Savings Account, built specifically for first-time buyers.
When I bought my first home, this didn’t exist. I wish it did – it would’ve changed how I saved my down payment.
Listen to this, you can contribute up to $8,000 per year, to a lifetime maximum of $40,000. Those contributions are tax-deductible, so they can reduce your income tax bill. When you buy a qualifying first home and meet the conditions, you can withdraw the money tax-free and you don’t have to pay it back.
If you’re a year or two away from buying, this is one of the best places to park your down payment savings: tax break on the way in, and if you qualify, no tax on the way out.
You can also combine money from this account with the RRSP Home Buyers’ Plan on the same purchase, as long as you meet the rules for both.
#2 – RRSP Home Buyers’ Plan (HBP)
Next, the RRSP Home Buyers’ Plan
This program lets you borrow from the money you already have in your RRSP account and use it for your down payment. As of 2024, you can take out up to $60,000 for a qualifying first home. Before that, the limit was $35,000.
The money has to sit in your RRSP account for at least 90 days before you take it out. You don’t pay tax on that money when you withdraw it, as long as you put it back over 15 years. If you miss a year, that year’s amount is added to your taxable income.
If you already have savings in an RRSP account, this program lets you move some of that money into your down payment. Just remember: it’s a loan to yourself, not free money. You still need a clear plan to make the yearly payments so you’re not tightening your budget too much.
You can also use both the First Home Savings Account and the Home Buyers’ Plan on the same purchase, if you qualify for both.
#3 – Land Transfer Tax Rebates (Ontario & Toronto)
The third piece is help with closing costs through land transfer tax rebates.
In Ontario, first-time buyers can get up to $4,000 back on the provincial land transfer tax. In the City of Toronto, on top of that, first-time buyers can get up to $4,475 back on the municipal land transfer tax.
On a home in the $600,000 to $800,000 range, you’re still paying thousands in land transfer tax, but together these rebates can knock roughly $8,000 to $8,500 off the bill if you qualify.
It doesn’t change your purchase price, but for many first-time buyers it’s the difference between “we’re short at closing” and “we can make this work.”
#4 – First-Time Home Buyers’ Tax Credit (Home Buyers’ Amount)
Fourth is the First-Time Home Buyers’ Tax Credit, sometimes called the Home Buyers’ Amount.
This one shows up on your tax return, not at the lawyer’s office. It lets eligible first-time buyers claim $10,000 on their return in the year they buy a qualifying home. At the lowest federal tax rate, that’s up to $1,500 off your federal tax bill.
You don’t see this money on closing day, but when you file your taxes for that year, it helps soften the overall cost of getting in.
#5 – GST/HST New Housing Rebates and New Relief
Number five is GST and HST new housing rebates, plus newer relief for some first-time buyers of new construction.
If you’re looking at a new build or a substantially renovated home that will be your primary residence, there can be extra help on the tax side. Under the existing rules, federal and provincial rebates can return part of the GST or HST you paid, if you meet the conditions.
On top of that, new measures are being introduced to reduce or eliminate the GST and the provincial portion of HST on some qualifying new homes up to certain price points, with the relief phasing out as the price increases.
Here, the details really matter: when you signed the agreement, what the purchase price is, and whether you’ll actually be living in the property. So for new builds, don’t guess — have your lawyer and your accountant run the numbers on that specific project, because between federal and provincial rebates the tax savings can be significant.
#6 – New Insured Mortgage Rules: 30 Years & the $1.5M Cap
The sixth piece is a pair of mortgage rule changes: longer insured amortizations and a higher price cap for insured mortgages.
Late in 2024, the maximum purchase price for an insured mortgage was increased from $1,000,000 to $1,500,000. At the same time, 30-year amortizations became available on insured mortgages for first-time buyers and for insured mortgages on new construction homes, up to that $1.5M ceiling.
The higher cap means more homes in Toronto and the GTA now qualify with less than 20% down and mortgage insurance. The 30-year amortization spreads the payments out, which can meaningfully reduce the monthly cost, but increases how much interest you pay over the life of the loan.
This is where you sit down with your mortgage professional and look at two or three scenarios side by side: 25 years versus 30, different down payment levels, and how the stress test affects what you’re allowed to borrow.
The goal isn’t to max out what you can borrow. The goal is to find a structure you can carry without being constantly on edge.
#7 – How These Tools Can Work Together
Now let’s look at how these tools can work together, and where you need to be careful.
A simple example for a first-time buyer might look like this:
You save inside a First Home Savings Account and get tax deductions on those contributions.
You use the Home Buyers’ Plan to move some RRSP savings into your down payment.
On closing, you apply for the Ontario and Toronto land transfer tax rebates if you qualify.
At tax time, you claim the Home Buyers’ Amount for up to $1,500 off your federal tax.
And if it’s a new build, you and your lawyer and accountant look closely at the GST and HST rebates and the new first-time buyer relief.
That’s a lot of support layered together. Use it to build a purchase that fits your budget and leaves room for life to happen, so the home feels safe and stable over the long term.
#8 – My Role and Your Next Step
Finally, let’s talk about my role in this, and your next step.
My role as your broker is to stay at the centre of this with you. I flag what’s on the board, connect the dots between the programs, the properties, and your timing, and help you decide what deserves your attention now and what can wait.
As things get more real, we start building the right small team around you. You’ll need a mortgage professional to run the financing, an accountant to look at the tax side, and a real estate lawyer to cover the legal side of your purchase and review what you’re signing. If you already have people you trust, we work with them. If you don’t, I can introduce you to professionals I’ve relied on for years, and you decide who feels right.
If you’re in planning mode, you can start by downloading my Complete Buyer’s Guide. It walks you through the process from the first “should we buy?” conversation to keys in your hand.
If you’re facing a real decision — your lease is ending, your family is changing, or you’re staring at a renewal and wondering if it’s time to buy — that’s what my Clarity Call is for. We’ll look at your numbers, your timing, and your options, and you’ll leave with one clear next step that actually fits your life.
In the end, it’s your decision — my job is to make sure you’re not making it in the dark.