By Jarrett Hunter, Realtor® | RE/MAX Your Community Realty

Buying your first home or condo in Toronto is a major financial commitment. Between the down payment, land transfer taxes and closing expenses, it can be difficult to determine exactly how much money you need.

The good news is that eligible first-time homebuyers can take advantage of several government programs that may reduce their purchasing costs. In 2026, these include land transfer tax refunds, new-home GST/HST rebates and tax-supported savings programs.

However, not all of these benefits apply to every property. A buyer purchasing a resale condo in downtown Toronto will have different opportunities than someone buying a newly constructed or pre-construction condominium.

Here is what Toronto first-time homebuyers should understand before making a purchase.

1. Ontario Land Transfer Tax Refund: Up to $4,000

Most buyers purchasing real estate in Ontario must pay provincial land transfer tax. Eligible first-time homebuyers can receive a refund of up to $4,000.

The refund can apply to qualifying resale homes, resale condominiums and newly constructed residential properties.

The amount you receive depends on the land transfer tax payable and your eligibility. If the tax is less than $4,000, the refund cannot exceed the applicable tax.

To qualify, buyers generally must be at least 18 years old, occupy the home as their principal residence within nine months and satisfy the province’s first-time ownership requirements.

One important restriction is that you cannot previously have owned a home, or an interest in a home, anywhere in the world. There are also rules involving a spouse’s previous homeownership and citizenship or permanent residency.

In most cases, your real estate lawyer can arrange the refund when registering the property transfer. Where it is not claimed at registration, there is generally an 18-month application deadline.

Source: Ontario Ministry of Finance — Land Transfer Tax Refunds for First-Time Homebuyers

2. Toronto Municipal Land Transfer Tax Rebate: Up to $4,475

Toronto buyers face an additional expense that purchasers in many other Ontario municipalities do not: the Toronto Municipal Land Transfer Tax.

The City of Toronto provides an additional rebate of up to $4,475 for eligible first-time homebuyers.

This rebate is separate from the Ontario refund. If you qualify for both programs, you can potentially save a combined $8,475.

The Toronto program generally requires the buyer to be at least 18 years old, occupy the property as their principal residence within nine months and meet the first-time ownership criteria.

The City also applies citizenship or permanent residency requirements and rules relating to a spouse’s previous property ownership.

The rebate is available on qualifying newly constructed and resale residential properties within the City of Toronto.

Buyers should remember that a property located elsewhere in the Greater Toronto Area is not necessarily subject to Toronto’s municipal land transfer tax or eligible for the corresponding rebate.

Source: City of Toronto — Municipal Land Transfer Tax Rebate Opportunities

3. Example: First-Time Buyer Savings on a $700,000 Toronto Condo

Consider an eligible first-time homebuyer purchasing a $700,000 resale condo in downtown Toronto.

For this buyer, qualifying for both refunds could mean a savings of $8,475.

That is a meaningful reduction in purchasing costs, although the buyer must still budget for legal expenses, title insurance, condominium-related expenses, closing adjustments and any mortgage-related charges.

For a more detailed breakdown, read my article: What Are the Closing Costs When Buying a Toronto Condo?

4. Federal First-Time Home Buyers’ GST/HST Rebate: Up to $50,000

A major development for first-time homebuyers is the federal GST/HST rebate for qualifying newly constructed or substantially renovated homes.

The federal program can provide relief equal to the GST, or federal portion of the HST, on eligible new homes valued up to $1 million, with a maximum benefit of $50,000.

For new homes valued between $1 million and $1.5 million, the rebate is gradually reduced. At $1.5 million or more, this first-time buyer GST/HST rebate is not available.

For qualifying builder purchases, the federal program generally applies to agreements of purchase and sale entered into on or after March 20, 2025, and before 2031, subject to additional construction, occupancy and transfer deadlines.

The buyer must meet the program’s first-time buyer rules and intend to use the property as their primary place of residence. The buyer must also be the first individual to occupy the newly completed home as a residence.

This means a buyer purchasing an ordinary previously occupied resale condo cannot claim the new first-time buyer GST/HST rebate merely because they have never owned a property before.

The program received Royal Assent in March 2026, and the Canada Revenue Agency is accepting applications.

Source: Canada Revenue Agency — First-Time Home Buyers’ GST/HST Rebate

5. Ontario New-Home HST Relief: Up to $80,000

Ontario also provides first-time homebuyer relief on the provincial portion of HST for qualifying newly constructed or substantially renovated homes.

Under the Ontario first-time home buyers’ rebate, eligible purchasers may recover up to $80,000 of the provincial portion of HST. The program follows the eligibility conditions of the federal first-time buyer GST/HST rebate.

Ontario also introduced a temporary enhanced new housing rebate that is available to qualifying purchasers of new homes intended for use as their own or a qualifying relation’s primary residence, including some purchasers who are not first-time buyers.

For a purchase from a builder, that temporary enhanced program generally applies to qualifying agreements signed between April 1, 2026, and March 31, 2027, subject to construction, completion, closing and other conditions.

These are separate provincial rebate mechanisms. Their benefits overlap, so a buyer cannot simply add multiple $80,000 Ontario rebates together.

As with the federal rebate, the amount available depends on the purchase price, tax payable, applicable program and eligibility. There are important restrictions for properties purchased primarily as rental investments.

If you are considering a pre-construction condo, reviewing the date of your original purchase agreement is essential.

Sources: CRA — GST/HST New Housing Rebate Guide and CRA — Ontario Enhanced New Housing Rebate

6. Can a First-Time Buyer Really Save $130,000 on a New Toronto Condo?

Potentially, yes, but the details matter.

For a qualifying new home valued at $1 million before applicable HST, the federal portion of the 13% Ontario HST is 5%, or $50,000. The provincial portion is 8%, or $80,000.

An eligible first-time purchaser who qualifies for full relief on both portions could therefore receive up to $130,000 in combined GST/HST relief.

One important point is that builders sometimes advertise prices that already account for tax rebates being credited or assigned to the builder.

A rebate that has already been factored into the contract price is not an additional amount the buyer can automatically subtract again.

The agreement of purchase and sale should clearly identify the HST treatment, rebate assignments and the buyer’s responsibility if a rebate is denied or the eligibility requirements are not satisfied.

This is one of the reasons I strongly recommend independent legal review of any pre-construction purchase agreement before committing to the transaction.

7. Why the Definition of First-Time Homebuyer Matters

A detail that is often overlooked is that government programs do not all use exactly the same definition of a first-time buyer.

For Ontario and Toronto land transfer tax refunds, previous ownership of a home anywhere in the world can disqualify a purchaser, subject to the legislation and applicable spousal provisions.

The federal first-time home buyers’ GST/HST rebate uses a different test generally based on whether the buyer, or their spouse or common-law partner, lived in a home they owned during the calendar year of the relevant event or the four preceding calendar years.

This means someone who previously owned a home may be ineligible for land transfer tax refunds but potentially eligible for certain other first-time buyer programs after enough time has passed.

Do not assume that qualifying for one government program means you qualify for all of them.

8. First Home Savings Account (FHSA)

The First Home Savings Account is another valuable program for eligible Canadians planning to purchase their first home.

An FHSA offers tax advantages for qualifying savings and home purchases. Eligible contributions are generally tax-deductible, and qualifying withdrawals for a first home can be tax-free.

The regular annual contribution room is $8,000, with a lifetime contribution limit of $40,000. Your actual available room depends on when you opened your account, previous contributions and the applicable carry-forward rules.

The FHSA is not a direct government rebate. Rather, it is a tax-advantaged savings account that can help a buyer accumulate funds for the down payment and other purchasing expenses.

If you plan to buy a Toronto condo in the next few years, understanding how the FHSA works may be an important part of your savings strategy.

Source: Canada Revenue Agency — First Home Savings Account

9. Home Buyers’ Plan: Using Your RRSP

The federal Home Buyers’ Plan allows eligible individuals to withdraw up to $60,000 from their registered retirement savings plans to purchase or build a qualifying home.

If the withdrawal satisfies the program’s conditions, the funds are not immediately treated as taxable income. However, the Home Buyers’ Plan generally requires the withdrawn amount to be repaid to the RRSP over time.

Under current rules, the temporary repayment deferral has also been extended for qualifying first withdrawals made between 2026 and 2028.

The Home Buyers’ Plan and qualifying FHSA withdrawals can both be used for the same home purchase when the conditions for each program are satisfied.

These programs can help with the funds required to purchase a condo, but they are not the same as direct rebates that reduce the property’s purchase price or land transfer taxes.

Source: Canada Revenue Agency — Home Buyers’ Plan

10. Federal Home Buyers’ Amount Tax Credit

Eligible homebuyers may also be able to claim the federal Home Buyers’ Amount on their income tax return.

This is a non-refundable tax credit based on a maximum eligible claim amount of $10,000.

A non-refundable credit can reduce federal income tax payable, but it does not create a cash refund when there is no applicable tax owing.

The Home Buyers’ Amount generally has its own first-time buyer and occupancy requirements. Buyers should confirm the rules for the tax year in which they acquire the home.

Source: Canada Revenue Agency — Home Buyers’ Amount

Resale Condo or Pre-Construction: Which Rebates Apply?

For many Toronto condo buyers, the most important distinction is whether the property is a typical resale condominium or a newly constructed home.

This comparison is general. A property’s legal classification, actual use, purchase agreement and the buyer’s circumstances can change the applicable treatment.

How Do You Claim First-Time Homebuyer Rebates?

For Ontario and Toronto land transfer tax refunds, the real estate lawyer often handles the claims at the time the property transfer is registered, provided the buyer meets the requirements and supplies the necessary documentation.

The GST/HST new-home rebate process is different. In some qualifying transactions, the builder can credit the applicable rebate to the purchaser and handle the related application. In other circumstances, the buyer must apply through the Canada Revenue Agency.

For a qualifying builder purchase, the federal first-time buyer GST/HST rebate application generally must be submitted within two years after ownership is transferred.

The Ontario enhanced housing rebate has separate administrative requirements, and the timing of processing or payment may vary.

Before purchasing a new condo, have your real estate lawyer confirm who will apply, whether the rebate is being assigned to the builder and what happens if the claim is denied.

My Advice to Toronto First-Time Buyers

After more than 25 years working with Toronto homebuyers, I believe one of the most important steps is understanding the complete financial picture before starting your property search.

Government rebates can make a meaningful difference, but they should not be the only reason to choose one property over another.

For a resale condo, the potential $8,475 land transfer tax savings may reduce your closing expenses. For a newly constructed condo, the GST/HST relief may be considerably larger, but the purchase contract, construction timeline and other expenses deserve careful attention.

I encourage buyers to speak with a mortgage professional and real estate lawyer early in the process, then evaluate properties based on their total costs, building condition, neighbourhood, long-term suitability and resale potential.

A government rebate is beneficial. Purchasing the right property at the right price is still the bigger objective.

Frequently Asked Questions About Toronto First-Time Buyer Rebates

How much can a first-time homebuyer save on land transfer tax in Toronto?

Eligible buyers may qualify for an Ontario refund of up to $4,000 and a Toronto municipal rebate of up to $4,475, for combined savings of up to $8,475.

Are first-time homebuyer rebates available on resale condos?

Yes. Qualifying resale condo buyers can receive the Ontario and Toronto land transfer tax refunds. However, the larger first-time buyer GST/HST rebates generally apply to eligible newly constructed or substantially renovated housing, not ordinary resale condos.

Can a first-time buyer receive $130,000 in HST relief?

Potentially. An eligible buyer of a qualifying new home may receive relief of up to $50,000 on the federal portion of HST and up to $80,000 on the provincial portion. The amount depends on the property value, purchase and construction dates, tax payable and all applicable eligibility requirements.

Do I qualify if I previously owned a home?

It depends on the program. Ontario and Toronto land transfer tax refunds generally disqualify someone who has previously owned a home anywhere in the world. Some federal first-time buyer programs instead use a lookback period based on recent homeownership and occupancy.

Do both spouses need to be first-time homebuyers?

Spousal ownership history can affect eligibility, and the details vary by program. Where purchasers have different eligibility circumstances, a refund may be reduced or unavailable. Have your lawyer or qualified tax adviser review your specific situation.

Can I use my FHSA and RRSP Home Buyers’ Plan together?

Yes, qualifying FHSA withdrawals and Home Buyers’ Plan withdrawals may both be used toward the same eligible home purchase, provided all conditions are satisfied.

Does a first-time buyer still need money for closing costs?

Yes. Even with rebates, buyers may need to pay remaining land transfer taxes, legal fees, title insurance, adjustments and applicable financing expenses. Rebates do not replace the need for a complete cash-to-close budget.

Jarrett Hunter, Realtor® | RE/MAX Your Community Realty | Toronto, Ontario

Information current to October 2026. This article is intended for general educational purposes. Rebate eligibility, tax rules, purchase-agreement requirements and application deadlines vary. Government programs and their administrative rules may change. Consult your real estate lawyer, mortgage professional and qualified tax adviser before relying on any rebate in your purchasing budget.