Quick answer for first-time buyers
- BC first-time buyers can typically save up to $8,000 through the BC Property Transfer Tax exemption on homes priced up to $835,000, with a partial exemption to $860,000.
- Ontario first-time buyers can claim a Land Transfer Tax refund of up to $4,000; Toronto buyers can stack a municipal rebate of up to $4,475 — combined savings up to $8,475.
- Federally, qualifying first-time buyers can use the FHSA ($40,000 lifetime), RRSP HBP ($60,000 per person), HBTC ($1,500 in tax savings), and the new GST/HST rebate that can eliminate GST on new homes up to $1 million.
- The federal First-Time Home Buyer Incentive shared-equity program was discontinued on March 31, 2024.
- Most rebates are claimed at closing through your real estate lawyer or notary; many programs stack on the same purchase.
Why 2026 is a quietly generous year for first-time buyers
Buying your first home in Canada has rarely felt easy, but 2026 is unusually generous for first-time buyers who know where to look. A new federal rebate that can eliminate GST on a new home received Royal Assent in March, Ontario’s spring budget added a temporary HST relief layer, and BC’s higher Property Transfer Tax thresholds are now fully in force. A buyer who plans carefully can typically stack federal, provincial, and municipal incentives on the same purchase. Our first-time home buyer guide covers the broader buying process.
Quick start: pick your path
British Columbia first-time buyer programs in 2026
A first-time home buyer in BC is defined as someone who has never owned a registered interest in a principal residence anywhere in the world at any time — a stricter test than the federal four-year rule.
Property Transfer Tax (PTT) thresholds were raised on April 1, 2024 — our land transfer tax calculator helps estimate your saving. BC also has a separate Newly Built Home Exemption for new construction up to $1.1 million. You generally need 12 months of BC residency before registration (or two BC tax returns in the last six years) and must move in within 92 days.
Ontario and Toronto first-time buyer programs in 2026
Ontario’s first-time buyer LTT refund applies to new and resale homes, claimed at registration through your lawyer with an 18-month window for late claims. Toronto charges a separate Municipal LTT (MLTT) on top of the provincial LTT — which is why first-time buyers there can stack two rebates. Our Toronto housing market guide has more context.
The critical eligibility trap: to claim the full Ontario or Toronto rebate as a couple, both partners must qualify — if your spouse owned a home you lived in together at any point, the rebate is typically lost.
Ontario’s spring 2026 budget, tabled March 26, 2026, also introduced temporary HST relief on new home purchases. Combined with the federal GST rebate, qualifying new construction in Ontario can typically access combined federal and provincial sales tax savings.
Federal incentives every Canadian first-time buyer can use
The First Home Savings Account (FHSA), launched April 2023, combines RRSP and TFSA features: tax-deductible contributions, tax-sheltered growth, tax-free qualifying first-home withdrawals — up to $8,000/year and $40,000 lifetime (see our FHSA vs. RRSP guide). The RRSP Home Buyers’ Plan (HBP) lets you withdraw up to $60,000 tax-free toward a home (up to $120,000 for a couple), repaid over 15 years. The First-Time Home Buyers’ Tax Credit (HBTC) is a non-refundable $10,000 credit worth roughly $1,500, claimed on line 31270.
The federal First-Time Home Buyer GST/HST Rebate, given Royal Assent on March 12, 2026 through Bill C-4, can eliminate GST on qualifying newly built homes priced up to $1 million for eligible first-time buyers, with partial relief phasing out at $1.5 million.
The agreement of purchase and sale must be dated on or after March 20, 2025, and the home must be your primary residence. One critical clarification: the older federal First-Time Home Buyer Incentive (CMHC’s shared-equity loan) was discontinued on March 31, 2024. If you read about a “5% to 10% government down payment loan,” that’s the discontinued program.
BC vs. Ontario at a glance: side-by-side comparison
| Feature | British Columbia | Ontario (incl. Toronto) |
|---|---|---|
| Provincial program | BC Property Transfer Tax exemption | Ontario Land Transfer Tax refund |
| Maximum provincial saving | Up to $8,000 | Up to $4,000 (+ up to $4,475 in Toronto) |
| Full-rebate price ceiling | $500,000 (full PTT waived) | ~$368,000 (full LTT waived) |
| Phase-out ceiling | $860,000 (rebate disappears) | No price cap (refund stays at $4,000) |
| Eligibility test | Never owned a principal residence anywhere | No principal residence in last 4 years (CRA rule) |
| Claim window | At registration via your lawyer/notary | At registration, or up to 18 months after |
| Main eligibility trap | Stricter “never owned” rule + 92-day move-in | Both partners in a couple typically must qualify |
Dollar values are higher in BC; Ontario’s four-year CRA rule means many people who briefly owned a home years ago can re-qualify. Our why work with a broker page explains how Pegasus models incentive stacking.
Step-by-step roadmap to claiming your incentives
Most first-time buyer rebates are claimed at specific moments in the buying process, and missing the window is one of the costliest mistakes a buyer can make. Here is the standard sequence.
- 1Confirm eligibility against both definitions.Check the federal CRA rule (no principal-residence ownership in current year or prior four calendar years) and your province’s stricter rule. Run it on both partners if buying as a couple.
- 2Open a First Home Savings Account early.The $8,000 annual contribution room only counts once an FHSA is opened.
- 3Get a mortgage pre-approval.Knowing your real qualified budget — including the OSFI B-20 stress-test rate — lets you shop in a price tier where rebates pay out. Instant pre-approval takes minutes.
- 4Shop within your incentive-aware budget.Buying $20,000 above a rebate threshold can cost the entire rebate. The BC PTT cliff at $860,000 is a particularly expensive line.
- 5Flag every rebate with your lawyer or notary at offer stage.They apply rebates on the Statement of Adjustments at registration. In Quebec, this is a notary (notaire).
- 6Claim provincial rebates at closing.BC PTT exemption, Ontario LTT refund, and Toronto MLTT rebate are all applied at registration. Ontario allows 18 months for late claims.
- 7Claim federal credits on your tax return.The HBTC goes on line 31270 of your T1. The federal GST rebate is typically credited by the builder at closing.
Common mistakes first-time buyers make with these programs
- Assuming a partner’s prior ownership doesn’t disqualify you. If your spouse owned a home you lived in together, the Ontario and Toronto LTT rebates are typically lost. Same logic applies to the federal GST rebate.
- Confusing the discontinued FTHBI with active programs. The federal First-Time Home Buyer Incentive ended March 31, 2024. Articles still circulate online describing it as available — it isn’t.
- Missing the BC residency and 92-day move-in tests. The PTT exemption requires 12 consecutive months of BC residency or two BC tax returns in the last six years, plus moving in within 92 days.
- Forgetting Ontario’s 18-month refund window. If the LTT refund isn’t applied at registration, you have 18 months to file directly with the Ministry of Finance.
- Buying just above a price threshold. $861,000 in BC sacrifices the full $8,000 PTT exemption. A new build at $1,001,000 partially erodes the federal GST rebate.
For more pre-closing surprises, see hidden costs first-time homebuyers miss in Canada.
How a mortgage broker integrates these incentives into your approval
Different lenders treat FHSA-funded down payments differently, CMHC-insured deals interact with the federal GST rebate timing, and credit unions have different qualifying rules than the big banks. An independent broker shops 50+ lenders and structures the file so stacked rebates don’t create timing problems at closing. Pegasus’s founder, Razi Khan, Founder and Mortgage Broker at Pegasus, has 20+ years handling complex first-time buyer files including blended-eligibility couples and Quebec purchases routed through a notary.
Frequently asked questions about first-time buyer incentives
How much can a first-time home buyer get back in BC in 2026?
How much is the Ontario first-time home buyer land transfer tax refund?
If I’m buying in Toronto, can I get both the provincial and the city rebate?
If my partner already owned a home, do I still qualify as a first-time buyer?
Is the federal First-Time Home Buyer Incentive still available?
Can I use the FHSA and the RRSP Home Buyers Plan on the same home purchase?
What is the new GST rebate for first-time home buyers in Canada?
Do I have to claim these rebates at closing, or can I claim them later?
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About the author
Razi Khan
Founder, CEO & Licensed Mortgage Broker · Pegasus Mortgage Lending · Toronto, Ontario · FSRA Lic # 11479
Razi Khan is the Founder, CEO, and a licensed Mortgage Broker at Pegasus Mortgage Lending Center Inc., based in Toronto. With over 20 years of experience in the Canadian mortgage industry, Razi has personally guided more than 3,000 clients through some of the most complex and high-stakes financial decisions of their lives — from first-time purchases in the GTA to refinancing strategies, alternative lending solutions, and cross-border mortgages for Canadians buying in the United States.
Razi founded Pegasus in October 2008, launching the brokerage at the height of a global financial crisis. He works across the full spectrum of borrower profiles, with particular expertise in complex files including self-employed borrowers, credit-challenged clients, and investors building multi-property portfolios.
Learn more about Razi Khan →Sources & References
- Government of British Columbia — First Time Home Buyers’ Program: www2.gov.bc.ca
- Government of Ontario — Land Transfer Tax Refunds for First-Time Homebuyers: ontario.ca
- Canada Revenue Agency — First-Time Home Buyers’ GST/HST Rebate: canada.ca
- Department of Finance Canada — Bill C-4 Royal Assent (March 12, 2026): canada.ca/finance
- Parliament of Canada — Bill C-4 (45-1) Royal Assent: parl.ca
- CRA — First Home Savings Account (FHSA): canada.ca/FHSA
- CRA — RRSP Home Buyers’ Plan (HBP): canada.ca/HBP
- CMHC — First-Time Home Buyer Incentive (program discontinued March 31, 2024): cmhc-schl.gc.ca